Topic 6 - Cultural Environments

Question 1

Describe culture and cross-cultural risk

Answer 1

Culture is the values, attitudes, beliefs, arts, and other products of human thought and work that characterise the people of a given society. Cross-cultural risk is a situation or event in which a cultural misunderstanding puts some human value at stake.

Question 2

Describe the characteristics of high-context cultures and give examples

Answer 2

Prefer indirect and polite style that emphasise mutual respect and care for each other
Establish social trust first
Personal relations and goodwill are valued
Agreements emphasise trust
Negotiations are slow and ritualistic
E.g. Asian countries

Question 3

What are cultural metaphors and why are they significant?

Answer 3

A distinctive tradition or institution strongly associated with a particular society. Cultural metaphors are a guide to deciphering people’s attitudes, values and behaviour.

Question 4

What are the two major perceptions of time and how does each affect international business?

Answer 4

Monochronic and polychronic. Managers is a monochromic culture have a relatively short-term perspective when it comes to investments and making money. A manager in a polychronic culture is future-orientated and would focus on how a firm will perform in a decade from now.

Question 5

What is a sub-culture?

Answer 5

Shared values of a group within a larger, dominant culture e.g. lifestyle, ethnic, sporting.

Question 6

What are the six major religions and how do they affect international business?

Answer 6

Christianity, Islam, Hinduism, Buddhism, Confucianism, Judaism. Religious concepts of right and wrong have played a key role in the development of ethical values and social responsibility and it influences managerial and customer behaviour.

Question 7

What are the elements of language?

Answer 7

Verbal language and nonverbal communication.

Question 8

Distinguish the three layers of culture. What are the major elements of country-level and professional culture?

Answer 8

• High culture: cultural makeup that is visible e.g. fine arts, literature, classical music
• Folk culture: cultural makeup we are aware of e.g. religion, etiquette, diet
• Deep culture: cultural makeup we are unaware of e.g. gender roles, perceptions, beliefs

Question 9

How can a manager use critical incident analysis to avoid the self-reference criterion? Why is this an important factor?

Answer 9

A manager should analyse awkward situation is cross-cultural encounters by becoming more objective and developing empathy for other points of view rather than viewing cultures through the lens of their own culture. It is important in avoiding cultural bias and making ethnocentric mistakes.

Question 10

How does a manager with a deal orientation differ from a manager with a relationship orientation?

Answer 10

Deal-orientated managers focus on the task at hand and prefer getting down to business. Relationship-orientated managers put more value on relationships with people, important to build trust and get to know the other party in business interactions.

Question 11

What are the four key personality traits that characterise cross-cultural proficiency?

Answer 11

o Tolerance for ambiguity
o Perceptiveness
o Valuing personal relationships
o Flexibility and adaptability

Question 12

Define socialisation

Answer 12

The process of learning the rules and behavioural patterns appropriate for living in one’s own society .

Question 13

Name the 9 components of culture

Answer 13

1. Aesthetics
2. Values and attitudes
3. Manners and customs
4. Social Structure
5. Religion
6. Personal communication
7. Education
8. Physical and environments
9. Material productions and creative expressions

Question 14

Define cultural metaphor

Answer 14

A distinctive tradition or institution strongly associated with a particular society.

Question 15

Describe the cultural component of values and attitudes

Answer 15

Values represent a person’s judgements about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal. Attitudes are positive or negative evaluations, feelings & tendencies that individuals have toward specific situations. They are similar to opinions and may not be based on logical facts.

Question 16

Define ethnocentric orientation

Answer 16

Using our own culture as the standard for judging other cultures and assuming our culture is the best.

Question 17

Define high-culture context

Answer 17

A culture that emphasises nonverbal messages and views communication as a means to promote smooth, harmonious relationships .

Question 18

Define idiom

Answer 18

An expression whose symbolic meaning is different from its literal meaning.

Question 19

Define individualism vs collectivism

Answer 19

Describes whether a person functions primarily as an individual or part of a group.

Question 20

Define indulgence vs restraint

Answer 20

The extent to which people try to control their desires and impulse.

Question 21

Define long-term vs short-term orientation

Answer 21

Refers to the degree to which people and organisations defer pleasure and gratification to achieve long-term success.

Question 22

Define low-context culture

Answer 22

A culture that relies on elaborative verbal explanations, putting much emphasis on spoken words.

Question 23

Define masculinity vs femininity

Answer 23

Refers to a society’s orientation based on traditional male and female values.

