Q&A Hero

Q: Which of the following best exemplifies an ethical dilemma? A.Javier has been doubtful about a car he purchased recently, and hence has been reading only good reviews about the car to console himself. B.After seeing a whole new collection of phones at a store, Max is regretting the purchase of an outdated phone he made last month. C.The manager at Almas Inc. has to make a vendor choice between his underqualified cousin and a highly experienced, trusted supplier. D.Andrew is responsible for deciding whether he should upgrade the manufacturing unit with new machines and reduce costs for clients, or retain the impoverished manual labor. E.Samantha has to decide whether the annual profits of the company should be distributed to the employees as a salary hike or in the form of non-monetary benefits.

Q: Davis is the manager of a pharmaceutical manufacturing facility in a developing country. The manufacturing unit does not meet the acceptable standards of the manufacturing facility in the home nation. He knows that demanding a better manufacturing unit will raise the cost of the drugs mainly exported to other less developed countries, and hence its price. But he also realizes that by not demanding a better unit, the employees are prone to serious health issues. Davis is facing: A.a role conflict. B.the tragedy of the commons. C.a positivity offset. D.an ethical dilemma. E.a negativity effect.

Q: The practice of "gift giving" between the parties to a business negotiation is considered right and proper behavior in many Asian cultures. However, some Westerners view the practice as a form of bribery, and therefore unethical, particularly if the gifts are substantial. This reflects that: A.notions of ethics are universal. B.Asian countries are still under the influence of totalitarianism. C.what is ethical depends on one's cultural perspective. D.Asian cultures are more economically advanced. E.there is unanimous agreement about accepted employment practices.

Q: Which of the following best exemplifies noblesse oblige? A.Multinational corporations gaining monopoly rights in developing countries in order to weaken the local competition B.Multinational corporations funding schools, universities, and hospitals in developing countries C.Multinational corporations altering the laws of a host country to suit their businesses D.Multinational corporations bribing poorly paid government officials in a foreign market E.Multinational corporations moving production to developing countries to exploit their lower employment standards

Q: In a business setting, the term noblesse oblige refers to: A.a benevolent behavior that is considered the responsibility of successful enterprises. B.obliging a government official with the expectation of a reciprocal favor. C.rich corporations abusing their power for private gain. D.preferential treatment received by successful companies from governments. E.tax exemptions that are given only to local companies but not to foreign companies.

Q: Which of the following refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and social consequences? A.Corporate dissonance B.Class consciousness C.Corporate dynamism D.Social responsibility E.Economies of scale

Q: Which of the following statements is true of facilitating payments? A.According to the Foreign Corrupt Practices Act, "facilitating payments" are as illegal as bribes. B.Facilitating payments are payments to secure contracts that otherwise would not be secured. C.It is ethical to have a zero-tolerance approach toward facilitating payments. D.Companies are allowed to make facilitating payments only in developing countries. E.The concept of facilitating payments was introduced by the UN to put U.S. firms at a competitive disadvantage.

Q: Brain Wing Inc. has won the bid to build airplanes for a host country government. However, the execution of the contract has been delayed due to certain unproductive, bureaucratic procedures in the less developed nation. In order to legally overcome this problem, Brain Wing Inc. could resort to the payment of: A.customs duties. B.excise taxes. C.expatriation taxes. D.speed money. E.repatriation fees.

Q: The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions: A.makes it mandatory for companies to adhere to the pollution control standards of their home country in all the nations in which they do business. B.does not consider facilitating payments a criminal offense. C.makes grease payments mandatory in order to obtain exclusive preferential treatment in a host nation. D.considers payment of speed money to be moral, but illegal. E.makes it obligatory for companies to adopt a zero-tolerance approach toward grease payments.

Q: In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made legal payments to the government officials of a host nation. Such payments are typically referred to as: A.bribes. B.speed money. C.customs duties. D.excise taxes. E.preferred dividends.

Q: The Foreign Corrupt Practices Act was subsequently amended to allow for speed money or grease payments, which are payments made to: A.secure contracts that would not otherwise be secured. B.obtain exclusive preferential treatment in a foreign market. C.influence foreign bureaucrats in the company's favor. D.ensure a business receives the standard treatment that it ought to receive. E.secure monopoly rights in less developed countries.

