Chapter 3 Vocab - Global Business

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1
Informal institution
Institution represented by culture of norms
2
Ethnocentrism
A mentality of a group of people who perceive their culture, norms, and ethics to be natural, rational, and morally right
3
Culture
The collective programming of the mind that distinguishes one group of people from another
Language, religion, social structure, education
4
Lingua Franca
a global business language
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Social Structure
The way a society broadly organizes its members
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Social Stratification
The hierarchical arrangement of individuals into categories (strata) such as classes, castes, and divisions within society
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Social Mobility
The degree to which citizens from a lower social category can rise to a higher status
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Context
The underlying background upon which social interaction takes place
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Low-Context Culture
A culture in which communication is taken at face value without much reliance on unspoken context
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High Context Culture
A culture in which communication relies a lot on unspoken context; it is almost as important as the words themself
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Cluster
countries that share similar cultures
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Civilizations
the higher cultural grouping of people the broadest level of cultural identity people have
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Power Distance
The extent to which less powerful members in a country accept and expect that power is distributed unequally
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Individualism
the idea that an individual's identity is fundamentally his or her own
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Collectivism
the idea that an individual's identity is fundamentally tied to the identity of his or her colective group
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Masculinity
a relatively strong form of societal-level sex role differentiation whereby men tend to have occupations that reward assertiveness and women work in caring professions
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Femininity
A relatively weak form of societal-level sex role differentiation whereby women tend to have roles that reward assertiveness and men work in caring professions
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Uncertainty avoidance
The degree to which members of a country avoid or accept uncertainty or ambiguity
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Long-term Orientation
Dimension on how much emphasis is places on perseverance and saving for future betterment
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Ethics
the principles, standards, and norms of conduct that govern individual and firm behaviour
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Code of conduct
a set of guidelines for making ethical decisions
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Ethical Relativism
A perspective that suggests ethics are relative
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Ethical Imperialism
A perspective that suggests that there is only one set of ethics and "we have it"
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Corruption
The abuse of public power for private benefits, usually in the form of bribery
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Foreign Corruption Practices Act
A US law enacted in 1977 that bans bribery of foreign officials
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Strategic responses to ethical challenges
Reactive; defensive; accommodative; proactive
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In-Group
Individuals and firms regarded as part of "us"
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Out-Group
Individuals and firms not regarded as part of "us"
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Cultural Intelligence
An individual's ability to adapt to and understand new cultures
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Rule of thumb when venturing overseas
- Be prepared; Slow down; Establish trust; understand the importance of language; Respect cultural differences; understand no culture is superior to others in all aspects
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