Chapter 4 - Part 3

Flashcards covering Most Favored Nation status, exchange rates, BRICS economies, high and low context cultures, Hofstede's model, the GLOBE project dimensions, and cultural variations.

What is Most Favored Nation trading status?

A condition in which a country grants other countries favorable trading treatment such as the reduction of import duties.

What is an exchange rate, and why do currency values fluctuate?

An exchange rate is the rate at which the currency of one area or country can be exchanged for the currency of another. Currency values fluctuate in relation to each other due to changing economic conditions.

What five major emerging economies are represented by the term BRICS?

Brazil, Russia, India, China, and South Africa.

Why are the BRICS countries important internationally, even though they are not a trading bloc?

Because they hold 40% of the world's population.

How is national culture defined?

Culture is the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.

What is a low-context culture?

A culture in which shared meanings are primarily derived from written and spoken words.

What is a high-context culture?

A culture in which people rely heavily on situational and nonverbal cues for meaning when communicating with others.

What are the four cultural dimensions in Hofstede's Model?

1. Individualism/Collectivism, 2. Power distance, 3. Uncertainty avoidance, and 4. Masculinity/femininity.

What are the nine cultural dimensions included in the GLOBE Project?

Power distance, Uncertainty avoidance, Institutional collectivism, In-group collectivism, Gender egalitarianism, Assertiveness, Future orientation, Performance orientation, and Humane orientation.

What are six major areas of cultural variation outlined in global business differences?

1. Language, 2. Interpersonal space, 3. Communication, 4. Time orientation, 5. Religion, and 6. Law and political stability.