International Business Chapter 4

Energy Resources Ltd. does business in 50 countries around the world. The company stresses to all employees the importance of understanding the prevailing culture in the countries that they are doing business in. In other words, the company is aware of the importance of

cross-cultural literacy.

Kluckhohn and Strodtbeck's theory of culture states that all definitions of culture must

answer a limited number of universal problems.

The system of values and norms that are shared among a group of people and when considered as a whole represent a design for living is called

culture.

A group's consideration and acceptance of what is good and right represents their

values.

Assumptions about how things should be that a group shares are called _____.

values

Understanding how cultural differences across and within nations affect the way business is practiced is known as ______ literacy.

cross-cultural

Even though Parul disagreed with her co-worker, she waited until he was done speaking before she responded because she knew it wasn't polite to interrupt someone while they were talking. The social rule Parul followed is an example of a(n) _____.

norm

The work of _____ is the main research used to understand the impact of culture on multinational corporations.

Hofstede

A(n) ______ is a group of people who share a common set of values and norms.

society

A system of values and norms that are shared among a group of people and that when taken together constitute a design for living is called

culture

Freedom, democracy, and justice are three examples of _____ within a society.

values

In Westernized societies, freedom to choose is considered everyone's right. The idea of what is good and right is an example of a(n) _____.

value

Monica asked her manager if appropriate dress for the meeting was business casual or traditional business. Monica is inquiring about the ______ associated with the meeting.

folkway

Camille knows it would be inappropriate of her to ask the new client if she planned to invest in shares of company stock. Social rules that dictate appropriate behaviors are called _____.

norms

Jenna expects the people she works with to be prompt. Recently, she became very frustrated when a foreign executive was late to their meeting because he felt it was more important to finish a phone conversation. People's attitude toward time is an example of how _____ can affect business.

folkways

______ supply the standards and models for acceptable behavior in a society.

Norms

True or false: It is possible for one country to encompass several societies.

True

The rituals associated with a culture, such as bowing to show respect in Japan, are forms of _____.

folkways

In some nations, war has resulted when members of society feel their freedoms are being discounted. In other words, people are willing to fight for their _____.

values

Social norms that address the customs and conventions of a society and are central to the functioning of the society are called _____.

mores

The routine conventions of living, thinking and acting in a group are called ______.

folkways

There _____ a strict one-to-one relationship between one culture and a nation-state.

is not

In the United States, the majority of people are very aware of what time it is, what they need to accomplish in that time, and when they are out of time. This attitude toward time is an example of a _____.

folkway

At a dinner meeting in Japan, two executives sat down, leaving the middle seat open for their third associate, even though it meant one of them would have to get up to let him in. This is because, in Japan, the middle seat is reserved for the most senior member of the group. This is an example of a

folkway.

What are three of the determinants of culture? (Check all that apply.)

Economic philosophy

Political philosophy

Social structure

Norms that are more widely observed within a society and have greater moral significance than folkways are called _____.

mores

The basic social organization of a society is called its social _____.

structure

______ join the political entity of a state to the cultural entity of a nation.

Nation-states

Stephen usually eats lunch with three of his co-workers and on the weekends he gets together with his college friends. The people Stephen interacts with represent two types of _____.

groups

The US economy is considered _____ because it is impacted by the philosophy of individualism.

dynamic

True or False: While religion can influence the values and norms of society, the values and norms of society can also impact religion.

True

True or false: One positive aspect of high managerial mobility is that executives have a sense of loyalty and commitment to an individual company.

False

Western society values _______ over ______.

individuals; groups

In most Western societies the ______ is emphasized, whereas in Japan the _____ is more important.

individual; group

How has social media affected group life?

It has emphasized the idea of an extended social group.

What is a negative effect of the collectivist manner associated with Japanese businesses?

Lack of dynamism and entrepreneurship

An advantage of individualism is a(n)

high level of entrepreneurial activity.

What are three principles of social stratification? (Check all that apply.)

It involves beliefs as well as inequality,

It carries over to the next generation.

It is generally universal.

What is one negative aspect to companies of emphasizing individual performance in business?

a high degree of managerial mobility between companies

In Japanese society today, it is common for a person's social status to be associated with his or her

business.

Social _____ refers to how difficult or easy it is for an individual to move out of the social strata into which they are born.

mobility

Which three situations are considered positive aspects of the collectivist attitude found in the Japanese business culture? (Check all that apply.)

There is strong incentive for individuals to work together for the common good.

Workers tend to remain at the same company for a long time -- even a lifetime.

Cooperation within the group is driven by the need to improve group performance.

All societies are divided on a hierarchical basis into social categories called social _____.

strata

The most rigid form of social stratification is the _____ system.

caste

Nigel was born into a poor, working-class family in England. He is resigned to the fact that his life will be much like his fathers as he has no way to earn a degree and change his status. Nigel believes that a lack of _____ determines his fate.

social mobility

The _____ system is a less rigid form of social stratification than the caste system.

class

True or false: Historically, the British class system prevented people from moving up in society.

True

True or false: A sociologist would disagree with the idea that the British class system has dissolved.

