ch3

ch3Student: ___________________________________________________________________________

1. In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist. True False

2. Culture is static.

True False

3. Values are abstract ideas about what a group believes to be right, good, and desirable.

True False

4. A society is another name for a country.

True False

5. A country is defined as a system of values and norms that are shared among a group of people and that

when taken together constitute a design for living. True False

6. People who violate folkways are considered to be evil or bad.

True False

7. Folkways include rituals and symbolic behavior.

True False

8. The bow that is given by a Japanese business executive to another business executive is an example of

symbolic behavior. True False

9. Mores have much greater significance than folkways.

True False

10. If a country is characterized as having a single homogenous culture, then its national culture also is

homogenous and not a mosaic of subcultures. True False

11. The values and norms of a culture are evolutionary.

True False

12. A society's social structure refers to its basic social organization. True False

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. True False

14. The emphasis on individualism in the United States may raise the costs of doing business due to its adverse

impact on managerial stability and cooperation. True False

15. The group is the primary unit of organization in Western societies.

True False

16. As demonstrated by Japan, the primacy of the group is always beneficial.

True False

17. The term social strata refers to the extent to which individuals can move out of the strata into which they

were born. True False

18. The most rigid system of stratification is a class system.

True False

19. A caste system is a closed system of stratification in which social position is determined by the family into

which the person is born. True False

20. A class system is a rigid form of social stratification in which the position a person has by birth cannot be

changed through his/her own achievements or luck. True False

21. Historically, upward mobility could be achieved in a single generation in Britain.

True False

22. China's Communist rule strengthened class divisions.

True False

23. An antagonistic relationship between management and labor classes may result in higher costs of

production. True False

24. Confucianism can be accurately characterized as a religion. True False

25. Several sociologists have argued that of the three main branches of Christianity—Catholic, Orthodox, and

Protestant—the latter has the most important economic implications. True False

26. Muslim countries are likely to be receptive to international business as long as those businesses behave in a

manner that is consistent with Islamic ethics. True False

27. The protection of the right to private property is embedded within Islam.

True False

28. A mudarabah contract banking method of Islamic banks is similar to a profit-sharing scheme.

True False

29. Unlike Hinduism, Buddhism does not support the caste system.

True False

30. Guanxi is an important mechanism for building long-term business relationships and getting business done

in China. True False

31. Since English is often thought of as the global language of business, it is not important for an American

business executive to learn foreign languages. True False

32. Unspoken language refers to nonverbal communication.

True False

33. Hofstede's power distance dimension focused on how a society deals with the fact that people are unequal

in physical and intellectual capabilities. True False

34. Members of high uncertainty avoidance cultures were characterized by a greater readiness to take risks and

less emotional resistance to change. True False

35. There is a one-to-one correspondence between culture and the nation-state.

True False

36. Culture is a constant; it does not evolve over time. True False

37. During the past decade, countries with high individualism and low Confucian dynamics such as the United

States have attained high growth rates. True False

38. People who take food or safety for granted tend to be xenophobic, are wary of political activity, have

authoritarian tendencies, and believe that men make better political leaders than women. True False

39. American culture has changed and it is easier now for women to gain senior management positions than

men. True False

40. Cultural change is unidirectional, with national cultures converging toward some homogenous global

entity. True False

41. During the 1960s and 1970s, class divisions in _____ raised the cost of doing business there, relative to

other European countries. A. Great BritainB. SwitzerlandC. NorwayD. Germany

42. Which of the following is not true regarding culture?

A. Culture is staticB. Culture is evolvingC. It is a system of values and norms that are shared among a group of peopleD. It involves the knowledge and beliefs of people

43. _____ is/are best defined as shared assumptions about how things ought to be.

A. NormsB. ValuesC. SocietyD. Culture

44. 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.

45. Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as: A. norms.B. values.C. culture.D. society.

46. A group of people who share a common set of values and norms form a:

A. culture.B. society.C. country.D. caste.

47. _____ are the routine conventions of everyday life.

A. FolkwaysB. MoresC. RitesD. Beliefs

48. _____ are social conventions concerning things such as the appropriate dress code in a particular situation,

good social manners, eating with the correct utensils, neighborly behavior, and the like. A. ValuesB. BeliefsC. MoresD. Folkways

49. An act, as simple as shaking hands when meeting new people is an example of:

A. values.B. symbolic behavior.C. mores.D. social stratification.

50. A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of:

A. mores.B. values.C. attitudes.D. folkways.

51. Mores are:

A. the norms that are seen as central to the functioning of a society and its social life.B. the routine conventions of everyday life.C. abstract ideas about what a group believes to be right, good, and desirable.D. the social rules and guidelines that prescribe appropriate behavior in particular situations.