Q: Which of the following best exemplifies the global tragedy of the commons? A.A firm exploiting the weak employment standards in a host nation B.A firm dumping its chemical wastes directly into an ocean C.A firm exploiting the weak intellectual property rights in a developing nation D.A neighboring country opposing the introduction of a free trade area E.A country denying its citizens basic human rights

Q: In the modern world, corporations can worsen the global tragedy of the commons by: A.moving production to locations where they are free to pump pollutants into the environment. B.imposing stringent environmental standards on developing countries. C.creating common environmental and employment standards for all nations. D.adopting costly pollution controls and in turn losing out on economic advantages. E.adhering to civil laws rather than common laws in case of any environmental violations.

Q: Which of the following occurs when a resource held jointly by all, but owned by no one, is overused by individuals, resulting in its degradation? A.Social loafing B.Cultural relativism C.The tragedy of the commons D.A deadweight loss E.Capital deepening

Q: The term global commons refers to: A.social norms and values that are common across the globe. B.a group of nations that share similar ideologies on globalization. C.natural resources from which everyone benefits but for which no one is specifically responsible. D.common laws to be obeyed by companies involved in international business. E.arrangements, like common currencies, between countries to simplify international trading.

Q: Which of the following is most likely to be considered unethical? A.Galaxy Inc. ceased its operations in some developing nations on account of low employment standards in those countries. B.Unicorn Inc. sells its medicines at a lower price in less developed nations. C.Capricorn Inc., a multinational company operating in developing nations, pays its labor 30 percent more than what the local competitors pay. D.Centaur Inc. had to close down a production plant as the local management there had employed child labor. E.Orion Inc. sends its waste products for disposal to a developing nation because the pollution control laws in its home country are much more strict than those in the developing nation.

Q: Due to certain strict environmental and employment standards in its home nation, Taurus Inc. has shifted its operations to developing nations. Hence, the firm has now been able to gain competitive advantage by avoiding costly pollution controls. This strategic move of Taurus Inc. will be considered: A.illegal. B.ethical. C.immoral. D.uneconomical. E.totalitarian.

Q: Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that following his principles: A.was the most ethical way of doing business in South Africa. B.was not sufficient to ethically justify the existence of Western businesses in South Africa. C.would be effective only when companies opposed democracy in South Africa. D.had led international companies to successfully combat the apartheid regime in South Africa. E.would safeguard the citizens and businesses in South Africa from Western businesses.

Q: Briefly describe the five cultural dimensions in Hofstede's model.

Q: What are the three values that are central to the Confucian system of ethics?

Q: Compare and contrast the principles of Hinduism and Buddhism.

Q: Elaborate on the caste system supported by Hinduism.

Q: What are the two different banking methods that Islamic banks have experimented with in order to avoid the payment or receipt of interest?

Q: Describe Islamic fundamentalism.

Q: Elaborate on the connection made between Protestant ethics and "the spirit of capitalism."

Q: What is class-consciousness? What is its impact on businesses?

Q: How does a caste system differ from a class system?

Q: What are the various disadvantages faced by societies that emphasize individual performance?

Q: "There is not a strict one-to-one correspondence between a society and a nation-state." Discuss.

Q: What are norms? Briefly describe the two categories of norms.

Q: Which of the following best exemplifies ethnocentrism? A.Sarah believes that her opinions and interests are superior to that of her siblings. B.Nicole is highly tolerant toward different cultures and is also keen on learning different languages. C.Bryan's belief in the superiority of his culture has resulted in conflicts with his colleagues from different countries. D.Emilio is in an ethical dilemma as he has been given the responsibility of deciding whether or not to hire his under-qualified cousin. E.Galaxy Inc. has been accused of using legal but unethical ways to gain access into the markets of less developed countries.

Q: 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: A.cultural convergence. B.Confucian dynamism. C.ethnocentrism. D.ethnic gloss. E.class consciousness.

Q: 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: A.ethnocentrism. B.the convergence hypothesis. C.egocentrism. D.Confucian dynamism. E.social mobility.

Q: Survival values typically stress the importance of: A.diversity in the society. B.economic and physical security. C.self-expression. D.participation in political processes. E.capitalism.

Q: 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: A.greater collectivism. B.greater economic freedom. C.well-being values. D.secular rational values. E.cultural convergence.

