Chapter 5 Flashcards
to slay
What is important about the degree of adaptation?
A company does not have to abandon their way of doing business to adapt, but they are required to be aware of local customs and culture to not let it get in the way of business
What is the key to adaption?
to remain American (or wherever you’re from), but develop an understanding of and willingness to adapt to local customs
what are the three groups of business customs?
imperatives
electives
exclusives
What are cultural imperatives?
these are business customs that must be met in order to establish a relationship, which one needs to do successful business
Found in cultures where friendship and trust come before all else in the business world, without good connection one cannot do business
Also includes cultural imperatives such as the importance of eye contact, apologizing and other culturally significant things matter
What is cultural electives?
behaviours or customs that one can adapt if you want to, but you are not required. Most customs fit into this category!
Includes thing such a greeting with a kiss on the cheek, alcohol or food (you can refuse politely), bowing as a greeting in Japan
Participating is appreciated and shows that the newcomer is willing to adapt and has made an effort to understand local customs
What are cultural exclusives?
Cultural exclusives are those customs or behavior patterns reserved exclusively for the locals, so the visitor should not do this.
Ex: a Christian attempting to act like a Muslim would be repugnant to a follower of Mohammed.
Why is the American cultural management style so important to understand?
- The U.S. market is the biggest export market in the world
- Since the late 1990s, American business culture has been exported around the world
What are the most important ideas of the American management style?
*“Master of destiny” viewpoint.
*Independent enterprise as the instrument of social action.
*Personnel selection and reward based on merit.
*Decisions based on objective analysis.
*Wide sharing in decision making.
What is the master of destiny viewpoint?
People can substantially influence the future; they are in control of their own destinies
individuals can control their future - linked to the idea of hard-work and “american dream”, and also americas high score on individualism
Name examples of countries with a high PDI:
Mexico, Malaysia
Name examples of countries with a low PDI:
Scandinavia, US and Canada
What is the difference between high and low PDI countries?
In high, subordinates will not challenge or question their bosses, in low countries this is normal and even encouraged
What are the three styles of decision making?
Top-level management
Decentralized management style
Committee decisions
What is top-level management?
found in business with family- or close-ownership, - gives absolute power to those high in power
found in ex: mexico, venezuela, middle east and france
What is decentralized management ?
Decentralized decision making allows executives at different levels of management to exercise authority over their own functions.
found in highly development management systems
What is Committee decision making?
decisions are made in group or committees, often found in Japan and countries where collectivism is high
What is the importance of personal life when talking about management styles around the world?
In some countries, people’s jobs are seen as their entire life (Japan), and one’s identity is embedded within their company.
But in others, family relationships and life outside work is seens as more important than their job
This can be seen in the massive difference in the amount of hours worked annually in countries like Japan, Mexico, South Korea ect.
What is the importance of social acceptance and affiliation ?
In some countries, acceptance by other is the goal within business - ex in Japan there is a lot of focus on recognition of the “group”
In cultures where social acceptance is important, when asked what they to for a living, a person might respond by which company they work for rather than their position or field of work
Importance of power and achievement ?
Countries in South America are shown to be more driven by power, one does not only seek profit but also economic and political influence
But, power is measured differently in different countries
What did Edward Hall mean by silent language?
the symbolic meaning of things such as time, space, friendship and agreements
ex; how different countries have their office space layed out - this is example of silent language
Explain the importance of face-to-face communication:
In high-context countries there is a high focus on nonverbal communication
In low-context, they heavily depend on explicit verbal communication - less reading inbetween the lines
What are some countries that are high-context and some countries that are low-context
High: Japan, Arab countries, Latin America
Low: Switzerland, Scandi, Germany
What is the problem with internet communication?
More opportunity for miscommunication and misunderstanding, also lacks context in some cases making it harder to understand
In high-context cultures, this is more difficult to use because they rely on the contextual understanding and reading between the lines
Importance of formality
In some countries, formality is very important - things such as the use of first names
Countries with less formalities tend to score low on PDI, and it can cause misunderstanding between countries who score high
Ex, in Germany you do not use someones first name unless they have known you for 10 years - violating this can be seen as disrespectful
Importance of tempo in international business
In some countries, business takes longer than in others. In the US, they are known for their haste and strict deadlines, and this is where many american countries fail when they try to form business relations with companies from other countries
Ex; in the Middle East, they do not want to do business with you until they have met you a few times and there has been established trust between the two parties.
How does Edward Hall classify the two time systems of the world?
monochronic (m-time) and polychronic (p-time)
What is m-time?
cultures tend to concentrate on one thing at a time. They divide time into small units and are concerned with promptness. M-time is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time
Anglo countries, Scandinavia and Germany
What is P-time?
More dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules.
P-time is characterized by the simultaneous occurrence of many things and by “a great involvement with people.” P-time allows for relationships to build and context to be absorbed as parts of high-context cultures
How is corruption seen around the world?
In former communist countries, profit is seen as corruption
American individualism is seen as corruption in some places
Intellectual property is seen as corruption is sub-saharan countries
The western focus on bribery
some countries rely on bribery to “get things done”, which many western countries look down on - raises the conflict between ethics and profit
United States views bribery as a serious form of corruption
creation of TI (transparency international)
Which countries with high international economic activity scores low on the Corruption Perception Index?
The BRICS
What is extortion?
Payments extracted under duress
What is lubrication?
small sums, not prohibited by law but in the grey area
what is a subornation?
large sums for illegal act
what is an agents fee?
Legal as long as not a conduit for illegal payments
Ethical decisions arise in these five situations in international business:
employment practices
consumer protection
environmental protection
political payments
human rights
What is the question of utilitarian ethics?
Does the action optimize the “common good” or benefits of all constituencies? And who are the pertinent constituencies?
What is the question of the right of the parties?
Does the action respect the rights of the individuals involved?
What is the question of justice of fairness?
Does the action respect the canons of justice or fairness to all parties involved?
What are organization that work against international bribery?
Corporate responsibility act (US) and INSEAT in EU
What are the main traits of information oriented (IO) cultures?
Low context
Individualistic
Low PDI
Bribery less common
M-time
Internet communication
What are the main traits of a relationship oriented culture?
High context
Collectivism
High PDI (also in regards to gender)
Bribery more common
Face-to-face
P-time
