Test 1 Flashcards
(26 cards)
Unconscious reference to own cultural values, experiences, knowledge. Problematic when used as basis for decisions
Self-reference criterion
One’s own country, culture, or country is best. Most problematic when affluent countries work with less affluent.
ethnocentrism
- No direct foreign marketing 2. Infrequent foreign marketing 3. Regular foreign marketing 4. Multidomestic or international marketing 5. Global Marketing
Stages of International Marketing:
Hofstede’s four dimensions.
* Individualism/Collectivism Index (IDV); focus on self-
orientation.
Elements of Culture
Hofstede’s four dimensions.
* Power Distance Index (PDI); focus on authority
orientation.
elements of culture
Hofstede’s four dimensions.
* Uncertainty Avoidance Index (UAI); focus on risk
orientation.
elements of culture
- Masculinity/Femininity Index (MAS); focus on
assertiveness and achievement.
elements of culture
- “Master of destiny” viewpoint.
The Impact of American Culture on Management Style
- Independent enterprise as instrument of social
action.
The Impact of American Culture on Management Style
- Personnel selection and reward based on merit.
The Impact of American Culture on Management Style
- Decisions based on objective analysis.
The Impact of American Culture on Management Style
- Wide sharing in decision making.
The Impact of American Culture on Management Style
- Never-ending quest for improvement.
The Impact of American Culture on Management Style
- Competition produces efficiency.
The Impact of American Culture on Management Style
Hall’s concept of High and Low context: High Context: Implicit, emphasis on context or communication. Low Context: Explicit, emphasis on content of communication.
communication style
Bribery: legal issue with cultural context. Extortion: Payment extracted under duress. Lubrication: small sums, not prohibited by law. Subornation: Large sums for an illegal act. Agent’s fees: legal as long as not a conduit for illegal payments
Variations of bribery
Low context.
* Individualism.
* Low power distance.
* Bribery less common.
* Low distance from English.
* Linguistic directness.
* Monochronic time.
* Internet.
* Focus on the foreground.
* Competition.
Information Oriented
High context.
* Collectivism.
* High power distance (including
gender).
* Bribery more common*.
* High distance from English.
* Linguistic indirectness.
* Polychronic time.
* Face-to-face.
* Background.
* Reduced transaction costs
Relationship Oriented
confiscation: the seizing of a company’s assets without payment
Political risks:
where the government seizes an investment but makes some reimbursement for the assets
Expropriation:
when host countries gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees
domestication:
stem from shortage of foreign exchange held by a country
Economic risks: Exchange controls
labor unions have strong government support that they use effectively in obtaining special concessions from business
Economic risks: Labor problems
a political risk when used as a means of controlling foreign investments
Price controls: essential products that command considerable public interest
Economic risks: Tax controls:
