chapter 4 part 1

Nation-states are political creations and may contain a single culture or many different cultures.
A society’s social structure refers to its basic organization. Two important dimensions are the primacy of the individual or group as the basic unit and the degree to which the society is stratified into classes or castes.
A murabaha contract is an agreement between a buyer and seller to pay for a good or service at the agreed upon price without interest. This arrangement permits extra charges for doing business like mark ups to be inserted so that both parties are satisfied with their bargain.
The Buddhist ethic is central to the concept of guanxi, which refers to the relationship networks supported by reciprocal obligations.
Through globalization, especially advances in transportation and communications, we are seeing convergence where cultures are gradually moving toward some universally accepted values and norms.
Folkways include __________________the most visible manifestations of culture and are the outward expression of deeper values.

rituals and symbols

The mobility that can often been shown by American managers is not universal, and this is not the case in countries and cultures where ___________________.

Christianity is not the dominant religion
the value of group identification is very strong
the social structure emphasizes individualism
corporate cultures are significantly different from national cultures

A _______________ is a form of social stratification in which the position of an individual can change his or her position in society through achievement and/or luck.

caste system
culturally mobile
class system
group-centered social system

Max Weber coined the term Protestant work ethic to explain why some Protestant Northern European countries were wealthier than some Catholic Southern European countries from the 16th century forward. Webers assertions unfairly characterized highly motivated ascetic practitioners of _______________ in the world today as not having any entrepreneurial focus or work ethic because their faith was quite unlike his brand of Christianity.


The nature of ____________ structures the way we perceive the world and can direct the attention of a society’s members to certain features of the world rather than others.


One important aspect of education from an international business perspective is its role as a(n) ______________________.

determinant of national competitive advantage
motivating force behind social mobility
indicator of individualism
manifestation of the role of language in a culture

Hofstedes four original cultural dimensions are:

Power distance, uncertainty avoidance, religious beliefs, and unspoken languages.
Individualism versus collectivism, class mobility, masculinity versus femininity, and Confucian dynamism.
Class consciousness, social mobility, ethical systems, and education levels.
Masculinity versus femininity, uncertainty avoidance, power distance, and individualism versus collectivism.

As a result of critics of Hofstedes work on a number of different points, managers should:

apply the findings only to Western European countries and countries closely related to them.
use his findings as a starting point to explore how cultures differ and the implications for management practices.
validate the findings in individual workplaces before extending the basic ideas.
use the ideas and practices wholeheartedly, as the critics have themselves been proven wrong.


is also known as the “ugly American” phenomenon because individuals in other countries are not affected by it.
is a belief in that one’s own ethic group is superior.
is a concern for anthropologists and only rarely is of concern to international businesses.
increases the more an individual learns about how other cultures work.

The connections between culture and competitive advantage are important because:

culture is more important than economic, political and legal systems in explaining differing economic growth among nations.
good manners and appreciation of cultural events are among the most important factors in international competition.
where to locate facilities and develop markets may be profoundly affected by cultural factors and considerations.
the internet has accelerated changes in culture, which will lead to reduced competition in countries with high internet usage.

Cross-cultural literacy
an understanding of how cultural differences across and within nations can affect the way in which business is practiced
is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living
abstract ideas about what a group believes to be good, right, and desirable
(the social rules and guidelines that prescribe appropriate behavior in particular situations)
is a group of people who share a common set of values and norms
social structure
its basic social organization
is emphasized:
single achievement and entrepreneurship are promoted
But, this can encourage job switching, competition between single people in a company rather than team building, and a lack of loyalty to the firm
is emphasized:
Cooperation and team work are encouraged and life time employment is common
But, individual initiative and creativity may be suppressed
Social mobility
refers to the extent to which individuals can move out of the strata into which they are born
caste system
most rigid system
class system
least rigid system