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Questions and Answers
What type of situations involve choosing between alternatives that do not seem ethically acceptable?
What type of situations involve choosing between alternatives that do not seem ethically acceptable?
What factors can influence an expatriate's personal ethics while working abroad?
What factors can influence an expatriate's personal ethics while working abroad?
What can lead to unethical behavior in decision making processes?
What can lead to unethical behavior in decision making processes?
What is a key factor that influences business ethics?
What is a key factor that influences business ethics?
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What are some of the ethical obligations of a multinational corporation?
What are some of the ethical obligations of a multinational corporation?
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Why may expatriates be more likely to violate their personal ethics while working abroad?
Why may expatriates be more likely to violate their personal ethics while working abroad?
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What is cultural literacy in the context of international business?
What is cultural literacy in the context of international business?
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What are values in the context of culture?
What are values in the context of culture?
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What is social structure in the context of culture?
What is social structure in the context of culture?
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What is a characteristic of individualism in Western societies?
What is a characteristic of individualism in Western societies?
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What is a characteristic of group-oriented societies in Asia?
What is a characteristic of group-oriented societies in Asia?
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What is a consequence of individualism in the workplace?
What is a consequence of individualism in the workplace?
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What is a characteristic of norms in the context of culture?
What is a characteristic of norms in the context of culture?
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What is the relationship between values and norms?
What is the relationship between values and norms?
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What is a characteristic of mores?
What is a characteristic of mores?
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What is not characteristic of individualism?
What is not characteristic of individualism?
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Which of the following is a key reason why cross-cultural literacy is critical for international businesses?
Which of the following is a key reason why cross-cultural literacy is critical for international businesses?
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How does a belief in ethnocentrism affect international business success?
How does a belief in ethnocentrism affect international business success?
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What is the significance of the connection between culture and national competitive advantage?
What is the significance of the connection between culture and national competitive advantage?
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What do business ethics refer to?
What do business ethics refer to?
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Which ethical issue typically arises when environmental regulations in host nations are poorer than those in the home nation?
Which ethical issue typically arises when environmental regulations in host nations are poorer than those in the home nation?
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What is the tragedy of the commons related to in the context of international business ethics?
What is the tragedy of the commons related to in the context of international business ethics?
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How is corruption perceived by some economists in countries with distorted market mechanisms?
How is corruption perceived by some economists in countries with distorted market mechanisms?
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Which set of actions is considered a violation of business ethics?
Which set of actions is considered a violation of business ethics?
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What is the role of social responsibility in business decisions?
What is the role of social responsibility in business decisions?
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In the context of multinational corporations, why should employment practices be a concern?
In the context of multinational corporations, why should employment practices be a concern?
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Study Notes
Ethical Dilemmas
- Ethical dilemmas are situations where none of the available alternatives seem ethically acceptable
- Multinational corporations face ethical obligations regarding employment conditions, human rights, corruption, environmental pollution, and the use of power
Personal Ethics
- Personal ethics influence business ethics
- Expatriates may face pressure to violate their personal ethics due to being away from their ordinary social context and supporting culture
Decision Making Processes
- Unethical behavior can occur when individuals rely solely on economic analysis and fail to consider the ethical implications of their decisions
Culture and Ethics in International Business
- Successful international managers need cross-cultural literacy, an understanding of how cultural differences affect business practices
- A relationship exists between culture and the costs of doing business in a country or region
What Is Culture?
- Culture is a system of values and norms shared among a group of people
- Values are abstract ideas about what a group believes to be good, right, and desirable
- Norms are the social rules and guidelines that prescribe appropriate behavior in particular situations
Values and Norms
- Values provide the context for a society's norms
- Norms include folkways (routine conventions of everyday life) and mores (norms central to the functioning of a society)
Social Structure
- Social structure refers to a society's basic social organization
- Two dimensions to consider: the degree to which the basic unit of social organization is the individual or the group, and the degree to which a society is stratified into classes or castes
Individuals and Groups
- In many Western societies, the individual is the primary unit of social organization, which can contribute to dynamism and entrepreneurship
- In many Asian societies, the group is the primary unit of social organization, which can lead to cooperation and lifetime employment systems
Cross-Cultural Literacy
- Cross-cultural literacy is critical to the success of international businesses
- Companies that are ill-informed about cultural practices are unlikely to succeed in that culture
Culture and Competitive Advantage
- The connection between culture and competitive advantage is important because it suggests which countries are likely to produce the most viable competitors
- It has implications for the choice of countries in which to locate production facilities and do business
Ethics in International Business
- The most common ethical issues in business involve employment practices, human rights, environmental regulations, corruption, and the moral obligation of multinational companies
Employment Practices
- Companies should consider applying home country standards, host country standards, or something in between in terms of work conditions in host nations
Human Rights
- Basic human rights, such as freedom of association, freedom of speech, freedom of assembly, and freedom of movement, are taken for granted in developed countries but may not exist in other countries
Environmental Pollution
- Environmental regulations in host nations may be inferior to those in the home nation
- The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused, resulting in its degradation
Corruption
- Corruption can take the form of blackmarketeering, smuggling, and side payments to government bureaucrats
- Economists have differing views on the impact of corruption on economic growth
Moral Obligations
- Social responsibility refers to considering the social consequences of economic actions when making business decisions
- Social responsibility can be supported for its own sake as the right way for a business to behave
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Description
Test your knowledge on the importance of cross-cultural literacy in the success of international businesses, as well as the connections between culture, national competitive advantage, and ethics in decision making. Learn how cultural awareness and understanding can impact managerial decisions and business outcomes.
