International Business Competing In the Global Marketplace 11th Edition By Hill Dr, Charles W. L – Test Bank

 

 

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Sample Questions

 

Chapter 04

Differences in Culture

 

True / False Questions

1.

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

True    False

 

2.

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

True    False

 

3.

Folkways include rituals and symbolic behavior.

True    False

 

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.

True    False

 

5.

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

 

6.

In countries where the value of group identification is considered to be primary, managers and workers are discouraged from moving from company to company.

True    False

 

7.

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

True    False

 

8.

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

 

9.

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

 

10.

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

True    False

 

11.

According to Max Weber, Protestantism encouraged capitalism’s development by emphasizing the importance of wealth creation and frugality.

True    False

 

12.

Like Christianity and Judaism, Islam is a polytheistic religion.

True    False

 

13.

The mudarabah contract is the most widely used Islamic banking method, because it is the easiest to implement.

True    False

 

14.

Max Weber thought that devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants.

True    False

 

15.

Both Hindus and Buddhists stress the afterlife and spiritual achievement rather than involvement in this world.

True    False

 

16.

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

True    False

 

17.

Education plays an important role, from an international business perspective, as a determinant of national competitive advantage.

True    False

 

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.

True    False

 

19.

Hofstede’s research has been criticized because it was culturally bound.

True    False

 

20.

Hofstede’s concept of power distance focused on the extent to which different cultures socialized their members into tolerating uncertainty.

True    False

 

21.

According to Hofstede, the concept of Confucian dynamism captures attitudes toward time, persistence, protection of face, and respect for tradition.

True    False

 

22.

The convergence hypothesis states that there is a slow but steady merging occurring across different cultures towards some universally accepted values and norms.

True    False

 

23.

International businesses that are ill-informed about the practices of another culture are likely to fail.

True    False

 

24.

The value systems and norms of a country are unrelated to the costs of doing business in that country.

True    False

 

25.

Because of its individualistic mindset, Japanese culture is more supportive of entrepreneurial activities than American culture.

True    False

 

 

Multiple Choice Questions

26.

Which of the following is true regarding culture?

A.

Culture is not static.

 

B.

Culture does not vary across and within nations.

 

C.

Culture is a system of values and norms that are kept between each individual.

 

D.

Culture involves the knowledge and beliefs of one individual.

 

27.

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

A.

Islam

 

B.

Christianity

 

C.

Hinduism

 

D.

Protestantism

 

28.

The connection between _____ and _____ has important implications for the choice of countries in which to locate production facilities and do business.

A.

culture; competitive advantage

 

B.

moral principles; values

 

C.

class system; society

 

D.

values; norms

 

29.

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.

 

30.

In countries where the value of _____ identification is considered to be primary, managers and workers are discouraged from moving from company to company.

A.

individual

 

B.

group

 

C.

cultural

 

D.

primary

 

31.

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

A.

Norms

 

B.

Values

 

C.

Society

 

D.

Culture

 

32.

Culture is ________.

A.

static

 

B.

not static

 

C.

unchanging

 

D.

abstract

 

33.

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

 

34.

Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as _____.

A.

norms

 

B.

values

 

C.

culture

 

D.

society

 

35.

Hofstede’s concept of power distance focused on:

A.

the extent to which different cultures socialized their members into tolerating uncertainty.

 

B.

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

 

C.

attitudes toward time, persistence, protection of face, and respect for tradition.

 

D.

the relationship between gender and work roles.

 

36.

Norms refer to:

A.

the social rules and guidelines that prescribe appropriate behavior in particular situations.

 

B.

a system of values that are shared among a group of people.

 

C.

the routine conventions of everyday life.

 

D.

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

 

37.

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

A.

Social strata

 

B.

Norms

 

C.

Social structure

 

D.

Groups

 

38.

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

A.

culture

 

B.

society

 

C.

country

 

D.

caste

 

39.

Even if a _____ can be characterized as having a single homogeneous culture, often that national culture is a mosaic of subcultures.

A.

culture

 

B.

society

 

C.

country

 

D.

norm

 

40.

_____ are the routine conventions of everyday life.

A.

Folkways

 

B.

Mores

 

C.

Rites

 

D.

Beliefs

 

41.

The term _____ also means culture.

A.

folkway

 

B.

society

 

C.

country

 

D.

norm

 

42.

_____ 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.

Values

 

B.

Beliefs

 

C.

Mores

 

D.

Folkways

 

43.

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

 

44.

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

 

45.

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.

 

46.

Max Weber coined the term _____ to denote the tendency on the part of Protestants to work hard and accumulate wealth.

A.

Protestant work ethic

 

B.

Protestant belief system

 

C.

Protestant devotion

 

D.

Protestant morale

 

47.

Which of the following statements about values and norms of a culture is true?

A.

The values and norms of a society emerge fully formed.

 

B.

The values and norms of a society are not the evolutionary product of a number of factors.