52. Which of the following statements about values and norms of a culture is not true? A. The values and norms of a society do not emerge fully formedB. They are the evolutionary product of a number of factorsC. They are influenced by religionD. They do not influence social structure

53. The social organization of Western society tends to emphasize on:

A. a group orientation.B. the family.C. individual achievement.D. work groups.

54. The emphasis on individualism in the United States results in all of the following disadvantages except:

A. managers tend to develop good general skills but lack the company-specific experience.B. difficulty in building teams within an organization to perform collective tasks.C. executives are not exposed to different ways of doing business.D. difficulty to achieve cooperation both within a company and between companies.

55. A central value of Japanese culture is the importance attached to:

A. the individual.B. group membership.C. individual achievement.D. personal accomplishments.

56. It has been argued that the success of Japanese enterprises in the global economy has been based partly on

all of the following except: A. the diffusion of self-managing work teams.B. the close cooperation among different functions within Japanese companies.C. the high degree of managerial mobility between companies.D. the cooperation between a company and its suppliers on issues such as design, quality control, and

inventory reduction. 57. Which of the following refers to the extent to which individuals can move out of the strata into which they

are born? A. Caste stratificationB. Class systemC. Social mobilityD. Individual potential

58. A _____ 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. A. caste systemB. class systemC. social systemD. culture system

59. This is a less rigid form of social stratification in which social mobility is possible. A. Social systemB. Caste systemC. Cultural systemD. Class system

60. These strata are typically defined on the basis of characteristics such as family background, occupation, and

income. A. Demographic strataB. Economic strataC. Social strataD. Cultural strata

61. A class system:

A. is the same as a caste system.B. is a rigid form of social stratification that does not permit social mobility.C. allows an individual to change his/her position via personal achievements.D. is more rigid than the caste system.

62. A condition where people tend to perceive themselves in terms of their class background and this shapes

their relationships with members of other classes is known as: A. economic classification.B. social mobility.C. class mobility.D. class consciousness.

63. In China, class divisions:

A. have historically been of no importance.B. were strengthened during the high point of Communist rule.C. increased even during reforms of the late 1970s and early 1980s.D. were weakened because of a rigid system of household registration.

64. The emergence of class consciousness in Great Britain can be attributed to:

A. the relative lack of class mobility.B. a high degree of social mobility.C. an extreme emphasis on individualism.D. most of the population perceiving itself to be middle class.

65. Ethical systems are:

A. a set of moral principles, or values, that are used to guide and shape behavior.B. shared beliefs and rituals that are concerned with the realm of the sacred.C. routine conventions of everyday life.D. social rules that govern peoples' actions toward each other.

66. Religion may be defined as: A. routine conventions of everyday life.B. social rules that govern peoples' actions toward each other.C. shared beliefs and rituals that are concerned with the realm of the sacred.D. a set of moral principles, or values, that are used to guide and shape behavior.

67. According to sociologists, which of the following branches of Christianity has the most important

economic implications? A. CatholicB. OrthodoxC. ProtestantD. Mormon

68. Which of the following observations is correct?

A. None of the economic principles established in the Koran are pro-free enterprise.B. The Koran speaks approvingly of free enterprise.C. The Koran speaks disapprovingly of earning legitimate profit through trade and commerce.D. Protection of the right to private property is not embedded within Islam.

69. According to Islam, those who hold property are regarded as:

A. trustees.B. owners.C. tenants.D. speculators.

70. This is an Islamic banking method where banks lend money to a business, and rather than charging that

business interest on the loan, they take a share in the profits that are derived from the investment. A. MudarabahB. MurabahaC. MaysirD. Mudarib

71. Which Islamic banking method is the most widely used among the world's Islamic banks, primarily

because it is the easiest to implement? A. MudaribB. MurabahaC. MaysirD. Mudarabah

72. According to Max Weber:

A. principles embedded in Hinduism encourage high levels of entrepreneurial activity.B. Hindu values emphasize that individuals should be judged by their material achievements.C. pursuit of material well-being makes the attainment of nirvana easier.D. devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants.

73. Three values central to the Confucian system of ethics have very important economic implications. Which of the following is not one among them? A. LoyaltyB. Rule-based lawC. Reciprocal obligationsD. Honesty in dealings with others

74. Which of the following statements about the use of spoken language is false?

A. The nature of a language structures the way we perceive the world.B. The language of a society can direct the attention of its members to certain features of the world rather

than others.C. Countries with more than one language often have more than one culture.D. Most people prefer to converse in English rather than their own language.

75. The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal

in physical and intellectual capabilities. A. power distanceB. individualism vs. collectivismC. uncertainty avoidanceD. masculinity vs. femininity

76. The individualism vs. collectivism dimension of Hofstede's study explored:

A. the extent to which different cultures socialized their members into accepting ambiguous situations and

tolerating uncertainty.B. the relationship between gender and work roles.C. how a society deals with the fact that people are unequal in physical and intellectual capabilities.D. the relationship between the individual and his/her fellows.

