You are on page 1of 33

Chapter 03 - Differences in Culture

Chapter 03
Differences in Culture

True / False Questions

1. (p. 88) In today's world of global communications, rapid transportation and global marets,
cultural differences ha!e ceased to e"ist.
FALSE

Difficulty: Medium

#. (p. 88) Culture is static.
FALSE

Difficulty: Medium

3. (p. 89) $alues are abstract ideas about what a group belie!es to be right, good and desirable.
TRUE

Difficulty: Easy

%. (p. 89) & society is another name for a country.
FALSE

Difficulty: Easy

'. (p. 89) & country is defined as a system of !alues and norms that are shared among a group of
people and that when taen together constitute a design for li!ing.
FALSE

Difficulty: Easy

3-1
Chapter 03 - Differences in Culture
3-#
Chapter 03 - Differences in Culture
(. (p. 89) )eople who !iolate folways are considered to be e!il or bad.
FALSE

Difficulty: Medium

*. (p. 90) +olways include rituals and symbolic beha!ior.
TRUE

Difficulty: Medium

,. (p. 90) -he bow that is gi!en by a .apanese business e"ecuti!e to another business e"ecuti!e
is an e"ample of symbolic beha!ior.
TRUE

Difficulty: Medium

/. (p. 90) 0ores ha!e much greater significance than folways.
TRUE

Difficulty: Medium

10. (p. 91) If a country is characteri1ed as ha!ing a single homogenous culture, then its national
culture also is homogenous and not a mosaic of subcultures.
FALSE

Difficulty: Medium

3-3
Chapter 03 - Differences in Culture
11. (p. 91) -he !alues and norms of a culture are e!olutionary.
TRUE

Difficulty: Medium

3-%
Chapter 03 - Differences in Culture
1#. (p. 92) & society's social structure refers to its basic social organi1ation.
TRUE

Difficulty: Easy

13. (p. 92) Indi!idualism has led to a high degree of managerial mobility between companies
resulting in managers who ha!e good general sills but lac company-specific e"perience.
TRUE

Difficulty: Medium

1%. (p. 93) -he emphasis on indi!idualism in the 2.3. may raise the costs of doing business due
to its ad!erse impact on managerial stability and cooperation.
TRUE

Difficulty: Medium

1'. (p. 93) -he group is the primary unit of organi1ation in 4estern societies.
FALSE

Difficulty: Medium

1(. (p. 93) &s demonstrated by .apan, the primacy of the group is always beneficial.
FALSE

Difficulty: Medium

3-'
Chapter 03 - Differences in Culture
1*. (p. 94) -he term social strata refers to the e"tent to which indi!iduals can mo!e out of the
strata into which they were born.
FALSE

Difficulty: Easy

1,. (p. 94) -he most rigid system of stratification is a class system.
FALSE

Difficulty: Easy

1/. (p. 94) & caste system is a closed system of stratification in which social position is
determined by the family into which the person is born.
TRUE

Difficulty: Easy

#0. (p. 94) & class system is a rigid form of social stratification in which the position a person
has by birth cannot be changed through his or her own achie!ements or luc.
FALSE

Difficulty: Easy

#1. (p. 95) 5istorically, upward mobility could be achie!ed in a single generation in 6ritain.
FALSE

Difficulty: Medium

3-(
Chapter 03 - Differences in Culture
##. (p. 95) China's communist rule strengthened class di!isions.
TRUE

Difficulty: Medium

#3. (p. 96) &n antagonistic relationship between management and labor classes may result in
higher costs of production.
TRUE

Difficulty: Medium

#%. (p. 96) Confucianism can be accurately characteri1ed as a religion.
FALSE

Difficulty: Had

#'. (p. 96) Christianity is none"istent in &frica.
FALSE

Difficulty: Medium

#(. (p. 98) 3e!eral sociologists ha!e argued that of the three main branches of Christianity7
Catholic, 8rthodo" and )rotestant7the latter has the most important economic implications.
TRUE

Difficulty: Medium

3-*
Chapter 03 - Differences in Culture
#*. (p. 98) Islam is the largest of the world's ma9or religions.
FALSE

