NAFTA

USMCA

CAFTA-DR

ASEAN

multinational

manufacturing

marketing

monetary

True

False

market

traditional

planned

barter

North America

European Union

Japan

South America

collective

economic

religious

military

Socialism

Democracy

Communism

Capitalism

governments

citizens

organizations

laws

True

False

categorical

hypothetical

conditional

universal

Utilitarianism

Virtue

Deontology

Ethical relativism trap

CSR

Profit

Law

Strategy

Integrative social constructs theory

International Standards for Corporate Transparency

Institutional Social Contract Theory

Integrated Systems for Corporate Training

Learned

Shared

Inherited

Adaptive

Power distance, uncertainty avoidance

Creativity, flexibility

Harmony, tradition

Risk-taking, innovation

Generalizing refers to identifying broad patterns or trends, while stereotyping involves making oversimplified and fixed judgments about a group.

Generalizing and stereotyping both mean making fixed judgments about every individual in a group.

Generalizing is always negative, while stereotyping is always positive.

Generalizing and stereotyping are interchangeable terms with no real difference.

GLOBE Project

Hofstede’s Cultural Dimensions

World Values Survey

Project 2000

True

False

China, India

USA, Canada

Japan, Australia

Germany, Italy

Groupthink is a phenomenon where the desire for harmony or conformity in a group results in irrational or dysfunctional decision-making.

Groupthink is a process where individual opinions are always prioritized over group consensus.

Groupthink refers to a situation where all group members independently make decisions without any discussion.

Groupthink is a method used by organizations to encourage creative and diverse thinking among employees.

The GLOBE Project focuses on studying cultural dimensions and leadership across different societies.

The GLOBE Project is dedicated to environmental conservation efforts worldwide.

The GLOBE Project primarily researches technological advancements in global communication.

The GLOBE Project aims to promote international trade agreements.

the process of increased interconnectedness and integration among countries

the isolation of countries from each other

the restriction of international trade and communication

the development of local cultures without outside influence

The process of designing software so that it can be adapted to various languages and regions without engineering changes.

The act of translating text from one language to another.

The process of making a product available only in one country.

The method of encrypting data for international transfer.

High-context societies rely more on implicit communication and non-verbal cues, while low-context societies depend on explicit verbal communication.

Low-context societies rely more on non-verbal cues than high-context societies.

High-context societies use only written communication, while low-context societies use only spoken communication.

Low-context societies avoid direct communication, while high-context societies prefer directness.

Indirect verbal style is less explicit and relies on context, while direct verbal style is clear and straightforward.

Indirect verbal style is always rude, while direct verbal style is always polite.

Indirect verbal style uses more gestures, while direct verbal style uses only words.

Indirect verbal style is used only in written communication, while direct verbal style is used only in spoken communication.

Elaborate style uses more words and details, while exacting style is precise and concise.

Elaborate style is always formal, while exacting style is always informal.

Elaborate style avoids details, while exacting style includes unnecessary information.

Elaborate style is used only in written communication, while exacting style is used only in spoken communication.

Contextual style focuses on social roles, while personal style emphasizes individual identity.

Contextual style emphasizes individual identity, while personal style focuses on social roles.

Both styles focus on individual identity.

Both styles focus on social roles.

Affective communication focuses on emotions and relationships, while instrumental communication focuses on tasks and goals.

Affective communication is always formal, while instrumental communication is always informal.

Instrumental communication is used only in written form, while affective communication is used only in spoken form.

Affective communication is about giving instructions, while instrumental communication is about expressing feelings.

The flow of information from subordinates to superiors.

The flow of information from superiors to subordinates.

Communication between peers at the same level.

Communication with external stakeholders.

Language differences

Shared cultural norms

Identical communication styles

Universal nonverbal cues

a negotiation where parties compete to divide a fixed amount of resources

a negotiation focused on building long-term relationships

a negotiation where both parties seek to maximize joint gains

a negotiation that always results in a win-win outcome

a negotiation approach where parties collaborate to find a win-win solution

a negotiation style focused only on winning at any cost

a method where one party dominates the other

a process that ignores the interests of both parties

Preparation, Opening, Bargaining, Closing

Planning, Execution, Review, Feedback

Initiation, Discussion, Agreement, Implementation

Research, Proposal, Evaluation, Decision

Choosing a neutral meeting place

Ignoring the other party's interests

Refusing to set a meeting time

Focusing only on price

focusing on shared interests

ignoring the other party's needs

refusing to compromise

prioritizing only their own goals

Making unreasonable demands or threats during negotiations.