Q: 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? A.The country will exhibit more need for social and material support structures built on collectives. B.As the country gets richer, there will be a shift in the society from "traditional" to "secular rational" values. C.As the country gets richer, there will be a shift in the society from "well-being" to "survival" values. D.The people in the country will give more importance to collectivism than to individualism. E.The country, to further facilitate globalization, will commit to authoritarian ideologies.

Q: Hofstede's fifth dimension of Confucian dynamism captures: A.how a society deals with the fact that people are unequal in physical and intellectual capabilities. B.the relationship between an individual and his or her fellows along with the degree to which individual achievement and freedom are emphasized. C.the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. D.attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. E.the extent to which sex roles are differentiated and values such as achievement and power are emphasized.

Q: Which of the following is a criticism of Hofstede's four cultural dimensions? A.Hofstede has ignored the one-to-one correspondence between culture and the nation-state. B.Most of Hofstede's findings are in direct conflict with standard Western stereotypes. C.Hofstede assumes that most countries have more than one cultural dimension. D.Certain social classes were excluded from Hofstede's work sample. E.Hofstede's informants belonged to several different industries, companies, and countries hence his research lacks standardization.

Q: Which of Hofstede's dimensions focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities? A.individualism versus collectivism B.power distance C.uncertainty avoidance D.masculinity versus femininity E.Confucian dynamism

Q: Which of the following statements is true of Geert Hofstede's work on cultural dimensions? A.His power distance dimension looked at the relationship between gender and work roles. B.His work fails to consider that many countries have more than one culture. C.According to him, high uncertainty avoidance cultures were less emotionally resistant to change. D.His findings are inconsistent with standard Western stereotypes about cultural differences. E.He and his associates argued that Confucianism is not good for economic growth.

Q: A country characterized with low uncertainty avoidance and low masculinity will: A.place a premium on job security and career progression for both men and women. B.support stringent managerial control and competition between men and women. C.be less resistant to change and less distinguishing between men and women in the same job. D.have a strong need for rules and exertion of power in the society and gender egalitarianism. E.oppose risk-taking and gender egalitarianism.

Q: Which of the following is a characteristic of high uncertainty avoidance cultures? A.They do not place importance on job security, career patterns, retirement benefits, and so on. B.They allow a manager to tightly control subordinates' initiatives. C.They demonstrate less emotional resistance to change. D.They are characterized by a greater readiness to take risks. E.They oppose the use of rules and regulations to exercise control over individuals.

Q: According to Hofstede, in societies where which of the following was emphasized, ties between individuals were tight. A.individualism B.collectivism C.femininity D.low uncertainty avoidance E.low power distance

Q: 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: A.collectivism. B.masculinity. C.low uncertainty avoidance. D.high power distance. E.class consciousness.

Q: Which of the following statements is true with regard to Geert Hofstede's cultural dimensions? A.In societies where collectivism was emphasized, the ties between individuals were loose. B.Low power distance cultures were found in countries that let inequalities grow over time into inequalities of power and wealth. C.Members of high uncertainty avoidance cultures had a strong need for rules and regulations. D.In masculine cultures, little differentiation was made between men and women in the same job. E.Members of low uncertainty avoidance cultures placed a premium on job security, career patterns, and retirement benefits.

Q: Who initially isolated four dimensionspower distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus femininitythat he claimed summarized different cultures? A.Abraham Maslow B.B. F. Skinner C.Geert Hofstede D.Michael Porter E.Max Weber

Q: 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: A.vary its management processes and practices to account for these differences. B.adopt the host country's management processes and practices in both countries. C.opt to exit one of the countries to avoid a conflict. D.provide incentives to the employees based only on their individual performance. E.adopt the home country's management processes and practices in both countries.

Q: The recent trend to outsource information technology jobs to countries such as India indicates that: A.the availability of unskilled labor has increased in these countries. B.these countries have benefited by moving toward communism. C.a good education system is a determinant of national competitive advantage. D.the availability of a pool of unskilled labor has been reduced in Western countries. E.these countries are taking advantage of their latitudinal location.