Difficulty: Medium

3-,
Chapter 03 - Differences in Culture
#,. (p. 99) Islam has roots in both .udaism and Christianity.
TRUE

Difficulty: Medium

#/. (p. 100) 0uslim countries are liely to be recepti!e to international business as long as those
businesses beha!e in a manner that is consistent with Islamic ethics.
TRUE

Difficulty: Medium

30. (p. 100) -he protection of the right to pri!ate property is also embedded within Islam.
TRUE

Difficulty: Medium

31. (p. 102) & mudarabah contract baning method of Islamic bans is similar to a profit-sharing
scheme.
TRUE

Difficulty: Medium

3#. (p. 102) :ie Christianity and Islam, 5induism's founding is also lined to a particular
person and it has an officially sanctioned sacred boo.
FALSE

Difficulty: Medium

3-/
Chapter 03 - Differences in Culture
33. (p. 104) 5indus percei!e the pursuit of material well-being as maing the attainment of
nir!ana easier.
FALSE

Difficulty: Medium

3%. (p. 104) 2nlie 5induism, 6uddhism does not support the caste system.
TRUE

Difficulty: Easy

3'. (p. 105) ;uan"i is an important mechanism for building long-term business relationships and
getting business done in China.
TRUE

Difficulty: Medium

3(. (p. 106!10") 3ince <nglish is often thought of as the global language of business, it is not
important for an &merican business e"ecuti!e to learn foreign languages.
FALSE

Difficulty: Easy

3*. (p. 10") 2nspoen language refers to non!erbal communication.
TRUE

Difficulty: Easy

3-10
Chapter 03 - Differences in Culture
3,. (p. 108) 5ofstede's power distance dimension focused on how a society deals with the fact
that people are une=ual in physical and intellectual capabilities.
TRUE

Difficulty: Easy

3/. (p. 110) Culture is a constant> it does not e!ol!e o!er time.
FALSE

Difficulty: Medium

%0. (p. 112) Cultural change is unidirectional, with national cultures con!erging toward some
homogenous global entity.
FALSE

Difficulty: Medium


Multiple Choice Questions

%1. (p. 88) During the 1/(0s and 1/*0s, class di!isions in ????? raised the cost of doing
business there, relati!e to other <uropean countries.
A. ;reat 6ritain
6. 3wit1erland
C. @orway
D. ;ermany

Difficulty: Had

3-11
Chapter 03 - Differences in Culture
%#. (p. 88) 4hich of the following is not true regarding cultureA
A. Culture is static
6. Culture is e!ol!ing
C. It is a system of !alues and norms that are shared among a group of people
D. It in!ol!es the nowledge and beliefs of people

Difficulty: Easy

%3. (p. 89) ????? isBare best defined as shared assumptions about how things ought to be.
&. @orms
. $alues
C. 3ociety
D. Culture

Difficulty: Easy

%%. (p. 89) -he system of !alues and norms that are shared among a group of people and that
when taen together constitute a design for li!ing best defines
&. 3ociety
6. $alue systems
C. )rinciples
D. Culture

Difficulty: Easy

%'. (p. 89) 3ocial rules and guidelines that prescribe appropriate beha!ior in particular situations
are best described as
A. @orms
6. $alues
C. Culture
D. 3ociety

Difficulty: Easy

3-1#
Chapter 03 - Differences in Culture
%(. (p. 89) & group of people who share a common set of !alues and norms form a
&. Culture
. 3ociety
C. Country
D. Caste

Difficulty: Easy

%*. (p. 89) ????? are the routine con!entions of e!eryday life.
A. +olways
6. 0ores
C. Cites
D. 6eliefs

Difficulty: Easy

%,. (p. 89) ????? are social con!entions concerning things such as the appropriate dress code in
a particular situation, good social manners, eating with the correct utensils, neighborly
beha!ior and the lie.
&. $alues
6. 6eliefs
C. 0ores
D. +olways

Difficulty: Medium

%/. (p. 90) &n act, as simple as shaing hands when meeting new people is an e"ample of
&. $alues
. 3ymbolic beha!ior
C. 0ores
D. 3ocial stratification