 

C.

The values and norms of a society are not influenced by religion.

 

D.

The values and norms of a society influence social structure.

 

48.

A society’s social structure refers to its:

A.

system of values and norms.

 

B.

basic social organization.

 

C.

religious practices.

 

D.

educational infrastructure.

 

49.

The social organization of Western society tends to emphasize on:

A.

a group orientation.

 

B.

collectivist values.

 

C.

individual achievement.

 

D.

work groups.

 

50.

The emphasis on individualism in the United States results in which of the following advantages?

A.

Managers tend to develop good general skills as well as company-specific experience.

 

B.

Teams are built within an organization to perform collective tasks.

 

C.

Executives are exposed to different ways of doing business.

 

D.

It is easy to achieve cooperation—both within a company and between companies.

 

51.

Which of the following is a consequence of the emphasis on individual performance in many Western societies?

A.

Decreased entrepreneurship

 

B.

High degree of managerial mobility

 

C.

Increased loyalty towards an individual company

 

D.

Executives are not exposed to different ways of doing business

 

52.

Which of the following refers to the extent to which individuals can move out of the strata into which they are born?

A.

Caste stratification

 

B.

Class system

 

C.

Social mobility

 

D.

Individual potential

 

53.

Which of the following 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 system

 

B.

Class system

 

C.

Social system

 

D.

Cultural system

 

54.

A _____ is a less rigid form of social stratification in which social mobility is possible.

A.

caste system

 

B.

normative system

 

C.

religious system

 

D.

class system

 

55.

Which of the following statements is true about a class system?

A.

A class system is a more rigid form of social stratification, compared to a caste system.

 

B.

A class system is a closed form of stratification.

 

C.

Social mobility within a class system varies from society to society.

 

D.

In a class system, social position is determined at birth and cannot be changed during an individual’s lifetime.

 

56.

A caste system differs from a class system because:

A.

a caste system is an open system of stratification, while a class system is a closed system of stratification.

 

B.

it is not possible for an individual to change his or her caste, while a class system allows people to change their class through individual achievement.

 

C.

the social mobility in caste systems varies from society to society, while in a class system there is no social mobility.

 

D.

a caste system is a less rigid form of social stratification, while a class system is a comparatively more rigid form of social stratification.

 

57.

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.

class stratification

 

B.

social mobility

 

C.

class mobility

 

D.

class consciousness

 

58.

An upper-middle-class manager tends to have hostile relationship with the working-class employees in the firm because of his tendency to perceive himself as superior to them based on his class background. In this example, the manager exhibits _____.

A.

class consciousness

 

B.

cultural awareness

 

C.

social mobility

 

D.

group orientation

 

59.

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 people’s actions toward each other.

 

60.

Religion may be defined as:

A.

routine conventions of everyday life.

 

B.

social rules that govern people’s 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.

 

61.

Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because:

A.

Protestant ethics emphasize the importance of hard work and wealth creation and frugality.

 

B.

Protestantism promotes the hierarchical domination of religious and social life.

 

C.

Protestantism states that spiritual growth is more important than material wealth.

 

D.

Protestantism promotes blind loyalty to employers.

 

62.

Which of the following sociologists made a connection between Protestant ethics and “the spirit of capitalism”?

A.

Karl Marx

 

B.

Max Weber

 

C.

Amartya Sen

 

D.

Adam Smith

 

63.

Hinduism and Buddhism both stress the importance of _____.

A.

the caste system

 

B.

the afterlife

 

C.

Confucian ethics

 

D.

life on earth

 

64.

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

A.

trustees

 

B.

owners

 

C.

tenants

 

D.

speculators

 

65.

Which of the following observations is correct?

A.

The economic principles established in the Koran are against free enterprise.

 

B.

The economic principles of Islam prohibit the payment or receipt of interest.

 

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.

 

66.

Under the mudarabah banking system, when an Islamic bank lends money to a business:

A.

it charges that business interest on the loan.

 

B.

the business needs to pay back the loan with an additional markup.

 

C.

it has to donate the interest received on the loan to a charitable trust.

 

D.

it takes a share in the profits that are derived from the investment.

 

67.

Which of the following statements is true about the murabaha contract?

A.

Under the murabaha contract, when an Islamic bank lends money to a business it takes a share in the profits that are derived from the investment.

 

B.

Under the murabaha contract, money deposited in a savings account is treated as an equity investment in whatever activity the bank uses the capital for.

 

C.

The murabaha contract is widely used among the world’s Islamic banks because it is the easiest to implement.

 

D.

The murabaha contract is a more efficient system than the Western banking system since it encourages both long-term savings and long-term investment.

 

68.

Hindus believe:

A.

that there is but the one true omnipotent God.

 

B.

in reincarnation, or rebirth into a different body, after death.

 

C.

in the importance of individual religious freedom.

 

D.

that material quest is more important than spiritual quest.

