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International Business

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International Business

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Chapter 3 – Emphasizing Cultures,
Ethics, and Norms
 Ethnocentrism is a self-centered mentality held by a group of people who
perceive their own culture, ethics, and norms, as natural, rational and morally
right
 Culture is the collective programming of the mind that distinguishes the
members of one group or category of people from another
o Language
 Lingua franca is a global business language (English)
o Religion
 85% of the world’s population has some religious belief
o Social Structure
 Is the way a society broadly organizes its members
 Social stratification is the hierarchical arrangement of
individuals into social categories (strata) such as classes,
castes, or divisions within a society
 Social mobility is the degree to which members from a lower
social category can rise to a higher status
o Education
 Kids are taught mainstream values and norms
 Cultural Differences
o Context Approach
 Is the underlying background upon which social interaction
takes place
 In low-context cultures, communication is usually taken at face
value without much reliance on unspoken context
 In high-context cultures, communication relies a lot on the
underlying unspoken context
 This is important because without this there could be
misunderstanding
o Clusters Approach
 Countries that share similar cultures
 Civilization is the highest cultural grouping of people and the
broadest level of cultural identity people have
 Ronen and Shenkar Clusters
 GLOBE Clusters
 Huntington Civilization
o Dimension Approach
 More influential
 5 dimensions
 Power distance is the extent to which less powerful members
within a country expect and accept that power is distributed
unequally
 Individualism refers to the perspective that the identity of an
individual is fundamentally his or her own whereas

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