Culture in International Business
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Questions and Answers

Which cultural framework focuses on five universal problems?

  • Hofstede's Six Dimensions
  • Kluckhohn and Strodtbeck's Cultural Orientations Framework (correct)
  • High- and Low-Context Cultures Framework
  • None of the above

    • What is the primary focus of Hofstede's Six Dimensions?

  • Work values (correct)
  • Education systems
  • Understanding cultural differences in family relationships
  • Political systems

    • Which of the following cultures is classified as a High-Context Culture?

  • German-Swiss
  • Scandinavian
  • Chinese (correct)
  • American (U.S.)

    • What does the internal direction culture believe about controlling nature?

    <p>They control nature.</p> Signup and view all the answers

    Which of the following religions has the largest number of followers according to Table 3.1?

    <p>Christianity</p> Signup and view all the answers

    What is the main difference between High-Context and Low-Context Cultures?

    <p>Reliance on shared knowledge and relationships</p> Signup and view all the answers

    What is the common cultural tradition among Christianity, Islam, and Judaism?

    <p>West Asian/Abrahamic</p> Signup and view all the answers

    What is the primary purpose of the Map-Bridge-Integrate model?

    <p>To synthesize across diversity.</p> Signup and view all the answers

    Which occupation is more likely to be found in a Low-Context Culture?

    <p>R&amp;D</p> Signup and view all the answers

    What is cultural paradox, according to the text?

    <p>Contradictions between culture's values and what is observed.</p> Signup and view all the answers

    What aspect of culture do nonverbal communication and gestures reveal?

    <p>Social interactions and values</p> Signup and view all the answers

    What is the main purpose of cultural frameworks?

    <p>To help managers understand how cultural differences affect organizations and management methods</p> Signup and view all the answers

    Which rule of thumb is not mentioned in the text for managers doing business across cultures?

    <p>Fast track your business plan.</p> Signup and view all the answers

    Which of the following is NOT one of Hofstede's Six Dimensions?

    <p>Relationships among individuals</p> Signup and view all the answers

    What is the study of human-made objects of a culture concerned with?

    <p>How people make things and who makes what and why</p> Signup and view all the answers

    What is the primary benefit of having a global mind-set?

    <p>The ability to synthesize across diversity.</p> Signup and view all the answers

    What is the purpose of identifying High-Context and Low-Context Cultures?

    <p>To help managers adapt their communication styles</p> Signup and view all the answers

    According to Table 3.1, which of the following religions has the smallest number of followers?

    <p>Judaism</p> Signup and view all the answers

    What is the main difference between internal and external direction cultures?

    <p>Internal direction cultures believe they control nature.</p> Signup and view all the answers

    What is the most obvious cultural distinction?

    <p>Language</p> Signup and view all the answers

    What do gestures vary in across different cultures?

    <p>Meaning</p> Signup and view all the answers

    What is the purpose of understanding the components of culture?

    <p>To respect the culture and understand its components.</p> Signup and view all the answers

    What aspect of culture does the study of material culture or artifacts involve?

    <p>Technology and economics</p> Signup and view all the answers

    Why is it important to identify cultural paradoxes?

    <p>To identify contradictions between culture's values and what is observed.</p> Signup and view all the answers

    What is the primary reason international business managers must learn to adapt to other cultures?

    <p>To accept that other cultures are different and learn to adapt to them</p> Signup and view all the answers

    How does culture affect marketing strategies?

    <p>By necessitating different marketing mixes to reach potential consumers</p> Signup and view all the answers

    What is a key consideration for human resource managers when working in other cultures?

    <p>How is authority understood in the local culture</p> Signup and view all the answers

    How can cultural values influence production and procurement?

    <p>By influencing the acceptance of new production methods</p> Signup and view all the answers

    What is the relationship between accounting controls and cultural assumptions?

    <p>Tight controls suggest a lack of trust in the local culture</p> Signup and view all the answers

    Why is it essential for international business managers to understand cultural differences?

    <p>To adapt to local cultural norms and achieve business goals</p> Signup and view all the answers

    How does culture affect business functions?

    <p>It has a significant impact on all business functions</p> Signup and view all the answers

    What is the primary goal of adapting to other cultures in international business?

    <p>To achieve business goals and succeed in other countries</p> Signup and view all the answers

    Which language family is NOT mentioned in the content?

    <p>Polynesian</p> Signup and view all the answers

    Which continent is dominated by Indo-European languages?

    <p>North and South America as well as Europe</p> Signup and view all the answers

    What is a common characteristic of the language families in Africa?

