Q&A Hero

Q: 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 or her fellows.

Q: Martin worried a lot about his job, which he chose specifically because it was very structured with clear rules and regulations. He carefully planned his career to maximize job security and retirement benefits. Martin would rate high on which of Hofstede s four dimensions? A) power distance B) individualism versus collectivism C) uncertainty avoidance D) masculinity versus femininity

Q: 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

Q: 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

Q: 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 values? A) filial piety B) rule-based law C) humaneness D) honesty in dealings with others

Q: An upper-middle-class manager tends to have hostile relationships 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.

Q: 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

Q: 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.

Q: Hinduism and Buddhism both stress the importance of A) the caste system. B) the afterlife. C) Confucian ethics. D) life on earth.

Q: According to _____, suffering originates in people s desires for pleasure. A) Hinduism B) Protestantism C) Buddhism D) Judaism

Q: A _____ is an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other s behavior. A) society B) collective C) social strata D) group

Q: ________ 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

Q: Brad has been in trouble his whole life. He stole from the local hardware store when he was 12, and as an adult he didn t feel the need to be faithful to his wife. Brad is guilty of violating A) mores. B) folkways. C) ethics. D) values.

Q: 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.

Q: _____ 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

Q: The term _____ also means culture. A) folkway B) society C) country D) norm

Q: When Jana visits her mother, she takes great pains to watch her language and use good manners because that is what her mother expects of her.This demonstrates the concept of A) folkways. B) mores. C) rites. D) beliefs.

Q: _____ are the routine conventions of everyday life. A) Folkways B) Mores C) Rites D) Beliefs

Q: Even if a _____ can be characterized as having a single homogeneous culture, often that national culture is a mosaic of subcultures. A) culture B) country C) society D) norm

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

Q: _____ is/are best defined as shared assumptions about how things ought to be. A) Norms B) Values C) Society D) Culture

Q: _____ include such factors as indictments against theft, adultery, incest, and cannibalism. A) Norms B) Folkways C) Mores D) Values

Q: 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.

Q: The term _____ refers to a group of people sharing a common set of values and norms. A) mores B) society C) culture D) folkway

Q: Culture is A) static. B) not static. C) unchanging. D) abstract.

Q: Discuss the limitations of Hofstede s research.

Q: Because of its individualistic mind-set, Japanese culture is more supportive of entrepreneurial activities than American culture. ⊚ true ⊚ false

Q: Hofstede s concept of power distance focused on the extent to which different cultures socialized their members into tolerating uncertainty. ⊚ true ⊚ false

Q: Hofstede s research has been criticized because it was culturally bound. ⊚ true ⊚ false

Q: 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

Q: Max Weber believed that devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants. ⊚ true ⊚ false

Q: Max Weberbelieved that Protestantism encouraged capitalism s development by emphasizing the importance of wealth creation and frugality. ⊚ true ⊚ false

Q: Islam is a polytheistic religion, like Christianity and Judaism. ⊚ true ⊚ false

Q: Folkways include rituals, traditions, and symbolic behavior. ⊚ true ⊚ false

Q: 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

Q: One reason for Japan s shift in values away from collectivism and toward individualism may be that A) 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) 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.

Q: Several studies have shown that economic advancement and _____ are important factors in societal change. A) individualism B) collectivism C) culture D) globalization and information

Q: 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

Q: Hofstede s dimension of Confucian work dynamism A) captures attitudes toward time, persistence, ordering by status, saving 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 or her fellows. D) looks at the relationship between gender and the ability to accept ambiguous situations.

Q: Hofstede's masculinity versus femininity dimension looked at the relationship between gender and work roles and found that in A) feminine cultures, sex roles were sharply differentiated, and traditional feminine values determined cultural ideals. B) feminine cultures, sex roles were less sharply distinguished; however, there was a great deal of differentiation between men and women in the same job. C) masculine cultures, sex roles were less sharply distinguished, and little differentiation was made between men and women in the same job. D) masculine cultures, sex roles were sharply differentiated, and traditional masculine values determined cultural ideals.

Q: Hofstede s results, as might be expected, showed that nations such as _____ scored low on long-term orientation. A) the United States and Canada B) Denmark and Sweden C) Japan and Thailand D) Great Britain and Mexico

Q: Hofstede s _____ dimension measured the extent to which different cultures socialized their members into accepting and tolerating ambiguity. A) power distance B) long-term versus short-term orientation C) uncertainty avoidance D) indulgence versus restraint

Q: _____ 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

Q: 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

Q: 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

Q: 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

Q: 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.

Q: Economic risks are independent of political risk. ⊚ true ⊚ false

Q: A country s economic system, rule of law, and property rights regime are reasonably good predictors of economic prospects. ⊚ true ⊚ false

Q: A country with a well-functioning market economy does not need laws protecting private property rights and providing mechanisms for contract enforcement. ⊚ true ⊚ false

Q: To improve airport security following a major terrorist attack, the government of a country takes over the airport security industries. This is an example of privatization. ⊚ true ⊚ false

Q: In mixed economies, in certain sectors the state sets prices, owns businesses, limits private enterprise, restricts investment by foreigners, and restricts international trade. ⊚ true ⊚ false

Q: The state of Illinois was having budget difficulties, so it hired several private management consultancy firms to manage some state-owned enterprises.This is an example of privatization. ⊚ true ⊚ false

Q: If a country s economy is to sustain long-term economic growth, the business environment must be conducive to investment, R&D, innovations and entrepreneurial activity. ⊚ true ⊚ false

Q: GDP is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations. ⊚ true ⊚ false

Q: In Sen s view, development is an economic process that should be assessed primarily by material output measures such as GNI per capita. ⊚ true ⊚ false

Q: GDP allows a more direct comparison of living standards in different countries than other measures. ⊚ true ⊚ false

Q: Which of the following is a first-mover advantage? A) International firms may gain experience in that country s business practices. B) An international firm can reap the rewards of growth in a new market without incurring the risks. C) A firm may have the opportunity to be the first to introduce generic brands to a market. D) A firm can gauge how well their product will do in the market without taking the risk of investing there.