77. Hofstede's uncertainty avoidance dimension considered:


tolerating uncertainty.B. the relationship between gender and work roles.C. how a society deals with the fact that people are unequal in physical and intellectual capabilities.D. the relationship between the individual and his or her fellows.

78. Hofstede's masculinity vs. femininity dimension examined:


tolerating uncertainty.B. the relationship between gender and work roles.C. how a society deals with the fact that people are unequal in physical and intellectual capabilities.D. the relationship between the individual and his or her fellows.

79. Hofstede's dimension of Confucian dynamism: A.

captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.

B. focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities.

C. explores the relationship between the individual and his/her fellows.D. looks at the relationship between gender and the ability to accept ambiguous situations.

80. The belief in the superiority of one's own culture is known as:

A. ethnocentrism.B. egocentrism.C. polycentrism.D. theocentricism.

81. Explain the role of values and norms in culture.

82. Compare and contrast folkways and mores.

83. Discuss the relationship between society and the nation-state.

84. What are the determinants of culture?

85. Discuss the effect of the emphasis on individual performance that exists in many Western societies.

86. Explain the concept of social stratification.

87. What is the difference between a caste system and a class system?

88. Discuss why the stratification of a society is important to business.

89. What is the connection between religion and ethical systems?

90. Discuss the ideas of Max Weber. What is the Protestant work ethic? Why is it important to the world

economy?

91. Explain how the Koran views business.

92. What are the economic implications of Hinduism?

93. Consider the influence of Confucian ethics on the economies of China, Japan, South Korea, and Taiwan.

94. Discuss the spoken language. Which is the most spoken language in the world? What language is used in business? Is it important to learn a foreign language?

95. Consider the importance of unspoken language. Why is it important to be familiar with the unspoken

language of another culture?

96. Why is the role of education in a culture important to international companies?

97. Describe the four dimensions of culture as identified by Geert Hofstede.

98. Discuss the limitations of Hofstede's research.

99. Discuss Confucian dynamism. Explore the debate over whether Confucian dynamism is good for an economy.

100.Economic advancement and globalization are prompting societal change. Discuss this statement.

ch3 Key

1.(p. 88)

In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist. FALSE

AACSB: Diversity Understanding

Bloom's: KnowledgeDifficulty: Medium

Hill - Chapter 03 #1Learning Objective: 03-1

2.(p. 88)

Culture is static. FALSE




3.(p. 89)

Values are abstract ideas about what a group believes to be right, good, and desirable. TRUE


Bloom's: KnowledgeDifficulty: Easy


4.(p. 89)

A society is another name for a country. FALSE




5.(p. 89)

A country is defined as a system of values and norms that are shared among a group of people and that when taken together constitute a design for living. FALSE




6.(p. 89)

People who violate folkways are considered to be evil or bad. FALSE


Bloom's: ComprehensionDifficulty: Medium


7.(p. 90)

Folkways include rituals and symbolic behavior. TRUE




8.(p. 90)

The bow that is given by a Japanese business executive to another business executive is an example of symbolic behavior. TRUE


Bloom's: ApplicationDifficulty: Medium


9.(p. 90)

Mores have much greater significance than folkways. TRUE




10.(p. 91)

If a country is characterized as having a single homogenous culture, then its national culture also is homogenous and not a mosaic of subcultures. FALSE




11.(p. 91)

The values and norms of a culture are evolutionary. TRUE




12.(p. 92)

A society's social structure refers to its basic social organization. TRUE




13.(p. 92)

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. TRUE




14.(p. 93)

The emphasis on individualism in the United States may raise the costs of doing business due to its adverse impact on managerial stability and cooperation. TRUE




15.(p. 93)

The group is the primary unit of organization in Western societies. FALSE




16.(p. 93)

As demonstrated by Japan, the primacy of the group is always beneficial. FALSE




17.(p. 94)

The term social strata refers to the extent to which individuals can move out of the strata into which they were born. FALSE




18.(p. 94)

The most rigid system of stratification is a class system. FALSE




19.(p. 94)

A caste system is a closed system of stratification in which social position is determined by the family into which the person is born. TRUE




20.(p. 94)

A class system is a rigid form of social stratification in which the position a person has by birth cannot be changed through his/her own achievements or luck. FALSE




21.(p. 95)

Historically, upward mobility could be achieved in a single generation in Britain. FALSE




22.(p. 96)

China's Communist rule strengthened class divisions. TRUE




23.(p. 96)

An antagonistic relationship between management and labor classes may result in higher costs of production. TRUE




24.(p. 97)

Confucianism can be accurately characterized as a religion. FALSE


Bloom's: ComprehensionDifficulty: Hard


25.(p. 97)

Several sociologists have argued that of the three main branches of Christianity—Catholic, Orthodox, and Protestant—the latter has the most important economic implications. TRUE




26.(p. 101)