Difficulty: Medium

3-13
Chapter 03 - Differences in Culture
'0. (p. 90) & .apanese e"ecuti!e's ritual of presenting a business card to a foreign business
e"ecuti!e is an e"ample of
&. 0ores
6. $alues
C. &ttitudes
D. +olways

Difficulty: Medium

'1. (p. 90) 0ores are
A. -he norms that are seen as central to the functioning of a society and its social life
6. -he routine con!entions of e!ery day life
C. &bstract ideas about what a group belie!es to be right, good and desirable
D. -he social rules and guidelines that prescribe appropriate beha!ior in particular situations

Difficulty: Easy

'#. (p. 91) 4hich of the following statement about !alues and norms of a culture is not trueA
&. -he !alues and norms of a society do not emerge fully formed
6. -hey are the e!olutionary product of a number of factors
C. -hey are influenced by social structure and religion
D. -hey do not influence social structure and religion

Difficulty: Had

'3. (p. 92) -he social organi1ation of 4estern society tends to emphasi1e on
&. & group orientation
6. -he family
C. Indi!idual achie!ement
D. 4or groups

Difficulty: Medium

3-1%
Chapter 03 - Differences in Culture
'%. (p. 92) -he emphasis on indi!idualism in the 2.3. results in all of the following
disad!antages e"cept
&. 0anagers tend to de!elop good general sills but lac the company-specific e"perience
6. Difficulty in building teams within an organi1ation to perform collecti!e tass
C. <"ecuti!es are not e"posed to different ways of doing business
D. Difficulty to achie!e cooperation both within a company and between companies

Difficulty: Medium

''. (p. 93) & central !alue of .apanese culture is the importance attached to
&. -he indi!idual
. ;roup membership
C. Indi!idual achie!ement
D. )ersonal accomplishments

Difficulty: Easy

'(. (p. 93) It has been argued that the success of .apanese enterprises in the global economy has
been based partly all of the following e"cept
&. -he diffusion of self-managing wor teams
6. -he close cooperation among different functions within .apanese companies
C. -he high degree of managerial mobility between companies
D. -he cooperation between a company and its suppliers on issues such as design, =uality
control and in!entory reduction

Difficulty: Had

'*. (p. 94) 4hich of the following refers to the e"tent to which indi!iduals can mo!e out of the
strata into which they are bornA
&. Caste stratification
6. Class system
C. 3ocial mobility
D. Indi!idual potential

Difficulty: Easy

3-1'
Chapter 03 - Differences in Culture
3-1(
Chapter 03 - Differences in Culture
',. (p. 94) & ????? 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 indi!idual's lifetime.
A. Caste system
6. Class system
C. 3ocial system
D. Culture system

Difficulty: Easy

'/. (p. 94) -his is a less rigid form of social stratification in which social mobility is possible.
&. 3ocial system
6. Caste system
C. Cultural system
D. Class system

Difficulty: Easy

(0. (p. 94) -hese strata are typically defined on the basis of characteristics such as family
bacground, occupation and income.
&. Demographic strata
6. <conomic strata
C. 3ocial strata
D. Cultural strata

Difficulty: Medium

(1. (p. 94) & class system
&. Is the same as a caste system
6. Is a rigid form of social stratification that does not permit social mobility
C. &llows an indi!idual to change his or her position !ia personal achie!ements
D. Is more rigid than the caste system

Difficulty: Medium

3-1*
Chapter 03 - Differences in Culture
(#. (p. 95) & condition where people tend to percei!e themsel!es in terms of their class
bacground and this shapes their relationships with members of other classes is nown as
&. <conomic classification
6. 3ocial mobility
C. Class mobility
D. Class consciousness

Difficulty: Medium

(3. (p. 95) ????? has been played out in 6ritish society in the traditional hostility between-
upper-middle class managers and their woring class employees.
A. Class consciousness
6. Cultural unity
C. 3ocial awareness
D. Category mindfulness

Difficulty: Medium

(%. (p. 95) In china, class di!isions
&. 5a!e historically been of no importance
. 4ere strengthened during the high point of communist rule
C. Increased e!en during reforms of the late 1/*0s and early 1/,0s
D. 4ere weaened because of a rigid system of household registration