Accepting all terms without negotiation.

Ignoring the negotiation process entirely.

Always agreeing with the other party's proposals.

McDonald's

Apple

Tesla

Netflix

Novartis AG v. Union of India

Brown v. Board of Education

Roe v. Wade

Marbury v. Madison

Disneyland Shanghai

Disneyland Paris

Disneyland California

Disneyland Florida

The Danone-Wahaha dispute

The Nestle-Wahaha merger

The Pepsi-Wahaha partnership

The Coca-Cola-Wahaha acquisition

The case involving American Factory is about a documentary film.

The case involving American Factory is about a legal dispute over patents.

The case involving American Factory is about a labor union strike.

The case involving American Factory is about environmental regulations.

Relocating production or service activities to another country to reduce costs.

Hiring local employees for specialized tasks.

Expanding business operations within the same country.

Increasing the number of domestic suppliers.

Contracting out certain business functions to external providers rather than performing them in-house.

Hiring only temporary employees for all business operations.

Expanding business operations to international markets.

Merging with another company to increase market share.

The World Trade Organization — regulates international trade and resolves trade disputes among member countries.

The World Tourism Organization — promotes global tourism and travel.

The Wildlife Trust Organization — focuses on wildlife conservation.

The Water Treatment Organization — manages water purification and supply.

Regional trade agreements linking the U.S., Canada, and Mexico to encourage free trade (USMCA replaced NAFTA in 2020).

International organizations focused on environmental protection in North America.

Military alliances formed between the U.S., Canada, and Mexico.

Cultural exchange programs among North American countries.

Foreign Direct Investment — when a firm invests in and controls business operations in another country.

Foreign Domestic Investment — when a firm invests only within its own country.

Foreign Debt Investment — when a firm lends money to a foreign company.

Foreign Dividend Income — when a firm earns dividends from foreign stocks.

Multinational Corporation — a company with operations or subsidiaries in multiple countries.

Monetary National Council — a financial regulatory body.

Modern Network Computer — a type of advanced computing device.

Market Negotiation Committee — a group for trade discussions.

Combines private enterprise with government regulation and intervention.

Is an economy where only the government controls all resources.

Is an economy based solely on barter system.

Is an economy where only private businesses operate without any government involvement.

Economic decisions driven by supply and demand with minimal government control.

Economic decisions made entirely by the government.

An economy where all resources are owned by the state.

A system where trade is restricted and controlled by the government.

The government controls production, prices, and allocation of resources.

Individuals and businesses freely decide what to produce and sell.

Prices are determined solely by supply and demand.

Resources are allocated based on tradition and custom.

BRIC = Brazil, Russia, India, China; E7 = emerging economies projected to rival G7 (China, India, Brazil, Mexico, Russia, Indonesia, Turkey).

BRIC = Belgium, Romania, Italy, Canada; E7 = established economies in Europe.

BRIC = Brazil, Russia, Indonesia, China; E7 = emerging economies in Africa.

BRIC = Britain, Russia, India, China; E7 = developed Asian economies.

A factory in Mexico (often near the U.S. border) that imports materials duty-free, assembles them, and exports finished goods.

A traditional Mexican dish made from corn and beans.

A type of Mexican folk dance performed during festivals.

A government office in Mexico responsible for trade regulations.

Japanese network of interlinked companies with cross-ownership and coordination through banks or trading firms.

A traditional Japanese art form involving paper folding.

A type of Japanese cuisine featuring raw fish.

A Japanese festival celebrated in spring.

South Korean large, family-controlled business conglomerate.

Japanese traditional tea ceremony.

Chinese government-owned bank.

Indian small-scale textile business.

(1) Ideology – focus on individual vs. collective rights; (2) Degree of individual vs. collective emphasis.

(1) Economic growth; (2) Technological advancement.

(1) Religious beliefs; (2) Military strength.

(1) Geographic location; (2) Population size.

Economic system where production and distribution are owned or regulated by society/government to promote equality.