Muslim countries are likely to be receptive to international business as long as those businesses behave in a manner that is consistent with Islamic ethics. TRUE

AACSB: Ethics



27.(p. 101)

The protection of the right to private property is embedded within Islam. TRUE




28.(p. 103)

A mudarabah contract banking method of Islamic banks is similar to a profit-sharing scheme. TRUE




29.(p. 104)

Unlike Hinduism, Buddhism does not support the caste system. TRUE




30.(p. 105)

Guanxi is an important mechanism for building long-term business relationships and getting business done in China. TRUE




31.(p. 107)

Since English is often thought of as the global language of business, it is not important for an American business executive to learn foreign languages. FALSE




32.(p. 108)

Unspoken language refers to nonverbal communication. TRUE




33.(p. 109)

Hofstede's power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities. TRUE




34.(p. 109)

Members of high uncertainty avoidance cultures were characterized by a greater readiness to take risks and less emotional resistance to change. FALSE




35.(p. 111)

There is a one-to-one correspondence between culture and the nation-state. FALSE




36.(p. 111)

Culture is a constant; it does not evolve over time. FALSE




37.(p. 111)

During the past decade, countries with high individualism and low Confucian dynamics such as the United States have attained high growth rates. TRUE




38.(p. 112)

People who take food or safety for granted tend to be xenophobic, are wary of political activity, have authoritarian tendencies, and believe that men make better political leaders than women. FALSE




39.(p. 112)

American culture has changed and it is easier now for women to gain senior management positions than men. FALSE




40.(p. 113)

Cultural change is unidirectional, with national cultures converging toward some homogenous global entity. FALSE




41.(p. 88)

During the 1960s and 1970s, class divisions in _____ raised the cost of doing business there, relative to other European countries. A. Great BritainB. SwitzerlandC. NorwayD. Germany

Class divisions led to a high level of industrial disputes in Great Britain during the 1960s and 1970s and raised the costs of doing business relative to the costs in countries such as Switzerland, Norway, Germany, or Japan, where class conflict was historically less prevalent.


Bloom's: KnowledgeDifficulty: Hard


42.(p. 88)

Which of the following is not true regarding culture? A. Culture is staticB. Culture is evolvingC. It is a system of values and norms that are shared among a group of peopleD. It involves the knowledge and beliefs of people

Culture is not static. It can and does evolve, although the rate at which culture can change is the subject of some dispute.




43.(p. 89)

_____ is/are best defined as shared assumptions about how things ought to be. A. NormsB. ValuesC. SocietyD. Culture

Values imply abstract ideas about what a group believes to be good, right, and desirable.




44.(p. 89)

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.

Culture is a system of ideas that constitute a design for living.




45.(p. 89)

Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as: A. norms.B. values.C. culture.D. society.

Norms are the social rules that govern people's actions toward one another.




46.(p. 89)

A group of people who share a common set of values and norms form a: A. culture.B. society.C. country.D. caste.

A society is defined as people who are bound together by a common culture.




47.(p. 89)

_____ are the routine conventions of everyday life. A. FolkwaysB. MoresC. RitesD. Beliefs

Folkways define the way people are expected to behave.




48.(p. 89)

_____ are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like. A. ValuesB. BeliefsC. MoresD. Folkways

Folkways are the routine conventions of everyday life.




49.(p. 90)

An act, as simple as shaking hands when meeting new people is an example of: A. values.B. symbolic behavior.C. mores.D. social stratification.

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.




50.(p. 90)

A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of: A. mores.B. values.C. attitudes.D. folkways.

Folkways are the routine conventions of everyday life.




51.(p. 90)

Mores are: A. the norms that are seen as central to the functioning of a society and its social life.B. the routine conventions of everyday life.C. abstract ideas about what a group believes to be right, good, and desirable.D. the social rules and guidelines that prescribe appropriate behavior in particular situations.

Mores are norms that are seen as central to the functioning of a society and its social life. They have much greater significance than folkways.




52.(p. 91)

Which of the following statements about values and norms of a culture is not true? A. The values and norms of a society do not emerge fully formedB. They are the evolutionary product of a number of factorsC. They are influenced by religionD. They do not influence social structure

While factors such as social structure and religion clearly influence the values and norms of a society, the values and norms of a society can influence social structure and religion.




53.(p. 92)

The social organization of Western society tends to emphasize on: A. a group orientation.B. the family.C. individual achievement.D. work groups.

In many Western societies, the individual is the basic building block of social organization, which is reflected not just in the political and economic organization of society but also in the way people perceive themselves and relate to each other in social and business settings. The value systems of many Western societies, for example, emphasize individual achievement.




54.(p. 92)

The emphasis on individualism in the United States results in all of the following disadvantages except: A. managers tend to develop good general skills but lack the company-specific experience.B. difficulty in building teams within an organization to perform collective tasks.C. executives are not exposed to different ways of doing business.D. difficulty to achieve cooperation both within a company and between companies.