Difficulty: Had

('. (p. 95) -he emergence of class-consciousness in ;reat 6ritain can be attributed to
A. -he relati!e lac of class mobility
6. & high degree of social mobility
C. &n e"treme emphasis on indi!idualism
D. 0ost of the population percei!ing itself to be middle class

Difficulty: Medium

3-1,
Chapter 03 - Differences in Culture
((. (p. 95) Class consciousness
&. Cefers to a set of moral principles or !alues, that are used to guide and shape beha!ior
. Is a condition where people tend to percei!e themsel!es in terms of their class bacground
C. Is the e"tent to which indi!iduals can mo!e out of the strata into which they are born
D. Is a closed system of stratification in which social position is determined by the family into
which a person is born

Difficulty: Had

(*. (p. 96) 4hich of the following cannot be characteri1ed as a religionA
&. Islam
6. 5induism
C. Confucianism
D. 6uddhism

Difficulty: Easy

(,. (p. 96) <thical systems are
A. & set of moral principles or !alues, that are used to guide and shape beha!ior
6. 3hared beliefs and rituals that are concerned with the realm of the sacred
C. Coutine con!entions of e!eryday life
D. 3ocial rules that go!ern peoples' actions toward each other

Difficulty: Easy

(/. (p. 96) Celigion may be defined as
&. Coutine con!entions of e!eryday life
6. 3ocial rules that go!ern peoples' actions toward each other
C. 3hared beliefs and rituals that are concerned with the realm of the sacred
D. & set of moral principles or !alues, that are used to guide and shape beha!ior

Difficulty: Easy

3-1/
Chapter 03 - Differences in Culture
*0. (p. 96) ????? is the most widely practiced religion in the world.
A. Christianity
6. Islam
C. 5induism
D. 6uddhism

Difficulty: Medium

*1. (p. 98) -he second largest of the world's religions is
&. Christianity
6. 6uddhism
C. 5induism
D. Islam

Difficulty: Medium

*#. (p. 98) &ccording to sociologists which of the following branches of Christianity has the
most important economic implicationsA
&. Catholic
6. 8rthodo"
C. )rotestant
D. 0ormon

Difficulty: Had

*3. (p. 98) Identify the sociologist who made a connection between )rotestant ethics and Dthe
spirit of capitalismD that has since become famous.
&. )aul 0assing
. 0a" 4eber
C. +ran1 8ppenheimer
D. +rancis ;alton

Difficulty: Easy

3-#0
Chapter 03 - Differences in Culture
*%. (p. 100) 4hich of the following obser!ations is correctA
&. @one of the economic principles established in the Eoran are proFfree enterprise
. -he Eoran speas appro!ingly of free enterprise
C. -he Eoran speas disappro!ingly of earning legitimate profit through trade and commerce
D. )rotection of the right to pri!ate property is not embedded within Islam

Difficulty: Medium

*'. (p. 100) &ccording to Islam, those who hold property are regarded as
A. -rustees
6. 8wners
C. -enants
D. 3peculators

Difficulty: Medium

*(. (p. 102) -his is an Islamic baning method where bans lend money to a business and rather
than charging that business interest on the loan, they tae a share in the profits that are deri!ed
from the in!estment.
A. 0udarabah
6. 0urabaha
C. 0aysir
D. 0udarib

Difficulty: Had

**. (p. 102) 4hich Islamic baning method is the most widely used among the world's Islamic
bans, primarily because it is the easiest to implementA
&. 0udarib
. 0urabaha
C. 0aysir
D. 0udarabah

Difficulty: Had

3-#1
Chapter 03 - Differences in Culture
*,. (p. 102) &ccording to ????? the way to achie!e nir!ana is to lead a se!ere ascetic lifestyle of
material and physical self-denial, de!oting life to a spiritual rather than material =uest.
&. 6uddhism
. 5induism
C. Confucianism
D. Islam