Q: When schools emphasize respect for others, obedience to authority, honesty, neatness, being on time, and use a grading system, they are: A.teaching children to be noncompetitive. B.impinging on fundamental freedoms and values. C.indirectly teaching cultural values and norms. D.indirectly creating a rigid caste system. E.unnecessarily deviating from formal education.

Q: Which of the following statements best defines personal space? A.It is the amount of distance to be maintained from the audience in order to be audible to them. B.It is a psychological phase wherein a person has free flowing thoughts. C.In ergonomics, it is the minimum amount of space required by an average employee in order to work efficiently. D.It is the comfortable amount of distance between you and someone you are talking with. E.It is the amount of space a country has per person and is arrived at by dividing the country's total geographical area by its total population.

Q: Which of the following is an aspect of nonverbal communication? A.Grammar B.Punctuation C.Speech tone D.Personal space E.Voice modulation

Q: 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: A.many people speak English as a second language. B.many native English speakers are learning Chinese. C.the population of native English speakers exceeds that of China. D.Chinese will soon overtake English as the most widely spoken language. E.Chinese is increasingly becoming the language of international business.

Q: Which of the following is the most widely spoken language in the world, and is increasingly becoming the language of international business? A.Chinese B.French C.English D.Spanish E.German

Q: A person seeking and receiving help through a guanxi network is: A.liable to a social sanction if he or she does not reciprocate when called upon. B.considered to be disloyal to his or her superiors. C.free from reciprocal obligations. D.not a follower of Confucian ethics. E.hesitant to commit to cooperative ventures.

Q: Which of the following Confucian ethics is central to the Chinese concept of guanxi? A.Holding all material possessions in trust for God B.Renunciation of the material world C.Devoting life to a spiritual quest D.Reciprocal obligations E.Individual progress

Q: In a Confucian culture, loyalty of the subordinates to their superiors should be: A.blind in nature. B.reciprocated by the superiors by bestowing blessings on them. C.free of expectations of reward and personal gain. D.aimed at attaining spiritual perfection. E.based on the superiors' spiritual achievements.

Q: 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? A.The conflict between management and labor will be high. B.The company's management will expect blind loyalty from the workers. C.It will often indulge in violations of business agreements. D.The cost of doing business will be low for those companies that enter into a business with it. E.It will not have any relationship networks that are supported by reciprocal obligations.

Q: Which of the following statements is true of Confucianism? A.Confucianism is a religion principally followed in India, Korea, and Japan. B.Confucianism preaches about the supernatural, the concept of a supreme being, and an afterlife. C.Confucian ethics raise the costs of doing business in China, Japan, South Korea, and Taiwan. D.Conflict between management and labor tends to be high in the countries that follow Confucianism. E.In Confucian thought, loyalty to one's superiors is regarded as a sacred duty.

Q: Which of the following 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? A.Buddhism B.Christianity C.Hinduism D.Confucianism E.Islam

Q: Which of the following is a nonreligious ethical system principally followed in China, Korea, and Japan? A.Shinto B.Buddhism C.Judaism D.Confucianism E.Hinduism

Q: For more than 2,000 years until the 1949 communist revolution, which of the following, which teaches the importance of attaining personal salvation through right action, was the official ethical system of China? A.Maoism B.Feng Shui C.Confucianism D.Shintoism E.Buddhism

Q: Mr. X follows a religion that 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, Mr. X can be considered a: A.Hindu. B.Buddhist. C.Confucian. D.Sikh. E.Muslim.

Q: Which of the following statements is true about Buddhism? A.Buddhism was founded in the fifth century B.C. by K'ung-Fu-tzu, in China. B.The emphasis on wealth creation that is embedded in Protestantism is not found in Buddhism. C.Buddhism advocates the kind of extreme ascetic behavior that is encouraged by Hinduism. D.Like Hinduism, Buddhism also supports the caste system. E.Unlike Hinduism, Buddhism does not stress afterlife and spiritual achievement.

Q: What is the common aspect of the teachings of Hinduism and Buddhism? A.Both stress the afterlife and spiritual achievement rather than material progress. B.Both support the existence of a caste system. C.Both advocate the same kind of extreme ascetic behavior. D.Both propagate the Noble Eightfold Path as a route for transformation. E.Both condemn the payment or the receipt of interest on loans and deposits.