One positive aspect of high managerial mobility is that executives are exposed to different ways of doing business.




55.(p. 93)

A central value of Japanese culture is the importance attached to: A. the individual.B. group membership.C. individual achievement.D. personal accomplishments.

One central value of Japanese culture is the importance attached to group membership. Strong identification with the group is argued to create pressures for mutual self-help and collective action.




56.(p. 93)

It has been argued that the success of Japanese enterprises in the global economy has been based partly on all of the following except: A. the diffusion of self-managing work teams.B. the close cooperation among different functions within Japanese companies.C. the high degree of managerial mobility between companies.D. the cooperation between a company and its suppliers on issues such as design, quality control, and

inventory reduction.

It has been argued that the success of Japanese enterprises in the global economy has been based partly on their ability to achieve close cooperation between individuals within a company and between companies. This has found expression in the widespread diffusion of self-managing work teams within Japanese organizations, the close cooperation among different functions within Japanese companies, and the cooperation between a company and its suppliers.




57.(p. 94)

Which of the following refers to the extent to which individuals can move out of the strata into which they are born? A. Caste stratificationB. Class systemC. Social mobilityD. Individual potential

The term social mobility refers to the extent to which individuals can move out of the strata into which they are born. Social mobility varies significantly from society to society.




58.(p. 94)

A _____ 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. A. caste systemB. class systemC. social systemD. culture system

The most rigid system of stratification is a caste system. Often a caste position carries with it a specific occupation.




59.(p. 94)

This is a less rigid form of social stratification in which social mobility is possible. A. Social systemB. Caste systemC. Cultural systemD. Class system

The class system is a form of open stratification in which the position a person has by birth can be changed through his/her own achievements or luck.




60.(p. 94)

These strata are typically defined on the basis of characteristics such as family background, occupation, and income. A. Demographic strataB. Economic strataC. Social strataD. Cultural strata

All societies are stratified on a hierarchical basis into social categories—that is, into social strata.




61.(p. 94)

A class system: A. is the same as a caste system.B. is a rigid form of social stratification that does not permit social mobility.C. allows an individual to change his/her position via personal achievements.D. is more rigid than the caste system.

The class system is a form of open stratification in which the position a person has by birth can be changed through his/her own achievements or luck.




62.(p. 96)

A condition where people tend to perceive themselves in terms of their class background and this shapes their relationships with members of other classes is known as: A. economic classification.B. social mobility.C. class mobility.D. class consciousness.

The relative lack of class mobility and the differences between classes have resulted in the emergence of class consciousness.




63.(p. 96)

In China, class divisions: A. have historically been of no importance.B. were strengthened during the high point of Communist rule.C. increased even during reforms of the late 1970s and early 1980s.D. were weakened because of a rigid system of household registration.

Class division was strengthened during the high point of Communist rule because of a rigid system of household registration that restricted most Chinese to the place of their birth for their lifetime.




64.(p. 96)

The emergence of class consciousness in Great Britain can be attributed to: A. the relative lack of class mobility.B. a high degree of social mobility.C. an extreme emphasis on individualism.D. most of the population perceiving itself to be middle class.

From a business perspective, the stratification of a society is significant if it affects the operation of business organizations. In Great Britain, the relative lack of class mobility and the differences between classes have resulted in the emergence of class consciousness. Class consciousness has been played out in British society in the traditional hostility between upper-middle-class managers and their working-class employees.




65.(p. 97)

Ethical systems are: A. a set of moral principles, or values, that are used to guide and shape behavior.B. shared beliefs and rituals that are concerned with the realm of the sacred.C. routine conventions of everyday life.D. social rules that govern peoples' actions toward each other.

Ethical systems refer to a set of moral principles, or values, that are used to guide and shape behavior. Most of the world's ethical systems are the product of religions.

AACSB: Ethical Understanding/Reasoning Abilities



66.(p. 97)

Religion may be defined as: A. routine conventions of everyday life.B. social rules that govern peoples' actions toward each other.C. shared beliefs and rituals that are concerned with the realm of the sacred.D. a set of moral principles, or values, that are used to guide and shape behavior.

Religion may be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred.




67.(p. 97)

According to sociologists, which of the following branches of Christianity has the most important economic implications? A. CatholicB. OrthodoxC. ProtestantD. Mormon

By breaking away from the hierarchical domination of religious and social life, Protestantism gave individuals more freedom to develop their own relationship with God and this may have paved the way for the emphasis on individual economic freedom and the development of individualism as an economic philosophy.




68.(p. 101)

Which of the following observations is correct? A. None of the economic principles established in the Koran are pro-free enterprise.B. The Koran speaks approvingly of free enterprise.C. The Koran speaks disapprovingly of earning legitimate profit through trade and commerce.D. Protection of the right to private property is not embedded within Islam.

