Test Blueprint: International Business Open Questions
Exam
1. Cultural Awareness and Theories
Objective: The student demonstrates awareness and knowledge of cultural
differences and can explain and apply related models and theories.
Cultural Blindness: When we are unable to see specifics of another
culture and we’re biased by seeing the world based on our own culture.
Hierarchy: A system in which member of an organization or society are
ranked according to relative status or authority.
Hofstede’s Cultural Dimensions: A framework for understanding
cultural variations in power distance, individualism vs. collectivism,
masculinity vs. femininity, uncertainty avoidance, long-term vs. short-term
orientation, and indulgence vs. restraint.
Power distance index
- The extent to which the less powerful members of institutions and
organisations within a country expect and accept that power is
distributed unequally.
- High PDI: it is accepted that a boss is “higher” and therefore
deserves more formal respect and authority. (ex. Japan, Mexico and
Philippines.)
o Individual status, age and seniority etc. command respect
because they are the ones that give orders to lower rank
individuals. Subordinates expect to be told what to do and
won’t take initiative or speak their minds except when their
opinions are asked.
- Low PDI: managers and the rest are more considered to be equals.
(ex. Austria, Denmark & Sweden).
o Everyone has the freedom to speak their minds.
,Individualism vs. collectivism
- Considers the degree to which societies are integrated into groups
as well as their perceived obligations and dependence on groups.
- Individualism: People tend to take care of themselves and their
immediate family and friends only.
o Employees are valued primarily based on individual
success. Competition is a fuel of success.
o People are likely to choose a profession that they like.
o Ex. United Kingdom, United States.
o Communication is more direct
- Collectivism: individual members render loyalty to the group, and
the group takes care of its individual member.
o Perusing the common goals, believes of the group. It is nearly
impossible for outsiders to join the group.
o People tend to choose the profession the same as their father
or that serves the group.
o Those from collectivist cultures tend to emphasize
relationships and loyalty more than those from individualistic
cultures.
o Ex. Korea, Singapore, Mexico
o Communication is more indirect
Uncertainty Avoidance Index
- The extent to which uncertainty and ambiguity are tolerated.
- High UA: Prefer to steer clear of conflict and competition, they
appreciate very clear instructions.
o Clear divined rules are used to complete tasks, stability and
what is known are preferred to instability and the unknown.
o They prefer low-risk decisions in business
o Ex. Japan & France
- Low UA: people are more willing to take risks, companies may
appear less formal and structured, and people think more “outside
the box”.
o Ex. Denmark, Singapore, Australia.
o People in Low UA have fewer clear rules to interact.
Masculinity vs. femininity
- “Though vs. tender”, and it considers the preference of society for
achievement, behaviour, attitude towards gender equality, etc.
- Masculine-oriented culture: gender rules are clearly defined, men
tend to be more focused on performance, ambition, and material
success. (Japan & Latin America).
- Feminine-oriented culture: concern for all, emphasis on the
quality of life and a focus on relationships. (Scandinavian countries &
, New Zealand).
Long-term orientation vs. Short-term orientation
- The extent to which society view its time horizon.
- Long-term orientation: focuses on the distant future by delaying
short-term success to achieve long-term success.
o Emphasize perseverance and growth
o the basic notion about the world is that it is in flux, and
preparing for the future is always needed.
o Ex. China & South Korea.
- Short-term Orientation: focuses on the near future by delivering
short-term success and emphasizing the present.
o The world is essentially as it was created, so that the past
provides a moral compass. Ex. U.K. and U.S.
Indulgence vs. Restraint
- Considers the extent and tendency of a society to fulfill its desires.
- Indulgent: it is good to be free and to have a fun life. Doing what
your impulses want you to do, is good. Friends are important and life
makes sense. Freedom of speech. (Australia, Canada, U.S.)
- Restraint: society suppressed gratification of needs and regulates it
through social norms. (ex. Russia, China, Japan & South Korea).
