Hill12e Chapter 04 TB Answer Key PDF

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International Business, 12e (Hill)Chapter 4 Differences in Culture In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist. Answer: FALSE Explanation: In these days of global communications, rapid transportation, worldwide market...

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International Business, 12e (Hill) Chapter 4 Differences in Culture 1) In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist. Answer: FALSE Explanation: In these days of global communications, rapid transportation, worldwide markets, and global brands, when the era of the global village seems just around the corner, it is easy to forget just how different various cultures really are. Underneath the veneer of modernism, deep cultural differences often remain. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation 2) Norms are abstract ideas about what a group believes to be good, right, and desirable. Answer: FALSE Explanation: Norms refer to the social rules and guidelines that prescribe appropriate behavior in particular situations. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation 3) Folkways include rituals and symbolic behavior. Answer: TRUE Explanation: Folkways include rituals and symbolic behavior. Rituals and symbols are the most visible manifestations of a culture and constitute the outward expression of deeper values. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation

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4) Upon meeting a foreign business executive, a Japanese executive will hold his business card in both hands and bow while presenting the card to the foreigner. This is an example of ritual behavior. Answer: TRUE Explanation: Rituals and symbols are the most visible manifestations of a culture and constitute the outward expression of deeper values. For example, upon meeting a foreign business executive, a Japanese executive will hold his business card in both hands and bow while presenting the card to the foreigner. Difficulty: 2 Medium Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Understand AACSB: Diversity Accessibility: Keyboard Navigation 5) The term social strata refers to the extent to which individuals can move out of the strata into which they were born. Answer: FALSE Explanation: All societies are stratified on a hierarchical basis into social categories—that is, into social strata. These strata are typically defined on the basis of characteristics such as family background, occupation, and income. Difficulty: 1 Easy Topic: Social Culture Learning Objective: 04-02 Identify the forces that lead to differences in social culture. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation 6) Education plays an important role, from an international business perspective, as a determinant of national competitive advantage. Answer: TRUE Explanation: From an international business perspective, one important aspect of education is its role as a determinant of national competitive advantage. The availability of a pool of skilled and educated workers seems to be a major determinant of the likely economic success of a country. Difficulty: 1 Easy Topic: Social Culture Learning Objective: 04-02 Identify the forces that lead to differences in social culture. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation

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7) Both Hindus and Buddhists stress the afterlife and spiritual achievement rather than involvement in this world. Answer: TRUE Explanation: Like Hindus, Buddhists stress the afterlife and spiritual achievement rather than involvement in this world. Difficulty: 1 Easy Topic: Elements of Culture Learning Objective: 04-02 Identify the forces that lead to differences in social culture. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation 8) Islam is a polytheistic religion, like Christianity and Judaism. Answer: FALSE Explanation: Like Christianity and Judaism, Islam is a monotheistic religion. The central principle of Islam is that there is but the one true omnipotent God. Difficulty: 1 Easy Topic: Elements of Culture Learning Objective: 04-02 Identify the forces that lead to differences in social culture. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation 9) A caste system is a closed system of stratification in which social position is determined by the family into which the person is born. Answer: TRUE Explanation: A caste system is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime. Difficulty: 1 Easy Topic: Social Culture Learning Objective: 04-02 Identify the forces that lead to differences in social culture. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation

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10) A class system is a rigid form of social stratification in which the position a person has by birth cannot be changed through his or her own achievements or luck. Answer: FALSE Explanation: A class system is a less rigid form of social stratification in which social mobility is possible. It is a form of open stratification in which the position a person has by birth can be changed through his or her own achievements or luck. Difficulty: 1 Easy Topic: Social Culture Learning Objective: 04-02 Identify the forces that lead to differences in social culture. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation 11) An antagonistic relationship between management and labor classes may result in lower costs of production. Answer: FALSE Explanation: An antagonistic relationship between management and labor classes, and the resulting lack of cooperation and high level of industrial disruption, tends to raise the costs of production in countries characterized by significant class divisions. Difficulty: 2 Medium Topic: Social Culture Learning Objective: 04-03 Identify the business and economic implications of differences in culture. Bloom's: Understand AACSB: Communication Accessibility: Keyboard Navigation 12) Max Weber believed that Protestantism encouraged capitalism's development by emphasizing the importance of wealth creation and frugality. Answer: TRUE Explanation: Weber argued that Protestant ethics emphasize the importance of hard work and wealth creation (for the glory of God) and frugality (abstinence from worldly pleasures). According to Weber, this kind of value system was needed to facilitate the development of capitalism. Difficulty: 2 Medium Topic: Economic and Business Implications of Cultural Change Learning Objective: 04-03 Identify the business and economic implications of differences in culture. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 4 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

