Chapter 5

Question 1

What is important about the degree of adaptation?

Answer 1

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

Question 2

What is the key to adaption?

Answer 2

to remain American (or wherever you’re from), but develop an understanding of and willingness to adapt to local customs

Question 3

what are the three groups of business customs?

Answer 3

imperatives
electives
exclusives

Question 4

What are cultural imperatives?

Answer 4

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

Question 5

What is cultural electives?

Answer 5

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

Question 6

What are cultural exclusives?

Answer 6

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.

Question 7

Why is the American cultural management style so important to understand?

Answer 7

1. The U.S. market is the biggest export market in the world
2. Since the late 1990s, American business culture has been exported around the world

Question 8

What are the most important ideas of the American management style?

Answer 8

*“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.

Question 9

What is the master of destiny viewpoint?

Answer 9

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

Question 10

Name examples of countries with a high PDI:

Answer 10

Mexico, Malaysia

Question 11

Name examples of countries with a low PDI:

Answer 11

Scandinavia, US and Canada

Question 12

What is the difference between high and low PDI countries?

Answer 12

In high, subordinates will not challenge or question their bosses, in low countries this is normal and even encouraged

Question 13

What are the three styles of decision making?

Answer 13

Top-level management

Decentralized management style

Committee decisions

Question 14

What is top-level management?

Answer 14

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

Question 15

What is decentralized management ?

Answer 15

Decentralized decision making allows executives at different levels of management to exercise authority over their own functions.

found in highly development management systems

Question 16

What is Committee decision making?

Answer 16

decisions are made in group or committees, often found in Japan and countries where collectivism is high

Question 17

What is the importance of personal life when talking about management styles around the world?

Answer 17

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.

Question 18

What is the importance of social acceptance and affiliation ?

Answer 18

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

Question 19

Importance of power and achievement ?

Answer 19

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

Question 20

What did Edward Hall mean by silent language?

Answer 20

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

Question 21

Explain the importance of face-to-face communication:

Answer 21

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

Question 22

What are some countries that are high-context and some countries that are low-context

Answer 22

High: Japan, Arab countries, Latin America

Low: Switzerland, Scandi, Germany

Question 23

What is the problem with internet communication?

Answer 23

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

Question 24

Importance of formality

Answer 24

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

Question 25

Importance of tempo in international business

Answer 25

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.

Question 26

How does Edward Hall classify the two time systems of the world?

Answer 26

monochronic (m-time) and polychronic (p-time)

Question 27

What is m-time?

Answer 27

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

Question 28

What is P-time?

Answer 28

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

Question 29

How is corruption seen around the world?

Answer 29

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

Question 30

The western focus on bribery

Answer 30

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)

Question 31

Which countries with high international economic activity scores low on the Corruption Perception Index?

Answer 31

The BRICS

Question 32

What is extortion?

Answer 32

Payments extracted under duress

Question 33

What is lubrication?

Answer 33

small sums, not prohibited by law but in the grey area

Question 34

what is a subornation?

Answer 34

large sums for illegal act

Question 35

what is an agents fee?

Answer 35

Legal as long as not a conduit for illegal payments

Question 36

Ethical decisions arise in these five situations in international business:

Answer 36

employment practices
consumer protection
environmental protection
political payments
human rights

Question 37

What is the question of utilitarian ethics?

Answer 37

Does the action optimize the “common good” or benefits of all constituencies? And who are the pertinent constituencies?

Question 38

What is the question of the right of the parties?

Answer 38

Does the action respect the rights of the individuals involved?

Question 39

What is the question of justice of fairness?

Answer 39

Does the action respect the canons of justice or fairness to all parties involved?

Question 40

What are organization that work against international bribery?

Answer 40

Corporate responsibility act (US) and INSEAT in EU

Question 41

What are the main traits of information oriented (IO) cultures?

Answer 41

Low context
Individualistic
Low PDI
Bribery less common
M-time
Internet communication

Question 42

What are the main traits of a relationship oriented culture?

Answer 42

High context
Collectivism
High PDI (also in regards to gender)
Bribery more common
Face-to-face
P-time