Economic system where private individuals own and control production for profit.

Political system where a single party controls all aspects of life.

System where goods and services are distributed based on market competition.

Political system where citizens elect representatives and have protected individual freedoms.

System where a single ruler holds all power and citizens have no say.

Economic system focused on private ownership and profit.

Government controlled entirely by religious leaders.

System advocating common ownership of production with classless, stateless society; the state directs resources for all.

Economic system based on private ownership and free markets.

Political system where monarchy holds absolute power.

System where religious leaders govern the state.

Authoritarian system emphasizing nationalism, centralized power, and suppression of opposition.

Economic system based on free market and private ownership.

Political ideology advocating for complete individual freedom and minimal government intervention.

System of government where all decisions are made by direct vote of the people.

Political system where the state holds total control over society and limits individual freedoms.

Economic system where private businesses operate without government interference.

Social system based on equality and shared ownership of resources.

Religious system where the church governs all aspects of life.

Based on the Qur'an and religious principles governing both personal and business behavior.

A set of laws created by modern governments for economic regulation.

A code of conduct for international trade only.

A system of rules for scientific research.

Derived from Marxist ideology; emphasizes state ownership and centralized control.

Based on religious principles and traditions.

Focused on individual property rights and free market economy.

Rooted in ancient customary practices and unwritten codes.

Based on tradition, precedent, and judicial interpretation (e.g., UK, U.S.).

A legal system based solely on written constitutions.

A system where laws are created only by legislative bodies.

A legal framework that relies exclusively on religious texts.

Based on comprehensive written codes and statutes (e.g., France, Japan).

Based on unwritten customs and judicial precedents (e.g., United Kingdom).

A system where religious texts are the primary source of law.

A legal system governed solely by local traditions and folklore.

Nations have the right to rule themselves without external interference.

Nations must always follow the rules set by other countries.

Nations are required to share their government with neighboring states.

Nations cannot make their own laws without approval from international organizations.

A country may regulate the conduct of its citizens anywhere in the world.

A country may regulate only the conduct within its borders.

A country may regulate the conduct of foreign citizens only.

A country may regulate international organizations only.

Jurisdiction applies within a nation’s borders.

It refers to international law governing the high seas.

It is the principle that laws apply only to citizens abroad.

It is the concept of shared jurisdiction between nations.

A state can act against foreign conduct that threatens its security.

A state can protect its citizens from natural disasters.

A state can enforce laws only within its borders.

A state can intervene in the domestic affairs of other countries.

Mutual recognition of laws among nations out of respect and reciprocity.

A principle that allows courts to ignore foreign laws.

A rule that mandates all countries have the same legal system.

A doctrine that prohibits international treaties.

Courts in one country will not question the validity of another government’s official acts.

Courts in one country must enforce the laws of another country.

Courts in one country can override the decisions of another government.

Courts in one country are required to extradite citizens of another country.

Transferring ownership of state enterprises to private investors.

Increasing government control over private companies.

Merging private companies into public sector units.

Reducing the number of private investors in the market.

Expansion of complex administrative structures that can slow decision-making.

Increase in democratic participation within organizations.

Reduction of rules and regulations in government.

Simplification of organizational hierarchy.

Strong identification with one’s nation and support for its interests.

A belief in global cooperation over national interests.

Support for regional autonomy rather than national unity.

Advocacy for the elimination of all borders between countries.

Government takeover of private industry or assets.

Privatization of government assets.

Increase in foreign investment.

Reduction of government control over industries.

Moral principles guiding what is right or wrong in behavior.

Rules for scientific experiments only.

Techniques for financial management.

Guidelines for physical fitness.

The obligation of businesses to contribute to economic development while improving quality of life for employees, local communities, and society.

A strategy for maximizing profits regardless of social impact.

A government policy for regulating business taxes.

A marketing technique to increase brand awareness.

Duty-based ethics: actions are moral only if they can be universalized.

Consequentialist ethics: actions are judged by their outcomes.

Virtue ethics: focus on character and virtues.

Relativist ethics: morality depends on cultural context.

Ethical principle focusing on the greatest good for the greatest number.

Theory that prioritizes individual happiness above all.

Belief in strict adherence to rules regardless of outcomes.