13) Individualism has led to a high degree of managerial mobility between companies resulting in managers who have good general skills but lack company-specific experience. Answer: TRUE Explanation: The lack of loyalty and commitment to an individual company, and the tendency to move on for a better offer, can result in managers who have good general skills but lack the knowledge, experience, and network of interpersonal contacts that come from years of working within the same company. Difficulty: 2 Medium Topic: Social Culture Learning Objective: 04-03 Identify the business and economic implications of differences in culture. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 14) In countries where the value of group identification is considered to be primary, managers and workers are discouraged from moving from company to company. Answer: TRUE Explanation: The primacy of the value of group identification discourages managers and workers from moving from company to company. Difficulty: 2 Medium Topic: Social Culture Learning Objective: 04-03 Identify the business and economic implications of differences in culture. Bloom's: Understand AACSB: Diversity Accessibility: Keyboard Navigation 15) The mudarabah contract is the most widely used Islamic banking method, because it is the easiest to implement. Answer: FALSE Explanation: The murabaha contract is the most widely used among the world's Islamic banks primarily because it is the easiest to implement. Difficulty: 1 Easy Topic: Elements of Culture Learning Objective: 04-03 Identify the business and economic implications of differences in culture. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation

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16) Max Weber believed that devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants. Answer: TRUE Explanation: Max Weber argued that the ascetic principles embedded in Hinduism do not encourage the kind of entrepreneurial activity in pursuit of wealth creation found in Protestantism. Given the emphasis on an ascetic lifestyle, Weber thought that devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants. Difficulty: 1 Easy Topic: Social Culture Learning Objective: 04-03 Identify the business and economic implications of differences in culture. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation 17) Guanxi is an important mechanism for building long-term business relationships and getting business done in China. Answer: TRUE Explanation: In a society that lacks a rule-based legal tradition, and thus legal ways of redressing wrongs such as violations of business agreements, guanxi is an important mechanism for building long-term business relationships and getting business done in China. Difficulty: 1 Easy Topic: Ethical Issues in International Business Learning Objective: 04-03 Identify the business and economic implications of differences in culture. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation

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18) Hofstede's study found that in masculine cultures, sex roles were less sharply distinguished, and little differentiation was made between men and women in the same job. Answer: FALSE Explanation: Hofstede's masculinity versus femininity dimension looked at the relationship between gender and work roles. In masculine cultures, sex roles were sharply differentiated and traditional "masculine values," such as achievement and the effective exercise of power, determined cultural ideals. Difficulty: 2 Medium Topic: Hofstede's Framework Learning Objective: 04-04 Recognize how differences in social culture influence values in business. Bloom's: Understand AACSB: Diversity Accessibility: Keyboard Navigation 19) Hofstede's research has been criticized because it was culturally bound. Answer: TRUE Explanation: Hofstede's research may have been culturally bound. The research team was composed of Europeans and Americans. Hofstede's results confirm Western stereotypes, because it was Westerners who undertook the research. Difficulty: 1 Easy Topic: Hofstede's Framework Learning Objective: 04-04 Recognize how differences in social culture influence values in business. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation 20) Hofstede's concept of power distance focused on the extent to which different cultures socialized their members into tolerating uncertainty. Answer: FALSE Explanation: Hofstede's power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities. Difficulty: 1 Easy Topic: Hofstede's Framework Learning Objective: 04-04 Recognize how differences in social culture influence values in business. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation

