3.6: Cultural Change Flashcards

1
Q

How has American culture changed regarding the role of women in the business world since the 1960s?

A

In the 1960s, American values concerning the role of women, love, sex, and marriage changed significantly. Initially, the idea of women holding senior management positions in major corporations was not widely accepted.

However, today, women like Mary T. Barra (CEO of General Motors) and Corie Barry (CEO of Best Buy) hold such positions, and the capability of women in the business world is widely acknowledged.

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2
Q

What cultural shifts have been observed in ex-communist states like Russia and the Eastern bloc?

A

Ex-communist states such as Russia and the Eastern bloc are undergoing significant changes in their value systems.

They are moving away from collectivism towards individualism, although this shift often leads to social turmoil.

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3
Q

How is the traditional Japanese work ethic changing among the newer generation of office workers?

A

The traditional Japanese work ethic, where office workers (salarymen) were extremely loyal to their organizations, is changing among the newer generation.

The new generation is more direct and individualistic, resembling Western work practices.

They are not as devoted to the company, prioritize their personal lives, and are willing to change jobs for better opportunities.

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4
Q

What factors have been suggested to influence societal change, particularly concerning the shift from collectivism to individualism?

A

Economic advancement and globalization have been identified as important factors in societal change.

Economic progress is often accompanied by a shift from collectivism to individualism.

Richer societies have fewer dependencies on collectives, leading to greater emphasis on individualism.

Economic progress also brings urbanization and improved education, both of which contribute to declining traditional values associated with rural societies.

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5
Q

How has globalization contributed to cultural changes in various societies?

A

Globalization, facilitated by advances in transportation, communication technologies, and increased international trade, has led to cultural changes in various societies. It has created conditions for cultural merging, with products and operations of global corporations like Hitachi, Disney, Microsoft, and Levi Strauss becoming ubiquitous worldwide.

However, this cultural exchange is not unidirectional; smaller cultures can also influence larger ones, evident in the expansion of Canadian retailers like Tim Hortons, Lululemon, and Roots into other countries.

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6
Q

What are some important countertrends to cultural convergence?

A

Important countertrends include the rise of Islamic fundamentalism in certain countries, the Quebec separatist movement, and ethnic strains and separatist movements in Russia.

These trends reflect societies trying to preserve their cultural uniqueness amid global pressures.

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7
Q

Why are some societies emphasizing their cultural roots in the modern world?

A

Societies emphasize cultural roots in response to modern and materialistic pressures.

The rise of fundamentalism and separatist movements represents efforts to maintain cultural uniqueness amidst global influences.

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8
Q

What are the implications for international business arising from cultural differences?

A

Firstly, there’s a need for cross-cultural literacy, understanding the significance of cultural variations.

Secondly, there’s a vital link between culture and ethics in decision making.

Lastly, cultural factors are connected to national competitive advantage.

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9
Q

How are new customer groups complicating the understanding of cultures in international business?

A

New customer groups are forming without strict national distinctions.

For instance, companies might target broad demographics like “Asian customers” or “North American seniors,” blurring traditional national borders in their marketing strategies.

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10
Q

How does culture influence the economic, political, and legal systems in a country?

A

Culture forms a foundational layer upon which economic, political, and legal values rest.

For example, in Canada, legislation emphasizes fairness and individualism, aligning with the culture’s low power distance. T

his contrasts with Chinese culture, where concepts like guanxi prioritize networked relationships and group obligations, sometimes conflicting with Western notions like insider trading prohibitions.

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11
Q

Why is understanding the connection between culture and ethics crucial in international business decision-making?

A

Understanding the link between culture and ethics is vital in international business decisions to navigate varied ethical perspectives across cultures.

Different cultural values, such as individualism in Canada and guanxi in China, shape ethical frameworks and decision-making processes.

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12
Q

What is the significant danger faced by companies venturing into international business for the first time?

A

he primary danger is being ill-informed about the practices of another culture. Companies lacking cultural knowledge are likely to fail in international business.

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13
Q

Why is adaptation crucial for international businesses operating in different cultures?

A

Adaptation is vital because all aspects of a company’s operations in a foreign country, including negotiation tactics, incentive systems, organizational structure, product names, and employee relations, need to align with the cultural norms and values of that specific culture.

One approach might not work universally.

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14
Q

How can international businesses address the risk of being ill-informed about foreign cultures?

A

International businesses can address this risk by employing local citizens, ensuring executives are cosmopolitan and transferring them overseas regularly to expose them to diverse cultures.

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15
Q

Why is ethnocentrism a concern in international business, and how can companies mitigate its impact?

A

Ethnocentrism, a belief in one’s own culture’s superiority, can lead to disregard or contempt for other cultures. International businesses must be vigilant against it.

Mitigation involves promoting cultural understanding among employees and executives, fostering a cosmopolitan mindset, and actively countering ethnocentric attitudes to foster successful cross-cultural interactions.

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16
Q

How does a country’s culture influence the costs of doing business and competitive advantage?

A

A country’s culture, including attitudes toward cooperation, work, and payment methods, significantly affects the costs of doing business.

For instance, class-based conflict in some societies raises costs, hindering competitive advantage.

