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International Business Environment > Cultural Environment > Flashcards

Cultural Environment Flashcards

1
Q

What is culture according to Bates and Blog (1990)?

A

A system of shared beliefs, values, customs and behaviours prevalent in society that are transmitted from generation to generation

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2
Q

What does culture include?

A
  • Religion
  • Language
  • Attitudes to time
  • Attitudes to gender
  • Non verbal communication
  • Food
  • Dressing
  • Common practices
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3
Q

How is culture not static?

A
  • It is dynamic - changes over time

- It varies from country to country

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4
Q

What is Hofstede’s Culture Typology?

A

Outlines the dimensions of national culture:

  • Acceptance of power inequality
  • Avoidance of uncertainty
  • Masculinity vs femininity
  • Long term vs short term orientation
  • Individualism vs collectivism
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5
Q

How do low and high context cultures vary in terms of relationships?

A

Low context cultures see them as less important whereas high context cultures find them important

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6
Q

How do low context and high context cultures vary in terms of decision making?

A

Low context cultures make decisions based on facts whereas high context cultures make decisions based on emotions and the situation rather than on facts

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7
Q

To what extent is there social cohesion in low and high context cultures?

A

Low context cultures are highly individualistic whereas high context cultures are highly collectivist

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8
Q

How does communication differ between low and high context cultures?

A

Low context cultures focus on words, indirect channels and can be direct/blunt whereas high context cultures use verbal and non verbal communication, it is often face to face and can be vague

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9
Q

How do low and high context cultures approach rules?

A

Low context cultures adopt universalism - respecting all of humankind, high context cultures protect themselves with particularism

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10
Q

How does leadership differ between low and high context cultures?

A

Low context cultures prefer qualifications and expertise in leaders whereas high context cultures value age and expertise

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11
Q

How does time orientation vary between low context and high context cultures?

A

Time is monochronic in low context - being expected to be on time whereas it is polychronic in high context cultures - punctuality isn’t important

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12
Q

What did Davis and Ruhe, (2003) state about corruption?

A

That it is pervasive in high power distance and high context cultures. It is the norm to give bribes in some cultures. e.g Goodyear bribed government officials in Kenya and Angola for supply contracts ($3.2 million)

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13
Q

Which countries have a higher prevalence of corruption?

A
  • Middle East and North Asia
  • East Asia and Pacific
  • Sub saharan Africa
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14
Q

What are the relevant components of culture for business?

A
  • Religion
  • Language
  • Aesthetics/Arts
  • Attitude to time
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15
Q

How does religion affect business?

A
  • So many religions to consider
  • Strong influence on human behaviour
  • Influences food and clothing particularly - McDonalds in India doesn’t sell beef
  • Workplace dresscode
  • Work hours in Pakistan include prayer time
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16
Q

What is an example of how workplace dress code is affected by religion?

A

Imane Boudlal sued Disney as she wasn’t able to wear her Hijab at work and was fired because of it

17
Q

How can respect for religion be important?

A

Asia Bibi spoke out against Islam and was sentenced to death by hanging in 2010, case still being reviewed

18
Q

How does language affect business?

A
  • Spoken languages demarcate culture - indicative of cultural groups
  • Speaking a foreign language allows you to be less of an outsider
  • Increased globalisation has created the need for a common language
  • Translations aren’t perfect
  • Marketing mistakes
19
Q

What are some examples of marketing mistakes due to language barriers?

A
  • Coors’ light slogan from USA (‘Turn It Loose’) translates to ‘Drink Coors and get diarrhoea’ in Spanish
  • Mitsubishi’s Pajero from Japan translates to masturbator in Spanish
20
Q

How does attitude towards time affect business?

A
  • People from different cultures have different attitudes towards time
  • Lateness is insulting in some cultures - in others it shows importance
  • African time - late
  • They forget the minute hand in the Middle East
21
Q

How do aesthetics and non verbal signs affect business?

A
  • Some cultures attach significant importance to particular colours, arts and signs
  • Red is a mourning colour in Ghana
  • The left hand is unclean in Africa
  • 4 means death in China
  • Crossing arms is arrogant in Finland
22
Q

What is a sign of how logos and designs can cause offence in some countries?

A
  • Footwear international in Bangladesh
  • Insole design resembled the word of Allah
  • Design based on set of Chinese temple bells
  • Company sued in court
23
Q

What is a culture shock?

A

Psychological process affecting people living abroad that is characterised as homesickness, irritability, confusion, aggravation and depression

24
Q

What is the process of a culture shock?

A
  1. Anticipation - predeparture excitement and anxiety
  2. Honeymoon period - excitement and enjoyment of the new experience
  3. Frustration - missing home and friends
  4. Normalisation - new friends, getting used to lifestyles, finding your way around
25
Q

What does cultural distance refer to?

A

The difference in cultural norms and values among countries

26
Q

What does cultural friction refer to?

A

The extent to which cultures resist

27
Q

What is culture hybridisation/crossvergence?

A

Refers to a mix of cultures which allows individuals to mix the best of different worlds without feeling uneasy or betraying their backgrounds

28
Q

What are the implications of culture for business?

A
  • Cultural norms and values very powerful in the workplace
  • Successful management in one culture no guarantee of success in another
  • Business may need to adopt a different managerial approach in different national contexts

International Business Environment (11 decks)

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