Chapter 4 Flashcards
What is cross-cultural literacy
an understanding of how
cultural differences can affect the way in which
business is practiced
What is culture?
Culture is a system of values and norms that are
shared among a group of people and that when
taken together constitute a design for living
Values:
provide the context within which a
society’s norms are established and justified
(ideas about what a group believes to be good,
right, and desirable)
Norms:
the social rules that govern the actions of
people toward one another; Social rules and guidelines that provide appropriate behavior in particular situations
Society
a group of people who share a
common set of values and norms
There is not a strict one-to-one correspondence
between a
society and a nation-state
The values and norms of a culture are the
evolutionary product of a number of factors
at work in a society including:
prevailing political and economic philosophies
a society’s social structure
the dominant religion, language, and education
Social structure refers to society’s basic
organization as to the SOCIAL building blocks
A society’s social structure is its
basic social
organization
Two dimensions of social structure
the degree to which emphasis in society is on
individual vs. group
the degree to which stratification into levels has
occurred (ie. castes or classes)
In societies where the individual is emphasized
individual achievement and entrepreneurship are
valued
but, this can encourage job switching, competition
between individuals in a company rather than team
building, and a lack of loyalty to the firm
In societies where the group is emphasized
cooperation and team work are encouraged and life
time employment is common
but, individual initiative and creativity may be
suppressed
All societies are stratified on a hierarchical
basis into social categories, or
social strata
What are social strata based on?
characteristics such as family
background, occupation, and income
Societies differ in terms of (social strata)
the degree of mobility between social strata
the significance attached to social strata in a
business context
refers to the extent to which
individuals can move out of the strata (level)
into which they are born
Social mobility
Most rigid social strata system is the
caste system
a closed system of stratification in which social
position is determined by birth; change in position is
unlikely
caste system
A less rigid social stratafication system is the
class system
a form of open social stratification in which the
position a person has by birth can be changed
class system
a system of shared beliefs and
rituals that are concerned with the realm of
the sacred
religion
a set of moral principles, or
values, that are used to guide and shape
behavior
ethical system
What is the defining characteristic of culture
Language
There are two forms of language:
spoken
unspoken
Role of English language in international
business
English most used language in world
Chinese is mother tongue of largest number of
people in the world
how a society deals with the fact that
people differ in physical and intellectual capabilities and
resulting social power and wealth
power distance
the relationship
between the individual and the collective
Individualism versus collectivism
the extent to which different
cultures accept tolerate ambiguity
Uncertainty avoidance
Masculinity versus femininity
the relationship between
gender and work rolesactually more about defining culture as task (male)- versus
people (female) - oriented nation-states
captures attitudes towards time, persistence,
ordering by status, protection of face, respect for
tradition, and reciprocation of gifts and favors
confucian dynamism
managers need to develop cross-cultural
literacy
Ethnocentricity and the “ugly American”
there is a connection between culture and
national
competitive advantage
there is a connection between culture and
ethics
decision making
Most widely practiced religion globally
Christianity
Where is Christianity must prevalent?
common throughout Europe, the Americas, and
other countries settled by Europeans
Christian _______ impact is relatively
weak as to influence
fundamentalism
Max Weber suggested that it was the____________________ was the driving force of capitalism
Protestant
work ethic
(focus on hard work, wealth creation,
and frugality) was the driving force of capitalism
Protestant
work ethic
Economic implications of Christianity include:
Contracts, reasonable interest, private property,
honesty in transactions, God’s stewards of assets,
there is an afterlife to judge person’s life
Fastest growing religion globally. Is an allembracing
way of life that governs everything.
Islam
Islamic fundamentalism is
influencial today
vast majority of Muslims claim
Islam teaches peace,
justice, and tolerance; afterlife to judge actions
Economic implications include
the right to own property, as God’s stewards only
supportive of business activity, but business practice
is prescribed (defined)
businesses through the exploitation of others, by
deception, or by breaking contracts are forbidden
Charging interest is forbidden
some business activities are forbidden: gambling,
alcohol, sex, unclean foods (ie. pork)
Values spiritual growth and development,
which may require material and physical selfdenial
Hinduism
Where is Hinduism primarily found?
primarily on the Indian sub-continent
that the spiritual
valued more than material achievements.
Hinduism
What social stratification system is part of hinduism?
Caste is part of this complex system.
What is the oldest religion in the world?
Oldest major religion in the world.
Promotion and adding new responsibilities
may not be the goal of an employee, or may
be infeasible due to the employee’s caste
Hinduism
The connection between culture and
competitive advantage is important because
the connection suggests which countries are likely
to produce the most viable competitors
the connection has implications for the choice of
countries in which to locate production facilities
and do business
a belief in the superiority of one’s
own culture
ethnocentrism
is the medium through which
individuals learn many of the language,
conceptual, and mathematical skills that are
indispensable in a modern society
Formal Education
The knowledge base, training, and educational
opportunities available to a country’s citizens
can also give it a ___________________ in the
market and make it a more or less attractive
place for expanding business
competitive advantage
a condition where people tend to perceive
themselves in terms of their class
background, and this shapes their
relationships with others
class conscious
Countries with more than one spoken
language often have more than one
culture
nonverbal cues
unspoken language
- the routine conventions of everyday
life
folkways
norms that are seen as central to the
functioning of a society and to its social life
mores
an association of two or more
individuals who have a shared sense of
identity and who interact with each other in
structured ways on the basis of a common
set of expectations about each other’s
behavior
group
tend to rely on the members
implicit knowledge of group meaning, rules, values,
etc. to communicate appropriate behavior.
High-context Culture
tend to rely on explicit
communication, rules, and goals to guide behavior.
Low-Context Culture
Emphasis on spiritual growth and the afterlife,
less on earthly achievement
Buhhdism
does not
support the caste system, so individuals do
have some mobility and can work with
individuals from different classes
Buhhdism
Buhhdism
entrepreneurial activity is acceptable, but not
emphasized
Spiritual/eternal vs material/immediate tension
present
Teaches the importance of attaining personal
salvation through right action (not really a
religion)
Confucianism
the need for high moral and ethical conduct and
loyalty to others is central
practiced mainly in China
Confucianism
Economic implications (Confucianism) include 3 key values:
loyalty, reciprocal obligations, and honesty
may all lead to a lowering of the cost of
doing business in Confucian societies.
Thus makes contracts and long-term relations
possible & attractive and win-win oriented
confucianism