Q: _____ are the handicaps that late entrants to a market might suffer. A) Government regulations B) Late-mover disadvantages C) Black economy D) Purchasing power disparity

Q: Economic growth appears to be a function of a country s capacity for growth and its A) previous economic success. B) political environment. C) free market system. D) mixed economy.

Q: One visible indicator of _____ tends to be a country s inflation rate. A) economic mismanagement by Central Bank B) high GNI C) political risks D) low HDI

Q: Countries with _____ economies in which property rights are protected tend to achieve greater economic growth rates than other economies where property rights are poorly protected. A) mixed B) market C) free market D) command

Q: _____ are the advantages gained by early entrants into a market. A) Early-investor advantages B) First-mover advantages C) First-to-market advantages D) Late-mover advantages

Q: The costs of doing business in a country tend to be greater if A) political payoffs are not required to gain market access. B) supporting infrastructure is sponsored by government. C) local laws set strict standards with regard to environmental pollution. D) there are limits or caps on damage awards.

Q: Sony was a pioneer in the portable music market segment. The Sony Walkman was an innovative product that created a new category altogether and made Sony a technological leader. This gave the company an edge over other consumer electronics brands that introduced portable music players for a very long time. In this example, Sony had the A) vertical integration advantage. B) purchasing power parity advantage. C) free-rider advantage. D) first-mover advantage.

Q: Which of the following factors is likely to make a country a more attractive location for international business? A) totalitarian regimes B) planned economies C) government ownership of production methods D) market-based economic policies

Q: Without a strong legal system in a market economy A) the incentive to engage in economic activity can be increased substantially. B) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities. C) mechanisms for contract enforcement fall to private and corporate lawyers. D) private and public entities can expropriate the profits generated by the efforts of private-sector entrepreneurs.

Q: Which of the following is a step involved in the deregulation of a command economy? A) adding price controls B) temporarily restricting international trade C) abolishing laws regulating the establishment and operation of private enterprises D) increasing restrictions on direct investment by foreign enterprises

Q: _____ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate. A) Deregulation B) Trade certification C) A product law D) A liability law

Q: _____ is seen as a way to stimulate gains in economic efficiency by giving owners a powerful incentive the reward of greater profits to search for increases in productivity, to enter new markets, and to exit losing ones. A) Globalization B) Economic transformation C) Deregulation D) Privatization

Q: _____ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate. A) Privatization B) Developing command economies C) Deregulation D) Globalization

Q: Since the 1980s, there has been a transformation from _____ economies to _____ economies. A) mixed; market-based B) centrally planned command; market-based C) centrally planned command; mixed D) market-based; centrally planned command

Q: Paralleling the spread of democracy since the 1980s has been the transformation from A) free-market economies to socialist economies. B) mixed economies to collectivist economies. C) open economies to closed economies. D) command economies to market-based economies.

Q: According to what political scientist s thesis is global terrorism a product of the tension between civilizations and the clash of value systems and ideology? A) Amartya Sen B) Samuel Huntington C) Francis Fukuyama D) Hernando de Soto

Q: Which of the following is one of the three main reasons for the spread of democracy? A) New information and communication technologies have broken down the ability of the state to control access to uncensored information. B) Totalitarian regimes delivered economic progress to the bulk of their populations but not enough to the power brokers. C) Democratic regimes failed to deliver economic progress to the vast bulk of their populations. D) Economic advances in the past quarter-century have led to the emergence of a class of ruling elite.

Q: Political scientist _____ predicts that there will be a world that is split into different civilizations, each of which has its own value systems and ideology. A) Samuel Huntington B) Amartya Sen C) Francis Fukuyama D) Hernando de Soto

Q: The political economy of many of the world s nation-states has changed radically since the late 1980s. Which of the following is a trend that has been evident? A) A wave of democratic revolutions has swept the world. B) Totalitarian governments have arisen, replacing democratically elected governments. C) There has been a strong move toward centrally planned economies and away from free market economic models. D) Mixed economies are fast replacing market economies.

Q: _____ is required for a business environment to be conducive to innovation and entrepreneurial activity. A) State ownership of means of production B) Strong legal protection of property rights C) Barriers to foreign trade and investment D) Government regulation of the market

Q: A market economy encourages innovation because A) state ownership of enterprises reduces risks of innovation. B) economic freedom leads to greater incentives for innovation. C) government-owned and funded research centers become hubs of innovation. D) the prices of goods and services, including new products, are fixed by government.

Q: Which of the following statements pertaining to innovation and entrepreneurship is true? A) They are the engines of growth. B) They require strong legal systems. C) They require state ownership of means of production. D) They require a mixed economy.