Cultural factors can either encourage long-term cooperation (as seen in Japan) or short-term relationships (common in the West) between companies and suppliers, impacting competitiveness.

17
Q

How does Japan’s culture contribute to its competitive advantage in the global marketplace?

A

Japan’s culture emphasizes group affiliation, loyalty, reciprocal obligations, honesty, and education.

This fosters strong identification with companies, encouraging hard work and cooperation between management and labor.

Long-term relationships, trust, and cost-reducing innovations, particularly in engineering, have given Japanese businesses a competitive edge globally.

18
Q

What cultural aspects contribute to the competitive advantage of Japanese businesses?

A

Japan’s cultural emphasis on group affiliation, loyalty, honesty, and long-term relationships has facilitated cooperation between companies and employees.

Additionally, the availability of highly skilled labor and cost-reducing innovations, driven by cultural factors, have boosted productivity and competitiveness.

19
Q

How does the culture of South Korea differ in terms of employee loyalty and workplace expectations compared to Japan?

A

In South Korea, employees are expected to be loyal to their supervisors, who, in turn, take care of their professional and personal conditions.

Employees typically leave the workplace only after their supervisors leave, reflecting a different cultural approach to workplace dynamics compared to Japan.

20
Q

Why is the connection between culture and competitive advantage important for international businesses?

A

It helps identify countries likely to produce strong competitors and influences decisions on locating production facilities and marketing products.

Understanding cultural factors aids in predicting social and industrial disruptions, impacting the cost of doing business and long-term economic growth potential.

21
Q

How can cultural factors influence the choice of countries for investment or product promotion?

A

Cultural factors, such as social stratification and linguistic diversity, impact business decisions.

For instance, a country with well-developed education, social cohesion, and singular linguistic groups is often a better investment choice due to reduced conflict and potential for long-term economic growth

22
Q

Is culture the most significant factor explaining differential economic growth between nations?

A

No, while cultural differences are important, economic, political, and legal systems play a more significant role in explaining differential economic growth between nations.

23
Q

What are some universally held ethical principles across cultures?

A

Basic moral principles such as “don’t kill” or “don’t steal” apply universally.

Similarly, it is regarded as unethical in all cultures to unilaterally and without reason break a business agreement.

Trust in honoring agreements is essential for economic activity regardless of cultural differences.

24
Q

How do guanxi networks function in business agreements in China, and how does this differ from Western practices?

A

In China, guanxi networks support business agreements and are sustained by reciprocal gift giving.

However, if a Western company provides a gift to a government official to build a future relationship, it might be perceived as bribery.

This creates an ethical dilemma in international business.

25
Q

What is the relativist approach to business ethics, and why is it flawed?

A

The relativist approach suggests adopting the customs and ethical practices of the country where business is conducted.

However, this approach is flawed because it could lead to accepting unethical practices such as slavery or child labor just because they are common in a particular country.

Ethical values are not situational; they should be consistent regardless of location, suggesting that businesses should adhere to their own ethics.

26
Q

What are some universally recognized ethical principles in international business, as outlined in agreements like the Universal Declaration of Human Rights?

A

The Universal Declaration of Human Rights outlines basic principles such as

the right to work,

equal pay for equal work,

just and favorable conditions of work,

protection against unemployment,

and the right to form and join trade unions.

These principles imply that it is unethical to employ child labor in sweatshop settings and pay below subsistence wages.

27
Q

How can businesses navigate ethical dilemmas involving child labor in countries where it is common?

A

When faced with situations involving child labor, firms should aim to improve the lives of the affected children.

For example, Levi Strauss built a school for children under 14 and supplemented parents’ incomes to compensate for their children’s lost wages.

This approach helps address the ethical dilemma while making a positive impact on the lives of those involved.

28
Q

How do cultural expectations, such as gift-giving in relationships, pose ethical challenges in international business?

A

Cultural norms like reciprocal gift giving can conflict with Western notions of fair play.

For instance, in countries like China, where gift giving is common, employing individuals with connections to win contracts might be a strategic move.

This practice, although it may seem unfair from a Western perspective, aligns with local customs and helps build relationships, which are highly valued in certain cultures.

29
Q

What is the ethical dividing line between gift giving and bribery in international business?

A

The line between gift giving and bribery becomes problematic when government officials are the recipients, as it can be construed as bribery.

Managers should recognize this line, guided by a strong moral compass, to differentiate between corruption and legitimate gift giving that supports business transactions.

30
Q

According to ethicist Thomas Donaldson, what principles should guide firms when making ethical decisions in international business?

A

Ethicist Thomas Donaldson suggests three guiding principles for ethical decision-making in international business:

Respect for core human values (human rights) sets the absolute moral threshold for all business activities.

Respect for local tradition, acknowledging and respecting cultural differences and traditions.

The belief that context matters when deciding what is right and wrong; decisions should be evaluated in their specific cultural and situational contexts.

31
Q

How does Donaldson differentiate between ethical and unethical decisions in international business?

A

According to Donaldson, decisions that respect core human values and cultural traditions, such as gift giving in certain cultures, are not unethical.

However, decisions that clearly violate core human values, such as employing child labor at less than subsistence wages, are unethical and condemned.

Context and cultural traditions are important, but ethical decisions must not violate fundamental human rights.

32
Q
A