Question 24

Define monochronic

Answer 24

A rigid orientation to time, in which the individual is focused on schedules, punctuality, and tome as a resource.

Question 25

What complications arise when using verbal and nonverbal communication?

Answer 25

National languages, dialects and use of idioms and colloquialisms tend to complicate verbal communication and it can lost in translation. Some nonverbal communication can mean different things in different cultures and could potentially be offensive.

Question 26

Define polychronic

Answer 26

A flexible, nonlinear orientation to time, in which the individual takes a long-term perspective and emphasizes human relationships.

Question 27

Define power distance

Answer 27

Describes how a society deals with the inequalities in power that exist among people.

Question 28

Describe the cultural component of physical and environments

Answer 28

Topography, demography, population distribution, resources, climate

Question 29

Describe the cultural component of material productions and creative expressions

Answer 29

Material productions are artefacts, objects, and technological systems that people construct to function within their environments e.g. social infrastructure (housing, education, healthcare), financial infrastructure (banks and financial institutions) and marketing infrastructure (ad agencies).

Question 30

Define uncertainty avoidance

Answer 30

The extent to which people can tolerate risk and uncertainty in their lives.

Question 31

Describe personal space

Answer 31

Intimate zone – 45cm Friend zone – 1.2m Social zone – 3.6m Audience zone – beyond

Question 32

Describe motivation

Answer 32

Cultural differences in work ethic, materialism, expectation of success and reward and separation of work and leisure

Question 33

Describe the characteristics of low-context cultures and give examples

Answer 33

Communication is direct, meaningful and straightforward Expertise and performance are valued Agreements emphasise specific, legalistic contract Negotiations are as efficient as possible E.g. Swiss, German, Scandinavia

Question 34

How is culture transmitted?

Answer 34

Culture is transmitted through socialisation and acculturation.

Question 35

What are the six elements of Hofstede's national culture?

Answer 35

1. Power distance 2. Individualism v collectivism 3. Masculinity v femininity 4. Uncertainty avoidance 5. Long-term orientation v short-term orientation 6. Indulgence v restraint

Question 36

Describe the characteristics of a high power distance culture

Answer 36

Substantial gap between powerful and weak Do not care very much about inequalities and allow them to grow over time Autocratic management styles focus power at the top and grant little self-rule to lower-level employees

Question 37

Describe the characteristics of a low power distance culture

Answer 37

Gaps between powerful and weak are small Firms, managers, and subordinates are relatively equal and cooperate to achieve organisational goals More consultative

Question 38

Describe the characteristics of an individualist culture

Answer 38

Individuals focus on their own self-interests Low dependence on organisation Self-actualising and challenges needed

Question 39

Describe the characteristics of a collectivist culture

Answer 39

Loyal to and dependent on organisation Safe physical & social environment Conformity and compromise help maintain group harmony

