68) Which of the following observations is correct?
A) The economic principles established in the Koran are against free enterprise.
B) The economic principles of Islam prohibit the payment or receipt of interest.
C) The Koran speaks disapprovingly of earning legitimate profit through trade and commerce.
D) Protection of the right to private property is not acceptable within Islam.
69) Under the mudarabah banking system, when an Islamic bank lends money to a business
A) it charges that business interest on the loan.
B) the business needs to pay back the loan with an additional markup.
C) it has to donate the interest received on the loan to a charitable trust.
D) it takes a share in the profits that are derived from the investment.
70) Which of the following statements is true about the murabaha contract?
A) Under the murabaha contract, when an Islamic bank lends money to a business it takes a share
in the profits that are derived from the investment.
B) Under the murabaha contract, money deposited in a savings account is treated as an equity
investment in whatever activity the bank uses the capital for.
C) The murabaha contract is widely used among the world‘s Islamic banks because it is the easiest
to implement.
D) The murabaha contract is a more efficient system than the Western banking system since it
encourages both long-term savings and long-term investment.
71) In countries where the value of ________ identification is considered to be primary, managers
and workers are discouraged from moving from company to company.
A) individual
B) group
C) cultural
D) primary
72) The ________ dimension of Hofstede’s study explores how a society deals with the fact that
people are unequal in physical and intellectual capabilities.
A) power distance
B) individualism versus collectivism
C) uncertainty avoidance
D) masculinity versus femininity
73) Martin worried a lot about his job, which he chose specifically because it was very structured
with clear rules and regulations. He carefully planned his career to maximize job security and
retirement benefits. Martin would rate high on which of Hofstede’s four dimensions?
A) power distance
B) individualism versus collectivism
C) uncertainty avoidance
D) masculinity versus femininity
74) The individualism versus collectivism dimension of Hofstede’s study explored
A) the extent to which different cultures socialized their members into accepting ambiguous
situations and tolerating uncertainty.
B) the relationship between gender and work roles.
C) how a society deals with the fact that people are unequal in physical and intellectual
capabilities.
D) the relationship between the individual and his or her fellows.
75) Hofstede’s uncertainty avoidance dimension considered
A) the extent to which different cultures socialized their members into accepting ambiguous
situations and tolerating uncertainty.
B) the relationship between gender and work roles.
C) how a society deals with the fact that people are unequal in physical and intellectual
capabilities.
D) the relationship between the individual and his or her fellows.
76) The ________ is a research project spanning more than 100 countries that explores people’s
values and norms, how they change over time, and what impact they have in society and business.
A) World Values Survey
B) Global Leadership and Organization Behavior Effectiveness Instrument
C) Indulgence Versus Restraints Survey
D) Chinese Value Survey
77) According to Geert Hofstede’s study, which of the following cultural dimensions would be
characterized by a greater readiness to take risks and less emotional resistance to change?
A) high power distance cultures
B) low uncertainty avoidance
C) high collectivism
D) low power distance cultures
78) The ________ instrument is designed to address the notion that a leader’s effectiveness is
contextual. It is embedded in the societal and organizational norms, values, and beliefs of the
people being led.
A) GLOBE
B) WVS
C) IND
D) CVS
79) The ________ refers to the extent to which a culture programs its citizens to accept delayed
gratification of their material, social, and emotional needs.
A) long-term versus short-term orientation dimension
B) indulgence versus restraint dimension
C) uncertainty avoidance
D) power distance dimension
80) ________ refers to a society that allows relatively free gratification of basic and natural human
drives related to enjoying life and having fun.
A) Persistence
B) Indulgence
C) Reciprocation
D) Restraint
81) Hofstede’s ________ dimension measured the extent to which different cultures socialized
their members into accepting and tolerating ambiguity.
A) power distance
B) long-term versus short-term orientation
C) uncertainty avoidance
D) indulgence versus restraint
82) Hofstede’s results, as might be expected, showed that nations such as ________ scored low on
long-term orientation.
A) the United States and Canada
B) Denmark and Sweden
C) Japan and Thailand
D) Great Britain and Mexico
83) Hofstede’s masculinity versus femininity dimension looked at the relationship between gender
and work roles and found that in
A) feminine cultures, sex roles were sharply differentiated, and traditional “feminine values”
determined cultural ideals.
B) feminine cultures, sex roles were less sharply distinguished; however, there was a great deal of
differentiation between men and women in the same job.
C) masculine cultures, sex roles were less sharply distinguished, and little differentiation was
made between men and women in the same job.
D) masculine cultures, sex roles were sharply differentiated, and traditional “masculine values”
determined cultural ideals.
84) Hofstede’s dimension of Confucian work dynamism
A) captures attitudes toward time, persistence, ordering by status, protection of face, respect for
tradition, and reciprocation of gifts and favors.
B) focuses on how a society deals with the fact that people are unequal in physical and intellectual
capabilities.
C) explores the relationship between the individual and his or her fellows.
D) looks at the relationship between gender and the ability to accept ambiguous situations.
85) Which of the following is an example of ethnocentrism?
A) A manager in India looks down upon his subordinates because they are from a lower caste,
compared to him.
B) An upper-middle-class woman talks rudely to a salesperson, because she looks down upon
individuals belonging to the working class.
C) An American manager criticizes the cultural practices of Saudi Arabia, when he is sent there on
business, because it differs from his own cultural norms.
D) A French business owner, who plans to expand his market to China, conducts a detailed cultural
study of China to customize his marketing campaign.
86) For international businesses, the connection between culture and competitive advantage is
important because
A) a weak connection is likely to encourage isolationism.
B) a weak connection is likely to encourage competition.
C) a strong connection is likely to produce the most viable competitors.
D) a strong connection is likely to hamper innovation.
87) What is ethnocentrism?
A) a belief in the superiority of one’s business or organization over another
B) a belief in the superiority of another group or culture over one’s own group or culture
C) a belief in the superiority of one’s own ethnic group or culture
D) a belief in the superiority of one’s self over another person