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Flashcards in Culture and International Business Deck (35):
1

What are norms?

- Folkways
- The routine conventions of everyday life
- Violators seen as eccentric or ill-mannered

- Mores
- Norms that are seen as central to the functioning of a society and to it social life
- Much more significance, violating mores can bring retribution

2

What is culture?

- A system of values, beliefs and practices that are shared among a group of people, which give a sense of belonging and uniqueness
- Constantly changing

3

What are Shein's levels of culture?

- Artefact level - outward displays
- Value level - norms about what ought to be
- Underlying set of assumptions - unspoken and unseen norms

4

How can culture be divided?

* Tip of the Iceberg Culture
* Bottom of the Iceberg Culture

5

What are tip of the iceberg culture elements?

- Language
- Food
- Population
- Music
- Clothing
- Pace of life
- Emotional display
- Gestures

6

What are bottom of the iceberg culture elements?

- Notions of time
- How the individual fits into society
- Beliefs about human nature
- Importance of work
- Motivations for achievement
- Rules about relationships
- Tolerance for change
- Imporantce of face, harmony
- Preference for leadership systems
- Communication styles
- Men/womens rolse
- Preference for thinking style - linear or systemic

7

What are the most important cultural dimensions for business?

- Identity
- Hirearchy

8

What are the determinants of culture?

* Relglion
- Poltical philosophy
- Economic philopshy
- Education
- Language
* Social structure
* Social Stratification

9

What are the IB implications of Christianity?

- Protestantism is thought to have the most economic implications
- Protestant ethics may emphasie the importance of hard work and wealth creation and frugality - some would argue this was necessary for the development of capitalism
- Whereas the Catholic promise of salvation in the next world did not foster the same kind of work ethic

10

What are the IB implications of Islam?

- The Koran speaks approvingly of free enterprise and earning legitimate profit
- The protection of the right to private property is also embedded within Islam
- Prohibits the payment of interest

- Mudarabah
- Profit sharing
- Marabaha
- Equivalent to interest, bank buys desired capital and sells to customer with mark up

11

What are the IB implications of Hinduism?

- Does not encourage entrepreneural pursuits
- Traditionally has supported India’s caste system - concept of mobility makes no sense to traditional hindus, mobility is only in a spiritual sense
- Buddhism
- Does not support the caste system

12

What are the IB implications of Confucianism?

- Loyalty
- Especially to one’s superiors
- Recipricol obligations
- Honesty in dealing with others = potentially less hesitance
- Confucian dynamism
- Attitudes toward time, persistence, ordering by status,
protection of face, respect for tradition and reciprocation of gifts and favours

13

What is a social structure?

A socity’s basic social organisation

14

What is the important aspect of social structure?

Group vs Individual focus

15

How is the group focus in Asian countries important for IB?

- Discourages job switching between firms
- Encourages lifetime employment systems
- Leads to cooperation in solving business problems
- This is changing though

16

What is social stratification and what is the important aspect of it?

- All cultures are stratified on a hierarchal basis into social strata
- Defined on the basis of characterisesics such as family background, occupation and income
- Social mobility

17

What is social mobility and what kinds are there?

- The extent to which individuals can move out of the strata into which they are born

- Caste system
- A closed system of stratification in which change in position is usually not possible during an individuals lifetime
- Class system
- Less rigid form of social stratification in which mobility is
possible

18

What is the significance of social mobility to IB?

- Class consciousness
- Refers to a condition by which people tend to perceive themselves in terms of their class background, and this shapes their relationships with members of other classes
- Can lead to antagonism in business settings

19

What is cultural intelligence?

Ability to engage in a set of behaviours that rely on skills and qualities that are tuned appropriately to the culture-based values and attitudes of the people with whom on interacts

20

What are Hofstede's Cultural Dimensions?

* Power distance
* Individualism vs collectivism
* Masculinity vs femininity
- Uncertaintiy avoidance
* Long term vs short term normative orientation
- Indulgence vs restraint

21

What is power distance?

Acceptance of unequal power distribution

22

What is individualism vs collectivism?

Degree to which individuals are expected to confirm to social expectations

23

What is masculinity vs femininity?

Competitive vs Consensus orientation

24

What is Long term vs short term normative orientation aka?

Confucian dynamism

25

What is the dimension of importance to Intercultural Communication Preferences?

- High and Low context cultures
- How individuals and society seek information and convert messages to each other

26

What are high context cultures?

- Personal networks are important source of information
- Well informed about facts before making a decision or arranging a deal
- Rely on implicit and non-verbal behaviours to communicate
- Japan, China, Italians, Arabs

27

What are low context cultures?

- Explicit verbal messages are important for determining meaning
- People state their intentions clearly
- German, Swiss, Australian, American

28

What are monochronic cultures?

- Act in a focused manner, one thing at a time
- Time is money
- Germans, Finns, some North Americans

29

What are polychronic cultures?

- Flexible, unconstrained by concerns about time
- Do many things concurrently, often unplanned or opportunistically
- Not interested in time schedules or punctuality
- Indians, Polynesians, Latin Americans, Arabs

30

What are high trust cultures?

- Organise work on more flexible, group oriented basis, more responsibility delegated
- Cultures with strong, associational life
- US, Japan

31

What are low trust cultures?

- Have strong sense of family, tribe or clans, but low levels of trust with others
- Strong correlation of hierarchy and absence of trust, must be coerces by rules and sanctions
- Italy, Spain

32

What are the important cultural dimensions?

* High and Low context cultures
* Monochonic and Polyphonic clutures
* High and Low Trust Cultures

33

Why do managers find country to country analysis difficult?

- Subcultures exist within nations
- Similarities link groups from different countries

34

What are the company and management orientations to culture?

- Polycentrism
- Belief that business units in difference countries should act like local companies

- Ethnocentrism
- Conviction that one’s own culture is superior to that of other countries

- Geocentrism
- Requires companies to balance knowledge of their own
organisational cultures with both home and host country needs, capabilities and constraints

35

What is important to businesses about cultural change?

- Evidence that economic progress is accompanied by a shift in values away from collectivism towards individualism
- As countries get richer, a shift away from traditional values linked to religion, family and country, and toward secular rational values