Deck 5: Differences in Culture

Question 1

According to Hofstede, culture is a system of values and norms that are held by an individual as a result of their past experiences.

Answer 1

False

Question 2

Norms refer to the social rules and guidelines that prescribe appropriate behaviour in particular situations.

Answer 2

True

Question 3

Two main dimensions of social structure are: the degree to which the basic unit of social organisation is the individual; and the language spoken.

Answer 3

False

Question 4

Chinese (Mandarin) is the mother tongue of the largest number of people.

Question 5

According to Hofstede, the four dimensions that summarise different cultures are: power over; individualism versus collectivism; uncertainty avoidance; and masculinity versus femininity.

Question 6

Culture, once established, remains constant over time.

Question 7

If the cultures of Australia and China result in different work-related values, an international business with operations in both countries should vary its management process and practices to account for these differences.

Question 8

In business, the key to 'getting things done' in Australia is:

A) what you know and who you know.
B) word-of-mouth transactions and interactions.
C) customer/client privilege.
D) contract law.

Question 9

An understanding of how cultural differences across and within nations can affect the way in which business is practised is referred to as:

A) cross-cultural literacy.
B) cultural diversity.
C) diversification.
D) business etiquette.

Question 10

The social structure of a society refers to its basic organisation. Two main dimensions along which social structures differ are the _____________________ dimension and the ______________ dimension.

A) individual-group; stratification
B) cultural; norms
C) societal; religious
D) unification; group

Question 11

The Koran explicitly forbids interest to be paid to lenders. Consequently, Islamic banks make their money using the following two different methods.

A) mudarabah and murabaha
B) sukuk and wadiah
C) musharakah and hibah
D) ijarah and qardhul hassan

Question 12

In Western banking, the measurement of business ________ coincides with seasonal _________ through profit and loss statements.

A) revenue; variations
B) loss; expectations
C) profit; reporting
D) units; fluctuations

Question 13

Formal education plays a key role in international business because it is a determinant of:

A) national currency.
B) national competitive advantage.
C) national language.
D) national advancement.

Question 14

Hofstede, an expert on cross-cultural differences and management, defined culture as:

A) a pattern of shared basic assumptions.
B) a system of ideas.
C) the collective programming of the mind.
D) capabilities acquired by man as a member of society.

Question 15

The modern interpretation of 'class' in Australia includes all except which of the following categories?

A) Privileged class and propertied class
B) Upper class, middle class and working (lower) class
C) Professional class and class of the legislative assembly (government officials)
D) Class based on a caste system

Question 16

In China, guanxi is central to getting business done, and firms that lack sufficient guanxi may find themselves at a disadvantage. Quanxi refers to:

A) cross-border trading.
B) tacit knowledge of cultural values and norms.
C) respect for longstanding cultural celebrations.
D) relationships backed by reciprocal obligations.

Question 17

_____________ are the two most visible manifestations of a culture.

A) Social ethics and laws
B) Rituals and symbols
C) Religious beliefs and family traditions
D) Class consciousness and social mobility

Question 18

Most ______________ Western countries tend to have __________ cultures where explicit communication is preferred.

A) individualistic; low-context
B) individualistic; high-context
C) high-context; low-context
D) low-context; high-context

Question 19

A caste system is a closed system of ________________ in which social position is ____________and change in that position is usually not possible during an individual's lifetime.

A) stratification; hereditary
B) class; nominated
C) social mobility; through achievement
D) hierarchy; protected

Question 20

Personal economic achievements most influence class membership in countries like:

A) Saudi Arabia.
B) India.
C) the United States.
D) China.

Question 21

The stratification of a society is significant if it affects the operation of business organisations. For this reason, a high degree of social ____________ and an extreme emphasis on ____________________ results in only limited impact of class background on business operations in America and Japan.

A) mobility; individualism
B) awareness; groups
C) acceptance; cooperation
D) intervention; rewards

Question 22

_______________________ is a condition whereby people tend to perceive themselves in terms of their class background, shaping how they relate with members of other classes.

A) Class righteousness
B) Class consciousness
C) Separatism
D) Exclusion

Question 23

The German sociologist Max Weber theorised that there was a relationship between Protestantism and the emergence of ___________________.

A) ethical systems
B) capitalism
C) class consciousness
D) stratification

Question 24

Max Weber, a German sociologist, argued that __________ ethics emphasise the importance of hard work and wealth creation.

A) specialisation
B) Protestant
C) Communist
D) Socialist

Question 25

Which of the following is true of the Koran? It _________________ of free enterprise and of earning legitimate profit through trade and commerce.

A) speaks approvingly
B) does not address the issue
C) speaks critically
D) forbids the practice

Question 26

The most widely used banking method among the world's Islamic banks is _______________. In this method the bank includes a mark-up on items purchased.

A) maharaja
B) usury
C) riba
D) murabaha

Question 27

Weber argued that the Catholic belief in _________________________ did not foster the same kind of work ethic as that held by Protestants.

A) freedom
B) frugality
C) salvation in the next world
D) worldly pleasures

Question 28

______________ is noted for having ethics that speak of the values of loyalty, reciprocal obligation and honesty as being central to its philosophy.

A) Buddhism
B) Islam
C) Hinduism
D) Confucianism

Question 29

Countries with more than one language often have more than one ______________.

A) currency
B) culture
C) embassy
D) parliament

Question 30

__________________ is the lingua franca of international business.

A) French
B) German
C) Japanese
D) English

Question 31

Personal space is an aspect of _________________.

A) discrete communication
B) non-verbal communication
C) silent communication
D) passive communication

Question 32

Geert Hofstede expanded his original research to include a fifth dimension, Confucian dynamism, designed to capture additional cultural differences not brought out in his earlier work. All of the following countries score high on Confucian dynamism except for ______________.

A) New Zealand
B) Thailand
C) China
D) Japan

Question 33

________________________ is described by Hofstede as how a society deals with inequalities of physical and intellectual capabilities between people.

A) Collectivism
B) Individualism
C) Uncertainty avoidance
D) Power distance

Question 34

Which of the following best identifies the five dimensions that Hofstede argued summarise different cultures?

A) Individualism versus collectivism; power distance; tolerant versus intolerant; and aggressive versus passive
B) Uncertainty avoidance; masculinity versus femininity; individual versus group-oriented; and forward versus reserved
C) Aggressive versus passive; tolerant versus intolerant; power distance; individual versus group-oriented; and high-context versus low-context
D) Power distance; individualism versus collectivism; uncertainty avoidance; masculinity versus femininity; and long-term versus short-term orientation