International Business Ch. 4 – Flashcards

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Society refers to a group of people whose values and norms differ from each other.
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FALSE
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Values provide the context within which a society's norms are established and justified.
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TRUE
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Rituals and symbols are the most visible manifestations of a culture and constitute the outward expression of deeper values.
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TRUE
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There is a strict one-to-one correspondence between a society and a nation-state.
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FALSE
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The emphasis on individualism results in a low degree of managerial mobility between companies.
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FALSE
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The emphasis on individualism may make it difficult to build teams within an organization to perform collective tasks.
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TRUE
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The emphasis on individualism results in a low degree of managerial mobility between companies.
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TRUE
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The emphasis on individualism has led to the widespread diffusion of self-managing work teams within Japanese organizations.
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FALSE
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The primacy of the value of group identification encourages managers and workers to move from company to company.
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FALSE
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Strong identification with the group tends to create pressures for mutual self-help and collective action.
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TRUE
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Individuals become a member of the social category to which their parents belong.
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TRUE
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The least rigid system of social stratification is a caste system.
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FALSE
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A caste system is a closed system of stratification in which social position is determined by the family into which a person is born.
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TRUE
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In a class system, individuals born into a class at the bottom of the social hierarchy can work their way up.
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TRUE
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Although upward social mobility was possible in Britain, it could not normally be achieved in one generation.
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TRUE
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Class membership in the United States is determined to a much greater degree by individual background and schooling, as opposed to economic achievements.
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FALSE
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In American society, the high degree of social mobility and the extreme emphasis on individualism have resulted in the emergence of class consciousness.
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FALSE
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It is easier for companies based in countries with a high degree of class consciousness to establish a competitive advantage in the global economy.
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FALSE
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Confucianism and Confucian ethics influence behavior and shape culture in parts of Asia, hence it is correct to characterize Confucianism as a religion.
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FALSE
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Buddhism has the highest number of adherents in the world today.
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FALSE
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According to Max Weber, Protestant ethics discouraged the development of capitalism.
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FALSE
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Max Weber argued that the Catholic promise of salvation in the next world, rather than this world fostered "a spirit of capitalism."
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FALSE
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Like Christianity and Judaism, Islam is a monotheistic religion.
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TRUE
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Islam is not just a religion; it is also the source of law, a guide to statecraft, and an arbiter of social behavior.
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TRUE
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Under the Islamic banking method of mudarabah, when an Islamic bank lends money to a business, rather than charging that business interest on the loan, it takes a share in the profits that are derived from the investment.
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TRUE
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The murabaha contract is the most widely used among the world's Islamic banks, primarily because it is the easiest to implement.
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TRUE
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Max Weber argued that the ascetic principles embedded in Hinduism encourage the kind of entrepreneurial activity in pursuit of wealth creation that we find in Protestantism.
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FALSE
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The concept of mobility between castes within an individual's lifetime makes no sense to traditional Hindus.
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TRUE
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Buddhism was founded in China.
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FALSE
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Buddhism supports the caste system.
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FALSE
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Confucianism is not concerned with the supernatural and has little to say about the concept of a supreme being or an afterlife.
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TRUE
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Language is one of the defining characteristics of a culture.
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TRUE
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The use of a grading system in schools teaches children the value of personal achievement and competition.
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TRUE
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According to Geert Hofstede, high power distance cultures were found in societies that tried to play down inequalities of power and wealth as much as possible.
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FALSE
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People who cannot take food or safety for granted tend to have authoritarian tendencies, and believe that men make better political leaders than women.
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TRUE
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According to the World Values Survey, as countries get richer, a shift occurs away from "traditional values" linked to religion, family, and country, and toward "secular rational" values.
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TRUE
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_____ means an understanding of how cultural differences across and within nations can affect the way business is practiced.
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Cross-cultural literacy
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When Shop Smart opened its first super market in China it was unable to generate any sales. After conducting a research, it was understood that the local sales personnel found it difficult to communicate with the American store managers. In addition, Chinese consumers found it difficult to shop in the American way. Shop Smart's failure in China can be attributed to the lack of:
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cross-cultural literacy.
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Which of the following statements is true about culture?
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Multinational enterprises can themselves be engines of cultural change.
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In a social context, the term values is used to describe the:
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abstract ideas about what a group believes to be good, right, and desirable.