Difficulty: Medium

*/. (p. 104) &ccording to 0a" 4eber,
&. )rinciples embedded in 5induism encourage high le!els of entrepreneurial acti!ity
6. 5indu !alues emphasi1e that indi!iduals should be 9udged by their material achie!ements
C. )ursuit of material well-being maes the attainment of nir!ana easier
D. De!out 5indus would be less liely to engage in entrepreneurial acti!ity than de!out
)rotestants

Difficulty: Medium

,0. (p. 104) Identify the incorrect statement pertaining to the caste system in India.
&. It was supported by 5induism
6. -raditionally mobility between castes within an indi!idual's lifetime was not possible
C. It has been completely uprooted from the country's social life
D. It has been abolished in India

Difficulty: Had

,1. (p. 104) 6uddhism
A. 3tresses the afterlife and spiritual achie!ement
6. &d!ocates e"treme ascetic beha!ior
C. 3upports the caste system
D. 3tresses ma"imum in!ol!ement in this world

Difficulty: Medium

3-##
Chapter 03 - Differences in Culture
,#. (p. 105) Confucianism
&. Is best characteri1ed as a religion
6. Is highly concerned with the supernatural and afterlife
C. -eaches the importance of attaining personal sal!ation through right action
D. Is built around a comprehensi!e legal system

Difficulty: Medium

,3. (p. 105) -hree !alues central to the Confucian system of ethics ha!e !ery important
economic implications. 4hich of these is not one among themA
&. :oyalty
. Cule-based law
C. Ceciprocal obligations
D. 5onesty in dealings with others

Difficulty: Medium

,%. (p. 106) 4hile ????? is the mother tongue of the largest number of people in the world, the
most widely spoen language is
&. 3panish> Chinese
6. <nglish> 5indi
C. 5indi> 3panish
D. Chinese> <nglish

Difficulty: Medium

,'. (p. 108) -he ????? dimension of 5ofstede's study e"plores how a society deals with the fact
that people are une=ual in physical and intellectual capabilities.
A. )ower distance
6. Indi!idualism !s. collecti!ism
C. 2ncertainty a!oidance
D. 0asculinity !s. femininity

Difficulty: Easy

3-#3
Chapter 03 - Differences in Culture
,(. (p. 108) -he indi!idualism !s. collecti!ism dimension of 5ofstede's study e"plored
&. -he e"tent to which different cultures sociali1ed their members into accepting ambiguous
situations and tolerating uncertainty
6. -he relationship between gender and wor roles
C. 5ow a society deals with the fact that people are une=ual in physical and intellectual
capabilities
D. -he relationship between the indi!idual and his or her fellows

Difficulty: Easy

,*. (p. 108) 5ofstede's uncertainty a!oidance dimension considered
A. -he e"tent to which different cultures sociali1ed their members into accepting ambiguous
situations and tolerating uncertainty
6. -he relationship between gender and wor roles
C. 5ow a society deals with the fact that people are une=ual in physical and intellectual
capabilities
D. -he relationship between the indi!idual and his or her fellows

Difficulty: Easy

,,. (p. 109) 5ofstede's masculinity !s. femininity dimension e"amined
&. -he e"tent to which different cultures sociali1ed their members into accepting ambiguous
situations and tolerating uncertainty
. -he relationship between gender and wor roles
C. 5ow a society deals with the fact that people are une=ual in physical and intellectual
capabilities
D. -he relationship between the indi!idual and his or her fellows

Difficulty: Easy

3-#%
Chapter 03 - Differences in Culture
,/. (p. 110) 5ofstede'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 fa!ors
6. +ocuses on how a society deals with the fact that people are une=ual in physical and
intellectual capabilities
C. <"plores the relationship between the indi!idual and his or her fellows
D. :oos at the relationship between gender and the ability to accept ambiguous situations

Difficulty: Easy

/0. (p. 113) -he belief in the superiority of one's own culture is nown as
A. <thnocentrism
6. <gocentrism
C. )olycentrism
D. -heocentricism

Difficulty: Easy


Essa! Questions

/1. (p. 89) <"plain the role of !alues and norms in culture.
$alues or abstract ideas about what a group belie!es to be good, right and desirable, form the
bedroc of culture. @orms are the social rules and guidelines that prescribe appropriate
beha!ior in a particular situation. Culture can be defined as a system of !alues and norms that
are shared among a group of people and that when taen together constitute a design for
li!ing.

