Chapter 4: Differences in Culture

International Business

What is cross‑cultural literacy?

Understanding how cultural differences across and within countries can affect how business is practiced.

What is culture?

A system of values and norms shared among a group of people and that when taken together constitute a design for living.

What are values?

Ideas about what a group believes to be good, right, and desirable.

What are norms?

Social rules and guidelines that prescribe appropriate behavior in particular situations.

What is a society?

A group of people sharing a common set of values and norms.

What are values reflected in?

Reflected in the economic systems of a society.

What are examples of norms?

Appropriate dress code and good social manners

What are mores?

Have greater moral significance than other norms.

What are nation‑states?

Nation‑states are political creations.

How should companies approach cultural regions?

Companies should focus on grouping countries into culturally aligned business regions rather than targeting them individually.

What are the determinants of culture?

Religion; Political philosophy; Economic philosophy; Education; Language; Social structure.

What do Western societies emphasize?

Western societies emphasize individual achievement.

What is a group?

an association of two or more individuals who have a shared sense of identity and interact in structured ways based on common expectations.

What are social strata?

are hierarchical social categories often based on family background, occupation, and income.

What is social mobility?

Extent to which individuals can move out of the strata into which they are born.

Does social mobility vary?

Varies among societies.

What is a caste system?

is a closed system where social position is determined by family and change is usually not possible.

What is a class system?

is a less rigid form of open stratification, and position can be changed through achievement and luck.

What is religion?

A system of shared beliefs and rituals concerned with the realm of the sacred.

What are the four dominant religions today?

Christianity; Islam; Hinduism; Buddhism.

What is Christianity?

Most widely practiced religion; monotheistic.

What did Max Weber link to capitalism?

Protestant ethics and the spirit of capitalism.

What is Islam?

Second largest religion.

What does Islam prohibit?

Prohibits the payment or receipt of interest.

What is Hinduism?

World’s oldest major religion.

What does Buddhism NOT emphasize?

Does not emphasize wealth creation.

What is Confucianism?

Practiced mainly in China, Korea, and Japan.

What does Confucianism teach?

High morals, ethical conduct, and loyalty to others.

What is the most widely spoken language in the world?

English.

What language is becoming the language of international business?

English.

What are Hofstede’s dimensions of culture?

Power distance; Individualism vs collectivism; Uncertainty avoidance; Masculinity vs femininity; Long‑term vs short‑term orientation.

What was a criticism of Hofstede’s research?

Research focused on a single industry.

What cultural change occurred regarding women in management?

In the 1960s, women in management were not accepted, while today it is a welcomed reality.