Philosophy that values tradition over consequences.

Focuses on moral character and virtues rather than specific actions.

Focuses on the consequences of actions to determine right and wrong.

Focuses on following strict rules or laws regardless of the situation.

Focuses on maximizing pleasure and minimizing pain in decision making.

The idea that ethical standards vary by culture; no universal right or wrong.

The belief that ethics are always absolute and unchanging.

The concept that only legal standards determine ethics.

The idea that ethics are determined solely by religious texts.

Suggests universal ethical norms exist but allow for local variations.

Argues that only local customs should determine ethical standards.

States that ethical norms are entirely subjective and personal.

Claims that there are no universal ethical principles in business.

Abuse of entrusted power for private gain.

A system of government based on democracy.

The process of legalizing assets.

A method of improving public services.

U.S. firms from bribing foreign officials to obtain or retain business.

U.S. firms from trading with foreign companies.

U.S. firms from hiring foreign employees.

U.S. firms from exporting goods to foreign countries.

Ensures producers in developing countries get equitable pay and working conditions.

Promotes the use of genetically modified crops.

Supports only large multinational corporations.

Encourages child labor in developing countries.

Shared set of values, beliefs, norms, and behaviors that guide social interaction.

A set of laws governing a country.

The genetic traits passed from parents to children.

The economic system of a society.

Learned, shared, transgenerational, symbolic, patterned, and adaptive.

Inherited, isolated, static, materialistic, random, and rigid.

Innate, individual, non-symbolic, unpatterned, non-adaptive, and temporary.

Genetic, exclusive, non-transgenerational, literal, chaotic, and inflexible.

Power Distance, Uncertainty Avoidance, Individualism, Masculinity, Long-Term Orientation, Indulgence.

Power Distance, Collectivism, Femininity, Short-Term Orientation, Restraint, Uncertainty Avoidance.

Individualism, Masculinity, Power Distance, Short-Term Orientation, Restraint, Certainty Seeking.

Uncertainty Avoidance, Individualism, Femininity, Short-Term Orientation, Indulgence, Power Seeking.

Universalism vs Particularism, Neutral vs Emotional, Specific vs Diffuse, Achievement vs Ascription, Sequential vs Synchronic Time.

Power Distance, Individualism vs Collectivism, Masculinity vs Femininity, Uncertainty Avoidance, Long-term vs Short-term Orientation.

High Context vs Low Context, Monochronic vs Polychronic, Indulgence vs Restraint, Assertiveness vs Modesty, Pragmatism vs Normative.

Equality vs Hierarchy, Competition vs Cooperation, Direct vs Indirect Communication, Tradition vs Innovation, Flexibility vs Rigidity.

Cross-cultural research identifying nine cultural dimensions influencing leadership and management.

A global initiative to standardize business accounting practices.

An international organization promoting environmental sustainability.

A worldwide network for technological innovation.

Generalizing recognizes trends but allows flexibility; stereotyping rigidly applies assumptions.

Generalizing and stereotyping are identical concepts.

Generalizing always leads to discrimination, while stereotyping never does.

Generalizing ignores individual differences, while stereotyping celebrates them.

Belief that one’s home culture is superior; management follows home-country practices abroad.

Belief that all cultures are equal; management adapts to local practices.

Belief that foreign cultures are superior; management follows host-country practices.

Belief that international business should avoid cultural influence altogether.

Adapting to host-country culture and practices in each location.

Maintaining home-country practices in all locations.

Using a global standard approach everywhere.

Focusing only on the headquarters' culture.

Management approach organized around geographic regions.

Management approach focused on a single country.

Management approach based on global standardization.

Management approach centered on product lines.

Global mindset integrating best practices worldwide.

Focus only on local practices and traditions.

Preference for home country’s methods over others.

Exclusive reliance on regional expertise.

Pressure to standardize worldwide for efficiency and brand consistency.

The need to localize products for every market.

A strategy to avoid international expansion.

A focus on reducing global communication.

Adapting products and practices to local markets.

Centralizing all business operations globally.

Ignoring local consumer preferences.

Standardizing products for all countries.

Assuming one’s own cultural ways are the only or best way.

Believing all cultures are equally valid.

Encouraging multiculturalism in society.

Promoting global citizenship.