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BUSI2025 > Culture and International Business > Flashcards

Culture and International Business Flashcards

1
Q

What are norms?

A
  • Folkways
    • The routine conventions of everyday life
    • Violators seen as eccentric or ill-mannered
  • Mores
    • Norms that are seen as central to the functioning of a society and to it social life
    • Much more significance, violating mores can bring retribution
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2
Q

What is culture?

A
  • A system of values, beliefs and practices that are shared among a group of people, which give a sense of belonging and uniqueness
  • Constantly changing
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3
Q

What are Shein’s levels of culture?

A
  • Artefact level - outward displays
  • Value level - norms about what ought to be
  • Underlying set of assumptions - unspoken and unseen norms
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4
Q

How can culture be divided?

A
  • Tip of the Iceberg Culture

* Bottom of the Iceberg Culture

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5
Q

What are tip of the iceberg culture elements?

A
  • Language
  • Food
  • Population
  • Music
  • Clothing
  • Pace of life
  • Emotional display
  • Gestures
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6
Q

What are bottom of the iceberg culture elements?

A
  • Notions of time
  • How the individual fits into society
  • Beliefs about human nature
  • Importance of work
  • Motivations for achievement
  • Rules about relationships
  • Tolerance for change
  • Imporantce of face, harmony
  • Preference for leadership systems
  • Communication styles
  • Men/womens rolse
  • Preference for thinking style - linear or systemic
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7
Q

What are the most important cultural dimensions for business?

A
  • Identity

- Hirearchy

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8
Q

What are the determinants of culture?

A
  • Relglion
  • Poltical philosophy
  • Economic philopshy
  • Education
  • Language
  • Social structure
  • Social Stratification
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9
Q

What are the IB implications of Christianity?

A
  • Protestantism is thought to have the most economic implications
  • Protestant ethics may emphasie the importance of hard work and wealth creation and frugality - some would argue this was necessary for the development of capitalism
  • Whereas the Catholic promise of salvation in the next world did not foster the same kind of work ethic
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10
Q

What are the IB implications of Islam?

A
  • The Koran speaks approvingly of free enterprise and earning legitimate profit
  • The protection of the right to private property is also embedded within Islam
  • Prohibits the payment of interest
  • Mudarabah
    • Profit sharing
  • Marabaha
    • Equivalent to interest, bank buys desired capital and sells to customer with mark up
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11
Q

What are the IB implications of Hinduism?

A
  • Does not encourage entrepreneural pursuits
  • Traditionally has supported India’s caste system - concept of mobility makes no sense to traditional hindus, mobility is only in a spiritual sense
  • Buddhism
    • Does not support the caste system
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12
Q

What are the IB implications of Confucianism?

A
  • Loyalty
    • Especially to one’s superiors
  • Recipricol obligations
  • Honesty in dealing with others = potentially less hesitance
  • Confucian dynamism
    • Attitudes toward time, persistence, ordering by status,
      protection of face, respect for tradition and reciprocation of gifts and favours
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13
Q

What is a social structure?

A

A socity’s basic social organisation

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14
Q

What is the important aspect of social structure?

A

Group vs Individual focus

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15
Q

How is the group focus in Asian countries important for IB?

A
  • Discourages job switching between firms
  • Encourages lifetime employment systems
  • Leads to cooperation in solving business problems
  • This is changing though
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16
Q

What is social stratification and what is the important aspect of it?

A
  • All cultures are stratified on a hierarchal basis into social strata
  • Defined on the basis of characterisesics such as family background, occupation and income
  • Social mobility
17
Q

What is social mobility and what kinds are there?

A
  • The extent to which individuals can move out of the strata into which they are born
  • Caste system
    • A closed system of stratification in which change in position is usually not possible during an individuals lifetime
  • Class system
    • Less rigid form of social stratification in which mobility is
      possible
18
Q

What is the significance of social mobility to IB?

A
  • Class consciousness
    • Refers to a condition by which people tend to perceive themselves in terms of their class background, and this shapes their relationships with members of other classes
    • Can lead to antagonism in business settings
19
Q

What is cultural intelligence?

A

Ability to engage in a set of behaviours that rely on skills and qualities that are tuned appropriately to the culture-based values and attitudes of the people with whom on interacts

20
Q

What are Hofstede’s Cultural Dimensions?

A
  • Power distance
  • Individualism vs collectivism
  • Masculinity vs femininity
  • Uncertaintiy avoidance
  • Long term vs short term normative orientation
  • Indulgence vs restraint
21
Q

What is power distance?

A

Acceptance of unequal power distribution

22
Q

What is individualism vs collectivism?

A

Degree to which individuals are expected to confirm to social expectations

23
Q

What is masculinity vs femininity?

A

Competitive vs Consensus orientation

24
Q

What is Long term vs short term normative orientation aka?

A

Confucian dynamism

25
Q

What is the dimension of importance to Intercultural Communication Preferences?

A
  • High and Low context cultures

- How individuals and society seek information and convert messages to each other

26
Q

What are high context cultures?

A
  • Personal networks are important source of information
  • Well informed about facts before making a decision or arranging a deal
  • Rely on implicit and non-verbal behaviours to communicate
  • Japan, China, Italians, Arabs
27
Q

What are low context cultures?

A
  • Explicit verbal messages are important for determining meaning
  • People state their intentions clearly
  • German, Swiss, Australian, American
28
Q

What are monochronic cultures?

A
  • Act in a focused manner, one thing at a time
  • Time is money
  • Germans, Finns, some North Americans
29
Q

What are polychronic cultures?

A
  • Flexible, unconstrained by concerns about time
  • Do many things concurrently, often unplanned or opportunistically
  • Not interested in time schedules or punctuality
  • Indians, Polynesians, Latin Americans, Arabs
30
Q

What are high trust cultures?

A
  • Organise work on more flexible, group oriented basis, more responsibility delegated
  • Cultures with strong, associational life
  • US, Japan
31
Q

What are low trust cultures?

A
  • Have strong sense of family, tribe or clans, but low levels of trust with others
  • Strong correlation of hierarchy and absence of trust, must be coerces by rules and sanctions
  • Italy, Spain
32
Q

What are the important cultural dimensions?

A
  • High and Low context cultures
  • Monochonic and Polyphonic clutures
  • High and Low Trust Cultures
33
Q

Why do managers find country to country analysis difficult?

A
  • Subcultures exist within nations

- Similarities link groups from different countries

34
Q

What are the company and management orientations to culture?

A
  • Polycentrism
    • Belief that business units in difference countries should act like local companies
  • Ethnocentrism
    • Conviction that one’s own culture is superior to that of other countries
  • Geocentrism
    • Requires companies to balance knowledge of their own
      organisational cultures with both home and host country needs, capabilities and constraints
35
Q

What is important to businesses about cultural change?

A
  • Evidence that economic progress is accompanied by a shift in values away from collectivism towards individualism
  • As countries get richer, a shift away from traditional values linked to religion, family and country, and toward secular rational values

BUSI2025 (12 decks)

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