IB Chapter 4 - Differences in Cultures

High-yield vocabulary flashcards covering key cultural concepts, frameworks, and business implications from Chapter 4 and the Airbnb China case study.

Culture

Acquired knowledge people use to interpret experience and generate social behavior; it forms values, attitudes, and behavior.

Hofstede's Definition of Culture

The 'collective programming of the mind' that distinguishes one human group from another.

Iceberg Metaphor

Visible artifacts and language are above the surface; norms, values, and unconscious assumptions guide behavior below.

Values

Basic convictions about what is right or wrong, good or bad, important or unimportant.

Norms

Social rules that govern people's actions toward one another.

Folkways vs. Mores

Are routine everyday conventions; Are norms central to society and carry greater moral significance.

Key Characteristics of Culture

Culture is learned, shared, transgenerational, symbolic, patterned, and adaptive.

Individual vs. Group Focus

Individual focus emphasizes achievement and competition; group focus emphasizes loyalty, cooperation, and long-term group ties.

Caste vs. Class System

Position is determined by birth and is hard to change. People can move up or down through achievement or luck.

Religion

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

Ethical System

A set of moral principles or values used to guide and shape behavior.

Christianity & Islam - Business Implications

Protestantism emphasized individual freedom. Islam supports private property and contracts but prohibits payment or receipt of interest.

Hinduism, Buddhism & Confucianism - Business Implications

Hinduism stresses spiritual achievement; Buddhism stresses spiritual growth; Confucianism emphasizes loyalty, honesty, and reciprocal obligations.

Guanxi

Relationship networks supported by reciprocal obligations.

Formal Education

Teaches language, conceptual and mathematical skills and helps socialize people into society's values and norms.

Language

A defining characteristic of culture and a major means of communication; it includes spoken and unspoken forms.

High-Context vs. Low-Context

Meaning comes mainly from nonverbal/situational cues; Meaning comes mainly from written and spoken words.

Lingua Franca

A language widely used for communication among speakers of different native languages.

Hofstede Framework

A way to measure national culture using six cultural dimensions.

GLOBE

Global study of leadership and organizational behavior across 62 societies using nine cultural dimensions.

World Values Survey

Tracks how values change across countries on democracy, religion, diversity, work, family, politics, and related issues.

Power Distance

Acceptance of hierarchical power distribution.

Uncertainty Avoidance

Comfort with ambiguity and risk.

Individualism / Collectivism

Priority of self and immediate family versus group interests and loyalty.

Masculinity / Femininity

Achievement, money, and success versus quality of life and caring for others.

Time Orientation

Future-oriented saving and investing versus a short-term focus on quick results.

Indulgence / Restraint

Instant gratification versus controlled behavior based on social norms.

Culture Evolves + Convergence/Divergence

Culture changes over time. Globalization may make cultures more similar in some ways while important differences remain.

Cross-Cultural Literacy

Companies must understand another nation's culture when conducting international business.

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture.

Airbnb China - Core Decision

Should Airbnb partner with a local competitor or go alone, and should it replicate its global model or localize?

Airbnb China - Consumer & Trust Issue

Chinese customers placed strong importance on price, value, trust, and service and were less comfortable with uncertainty in home sharing.

Airbnb China - Localization

Airbnb used a Chinese-language platform, Alipay/UnionPay, WeChat/Weibo login, mobile focus, and local travel partnerships.

Airbnb China - Regulatory / Political Risk

Short-term rentals operated in a legal gray area, and foreign Internet firms faced greater regulatory uncertainty and scrutiny.

Airbnb China - Main Class Takeaway

Global playbooks do not travel automatically; localization is a spectrum, and political risk differs from market risk.