The Koran establishes some explicit economic principles, many of which are pro-free enterprise. The Koran speaks approvingly of free enterprise and of earning legitimate profit through trade and commerce. The protection of the right to private property is also embedded within Islam.




69.(p. 101)

According to Islam, those who hold property are regarded as: A. trustees.B. owners.C. tenants.D. speculators.

Those who hold property are regarded as trustees rather than owners in the Western sense of the word. As trustees they are entitled to receive profits from the property but are admonished to use it in a righteous, socially beneficial, and prudent manner.




70.(p. 103)

This is an Islamic banking method where banks lend money to a business, and rather than charging that business interest on the loan, they take a share in the profits that are derived from the investment. A. MudarabahB. MurabahaC. MaysirD. Mudarib

A mudarabah contract is similar to a profit-sharing scheme.




71.(p. 103)

Which Islamic banking method is the most widely used among the world's Islamic banks, primarily because it is the easiest to implement? A. MudaribB. MurabahaC. MaysirD. Mudarabah

In a murabaha contract, when a firm wishes to purchase something using a loan—let's say a piece of equipment that costs $1,000—the firm tells the bank after having negotiated the price with the equipment manufacturer. The bank then buys the equipment for $1,000, and the borrower buys it back from the bank at some later date for, say, $1,100, a price that includes a $100 markup for the bank.




72.(p. 103)

According to Max Weber: A. principles embedded in Hinduism encourage high levels of entrepreneurial activity.B. Hindu values emphasize that individuals should be judged by their material achievements.C. pursuit of material well-being makes the attainment of nirvana easier.D. devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants.

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. Traditional Hindu values emphasize that individuals should be judged not by their material achievements but by their spiritual achievements. Hindus perceive the pursuit of material well-being as making the attainment of nirvana more difficult.




73.(p. 105)

Three values central to the Confucian system of ethics have very important economic implications. Which of the following is not one among them? A. LoyaltyB. Rule-based lawC. Reciprocal obligationsD. Honesty in dealings with others

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.




74.(p. 107)

Which of the following statements about the use of spoken language is false? A. The nature of a language structures the way we perceive the world.B. The language of a society can direct the attention of its members to certain features of the world

rather than others.C. Countries with more than one language often have more than one culture.D. Most people prefer to converse in English rather than their own language.

Most people prefer to converse in their own language, and being able to speak the local language can build rapport, which may be very important for a business deal.




75.(p. 109)

The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities. A. power distanceB. individualism vs. collectivismC. uncertainty avoidanceD. masculinity vs. femininity

According to Hofstede, high power distance cultures were found in countries that let inequalities grow over time into inequalities of power and wealth. Low power distance cultures were found in societies that tried to play down such inequalities as much as possible.




76.(p. 109)

The individualism vs. collectivism dimension of Hofstede's study explored: A. the extent to which different cultures socialized their members into accepting ambiguous situations

and tolerating uncertainty.B. the relationship between gender and work roles.C. how a society deals with the fact that people are unequal in physical and intellectual capabilities.D. the relationship between the individual and his/her fellows.

The individualism versus collectivism dimension focused on the relationship between the individual and his/her fellows.




77.(p. 109)

Hofstede's uncertainty avoidance dimension considered: A. the extent to which different cultures socialized their members into accepting ambiguous situations

and tolerating uncertainty.B. the relationship between gender and work roles.C. how a society deals with the fact that people are unequal in physical and intellectual capabilities.D. the relationship between the individual and his or her fellows.

Hofstede's uncertainty avoidance dimension measured the extent to which different cultures socialize their members into accepting ambiguous situations and tolerating uncertainty.




78.(p. 109)

Hofstede's masculinity vs. femininity dimension examined: A. the extent to which different cultures socialized their members into accepting ambiguous situations

and tolerating uncertainty.B. the relationship between gender and work roles.C. how a society deals with the fact that people are unequal in physical and intellectual capabilities.D. the relationship between the individual and his or her fellows.

Hofstede's masculinity versus femininity dimension looked at the relationship between gender and work roles.




79.(p. 111)

Hofstede's dimension of Confucian dynamism: A.

captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.

B. focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities.

C. explores the relationship between the individual and his/her fellows.D. looks at the relationship between gender and the ability to accept ambiguous situations.

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.




80.(p. 114)

The belief in the superiority of one's own culture is known as: A. ethnocentrism.B. egocentrism.C. polycentrism.D. theocentricism.

An international business must be constantly on guard against the dangers of ethnocentric behavior. Hand in hand with ethnocentrism goes a disregard or contempt for the culture of other countries. Unfortunately, ethnocentrism is all too prevalent. Ugly as it is, ethnocentrism is a fact of life, one that international businesses must be on guard against.




81.(p. 89)

Explain the role of values and norms in culture. Values, or abstract ideas about what a group believes to be good, right, and desirable, form the bedrock of culture. Norms are the social rules and guidelines that prescribe appropriate behavior in a particular situation. Culture can be defined as a system of values and norms that are shared among a group of people and that when taken together constitute a design for living.