Q: Which of the following 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? A.Hinduism B.Buddhism C.Confucianism D.Islam E.Judaism

Q: Ms. X is a follower of a religion that emphasizes that individuals should be judged solely by their spiritual achievements. The caste she 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. Ms. X follows: A.Hinduism. B.Buddhism. C.Confucianism. D.Islam. E.Christianity.

Q: Mr. X finds it hard to dine with his American colleagues as his religion prohibits the consumption of pork and alcohol. He also quit his previous job in a bank because his religion considers the payment or receipt of interest as exploitative and unjust. According to this information, Mr. X is a follower of: A.Protestantism. B.Hinduism. C.Judaism. D.Confucianism. E.Islam.

Q: Hindus see mobility between castes as something that can be achieved through: A.appropriate schooling and occupation. B.individual economic achievements over the course of one's lifetime. C.spiritual progression and reincarnation. D.hard work that results in gradual upward mobility over generations. E.offering prayer five times a day, and by refraining from the payment or receipt of interest.

Q: Max Weber argued that the ascetic principles embedded in which of the following do not encourage entrepreneurial activity in pursuit of wealth creation because it is perceived that such activities make the attainment of nirvana more difficult? A.Islam B.Hinduism C.Confucianism D.Protestantism E.Capitalism

Q: Which of the following statements is true about Hinduism? A.Hinduism supported India's caste system. B.Hinduism allows mobility between castes within an individual's lifetime. C.Max Weber argued that Hinduism encourages entrepreneurial activity. D.Hindus do not believe in reincarnation, or rebirth into a different body, after death. E.Hinduism was founded by Siddhartha Gautama, an Indian prince.

Q: Many of which of the following believe that the way to achieve nirvanaa state of complete spiritual perfectionis to lead a severe ascetic lifestyle of material and physical self-denial, devoting life to a spiritual rather than material quest? A.Christians B.Hindus C.Muslims D.Protestants E.Confucians

Q: Dharma, karma, and nirvana are terms related to: A.Confucianism. B.Hinduism. C.Judaism. D.Islam. E.Protestantism.

Q: Which of the following religions does not owe its founding to any one particular individual? A.Buddhism B.Hinduism C.Christianity D.Islam E.Confucianism

Q: Which of the following is true about the Islamic banking method the mudarabah? A.A mudarabah contract is similar to a profit-sharing scheme. B.Under mudarabah, when an Islamic bank lends money to a business, it charges interest on the loan. C.It is the most widely used banking method among the world's Islamic banks, primarily because it is the easiest to implement. D.It has been proven that a mudarabah contract discourages both long-term savings and long-term investment. E.A mudarabah contract uses a price markup method to make profits.

Q: Mudarabah and the murabaha are: A.Islamic banking methods. B.Arabic words for interest and profit, respectively. C.banking practices that are prohibited by Islam. D.laws governing international trade and commerce in Islamic countries. E.laws limiting the right to private property.

Q: A major distinction between a conventional bank and an Islamic bank is that Islamic banks: A.are allowed to charge higher interest rates on loans. B.cannot accept private deposits. C.cannot pay or charge interest. D.are not subject to any form of law. E.are supposed to refrain from making a profit through any source.

Q: Muslim countries are likely to be receptive to international businesses as long as those businesses: A.behave in a manner that is consistent with Islamic ethics. B.do not hold affiliations with supranational organizations like the WTO or IMF. C.adopt western ideologies of doing business. D.generate income in the form of interest on the loans. E.do not undertake any charitable activities because Islam has very strict rules about the way these activities should be conducted.

Q: Which of the following statements is true of Islam? A.Islam has roots in Confucianism. B.Islamic ethics support worldly gain and temporal power. C.Islam forbids the consumption of pork and alcohol. D.Islam makes a clear distinction between church and state. E.Unlike Christianity and Judaism, Islam is not a monotheistic religion.

Q: The rise of Islamic fundamentalism is, in part, a response to the: A.denial of equal rights for women and other minorities. B.movement in traditional Islamic societies toward modernization. C.narrowing gap between the rich and the poor. D.increasing standard of living in Islamic societies. E.widening gap between the highly developed and the less developed nations.

Q: Which of the following is a religion that prohibits the payment or receipt of interest, as it is considered to be usury? A.Hinduism B.Buddhism C.Christianity D.Confucianism E.Islam