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In a society, actions of people directed toward one another are governed by a set of social rules called:
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norms
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_____ 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.
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Folkways
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Which of the following best exemplifies violation of folkways?
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Failing to greet a person you know
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What is the difference between folkways and mores?
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Violating mores tends to bring more serious retribution than violating folkways.
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Which of the following best exemplifies violation of mores?
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Committing a financial fraud
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A difference in the attitudes of people toward time in different cultures is an example of the _____ in individual cultures.
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folkways
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Which of the following statements is true of mores?
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Certain mores have been enacted into law.
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Mores are best defined as:
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norms that are seen as central to the functioning of a society and to its social life.
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Indictments against theft, incest, and cannibalism are examples of how violating _____ can bring about serious retribution.
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mores
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Which of the following statements is true about most Western societies?
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The value systems of many Western societies emphasize individual achievement.
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Which of the following is a dimension of social structure that is particularly important when explaining differences between cultures?
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The degree to which the society is stratified into classes or castes
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Which of the following is an implication of high degree of managerial mobility in societies that emphasize individualism?
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Lack of company-specific experience, knowledge, and a network of contacts among managers
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In the context of social structure, the American society is characterized by a low degree of:
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social stratification.
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In many Western societies, the _____ is the basic building block of social organization.
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individual
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The United Republic emphasizes individual performance and achievements in every sphere of society. Which of the following statements is true about the society of this country?
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The employees in this country will lack loyalty and commitment to a company.
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One of the downsides to the emphasis on individualism is that it:
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is difficult to build teams within an organization to perform collective tasks.
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Which of the following statements is true about the business implications of the Japanese society?
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There is a low degree of movement from company to company among managers and workers in Japan.
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When compared to the American society, the Japanese society lacks:
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dynamism and entrepreneurship.
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If a society emphasizes the group as the primary unit of social organization, it is most likely to:
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discourage employees from moving from company to company.
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Which of the following is a possible downside of emphasizing the primacy of group identification over individualism?
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It leads to a lack of dynamism and entrepreneurship.
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_____ are defined as hierarchical social categories, often based on family background, occupation, and income.
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Social strata
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Which of the following statements is true about social stratification?
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Individuals are born into a particular social stratum.
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A _____ 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.
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caste
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Mountland Republic follows a system of social stratification that allows for flexibility in terms of social mobility. In this system of open stratification the status of a person is solely determined by his or her own socioeconomic achievements. Mountland Republic is most likely to be following a _____ system of social stratification.
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class
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Although the number of societies with caste systems diminished rapidly during the twentieth century, one partial example still remains in:
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India.
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In a country called Burnada, the citizens are restricted from moving out of the strata they are born into. Also, individuals are allowed to engage only in the occupation associated with their particular strata. The system of social stratification being practiced in Burnada can be identified as a:
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caste system.
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A _____ system is a form of open stratification in which the position a person has by birth can be changed through his or her own achievements or luck.
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class
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Which of the following statements is true about the class system in the United States when compared to the British class system?
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The class system in the United States is more pronounced than in Britain.
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_____ refers to a condition where people tend to perceive themselves in terms of their class background, and this shapes their relationships with members of other classes.
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Class consciousness
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In the Republic of Cedia, people are extremely conscious about their social backgrounds. This in turn regulates their relationships with members of other classes. As a result of the heightened class consciousness:
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an antagonistic relationship will exist between management and labor classes.
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Which of the following is most likely to be the result of high degrees of class consciousness in societies?
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Increase in the costs of production
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_____ is an ethical system that has influenced behavior and shaped culture in parts of Asia, however it cannot be considered as a religion.
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Confucianism
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Which of the following is the most dominant religion in the world in terms of numbers of adherents?
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Christianity
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In 1904, _____ theorized that there was a relationship between Protestantism and the emergence of modern capitalism.
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Max Weber
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According to Max Weber, Protestantism encouraged capitalism's development by:
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emphasizing on the importance of hard work and wealth creation for the glory of God and frugality.
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Which of the following is a religion that prohibits the payment or receipt of interest, as it is considered to be usury?
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Islam
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Islam has roots in both Judaism and ____.
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Christianity
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The rise of Islamic fundamentalism is, in part, a response to the:
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movement in traditional Islamic societies toward modernization.