Difficulty: Easy

3-#'
Chapter 03 - Differences in Culture
/#. (p. 89!90) Compare and contrast folways and mores.
+olways are the routine con!entions of e!eryday life. ;enerally, folways are actions of
little moral significance. +olways include rituals and symbolic beha!ior. In contrasts, mores
are norms that are seen as central to the functioning of a society and to its social life. 0ores
ha!e much greater significance than folways. &ccordingly, !iolating mores can bring serious
retribution.

Difficulty: Medium

/3. (p. 90) Discuss the relationship between society and the nation-state.
-here is not a strict one-to-one correspondence between a society and a nation-state. @ation-
states are political creations that may contain a single culture or se!eral cultures. 4hile it is
possible to tal about cultures at different le!els, for e"ample, an D&merican societyD and
D&merican culture,D it is important to recogni1e there are se!eral societies within &merica,
each with its own culture. -he relationship between culture and country is often ambiguous.
8ne cannot always characteri1e a country as ha!ing a single homogenous culture and that the
national culture is typically a mosaic of subcultures.

Difficulty: Medium

/%. (p. 91) 4hat are the determinants of cultureA
-he !alues and norms of a culture do not emerge fully formed. -hey are the e!olutionary
product of political philosophy, economic philosophy, education, language, social structure
and religion.

Difficulty: Easy

3-#(
Chapter 03 - Differences in Culture
/'. (p. 92!93) Discuss the effect of the emphasis on indi!idual performance that e"ists in many
4estern societies.
-he emphasis on indi!idual performance in many 4estern societies has both beneficial and
harmful aspects. +or e"ample, &merica's emphasis on indi!idual performance has resulted in
a high le!el of entrepreneurial acti!ity and the de!elopment of new products and new ways of
doing things. 5owe!er, because indi!idualism finds e"pression in a high degree of managerial
mobility between companies, the 2.3. has many managers who ha!e good general sills but
lac the nowledge, e"perience and networ contacts that come with years of woring in the
same company. In addition, because indi!iduals are always competing with each other, it may
be difficult to build teams within an organi1ation to perform collecti!e tass. In general, the
emphasis on indi!idualism in the 2.3., while helping to create a dynamic entrepreneurial
economy, may raise the costs of doing business due to its ad!erse impact on managerial
stability and cooperation.

Difficulty: Had

/(. (p. 94) <"plain the concept of social stratification.
&ll societies are stratified on a hierarchical basis into social categories or social strata. 3ocial
strata are typically defined on the basis of characteristics such as family bacground,
occupation and income. Indi!iduals born into the top of a social hierarchy tend to ha!e better
life chances than indi!iduals born into a lower stratum. 4hile all societies are stratified to
some degree they differ from each other with regard to the degree of mobility between social
strata and with regard to the significance attached to social strata in business conte"ts.

Difficulty: Medium

3-#*
Chapter 03 - Differences in Culture
/*. (p. 94) 4hat is the difference between a caste system and a class systemA
& caste 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 indi!idual's lifetime. -he caste system is the most rigid form of social stratification.
& caste fre=uently in!ol!es a specific occupation. In contrast, a class system is a less rigid
form of social stratification in which social mobility is possible through an indi!idual's
personal achie!ements andBor luc.

Difficulty: Medium

/,. (p. 95!96) Discuss why the stratification of a society is important to business.
-he stratification of a society is significant if it affects the operation of business organi1ations.
In a country lie ;reat 6ritain for e"ample, the relati!e lac of class mobility and the
differences between the classes has resulted in hostility between middle-class managers and
their woring-class employees. -his hostility and the resulting lac of cooperation can mae it
more difficult for firms to establish a competiti!e ad!antage in the global economy. 4hile the
last two decades has seen a reduction in the number of industrial disputes in 6ritain, there are
signs that class consciousness may be reemerging in China.

