Exam 2 Flashcards
The entire set of social norms and responses that dominates the behavior of a population and makes each social environment different.
Culture
A political and social entity that is defined geographically.
Society
Elements of Culture
Attitudes and beliefs Attitudes toward time Attitudes toward work and leisure Attitudes toward achievement Attitudes toward change Attitudes toward jobs
Does religion affect commerce?
Religion provides the spiritual foundation of a culture.
Business brings about modernization that disrupts religious traditions.
International business can conflict with holy days and religious holidays.
Pertains to the sense of beauty and good taste of a culture and includes myths, tales, dramatization of legends, and more modern expressions of the arts: drama, music, painting, sculpture, architecture, and so on.
Aesthetics
Refers to the objects and things used and enjoyed by people and includes all human-made objects.
Material Culture
The marketer uses it to determine the types and sophistication of advertising.
Literacy Rate
Which areas are considered important to concentrated education.
Education Mix
Closely related to culture because each culture reflects what the society values in its language.
Communication and Language
Types of international contrasts that indicate how widespread the differences are in group memberships and how important they are as business considerations.
Sex
Age
Family
Categorizes individuals (and societies) in terms of how they communicate, and what is required in order to successfully communicate in a given society.
Hall’s Low-Context, High-Context Approach
The words used by the speaker explicitly convey the speaker’s message to the listener.
(EX: USA)
Low-Context Culture
The context in which a conversation occurs is just as important as the words that are actually spoken.
Cultural clues are important in understanding what is being communicated.
(EX: France and Japan)
High-Context Culture
Hofstede’s Five Dimensions of Culture
Social Orientation Power Orientation Uncertainty Orientation Goal Orientation Time Orientation
Reflects a person’s beliefs about the relative importance of the individual and the groups to which that person belongs.
Social Orientation
Social Orientation
Individual vs. Collective
Refers to the belief that people tend to hold about the appropriateness of power and authority differences in hierarchies such as business organizations.
Power Orientation
Power Orientation
Power Tolerant vs. Power Respect
Refers to the feelings that people tend to have regarding uncertain and ambiguous situations.
Uncertainty Orientation
Uncertainty Orientation
Acceptance vs. Avoidance
Deals with the manner in which people are motivated to work toward different goals.
Goal Orientation
Goal Orientation
Aggressive vs. Passive
Deals with the extent to which members of a culture adopt a long-term outlook vs. a short-term outlook regarding life, work, and other issues.
Time Orientation
Time Orientation
Long-Term vs. Short-Term
A country or independent area where taxes are levied at a low rate.
Tax Haven
Income is taxable to the parent when declared as a dividend, regardless of whether the income is active or subpart F.
Deferral applies.
Foreign Sales Corporations (FSCs)
All income is taxable to the parent when earned by them.
Foreign Branches
Active income is tax-deferred.
Subpart F income is taxable to the parent when earned by one.
Controlled Foreign Corporations (CFCs)
Records at current exchange.
Updates later to reflect gain/loss.
Transactions
Prices that are charged within a company between subsidiaries, division, or departments.
Transfer Prices
Process of restating foreign currency financial statements into a common currency.
Translation
Process of combining the financial statements of a parent and its subsidiaries.
Consolidation
