INTL MKT EXAM 2

Power Distance Index (PDI)

Degree to which people accept inequality in power distribution in business and society.

Competition vs. Cooperation (MAS)

Measures focus on competition vs. cooperation and family; shows no large differences across cultures.

Uncertainty Avoidance Index (UAI)

Preference for stability vs. comfort with change; Brazil prefers clear instructions, China is more flexible.

Indulgence vs. Restraint (IND)

Measures allowance for enjoyment vs. regulation through social norms.

Decision-making styles influenced by PDI

Top-level management decisions, decentralized decisions, and committee or group decisions.

Monochronic culture

Time is linear, punctuality is crucial.

Polychronic culture

Multitasking and focus on relationships.

Master of Destiny

People believe they control their future through choices and actions.

Set Destiny

Life is believed to be predetermined by external factors.

Cultural Imperatives

Expected behaviors that must be followed in a culture.

Cultural Electives

Optional behaviors that foreigners may adopt in a culture.

Cultural Exclusives

Behaviors restricted to locals only.

Sovereignty

A state’s power over itself and external relations, including independent governance.

Nationalism

Prioritizing national security over international relations, often leads to protectionist policies.

Expropriation

Seizing assets by the government with some compensation.

Brexit

UK exit from the EU that caused trade complications.

Political Unions

The most integrated form of regional cooperation, can be voluntary or enforced.

Cultural Factors in Economic Cooperation

Similar cultures make agreements easier; language is less of a barrier than expected.