Difficulty: Had

//. (p. 96) 4hat is the connection between religion and ethical systemsA
<thical systems are a set of moral principles or !alues, that are used to guide and shape
beha!ior. 0ost of the world's ethical systems are the product of religions. -herefore, there are
Christian ethics and Islamic ethics. -here are four dominant religions in the world,
Christianity, Islam, 5induism and 6uddhism. -he relationship among religion, ethics and
society is subtle and comple".
-he authors mae the point that while it is important to use caution when maing
generali1ations about the relationship between religion, ethics and business, there is recent
research that suggests that strong religious beliefs ha!e a positi!e impact on economic growth
rates.

Difficulty: Medium

3-#,
Chapter 03 - Differences in Culture
100. (p. 98) Discuss the ideas of 0a" 4eber. 4hat is the )rotestant wor ethicA 4hy is it
important to the world economyA
0a" 4eber was a ;erman sociologist who, in 1/0%, made the connection between )rotestant
ethics and Dthe spirit of capitalism.D &ccording to 4eber, there was a relationship between
)rotestantism and the emergence of modern capitalism. 4eber suggested that the )rotestant
!alue system that emphasi1ed the importance of hard wor, wealth creation and frugality was
needed to facilitate the de!elopment of capitalism.
-hus, 4eber coined the term D)rotestant wor ethicD to denote the tendency on the part of
)rotestants to wor hard and accumulate wealth, which are the underpinnings of capitalism.

Difficulty: Medium

101. (p. 100) <"plain how the Eoran !iews business.
-he Eoran establishes some e"plicit economic principles, many of which are pro-free
enterprise. -he Eoran supports free enterprise and earning a legitimate profit through trade
and commerce, as well as the protection of the right to pri!ate property. 5owe!er, Islam is
critical of those who earn profit through the e"ploitation of others. Islam stresses the
importance of li!ing up to contractual obligations, of eeping one's word and of abstaining
from deception.

Difficulty: Medium

10#. (p. 104) 4hat are the economic implications of 5induismA
&ccording to 0a" 4eber, 5indus do not encourage the ind of entrepreneurial acti!ity in
pursuit of wealth creation that can be found in )rotestantism. 4eber notes that traditional
5indu !alues emphasi1e that indi!iduals should not be 9udged by their material achie!ements,
but by their spiritual achie!ements. 6ut one must be careful not to read too much into 4eber's
arguments. 0odern India is a !ery dynamic entrepreneurial society and millions of hard-
woring entrepreneurs form the economic bacbone of the country's rapidly growing
economy.

Difficulty: Medium

3-#/
Chapter 03 - Differences in Culture
103. (p. 105!106) Consider the influence of Confucian ethics on the economies of China, .apan,
3outh Eorea and -aiwan.
It has been suggested that the economic success of China, .apan, 3outh Eorea and -aiwan,
may be due, in part, to the influence of Confucian ethics on the culture in those countries.
-hree !alues that are central to the Confucian system of ethics are of particular noteG loyalty,
reciprocal obligations and honesty in dealing with others. In fact, the notion of guan"i or
business relationships, which permeates business dealings in the region, re!ol!es around the
three !alues. +or e"ample, it has been suggested that the close ties between the auto
companies and their suppliers in .apan are facilitated by a combination of trust and reciprocal
obligations.

Difficulty: Medium

10%. (p. 106!10") Discuss the spoen language. 4hich is the most spoen language in the worldA
4hat language is used in businessA Is it important to learn a foreign languageA
:anguage does far more than 9ust enable people to communicate with each other. -he nature
of a language also structures the way we percei!e the world. Chinese is the mother tongue of
the largest number of people in the world, followed by <nglish and 5indi. 5owe!er, the most
widely spoen language in the world is <nglish, followed by +rench, 3panish and Chinese.
<nglish is increasingly nown as the language of business. -herefore, e!en when a business
meeting does not in!ol!e nati!e <nglish speaers, <nglish is liely to be spoen. :earning a
foreign language is still !ery important for nati!e <nglish speaers because doing so can build
rapport and help a company a!oid costly translation blunders.