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Which of the following statements is true of Islam?
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Islam forbids the consumption of pork and alcohol.
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Muslim countries are likely to be receptive to international businesses as long as those businesses:
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behave in a manner that is consistent with Islamic ethics.
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Which of the following does Islam prohibit?
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Earning profits by breaking contractual obligations
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A major distinction between a conventional bank and an Islamic bank is that:
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Islamic banks cannot pay or charge interest.
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"Mudarabah" and the "murabaha" are:
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Islamic banking methods.
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Which of the following is true about the Islamic banking method — the mudarabah?
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A mudarabah contract is similar to a profit-sharing scheme.
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_____ began in the Indus Valley in India, and is the world's oldest major religion.
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Hinduism
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Which of the following religions does not owe its founding to any one particular individual?
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Hinduism
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Dharma, karma, and nirvana are terms related to:
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Hinduism
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Many _____ believe that the way to achieve nirvana—a state of complete spiritual perfection— is to lead a severe ascetic lifestyle of material and physical self-denial, devoting life to a spiritual rather than material quest.
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Hindus
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Which of the following statements is true about Hinduism?
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Hinduism supported India's caste system.
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According to Hinduism, the way to achieve spiritual perfection is:
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to lead a severe ascetic lifestyle of material and physical self-denial.
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Max Weber argued that the ascetic principles embedded in _____ do not encourage entrepreneurial activity in pursuit of wealth creation because it is perceived that such activities make the attainment of nirvana more difficult.
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Hinduism
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Hindus see mobility between castes as something that can be achieved through:
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spiritual progression and reincarnation.
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Zain finds it hard to dine with his American colleagues as his religion prohibits the consumption pork and alcohol. He also quit his previous job in a bank on the base that his religion considers the payment or receipt of interest as exploitative and unjust. According to this information, Zain is a follower of:
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Islam
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Maya is a follower of a religion which emphasizes that individuals should be judged solely by their spiritual achievements. The caste Maya belongs to is of the highest order in her religion, and hence is highly respected. She also firmly believes that she was born into the high caste as a result of her spiritual development in her previous life. Maya follows:
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Hinduism
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_____ was founded in India in the sixth century b.c. by Siddhartha Gautama, an Indian prince who renounced his wealth to pursue an ascetic lifestyle and spiritual perfection.
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Buddhism
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What is the common aspect of the teachings of Hinduism and Buddhism?
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Both stress the afterlife and spiritual achievement rather than material progress.
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Which of the following statements is true about Buddhism?
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The emphasis on wealth creation that is embedded in Protestantism is not found in Buddhism.
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Sami follows a religion founded by an Indian prince—Siddhartha Gautama. Unlike the other Indian religions his religion does not propagate the caste system. Also, his religion emphasizes right seeing, thinking, speech, action, living, effort, mindfulness, and meditation as a route for spiritual transformation. According to this information, Sami can be considered as a:
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Buddhist
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For more than 2,000 years until the 1949 Communist revolution, _____, which teaches the importance of attaining personal salvation through right action, was the official ethical system of China.
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Confucianism
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_____ is a non-religious, ethical system principally followed in China, Korea, and Japan.
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Confucianism
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Which of the following is a non-religious system of ethics that considers the values of loyalty, reciprocal obligations, and honesty in dealings with others central to its ideology?
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Confucianism
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_____ is not concerned with the supernatural, has little to say about the concept of a supreme being or an afterlife, and believes that loyalty to one's superiors is an absolute obligation.
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Confucianism
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Which of the following statements is true of Confucianism?
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In Confucian thought, loyalty to one's superiors is regarded as a sacred duty.
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China Innovation Inc. is a devout follower of Confucian ethics. Hence, it hires people who live by similar principles. Which of the following is most likely to be a characteristic of this company?
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The cost of doing business will be low for those companies that enter into a business with China Innovation Inc.
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In a Confucian culture, loyalty of the subordinates to their superiors should be:
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reciprocated by the superiors by bestowing blessings on them.
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Which of the following Confucian ethics is central to the Chinese concept of guanxi?
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Reciprocal obligations
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A person seeking and receiving help through a guanxi network is:
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liable to a social sanction if he or she does not reciprocate when called upon.