Question 40

Describe the characteristics of a masculine culture

Answer 40

``` Competitiveness Personal assertiveness Ambition Wealth accumulation Materialism Entrepreneurial drive Reward for performance ```

Question 41

Describe the characteristics of a feminine culture

Answer 41

Relaxed lifestyles Caring for others including less fortunate Nurturing Interdependence among people

Question 42

Describe the characteristics of a feminine culture

Answer 42

Relaxed lifestyles Caring for others including less fortunate Nurturing Interdependence among people

Question 43

Describe the characteristics of a high uncertainty avoidance culture

Answer 43

Like rules & security Implementing change difficult – managers slow to make decisions as they investigate the nature and potential outcomes of several options Create institutions that minimise risk and ensure financial security Companies emphasize stable careers and produce many rules to regulate worker actions and minimize uncertainty

Question 44

Describe the characteristics of a low uncertainty avoidance culture

Answer 44

Open to change & new ideas Managers less precise Entrepreneurial and comfortable taking risks Make decisions quickly Socialise members to accept and become accustomed to uncertainty

Question 45

Describe the characteristics of a low uncertainty avoidance culture

Answer 45

Open to change & new ideas Managers less precise Entrepreneurial and comfortable taking risks Make decisions quickly Socialise members to accept and become accustomed to uncertainty

Question 46

Describe the characteristics of a short-term orientation culture

Answer 46

o Establishing the absolute truth o Respect for traditions o Little save for the future o Focus on quick results

Question 47

Describe the characteristics of a long-term orientation culture

Answer 47

o Truth depends on situation, context and time o Adapt traditions to changed conditions o Focus on saving, investing, thriftiness, & perseverance in achieving results

Question 48

Describe the characteristics of an indulgent culture

Answer 48

o Free gratification - enjoying life & showing emotion | o In the workplace people feel freer to express their opinions, give feedback and change jobs

Question 49

Describe the characteristics of a restraint culture

Answer 49

o Suppressed gratification of needs o Happiness of the individual is less valued o Regulates through strict social norms o People avoid expressing opinions and job mobility is limited

Question 50

What are the three ways to acquire cross-cultural competence?

Answer 50

1. Acquire factual knowledge about the other culture and try to speak the language 2. Avoid cultural bias 2. Develop cross-cultural skills

Question 51

Name five ways in which culture affects international business

Answer 51

1. Managing employees 2. Communicating and interacting with foreign business partners 3. Negotiating and structuring international business ventures 4. Design and development of products and services 5. Preparing advertising and promotional materials

Question 52

Define acculturation

Answer 52

The process of adjusting and adapting to a culture other than one’s own.

Question 53

Define critical incident analysis

Answer 53

A method for analysing awkward situations in cross-cultural encounters by becoming more objective and developing empathy for other points of view.

Question 54

Define cross-cultural risk

Answer 54

A situation or event in which a cultural misunderstanding puts some human value at stake.

Question 55

Define culture

Answer 55

The values, attitudes, beliefs, arts, and other products of human thought and work that characterise the people of a given society.

Question 56

Define geocentric orientation

Answer 56

A global mind-set by which the manager can understand a business or market without regard to country boundaries. - No culture is best, all are just different.

Question 57

Define polycentric orientation

Answer 57

A host-country mind-set in which the manager develops a strong attachment to the country in which they conduct business - assuming the host-country culture is best.

Question 58

Define self-reference criterion

Answer 58

The tendency to view other cultures through the lens of our own culture.

Question 59

How are values and attitudes internalised?

Answer 59

Values and attitudes are internalised through socialisation, the process of learning the rules and behavioural patterns appropriate for living in one’s own society.

Question 60

Name three things culture is not

Answer 60

* Not right or wrong – culture is relative * Not about individual behaviour – culture is about groups * Not inherited – culture comes from people’s social environment

Question 61

Define stereotyping

Answer 61

Assumption that all members of a culture are the same.

Question 62

Define prototyping

Answer 62

Perception of culture is subject to modification and improvement.

Question 63

Describe the cultural component of aesthetics

Answer 63

Imagery and symbolism e.g. letters, figures, colours, or other characters that communicate meaning that can be expressed through music, painting, dance, drama and architecture

Question 64

Describe the cultural component of manners and customs

Answer 64

Manners: appropriate ways of behaving and conducting oneself in public and business situations. Customs: behaviour practiced in homogenous.

Question 65

Describe the cultural component of social structure

Answer 65

Patters on social arrangements and organised relationships that characterise a society.

Question 66

With respect to the cultural component of social structure name and describe five ways in which society may be organsied

Answer 66

1. Individuals - determined by individual performance 2. Family - family holds particular importance in some nation’s social structure, thus family often plays a substantial role in the formation and structure of business activity 3. Reference groups - social status defined by group or employer affiliation rather than individual performance 4. Social stratification - individuals are classified within classes or social layers depending on their occupation, income level, or family history 5. Social mobility - the ease with which a person can move up within social strata

Question 67

What is an ascribed group membership?

Answer 67

Determined by birth e.g. gender, family, age, caste, ethnic, racial or national origin

Question 68

What is an acquired group membership?

Answer 68

Determined by birth e.g. religion, political affiliations, profession

Question 69

Define religion

Answer 69

System of common beliefs or attitudes concerning a being or a system of thought that people consider sacred, divine, or the highest truth and includes the moral codes, values, institutions, traditions, and rituals associated with this system.

Question 70

Provide examples of nonverbal communication/kinesics

Answer 70

Ways of talking (volume, inflection), sounds, body proximity, body contact, posture and stance, head movements, eye movements, facial expressions, hand movements and appearance

Question 71

Describe the cross-cultural element of education

Answer 71

Passing on ideas, beliefs, attitudes, traditions, customs, and values through lessons and behaviour acquired from parents, family, peers, participation in groups e.g. social, business, religion and formal schooling

Question 72

What is brain drain?

Answer 72

The departure of highly educated people from a profession, geographic region or nation

Question 73

Name four other influences on culture

Answer 73

Performance orientation v Seniority Male v female Young v old Personal space