Page 65 - DMGT545_INTERNATIONAL_BUSINESS
P. 65

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
   60   61   62   63   64   65   66   67   68   69   70