Definitions Flashcards
Culture
The shared values, beliefs, customs, behaviors, and artifacts that define a group or society. In business, understanding culture helps businesses align their practices with local expectations.
Subculture
A smaller group within a larger culture that shares distinct values or behaviors that set them apart but still maintain common elements with the broader culture. Businesses may tailor products to appeal to subcultures.
Counterculture
A group that actively rejects the values and norms of the dominant culture, often seeking to change societal norms. Businesses might face challenges when countercultures challenge traditional consumer behavior.
Assimilation
The process by which individuals or groups from one culture adopt the customs, values, and behaviors of another culture. In business, companies often encourage assimilation in international settings to facilitate smoother integration of foreign markets or employees
Cultural Determinants
Key factors that influence cultural behavior, such as history, geography, religion, language, and social structure. In business, understanding these helps companies predict consumer behaviour and market trends.
Cultural Intelligence
The capability to relate and work effectively across cultures. Businesses value CQ in employees for better management of international teams or market strategies.
Cultural Norms
The shared expectations and rules that guide behavior within a culture. Businesses must align their practices with local cultural norms to be successful in international markets.
Several factors influence conducting business internationally
Cultural Differences: Language, customs, and values that can affect communication and negotiations.
Legal and Regulatory Environment: Local laws, intellectual property protection, and business regulations.
Economic Conditions: The stability of the economy, market size, purchasing power, and inflation rates.
How Culture Impacts Products and Services
Culture plays a huge role in how businesses develop their products, advertise them, and meet customer expectations. For example, product designs, like colors, sizes, or even packaging, can be influenced by what people in different cultures prefer. In advertising, businesses need to be sensitive to local values and the way people consume media, adjusting their campaigns to suit the culture. In terms of service, customer expectations can vary: some cultures expect more formal or hierarchical interactions, while others prefer more casual and personal relationships.
Impact of Culture on the Labor Market, Child Labor, Discrimination, Standards and Practices, and Wages
Culture can shape how people behave in the workplace. In some cultures, employees might be expected to follow strict hierarchies or work in teams, while in others, individual work might be encouraged. Child labor can be influenced by cultural and economic factors, especially in countries where poverty is widespread, making it harder to eliminate. Discrimination in hiring, based on gender, ethnicity, or age, can be more common in some cultures. Cultural norms also shape how people act at work—like how they approach teamwork or respect for authority. Lastly, wage levels can be affected by cultural beliefs around compensation, negotiation, and collective bargaining.
Negative Impacts on Indigenous Populations
Indigenous populations can suffer from various negative impacts due to business activities. Cultural erosion happens when their traditions and languages are lost, often due to globalization. Land displacement can occur when businesses exploit natural resources, pushing indigenous groups off their ancestral lands. Many indigenous communities face economic disempowerment, as they often don’t have the same access to business opportunities or resources. This can lead to social inequality, where indigenous people are excluded from mainstream social and economic systems.
Monochronic vs. Polychronic Cultures
Monochronic cultures focus on strict time management, seeing time as something to be carefully planned and used one task at a time. Countries like the U.S. and Germany often follow this approach. In contrast, polychronic cultures view time more flexibly and are okay with juggling multiple tasks at once. These cultures, such as those in Latin America or the Middle East, prioritize relationships and are less concerned with sticking to a strict schedule.
How Culture Impacts Time Perception, Spatial Perception, and Non-Verbal Communication
Cultural differences also shape how people perceive and interact with time, space, and non-verbal cues. In monochronic cultures, time is seen as valuable and must be managed carefully, while in polychronic cultures, time is seen as more fluid and less strict. When it comes to spatial perception, some cultures are comfortable with close personal proximity, while others value more personal space. Lastly, non-verbal communication—like gestures, facial expressions, or body language—differs between cultures and can affect business interactions. Understanding these differences is key for smooth international communication.
Hofstede’s 6 Cultural Determinants
Power Distance refers to how much less powerful people accept unequal power distribution.
Individualism vs. Collectivism looks at whether people focus more on themselves or on the group.
Masculinity vs. Femininity examines whether a culture values competition and success (masculine) or care for quality of life and relationships (feminine).
Uncertainty Avoidance measures how comfortable a culture is with uncertainty or ambiguity.
Long-Term vs. Short-Term Orientation focuses on whether a culture values long-term goals or immediate results.
Indulgence vs. Restraint describes whether a culture allows people to freely indulge their desires or places stricter control over them.
Economic System vs. Political System
An economic system refers to how a society organizes the production, distribution, and consumption of goods and services. These systems can be capitalist (market-driven), socialist (state-controlled), or a mix of both. A political system is the structure of government and how laws and decisions are made. It can vary from democracies, where people elect leaders, to authoritarian regimes, where power is held by a few, and this can affect how businesses operate in each region.
