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International Business
notes l z All societies are stratified into different classes. Class conscious societies are characterized
by low social mobility and high degree of stratification. Less class conscious societies are
characterized by high social mobility and low degree of stratification.
l z Religion may be defined as a system of shared beliefs and rituals that is concerned with
the realm of the scared. Ethical systems refers to a set of moral principals or values that are
used to guide and shape behaviour. The world’s major religions are Christianity, Islam,
Hinduism and Buddhism.
l z Language is one defining characteristic of a culture. It has both the spoken and an unspoken
dimension.
l z Formal education the medium through which the individual learns skills and are socialized
into the values and the norms of a society. Education plays an important role in the
determination of national competitive advantage.
l z Geert Hofstede studied how culture relates to values in the work place. Hofstede
summarized four dimensions – power distance, uncertainty avoidance, individualism
versus collectivism and masculinity versus femininity.
l z Culture is not a constant; it evolves over time. Economic progress and globalization seem
to be two important engines of cultural change.
l z To develop cross-cultural literacy, international businesses need to employ host-country
nationals, build a cadre of cosmopolitan executives, and guard against the dangers of
ethnocentric behaviour.
l z The value systems and norms of a country can affect the costs of doing business in that
country.
l z Although many ethical principles are universal, some are culturally bounded. What is not
ethical in one country might be common in another. International business need to adhere
to a consistent set of ethics derived from a high moral code.
3.3 keywords
Class Consciousness: A tendency for individuals to perceive themselves in terms of their class
background.
Class System: A system of social stratification in which social status is determined by the family
into which a person is born and by subsequent socio-economic achievements. Mobility between
classes is possible.
Collectivism: An emphasis on collective goals as opposed to individual goals.
Confucian Dynamism is an acceptance of the legitimacy of hierarchy and the valuing of
perseverance and thrift, all without undue emphasis on tradition and social obligations which
could impede business initiative.
Cross-cultural Literacy: Understanding how the culture of a country affects the way business is
practiced.
Culture: The complex whole that includes knowledge, belief, art, morals, law, custom, and other
capabilities acquired by a person as a member of society.
Human Heartedness: Openhearted patience, courtesy and kindness.
Individualism: An emphasis on the importance of guaranteeing individual freedom and
self-expression.
Integration: Degree of tolerance, harmony and friendship a society endorses, at the expense of
competitiveness: it has a “broadly integrative, socially stabilizing emphasis”.
60 lovely Professional university