Difficulty: Medium

3-30
Chapter 03 - Differences in Culture
10'. (p. 10") Consider the importance of unspoen language. 4hy is it important to be familiar
with the unspoen language of another cultureA
2nspoen language refers to non!erbal communication. 4e all communicate with each other
by a host of non!erbal cues. -he raising of eyebrows, for e"ample, is a sign of recognition in
most cultures, while a smile is a sign of 9oy. 0any non!erbal cues, howe!er, are culturally
bound. & failure to understand the non!erbal cues of another culture can lead to a failure to
communicate. +or e"ample, maing a circle with the thumb and forefinger is a friendly
gesture in the 2nited 3tates, but it is a !ulgar gesture in ;reece and -urey.
)ersonal space is another part of unspoen language.

Difficulty: Medium

10(. (p. 10"!108) 4hy is the role of education in a culture important to international companiesA
& ey aspect of education in a culture is its role as a determinant of national competiti!e
ad!antage. -he a!ailability of a pool of silled and educated worers seems to be a ma9or
determinant of the liely economic success of a country. )orter for e"ample, has argued that
.apan's e"cellent education system is an important factor e"plaining the country's postwar
economic success. In addition, a good education system is an important factor guiding the
location choices of international business. -he general education le!el of a country is also a
good inde" of the ind of products that might sell in a country and of the type of promotional
material that should be used.

Difficulty: Medium

3-31
Chapter 03 - Differences in Culture
10*. (p. 108!109) Describe the four dimensions of culture as identified by ;eert 5ofstede.
;eert 5ofstede identified four dimensions that he claimed summari1ed the differences
between different cultures. &ccording to 5ofstede, the power distance dimension focused on
how a society deals with the fact that people are une=ual in physical and intellectual
capabilities. -he second dimension identified by 5ofstede, indi!idualism !s. collecti!ism,
focused on the relationship between the indi!idual and his or her fellows. 5ofstede's third
dimension, uncertainty a!oidance, measured the e"tent to which different cultures sociali1e
their members into accepting ambiguous situations and tolerating uncertainty. +inally,
5ofstede's fourth dimension, masculinity !s. femininity, e"amined the relationship between
gender and wor roles.

Difficulty: Medium

10,. (p. 110) Discuss the limitations of 5ofstede's research.
5ofstede's research has been critici1ed on a number of points. +irst, 5ofstede assumes there is
a one-to-one correspondence between culture and the nation state. 3econd, the research may
ha!e been culturally bound. -hird, 5ofstede's informants wored not only within a single
industry, but within one company. +inally, because cultures e!ol!e, 5ofstede's research,
which was conducted in the 1/(0s and 1/*0s, may not be as rele!ant today.

Difficulty: Medium

10/. (p. 110) Discuss Confucian dynamism. <"plore the debate o!er whether Confucian
dynamism is good for an economy.
-he notion of Confucian dynamism or long Fterm orientation, was added to 5ofstede's model
of culture to capture attitudes toward s time, persistence, ordering by status, protection of
face, respect for tradition and reciprocation of gifts and fa!ors. <ast &sian countries such as
.apan, 5ong Eong and -hailand scored high on Confucian dynamism, while countries such as
the 2.3. and Canada scored low. 5ofstede hypothesi1ed that being Confucian was good for
economic growth, howe!er other e"perts ha!e =uestioned this hypothesis, noting that
countries that score low of Confucian dynamism ha!e also achie!ed high growth rates.

Difficulty: Had

3-3#
Chapter 03 - Differences in Culture
110. (p. 111!112) <conomic ad!ancement and globali1ation are prompting societal change.
Discuss this statement.
3e!eral studies ha!e shown that economic ad!ancement and globali1ation are important
factors in societal change. -here is e!idence that economic progress is accompanied by a shift
away from collecti!ism toward indi!idualism. In .apan for e"ample, the model .apanese
DsalarymanD is disappearing as a new generation of office worers act more lie 4esterners.
3imilarly, ad!ancements in transportation and communications technologies combined with a
dramatic increase in trade and global corporations are creating conditions for the merging of
cultures.
-he culture of societies may also change as they become richer because economic progress
affects a number of other factors, which in turn influence culture.

Difficulty: Had

3-33

You might also like