True

A caste system is a type of social structure that divides people on the basis of _____.

inherited social status

In the United States, class membership is determined to a greater degree by _____.

individual economic achievement

A class system is characterized by the fact that a person can move from one ______ to another.

social strata

In the past, there has been a mutual lack of respect between upper management and working-class employees at British companies. This lack of respect was the result of the perception that those in upper management were a "step above" the employees. This perception was a reflection of _____.

class consciousness

Historically, one way in which a British citizen could ensure that his or her children were accepted into a higher class was to

send them to the "right" school.

The set of shared beliefs followed by Catholics and those of the Jewish faith represent their individual _____.

religions

How would sociologists describe the class system in British society today?

The class system still exists and "money still begets money"

The set of moral principles that are used to guide and shape behavior are called _____.

ethics

In terms of numbers of members, what are the four major religions that dominate the world today? (Check all that apply.)

Islam

Christianity

Hinduism

Buhddism

______ is/are something that one believes in that is concerned with the sacred and follows with some measure of devotion.

Religion

The majority of Christians live in Europe and the Americas. However, Christianity is rapidly growing in

Africa

Islam prohibits payment of interest. This is one example which shows how ______ can be the root of an ethical system.

religion

Which of these religions currently has the largest number of adherents?

Christianity

According to Weber, thrift, efficiency and hard work are the result of a person's belief in the ethics of _____.

Protestantism

The two major Christian organizations are

Orthodox Church

Roman Catholic

A schism from the Roman Catholic Church in the sixteenth century led to the establishment of

Protestantism.

A focus on individual religious freedom, not surprisingly, may have set the stage for

entrepreneurship.

The _____ degree of social mobility in the US limits the impact of class background on business operations.

high

Islam is a ______ religion, believing in one true God.

monotheistic

Max Weber attributed the relationship between the emergence of ______ and Protestantism to the value system of the religion.

capitalism

According to the tenets of Islam, the objective of life is to fulfill the dictates of God in hopes of achieving

admission to paradise.

The orthodox Muslim is required to pray _____

times a day.

five

The media relates Islamic fundamentalists with ______, rather than with deeply held religious values.

violence

One reason for the rise of Islamic fundamentalism is the

influence of Western ideas and culture.

Which two phrases reflect the economic implications of Islam? (Check all that apply.)

Cannot earn profit through exploitation of others

Hold property as trustees, rather than as owners (per Western definition of ownership)

The Koran characterizes the practice of charging interest as

unjust

The vast majority of Muslims would agree that Islam teaches _____.

tolerance for others

For poor Muslims, modern ideology has not offered substantial economic improvement, yet it threatens their traditional

values.

Islamic fundamentalists are usually _____

toward Western-based businesses

hostile

The economic principles of Islam prohibit a bank from _____.

charging interest

A mudarabah contract allows an Islamic bank to _____ in exchange for a loan.

take part of the profits

Hindus believe in ______, the behaviors and responsibilities governing individual conduct.

dharma

Which statement BEST explains how Max Weber compares Hindus to Protestants?

Hindus would be less likely to engage in entrepreneurial activity.

In post-independence India, some think that the values of Hindu asceticism and self-reliance have had a(n) ______ impact on economic development.

negative

The religion where followers believe in reincarnation and karma is

Hinduism.

The religion where followers try to achieve nirvana or spiritual enlightenment is _____.

Buddhism

Confucianism values harmonious relationships, which are based on moral and ethical conduct and ______.

loyalty to others

Which ethical system is NOT concerned with the afterlife?

Confuscianism

Hindus believe that ______ is achieved by spiritual progress and reincarnation.

movement between castes

Loyalty, honesty in dealing with others, and reciprocal obligations are the building blocks of

Confucianism

Buddhism has all the same basic beliefs as Hinduism except for which two of the following?

support for the caste system.

advocacy in extreme ascetic behavior.

As modernization occurs, what situation is contrary to the Buddha's teaching?

There is more separation between people and nature.

What ethical system was the official ethical system of China until the communist revolution and emphasizes taking the right actions to attain salvation?

Confucianism

What are three tenets associated with Confucianism? (Check all that apply.)

Loyalty to others

High ethical conduct

High moral conduct

What are the three values central to the Confucian system of ethics that may have led to economic success in some Asian countries?

Reciprocal obligations

Honesty in dealing with others

Loyalty

In an organization operating in a Confucian culture, it would be the sacred duty of an employee to be loyal to his or her

manager.

The best way to describe the labor-management relationship in an organization based in Confucian culture is

cooperation is achieved at a lower cost.

In a Confucian society, expensive lawyers would not be needed to resolve contract disputes because

importance is attached to honesty.

Guanxiwang refers to _____, which hold networks together.

relationships

What are three examples of the "hidden curriculum" of schools? (Check all that apply.)

Dealing with competition

Respect for others

Obedience to authority

What is used to direct the attention of a society to specific components of the world and structures how people perceive them?

Language

Which statement BEST reflects the implications of cultural differences for business?

A company may need to vary management processes by country as a result of local cultural differences.