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21) According to Hofstede, the concept of Confucian dynamism captures attitudes toward time, persistence, protection of face, and respect for tradition. Answer: TRUE Explanation: According to Hofstede, Confucian dynamism captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. The label refers to these "values" being derived from Confucian teachings. Difficulty: 1 Easy Topic: Hofstede's Framework Learning Objective: 04-04 Recognize how differences in social culture influence values in business. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation 22) The convergence hypothesis states that there is a slow but steady merging occurring across different cultures toward some universally accepted values and norms. Answer: TRUE Explanation: With regard to globalization, some have argued that advances in transportation and communication technologies are helping to create conditions for the merging or convergence of cultures. There may be, in other words, a slow but steady convergence occurring across different cultures toward some universally accepted values and norms: This is known as the convergence hypothesis. Difficulty: 1 Easy Topic: Economic and Business Implications of Cultural Change Learning Objective: 04-05 Demonstrate an appreciation for the economic and business implications of cultural change. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation

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23) International businesses that are ill-informed about the practices of another culture are likely to fail. Answer: TRUE Explanation: International businesses that are ill-informed about the practices of another culture are likely to fail. Doing business in different cultures requires adaptation to conform to the value systems and norms of that culture. Difficulty: 1 Easy Topic: The Nature of Cross-Cultural Risk Learning Objective: 04-05 Demonstrate an appreciation for the economic and business implications of cultural change. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation 24) The value systems and norms of a country are unrelated to the costs of doing business in that country. Answer: FALSE Explanation: The value systems and norms of a country influence the costs of doing business in that country. The costs of doing business in a country influence the ability of firms to establish a competitive advantage in the global marketplace. Difficulty: 1 Easy Topic: The Nature of Cross-Cultural Risk Learning Objective: 04-05 Demonstrate an appreciation for the economic and business implications of cultural change. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation 25) Because of its individualistic mind-set, Japanese culture is more supportive of entrepreneurial activities than American culture. Answer: FALSE Explanation: It has been argued that the Japanese culture is less supportive of entrepreneurial activities than, say, American culture. In many ways, entrepreneurial activity is a product of an individualistic mind-set, which is not a classic characteristic of the Japanese. Difficulty: 1 Easy Topic: The Nature of Cross-Cultural Risk Learning Objective: 04-05 Demonstrate an appreciation for the economic and business implications of cultural change. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation 9 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

26) Culture is A) static. B) not static. C) unchanging. D) abstract. Answer: B Explanation: Culture is not static. It can and does evolve, although the rate at which culture can change is the subject of some dispute. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation 27) The term ________ refers to a group of people sharing a common set of values and norms. A) mores B) society C) culture D) folkway Answer: B Explanation: The term society refers to a group of people sharing a common set of values and norms. While a society may be equivalent to a country, some countries harbor several societies or subcultures (i.e., they support multiple cultures), and some societies embrace more than one country and are often viewed as culturally being a part of one society for the purpose of a multinational corporation engaging in that marketplace. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Remember AACSB: Knowledge Application Accessibility: Keyboard Navigation

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28) Cross-cultural literacy refers to A) an individual's self-concept derived from perceived membership in a relevant social group. B) the phenomenon of merging and converging cultures. C) abstract ideas about what a group believes to be good, right, and desirable. D) an understanding of how cultural differences can affect business. Answer: D Explanation: Cross-cultural literacy refers to an understanding of how cultural differences across and within nations can affect the way business is practiced. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Remember AACSB: Diversity Accessibility: Keyboard Navigation 29) ________ include such factors as indictments against theft, adultery, incest, and cannibalism. A) Norms B) Folkways C) Mores D) Values Answer: C Explanation: Mores include such factors as indictments against theft, adultery, incest, and cannibalism. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Understand AACSB: Knowledge Application Accessibility: Keyboard Navigation

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30) ________ is/are best defined as shared assumptions about how things ought to be. A) Norms B) Values C) Society D) Culture Answer: B Explanation: Values refer to abstract ideas about what a group believes to be good, right, and desirable. Put differently, values are shared assumptions about how things ought to be. Difficulty: 1 Easy Topic: What Is Culture? Learning Objective: 04-01 Explain what is meant by the culture of a society. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation 31) The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines A) society. B) value systems. C) principles. D) culture. Answer: D Explanation: Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living. Difficulty: ...