Deck 3: Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Question 1

The most effective way to learn cultural skills is to take a class.

Answer 1

False

Question 2

In a low-context culture, communication relies a lot on the underlying, unspoken context as much as on the actual spoken words.

Answer 2

False

Question 3

A country with low-masculinity has a more subtle differentiation between the gender roles.

Answer 3

True

Question 4

The United States consistently retains a very low level of corruption according to the Foreign Corrupt Practices Act.

Question 5

An example of low power distance would be when subordinates address their bosses on a first-name basis.

Question 6

English is the largest language in terms of native speakers.

Question 7

Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.

Question 8

Ethnocentrism is the quality of a society that perceives its own culture, ethics, and norms as natural, rational, and morally right.

Question 9

Awareness, knowledge, and skills are the three phases an individual seeking cultural intelligence must pass through.

Question 10

In situations where formal institutions are unclear or fail, informal institutions play a more important role in reducing uncertainty.

Question 11

If the richest 10% of a country s population controls 22% of the national income, this is an example of relatively high power distance.

Question 12

What is legal is always ethical.

Question 13

It is most accurate to apply a specific culture to each country.

Question 14

According to the Huntington set of clusters, a class is the highest cultural grouping of people and the broadest level of cultural identity people have.

Question 15

Most firms agree that while following strict ethical standards may help win them goodwill, it is rarely financially beneficial in the end.

Question 16

Informal institutions are based on the rules and legal systems of an economy.

Question 17

The average length of contracts is longer in low-context cultures than in high-context countries, where a lot of agreements are unspoken.

Question 18

The basis behind the cluster approach is that firms are more comfortable doing business with other firms in their same cluster.

Question 19

Ethics is a legal issue represented solely in formal institutions.

Question 20

The United States is often classified as a collective society.

Question 21

Which of the following set of clusters includes ALL countries?

A) GLOBE
B) Hofstede
C) Ronen and Shenkar
D) Huntington

Question 22

Which of the following is NOT one of the three middle-of-the-road guiding principles proposed by business ethicist Thomas Donaldson?

A) Firms should maintain and teach the ethical standards from their home country.
B) All firms should show respect for human dignity and basic rights.
C) Firms should gain careful understanding of local institutions if they wish to show respect for institutional context.
D) Firms that show respect for local traditions suggests cultural sensitivity.

Question 23

Which of the following is a factor behind English being accepted as the global business language?

A) English speakers have traditionally been more mobile than non-English speakers.
B) It is easiest to translate to and from English.
C) English-speaking countries contribute the largest share of global output.
D) English is the number one language in the world.

Question 24

An American firm operating in the Middle East struggles with enforcing rules against sexual discrimination against Muslim women working in its management. This is an example of:

A) Ethical relativism
B) Ethical responsibility
C) Ethical imperialism
D) Ethical institution

Question 25

Define informal institutions and explain how ethnocentrism affects cultural intelligence.

Question 26

Which of the following is the largest religion in the world based on number of adherents?

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

Question 27

Culture is defined in the text as:

A) The communication between members of similar location.
B) The collective programming of the mind, which distinguishes the members of one group or category of people from another.
C) The main component of formal institutions.
D) The attitudes and behaviors characteristic of a particular social group or organization.

Question 28

Which of the following is the law enacted in 1977 that bans bribery to foreign officials?

A) Trust Against Bribery and Distortion Act
B) Foreign Corrupt Practices Act
C) Statute of Limitation on Foreign Direct Investment Act
D) Bribery of Foreign Public Officials Act

Question 29

In a collective society:

A) Family units are highly valued.
B) Being an entrepreneur is a popular mindset.
C) Being different than your neighbor is important.
D) Outsiders are easily trusted.

Question 30

Compare and contrast the strengths and weaknesses of the cluster approach and the dimensions approach.

Question 31

You as a student studying this book are advised to invest in your career by doing the following except:

A) Learn at a minimum two foreign languages
B) Spend one semester globally
C) Make international friends
D) Be aware of the prevailing norms and global transitions

Question 32

What is a disadvantage of English being widely adopted as a global business language?

A) An English-speaking business manager working away from his or her native culture may miss local cultural subtleties.
B) Not as many people are learning other languages.
C) Firms are able to communicate more efficiently.
D) English speaking countries contribute the largest share of global output.

Question 33

Which of the following dimensions does NOT accurately describe the majority firms in the United States?

A) High individualism
B) Low power distance
C) Low uncertainty avoidance
D) High long-term orientation

Question 34

A term that seeks to find middle ground between cultural divergence and convergence is:

A) Divergence
B) Relative convergence
C) Limited divergence
D) Crossvergence

Question 35

The greatest weakness in the fight against eradicating corruption is:

A) There is too much corruption to ever win.
B) Every country must institutionalize and enforce anti-corruption laws.
C) The fact that the Foreign Corrupt Practices Act is no longer being followed.
D) Overseas bribes are often tax deductible.

Question 36

A(n) ____ is a set of guidelines for helping a firm make ethical decisions:

A) Control audit
B) Corporate policy
C) Employee relation book
D) Code of conduct

Question 37

Which of the following is NOT an influential set of clusters outlined in the text?

A) GLOBE
B) Hofstede
C) Ronen and Shenkar
D) Huntington

Question 38

Which of the following is not one of the five dimensions outlined in the Dimensions Approach?

A) Uncertainty Avoidance
B) Work Ethic
C) Masculinity
D) Individualism

Question 39

____ is an individual s ability to understand and adjust to new cultures.

A) Cultural intelligence
B) Cultural awareness
C) Cultural skills
D) Cultural responsibility

Question 40

Which of the following countries can be defined as a high-context culture?

A) Japan
B) France
C) Finland
D) Canada

Question 41

Describe the various norms associated with strategic responses of firms when dealing with ethical challenges.

Question 42

Describe how Hofstede s power distance and uncertainty avoidance dimensions influence decision-making styles.

Question 43

Explain how the middle-of-the-road strategies bridge the disparity between ethical relativism and ethical imperialism.