82.(p. 89-90)

Compare and contrast folkways and mores. Folkways are the routine conventions of everyday life. Generally, folkways are actions of little moral significance. Folkways include rituals and symbolic behavior. In contrast, mores are norms that are seen as central to the functioning of a society and to its social life. Mores have much greater significance than folkways. Accordingly, violating mores can bring serious retribution.




83.(p. 90-91)

Discuss the relationship between society and the nation-state. There is not a strict one-to-one correspondence between a society and a nation-state. Nation-states are political creations that may contain a single culture or several cultures. While it is possible to talk about cultures at different levels, for example, an "American society," and "American culture," it is important to recognize there are several societies within America, each with its own culture. The relationship between culture and country is often ambiguous. Even if a country can be characterized as having a single homogenous culture, often that national culture is a mosaic of subcultures.




84.(p. 91)

What are the determinants of culture? The values and norms of a culture do not emerge fully formed. They are the evolutionary product of political philosophy, economic philosophy, education, language, social structure, and religion.




85.(p. 92-93)

Discuss the effect of the emphasis on individual performance that exists in many Western societies. The emphasis on individual performance in many Western societies has both beneficial and harmful aspects. For example, America's emphasis on individual performance has resulted in a high level of entrepreneurial activity and the development of new products and new ways of doing things. However, because individualism finds expression in a high degree of managerial mobility between companies, the United States has many managers who have good general skills but lack the knowledge, experience, and network contacts that come with years of working in the same company. In addition, because individuals are always competing with each other, it may be difficult to build teams within an organization to perform collective tasks. In general, the emphasis on individualism in the United States, while helping to create a dynamic entrepreneurial economy, may raise the costs of doing business due to its adverse impact on managerial stability and cooperation.




86.(p. 94)

Explain the concept of social stratification. All societies are stratified on a hierarchical basis into social categories or social strata. Social strata are typically defined on the basis of characteristics such as family background, occupation, and income. Individuals born into the top of a social hierarchy tend to have better life chances than individuals born into a lower stratum. While all societies are stratified to some degree they differ from each other with regard to the degree of mobility between social strata and with regard to the significance attached to social strata in business contexts.




87.(p. 94)

What is the difference between a caste system and a class system? 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. The caste system is the most rigid form of social stratification. A caste frequently involves a specific occupation. In contrast, a class system is a less rigid form of social stratification in which social mobility is possible through an individual's personal achievements and/or luck.




88.(p. 96)

Discuss why the stratification of a society is important to business. The stratification of a society is significant if it affects the operation of business organizations. In a country like Great Britain for example, the relative lack of class mobility and the differences between classes has resulted in hostility between middle-class managers and their working-class employees. This hostility and the resulting lack of cooperation can make it more difficult for firms to establish a competitive advantage in the global economy. While the last two decades has seen a reduction in the number of industrial disputes in Britain, there are signs that class consciousness may be reemerging in China.




89.(p. 97)

What is the connection between religion and ethical systems? Ethical systems are a set of moral principles, or values, that are used to guide and shape behavior. Most of the world's ethical systems are the product of religions. Therefore, there are Christian ethics and Islamic ethics. There are four dominant religions in the world: Christianity, Islam, Hinduism, and Buddhism. The relationship among religion, ethics, and society is subtle and complex.The authors make the point that while it is important to use caution when making generalizations about the relationship between religion, ethics, and business, there is recent research that suggests that strong religious beliefs have a positive impact on economic growth rates.




90.(p. 98-99)

Discuss the ideas of Max Weber. What is the Protestant work ethic? Why is it important to the world economy? Max Weber was a German sociologist who, in 1904, made the connection between Protestant ethics and "the spirit of capitalism." According to Weber, there was a relationship between Protestantism and the emergence of modern capitalism. Weber suggested that the Protestant value system that emphasized the importance of hard work, wealth creation, and frugality was needed to facilitate the development of capitalism.Thus, Weber coined the term "Protestant work ethic" to denote the tendency on the part of Protestants to work hard and accumulate wealth, which are the underpinnings of capitalism.




91.(p. 101)

Explain how the Koran views business. The Koran establishes some explicit economic principles, many of which are pro-free enterprise. The Koran supports free enterprise and earning a legitimate profit through trade and commerce, as well as the protection of the right to private property. However, Islam is critical of those who earn profit through the exploitation of others. Islam stresses the importance of living up to contractual obligations, of keeping one's word, and of abstaining from deception.




92.(p. 103-104)

What are the economic implications of Hinduism? According to Max Weber, Hindus do not encourage the kind of entrepreneurial activity in pursuit of wealth creation that can be found in Protestantism. Weber notes that traditional Hindu values emphasize that individuals should not be judged by their material achievements, but by their spiritual achievements. But one must be careful not to read too much into Weber's arguments. Modern India is a very dynamic entrepreneurial society, and millions of hard-working entrepreneurs form the economic backbone of the country's rapidly growing economy.