    <p>They are a mix of Hamito-Semitic, Nile-Saharan, and Niger-Congo languages</p> Signup and view all the answers

    What is China ranked as according to Trompenaars's dimensions?

    <p>More particularist, collectivist, and trending toward affective, diffuse, ascription</p> Signup and view all the answers

    What do the two figures in Figure 3.3 represent?

    <p>High- and Low-Context Cultures with independent clusters</p> Signup and view all the answers

    How is Mexico ranked according to Trompenaars's dimensions?

    <p>More particularist and affective, closer to individualist and trending to specific</p> Signup and view all the answers

    What is a characteristic of the language families in Asia?

    <p>They are a broad mixture of languages</p> Signup and view all the answers

    What is a common feature of the figures in Figure 3.3 and Figure 3.5?

    <p>They both have isolated boxes</p> Signup and view all the answers

    Study Notes

    What Is Culture and Why Is It Important?

    • International business managers must learn to live, work, and meet business goals in other cultures.
    • They must accept that other cultures are different and learn to adapt to them.
    • Culture affects all business functions, including marketing, human resources, production and procurement, and accounting and finance.

    Culture Affects All Business Functions

    Marketing

    • Variations in attitudes and values across markets often require different marketing mixes to reach potential consumers.
    • Companies must be sensitive to potential cultural issues related to product design, advertising, and pricing.

    Human Resources

    • Culture plays key roles in motivating and evaluating employees.
    • Managers must understand how authority is viewed in different cultures (e.g., as a patron or first among equals).

    Production and Procurement

    • Values and attitudes toward change influence acceptance of new production methods.
    • Cultural norms structure the acquisition of resources, such as using social relationships or relying on price.

    Accounting and Finance

    • Accounting controls directly relate to assumptions about the basic nature of people.
    • Tight controls suggest a lack of trust, while loose controls suggest people act honestly even without close monitoring.

    Major World Religions

    • The five major world religions are Christianity, Islam, Hinduism, Buddhism, and Judaism.
    • The number of followers for each religion is:
      • Christianity: 2,300 million
      • Islam: 1,800 million
      • Hinduism: 1,100 million
      • Buddhism: 500 million
      • Judaism: 14 million
    • Each religion has a distinct cultural tradition:
      • Christianity: West Asian/Abrahamic
      • Islam: West Asian/Abrahamic
      • Hinduism: Indian
      • Buddhism: Indian
      • Judaism: West Asian/Abrahamic

    How Culture Shows Itself

    Material Culture or Artifacts

    • Material culture refers to all human-made objects of a culture.
    • People who study material culture are concerned with how people make things (technology) and who makes what and why (economics).

    Language

    • Language is the most obvious and distancing cultural distinction.
    • Nonverbal communication reveals a lot about social interactions and values.
    • Gestures vary in meaning between cultures, and spatial relationships also differ.

    Culture Frameworks

    Kluckhohn and Strodtbeck’s Cultural Orientations Framework

    • This framework classifies cultures based on five universal problems:
      1. What relationship should people have to nature?
      2. What sorts of relationships should exist among individuals?
      3. What are the preferred forms or modes of human activity?
      4. What is the best way to think about time?
      5. What is the basic nature of humans?

    Hofstede’s Six Dimensions

    • Hofstede identified six dimensions to help managers understand how cultural differences affect organizations and management methods.
    • The dimensions are primarily concerned with work values.

    Trompenaars’ Seven Dimensions

    • Internal versus external dimension reflects attitude toward controlling nature.
    • In internal direction cultures, people believe they control nature.
    • In external direction cultures, people believe the natural world controls them, and they need to work with their environment.

    When Does Culture Matter?

    • Culture matters all the time, but in different ways at different times.
    • A global mind-set involves an openness to diversity along with an ability to synthesize across diversity.
    • The Map-Bridge-Integrate model (MBI) is useful for discerning what matters across cultures.

    Going Forward: Cultural Paradoxes and a Caution

    • Cultural paradoxes involve contradictions between culture’s values and what is actually observed.
    • Managers must be able to identify paradoxes within cultures.

    Rules of Thumb for Managers Doing Business Across Cultures

    • Be prepared when approaching a foreign market.
    • Slow down.
    • Establish trust.
    • Understand the importance of language.
    • Respect the culture.
    • Understand the components of culture—surface and deep.

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    Description

    Learn about the importance of cultural understanding in international business, including adapting to different cultures and their effects on business functions.

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