Exam
1. Cultural Awareness and Theories
Objective: The student demonstrates awareness and knowledge of cultural
differences and can explain and apply related models and theories.
Cultural Blindness: When we are unable to see specifics of another
culture and we’re biased by seeing the world based on our own culture.
Hierarchy: A system in which member of an organization or society are
ranked according to relative status or authority.
Hofstede’s Cultural Dimensions: A framework for understanding
cultural variations in power distance, individualism vs. collectivism,
masculinity vs. femininity, uncertainty avoidance, long-term vs. short-term
orientation, and indulgence vs. restraint.
Power distance index
- The extent to which the less powerful members of institutions and
organisations within a country expect and accept that power is
distributed unequally.
- High PDI: it is accepted that a boss is “higher” and therefore
deserves more formal respect and authority. (ex. Japan, Mexico and
Philippines.)
o Individual status, age and seniority etc. command respect
because they are the ones that give orders to lower rank
individuals. Subordinates expect to be told what to do and
won’t take initiative or speak their minds except when their
opinions are asked.
- Low PDI: managers and the rest are more considered to be equals.
(ex. Austria, Denmark & Sweden).
o Everyone has the freedom to speak their minds.
,Individualism vs. collectivism
- Considers the degree to which societies are integrated into groups
as well as their perceived obligations and dependence on groups.
- Individualism: People tend to take care of themselves and their
immediate family and friends only.
o Employees are valued primarily based on individual
success. Competition is a fuel of success.
o People are likely to choose a profession that they like.
o Ex. United Kingdom, United States.
o Communication is more direct
- Collectivism: individual members render loyalty to the group, and
the group takes care of its individual member.
o Perusing the common goals, believes of the group. It is nearly
impossible for outsiders to join the group.
o People tend to choose the profession the same as their father
or that serves the group.
o Those from collectivist cultures tend to emphasize
relationships and loyalty more than those from individualistic
cultures.
o Ex. Korea, Singapore, Mexico
o Communication is more indirect
Uncertainty Avoidance Index
- The extent to which uncertainty and ambiguity are tolerated.
- High UA: Prefer to steer clear of conflict and competition, they
appreciate very clear instructions.
o Clear divined rules are used to complete tasks, stability and
what is known are preferred to instability and the unknown.
o They prefer low-risk decisions in business
o Ex. Japan & France
- Low UA: people are more willing to take risks, companies may
appear less formal and structured, and people think more “outside
the box”.
o Ex. Denmark, Singapore, Australia.
o People in Low UA have fewer clear rules to interact.
Masculinity vs. femininity
- “Though vs. tender”, and it considers the preference of society for
achievement, behaviour, attitude towards gender equality, etc.
- Masculine-oriented culture: gender rules are clearly defined, men
tend to be more focused on performance, ambition, and material
success. (Japan & Latin America).
- Feminine-oriented culture: concern for all, emphasis on the
quality of life and a focus on relationships. (Scandinavian countries &
, New Zealand).
Long-term orientation vs. Short-term orientation
- The extent to which society view its time horizon.
- Long-term orientation: focuses on the distant future by delaying
short-term success to achieve long-term success.
o Emphasize perseverance and growth
o the basic notion about the world is that it is in flux, and
preparing for the future is always needed.
o Ex. China & South Korea.
- Short-term Orientation: focuses on the near future by delivering
short-term success and emphasizing the present.
o The world is essentially as it was created, so that the past
provides a moral compass. Ex. U.K. and U.S.
Indulgence vs. Restraint
- Considers the extent and tendency of a society to fulfill its desires.
- Indulgent: it is good to be free and to have a fun life. Doing what
your impulses want you to do, is good. Friends are important and life
makes sense. Freedom of speech. (Australia, Canada, U.S.)
- Restraint: society suppressed gratification of needs and regulates it
through social norms. (ex. Russia, China, Japan & South Korea).
