INTB Chapter 4: Differences in Culture

What is culture?

A system of values and norms shared among a group of people

What is cross-cultural literacy?

Understanding how cultural differences can affect the way business is practiced

What are values?

Ideas a group believes are good, right, and desirable

What are norms?

Social rules that governs people’s actions towards each other

What are folkways?

Norms that are routine conventions of everyday life

What are mores?

Norms that are central to the functioning of a society

What defines a nation-state?

A political creation containing one or many cultures

What are the two dimensions of social organization?

The degree to which the individual is central vs the group, and the degree of stratification into classes or castes

What is social mobility?

The ability to move out of the strata you were born into

What is the caste system?

A social position a person is born into with little chance for change

What defines a class system?

A social position that can be changed through achievement or luck

What are the economic implications of Islam?

The Quran establishes strict economic principles and emphasizes living up to contractual obligations

What does Confucianism emphasize in a business context?

Teaches loyalty, reciprocal obligations, and honesty, which can lead to lower business costs

How is language important in culture and business?

Structures how we perceive the world and is beneficial for success

What are Geert Hofstede's five dimensions of culture?

Power distance, individualism vs collectivism, uncertainty avoidance, masculinity vs femininity, and long term vs short term

What is the criticism of Hofstede's cultural dimensions?

Assumes nation state only has 1 culture and his dimensions may be effected by western culture

What does the Global Leadership & Organizational Behavior Effectiveness (GLOBE) study identify?

9 cultural dimensions building on Hofstede’s work

What does the World Values Survey explore?

Values and norms, how they change, and how they impact society and businesses

What is an ethical system?

a set of moral principles that are used to guide and shape behavior

Which religion is believed to have influenced capitalism according to Max Weber?

Protestantism

What are key implications of Hinduism for business?

Does not foster entrepreneurism traditionally but present in India today

What does Buddhism emphasize in relation to material achievement?

Spiritual growth and the afterlife over material achievement

What are the three key teachings of Confucianism?

Loyalty, reciprocal obligations, and honesty

What is the potential impact of globalization on culture?

A mix of cultures

Why do firms need cross-cultural literacy?

To avoid ethnocentric behavior and improve chances of success in different cultures

What is the relationship between culture and competitive advantage?

A country’s culture can influence the costs of doing business

What does class consciousness mean?

How individuals perceive themselves in their class background, affecting interactions with others

In a social context, the term values is used to describe the __.

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