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Which of the following is the cause behind the Basque separatist movement that is going on in Spain for decades?
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Language and culture differences
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_____ is the mother tongue of the largest number of people in the world.
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Chinese
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_____ is the most widely spoken language in the world, and is increasingly becoming the language of international business.
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English
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Chinese is the mother tongue of the largest number of people, but English is the most widely spoken language in the world. This indicates that:
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many people speak English as a second language.
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When a Japanese and a German businessperson get together to do business, it is most likely that they will communicate in _____ .
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English
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Jack, the CEO of Silver Touch Inc., raised his eyebrow in surprise at a new employee's valid suggestion to improve the sales turnover. He made a thumbs-up gesture as a sign of approval for the implementation of the employee's suggestion. Jack is typically using:
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nonverbal communication.
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Which of the following is an aspect of nonverbal communication?
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Personal space
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Which of the following statements best defines personal space?
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It is the comfortable amount of distance between you and someone you are talking with.
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When schools emphasize respect for others, obedience to authority, honesty, neatness, being on time, and use a grading system, they are:
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indirectly teaching cultural values and norms.
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The recent trend to outsource information technology jobs to countries such as India indicates that:
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a good education system is a determinant of national competitive advantage.
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Managers at the Blue Dragon Inc., an international company with operations in China and the United States, are often heard complaining about the difficulties in achieving synergy and cooperation between the employees of both the countries. On extensive research it was concluded that the cultural differences between these countries, which resulted in different work-related values, caused the lack of cooperation. In order to effectively tackle this problem, Blue Dragon Inc. should:
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vary its management process and practices to account for these differences.
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_____ isolated four dimensions—power distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus femininity—that he claimed summarized different cultures.
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Geert Hofstede
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Which of the following statements is true with regard to Geert Hofstede's cultural dimensions?
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Members of high uncertainty avoidance cultures had a strong need for rules and regulations.
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The natives of The Republic of Coastland are always prepared to take risks and they also demonstrate less emotional resistance to change. Apart from these characteristics, the ties between people are loose, sex roles are less sharply distinguished, and inequalities of power and wealth are discouraged in the country. According to this information, the Republic of Coastland most likely demonstrates _____.
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low uncertainty avoidance
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According to Hofstede, in societies where _____ was emphasized, the ties between individuals were tight.
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collectivism
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Which of the following is a characteristic of high uncertainty avoidance cultures?
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They allow a manager to tightly control the subordinates' initiatives.
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A country characterized with low uncertainty avoidance and low masculinity will:
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be less resistant to change and less distinguishing between men and women in the same job.
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Which of the following statements is true of Geert Hofstede's work on cultural dimensions?
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B. Hofstede's work fails to consider that many countries have more than one culture.
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Hofstede's _____ dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities.
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power distance
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Which of the following is a criticism of Hofstede's four cultural dimensions?
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Certain social classes were excluded from Hofstede's work sample.
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Hofstede's fifth dimension of Confucian dynamism captures:
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attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.
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Which of the following statements is true about the cultural dimension "Confucian dynamism"?
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In Confucian dynamism, the units of resources required to produce a good are assumed to remain constant no matter where one is on a country's production possibility frontier.
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A decade ago the government of Weinsland decided to liberalize the country's economy. As a result, today the country is experiencing rapid economic advancement and societal changes that are favorable for international business. Which of the following changes is most likely to occur in Weinsland?
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As the country gets richer, there will be a shift in the society from "traditional" to "secular rational" values.
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Ceria Republic is a country that has achieved rapid economic growth and prosperity over the last couple of decades as a result of globalization. Hence, the country is most likely to see a cultural shift away from _____ .
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greater collectivism
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Survival values typically stress the importance of:
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economic and physical security.
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The distinctive culture of Wengiston has been losing its predominance among the citizens of the country. This is due to the fact that the people of Wengiston are extensively adopting certain universally accepted values and norms. This behavior of the people in Wengiston demonstrates _____.
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the convergence hypothesis.
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Janet believes that the cultural group she belongs to is superior and is hence highly intolerant toward employees from the cultures of other countries. This behavior of Janet is known as:
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ethnocentrism
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Which of the following best exemplifies ethnocentrism?
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Bryan's belief in the superiority of his culture has resulted in conflicts with his colleagues from different countries.
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