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| 1 |  |  Guanxi, a Chinese concept about relationships backed up by reciprocal obligations, is quickly fading away as a way of doing business now that more Western business have entered into markets in China. |
|  | A) | True |
|  | B) | False |
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| 2 |  |  Norms are abstract ideas about what a group believes to be good, right, and desirable. |
|  | A) | True |
|  | B) | False |
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| 3 |  |  A group 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) | True |
|  | B) | False |
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| 4 |  |  Confucianism may have profound implications for both workers and managers, even though it is not a religion. |
|  | A) | True |
|  | B) | False |
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| 5 |  |  Because unspoken language gives universal meanings to gestures, it is much easier to learn than spoken languages. |
|  | A) | True |
|  | B) | False |
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| 6 |  |  International businesses that are ill-informed about the practices of another culture are likely to fail. |
|  | A) | True |
|  | B) | False |
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| 7 |  |  _____ can be defined as a system of values and norms that are shared among a group of people and that when taken together constitute a design for living. |
|  | A) | mores |
|  | B) | society |
|  | C) | culture |
|  | D) | folkways |
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| 8 |  |  The keen awareness of the passage of time that is shared by the U.S. and Northern European cultures is an example of |
|  | A) | attitudes |
|  | B) | values |
|  | C) | mores |
|  | D) | folkways |
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| 9 |  |  Which of the following is NOT true of culture and the nation-state? |
|  | A) | there is not a strict one-to-one correspondence between a society and a nation-state |
|  | B) | nation-states are political creations |
|  | C) | a culture may embrace several nations |
|  | D) | the relationship between culture and country is clearly defined |
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| 10 |  |  All of the following are determinants of culture except |
|  | A) | geography |
|  | B) | religion |
|  | C) | language |
|  | D) | education |
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| 11 |  |  Social structure: |
|  | A) | is closely related to ideas of culture, but is not one of the determinants. |
|  | B) | is one of the least important concerns for international business. |
|  | C) | addresses the role of the individual in his or her society as well as how the society is stratified. |
|  | D) | is uniform across cultures. |
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| 12 |  |  The lack of loyalty and commitment to an individual company that is common in the U.S. reflects |
|  | A) | the emphasis on the group |
|  | B) | the vast network of interpersonal contacts that is common among American managers |
|  | C) | the social strata in the U.S. |
|  | D) | the high degree of individualism in American society |
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| 13 |  |  In Japan, the primary unit of social organization is |
|  | A) | educational background |
|  | B) | the group |
|  | C) | monetary based |
|  | D) | based on geographic differences |
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| 14 |  |  The extent to which individuals can move out of the strata into which they were born is known as |
|  | A) | social mobility |
|  | B) | a caste system |
|  | C) | social strata |
|  | D) | class mobility |
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| 15 |  |  A system of shared beliefs and rituals that are concerned with the realm of the sacred is |
|  | A) | values |
|  | B) | attitudes |
|  | C) | religion |
|  | D) | rituals |
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| 16 |  |  Demonstrating the implications that religion can have on business, _____ made the connection between Protestant ethics and the spirit of capitalism. |
|  | A) | John Dunning |
|  | B) | Adam Smith |
|  | C) | Michael Porter |
|  | D) | Max Weber |
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| 17 |  |  Which of the following is not a major principle of Islam? |
|  | A) | being of pure heart and mind |
|  | B) | being generous but not a squanderer |
|  | C) | respecting the rights of others |
|  | D) | being overly pretentious towards others |
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| 18 |  |  The most widely spoken language in the world, which has a major impact on international business is: |
|  | A) | Chinese |
|  | B) | Spanish |
|  | C) | English |
|  | D) | Hindi |
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| 19 |  |  Which of the following is NOT a reason why international business is concerned with a country level and quality of formal education? |
|  | A) | Formal education is the medium through which individuals learn important languages, concepts and skills. |
|  | B) | It is the family not the education system that teaches values. |
|  | C) | Formal education can be linked to national competitive advantage. |
|  | D) | General education level is a good index to determine the kinds of products citizens of a country might purchase. |
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| 20 |  |  In the workplace culture: |
|  | A) | is the attempt by management to improve productivity by getting workers to attend theater and opera. |
|  | B) | is a distraction since workers have little choice in the tasks they must perform. |
|  | C) | helps explain differences in how work is organized and how workers relate to management. |
|  | D) | is becoming increasingly irrelevant with the popularity of the Internet. |
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| 21 |  |  Western nations such as the U.S. tend to score _______ on Hofstede's individualism scale and _____ on the power distance scale. |
|  | A) | low, high |
|  | B) | moderate, high |
|  | C) | high, low |
|  | D) | high, moderate |
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| 22 |  |  According to Hofstede ________ captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. |
|  | A) | folkways |
|  | B) | uncertainty avoidance |
|  | C) | power distance |
|  | D) | Confucian dynamism |
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| 23 |  |  Cultures evolve over time with underlying changes in values. These value changes can have profound impacts on international businesses as: |
|  | A) | the value of the dollar is important in foreign exchange. |
|  | B) | everything from attitudes about sex to the nature of work are affected. |
|  | C) | values are often more important than prices. |
|  | D) | changes in values tend to calm turmoil in societies. |
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| 24 |  |  When a manager believes that his own ethnic group or culture is superior to those of others, the manager is demonstrating a(n) __________ attitude. |
|  | A) | polycentric |
|  | B) | ethnocentric |
|  | C) | geocentric |
|  | D) | transcentric |
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| 25 |  |  Culture and national competitive advantage are closely related. An important implication for international business is that: |
|  | A) | value systems affect the costs of doing business. |
|  | B) | natural resources are generally more important for competitiveness than culture. |
|  | C) | governments can have little impact on national competitive advantages. |
|  | D) | American models of how business should be conducted are becoming the only means for success in international business. |
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