93.(p. 105)

Consider the influence of Confucian ethics on the economies of China, Japan, South Korea, and Taiwan. It has been suggested that the economic success of China, Japan, South Korea, and Taiwan, may be due, in part, to the influence of Confucian ethics on the culture in those countries. Three values that are central to the Confucian system of ethics are of particular note: loyalty, reciprocal obligations, and honesty in dealing with others. In fact, the notion of guanxi, or business relationships, which permeates business dealings in the region, revolves around the three values. For example, it has been suggested that the close ties between the automobile companies and their suppliers in Japan are facilitated by a combination of trust and reciprocal obligations.




94.(p. 107)

Discuss the spoken language. Which is the most spoken language in the world? What language is used in business? Is it important to learn a foreign language? Language does far more than just enable people to communicate with each other. The nature of a language also structures the way we perceive the world. Chinese is the mother tongue of the largest number of people in the world, followed by English and Hindi. However, the most widely spoken language in the world is English, followed by French, Spanish and Chinese. English is increasingly known as the language of international business. Therefore, even when a business meeting does not involve native English speakers, English is likely to be spoken. Learning a foreign language is still very important for native English speakers because doing so can build rapport, and help a company avoid costly translation blunders.




95.(p. 108)

Consider the importance of unspoken language. Why is it important to be familiar with the unspoken language of another culture? Unspoken language refers to nonverbal communication. We all communicate with each other by a host of nonverbal cues. The raising of eyebrows, for example, is a sign of recognition in most cultures, while a smile is a sign of joy. Many nonverbal cues, however, are culturally bound. A failure to understand the nonverbal cues of another culture can lead to a failure to communicate. For example, making a circle with the thumb and forefinger is a friendly gesture in the United States, but it is a vulgar gesture in Greece and Turkey.Personal space is another part of unspoken language.




96.(p. 108-109)

Why is the role of education in a culture important to international companies? A key aspect of education in a culture 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. Porter for example, has argued that Japan's excellent education system is an important factor explaining the country's postwar economic success. In addition, a good education system is an important factor guiding the location choices of international businesses. The general education level of a country is also a good index of the kind of products that might sell in a country and of the type of promotional material that should be used.




97.(p. 109)

Describe the four dimensions of culture as identified by Geert Hofstede. Geert Hofstede identified four dimensions that he claimed summarized the differences between different cultures. According to Hofstede, the power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities. The second dimension identified by Hofstede, individualism vs. collectivism, focused on the relationship between the individual and his/her fellows. Hofstede's third dimension, uncertainty avoidance, measured the extent to which different cultures socialize their members into accepting ambiguous situations and tolerating uncertainty. Finally, Hofstede's fourth dimension, masculinity vs. femininity, examined the relationship between gender and work roles.




98.(p. 111)

Discuss the limitations of Hofstede's research. Hofstede's research has been criticized on a number of points. First, Hofstede assumes there is a one-to-one correspondence between culture and the nation-state. Second, the research may have been culturally bound. Third, Hofstede's informants worked not only within a single industry, but within one company. Finally, because cultures evolve, Hofstede's research, which was conducted in the 1960s and 1970s, may not be as relevant today.




99.(p. 111)

Discuss Confucian dynamism. Explore the debate over whether Confucian dynamism is good for an economy. The notion of Confucian dynamism, or long-term orientation, was added to Hofstede's model of culture to capture attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. East Asian countries such as Japan, Hong Kong, and Thailand scored high on Confucian dynamism, while countries such as the United States and Canada scored low. Hofstede hypothesized that being Confucian was good for economic growth; however, other experts have questioned this hypothesis, noting that countries that score low on Confucian dynamism have also achieved high growth rates.




100.(p. 112-113)

Economic advancement and globalization are prompting societal change. Discuss this statement. Several studies have shown that economic advancement and globalization are important factors in societal change. There is evidence that economic progress is accompanied by a shift away from collectivism toward individualism. In Japan for example, the model Japanese "salaryman" is disappearing as a new generation of office workers act more like Westerners. Similarly, advancements in transportation and communications technologies combined with a dramatic increase in trade and global corporations are creating conditions for the merging of cultures.The culture of societies may also change as they become richer because economic progress affects a number of other factors, which in turn influence culture.




ch3 Summary

Category # of Questions

AACSB: Diversity Understanding 98

AACSB: Ethical Understanding/Reasoning Abilities 1

AACSB: Ethics 1

Bloom's: Application 3

Bloom's: Comprehension 26

Bloom's: Knowledge 71

Difficulty: Easy 33

Difficulty: Hard 12

Difficulty: Medium 55

Hill - Chapter 03 100

Learning Objective: 03-1 27



