The Cultural Environments Facing Business

Why is culture important in International Business (IB)?

• It affects consumer behavior and business operations

• It has no impact on business transactions

• It only influences local businesses

• It is not considered in global trade

What are the two types of cultural change?

• Change by imposition and change by diffusion

• Change by tradition and change by society

• Change by choice and change by imposition

• Change by government and change by language

What is a characteristic of a relationship-focus (RF) culture?

• Prioritizes business deals over personal relationships

• Values building long-term relationships before business deals

• Avoids personal relationships in business

• Follows strict legal contracts without considering trust

What is the role of language in culture?

• Language serves as both a diffuser and stabilizer of culture

• Language has no impact on culture

• Language only affects individual behavior, not business

• Language prevents international trade

According to Hofstede’s cultural dimensions, what does “power distance” measure?

• How much people accept inequality in power distribution

• How much a culture values personal freedom

• How much risk a culture is willing to take

• How often people change jobs in a country

What is uncertainty avoidance in a cultural context?

• The tendency to avoid risky business transactions

• The fear of working with international businesses

• The extent to which societies tolerate uncertainty and ambiguity

• The rejection of new technologies in business

What is an example of silent language in business communication?

• Business contracts

• Body language and gestures

• Emails and memos

• Financial reports

Which cultural orientation assumes that a company’s home country practices are superior?

• Polycentrism

• Ethnocentrism

• Geocentrism

• Multiculturalism

What is a characteristic of high-context cultures?

• Communication is direct and explicit

• Communication relies heavily on context, body language, and relationships

• Business is strictly transactional with no personal interactions

• Laws are the most important factor in communication

What is cultural distance?

• The number of kilometers between two business locations

• The degree to which cultures differ in values, communication, and behaviors

• The number of languages spoken in a country

• The time it takes to adjust to a new culture