 

69.

A major difference between Buddhism and Hinduism is that unlike Hinduism, Buddhism:

A.

does not support the caste system.

 

B.

emphasizes wealth creation.

 

C.

promotes blind loyalty to employers.

 

D.

supports extreme ascetic behavior.

 

70.

There are three values central to the Confucian system of ethics that have very important economic implications. Which of the following is one of these?

A.

Filial piety

 

B.

Rule-based law

 

C.

Humaneness

 

D.

Honesty in dealings with others

 

71.

Which of the following statements about the use of spoken language is true?

A.

The nature of a language has no effect on the way we perceive the world.

 

B.

The language of a society does not direct the attention of its members to certain features of the world rather than others.

 

C.

Countries with more than one language often only have one culture.

 

D.

Most people prefer to converse in their own language rather than English.

 

72.

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 distance

 

B.

individualism versus collectivism

 

C.

uncertainty avoidance

 

D.

masculinity versus femininity

 

73.

The individualism versus 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.

 

74.

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.

 

75.

The _____ is a research project spanning more than 100 countries that explores people’s values and norms, how they change over time, and what impact they have in society and business.

A.

World Values Survey

 

B.

Global Leadership and Organization Behavior Effectiveness Instrument

 

C.

Indulgence Versus Restraints Survey

 

D.

Chinese Value Survey

 

76.

According to Geert Hofstede’s study, which of the following cultural dimensions would be characterized by a greater readiness to take risks and less emotional resistance to change?

A.

High power distance cultures

 

B.

Low uncertainty avoidance

 

C.

High collectivism

 

D.

Low power distance cultures

 

77.

The _____ instrument is designed to address the notion that a leader’s effectiveness is contextual. It is embedded in the societal and organizational norms, values, and beliefs of the people being led.

A.

GLOBE

 

B.

WVS

 

C.

IND

 

D.

CVS

 

78.

The _____ refers to the extent to which a culture programs its citizens to accept delayed gratification of their material, social, and emotional needs.

A.

long-term versus short-term orientation dimension

 

B.

indulgence versus restraint dimension

 

C.

uncertainty avoidance

 

D.

power distance dimension

 

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.

Which of the following is an example of ethnocentrism?

A.

A manager in India looks down upon his subordinates because they are from a lower caste, compared to him.

 

B.

An upper-middle-class woman talks rudely to a sales person, because she looks down upon individuals belonging to the working-class.

 

C.

An American manager criticizes the cultural practices of Saudi Arabia, when he is sent there on business, because it differs from his own cultural norms.

 

D.

A French business owner, who plans to expand his market to China, conducts a detailed cultural study of China to customize his marketing campaign.

 

81.

For international businesses, the connection between culture and competitive advantage is important because:

A.

a weak connection is likely to encourage isolationism.

 

B.

a weak connection is likely to encourage competition.

 

C.

a strong connection is likely to produce the most viable competitors.

 

D.

a strong connection is likely to hamper innovation.

 

82.

What is ethnocentrism?

A.

A belief in the superiority of one’s business or organization over another.

 

B.

A belief in the superiority of another group or culture over one’s own group or culture.

 

C.

A belief in the superiority of one’s own ethnic group or culture.

 

D.

A belief in the superiority of one’s self over another person.

 

83.

Class-based conflict between workers and management in class-conscious societies can lead to:

A.

increased costs of doing business.

 

B.

decreased costs of doing business.

 

C.

companies going out of business.

 

D.

workers looking for new jobs in other businesses.

 

84.

Max Weber was a German sociologist who, in 1904, made the connection between _____ and “the spirit of capitalism.”

A.

Protestant ethics

 

B.

ethnocentrism

 

C.

cross-cultural literacy

 

D.

collectivism

 

85.

The concept of mobility between castes within an individual’s lifetime:

A.

is an opportunity to adopt positions of responsibility and influence in society.

 

B.

makes no sense to traditional Hindus.

 

C.

shows a figurative “reincarnation” of a person.

 

D.

is a sign of spiritual progression to traditional Hindus.

 

86.

According to _____, suffering originates in people’s desires for pleasure.

A.

Hinduism

 

B.

Protestantism

 

C.

Buddhism

 

D.

Judaism

 

87.

Several studies have shown the economic advancement and _____ are important factors in societal change.

A.

individualism

 

B.

collectivism

 

C.

improved technology

 

D.

globalization

 

88.

One reason for the shift in values away from collectivism and toward individualism may be:

A.

that richer societies exhibit less need for social and material support structures built on collectives.

 

B.

individualism is a more important trait in a global society.

 

C.

that richer societies exhibit more need for social and material support structures built on collectives.

 

D.

increased urbanization and improvements in the quality and availability of education are both a function of economic progress.

 

89.

_____ refers to a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.

A.

Persistence

 

B.

Indulgence

 

C.

Reciprocation

 

D.

Restraint

 

 

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