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International Business - Chapter 3
Mike Peng and Klaus Meyer
29
Business
Post-Graduate
01/10/2014

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Term
Informal institutions
Definition
Rules that are not formalised but exist in for example norms, value and ethic
Term
Ethnocentrism
Definition
A self-centred mentality by a group of people who perceive their own culture, ethics , and norms as natural, rational and morally right
Term
Culture
Definition
The collective programming of the mind that distinguishes the members of one group or category of people from another
Term
Artefact of culture
Definition
The visible surface of culture
Term
Context
Definition
The underlying background upon which interaction takes place
Term
Low context culture
Definition
A culture which communication is usually taken at face value without reliance on unspoken context
Term
High context culture
Definition
A culture which communication relies on the underlying unspoken context, which important as the words used
Term
Cluster
Definition
Countries that share similar culture together
Term
Civilisation
Definition
The highest culture grouping of people and the broadest level of cultural identity people have.
Term
Power distance
Definition
The extent to which less powerful members within a expect and accept that power is distributed unequally
Term
Individualism
Definition
The perspective that the identify of individual is fundamental his or her own
Term
Collectivism
Definition
The idea that the identify of an individual is primarily based on the identity of his or her collective group
Term
Masculinity
Definition
Values traditionally associated with male role, such as assertive, decisive and aggresive
Term
Femininity
Definition
Values traditionally associated with female role such as compassion, care and quality of life
Term
Uncertainty avoidance
Definition
The extent to which members in different cultures accept ambiguous situation and tolerate uncertainty
Term
Long-term orientation
Definition
A perspective that emphasises perseverance and saving for future
Term
Corporate language
Definition
The language used for communications between entities of the same MNE in different countries
Term
Lingua franca
Definition
The dominance of one language as a global business language
Term
Holy
Definition
An item or activity that is treated with particular respect by a religion.
Term
Taboo
Definition
An item or activity considered unclean by a religion
Term
Secular society
Definition
A society where religion does not dominate public life
Term
Ethic
Definition
The principle, standards and norms of conduct governing individual and firm behaviour
Term
Code of conduct
Definition
A set of guidelines for making ethical decisions
Term
Ethical relativism
Definition
A perspective that all ethical standards are relative
Term
Ethical imperialism
Definition
The absolute belief that there is only one set of Ethics(with the capital E) and we have it.
Term
Corruption
Definition
The abuse of public power for private benefits, usually in the form of bribery
Term
In-group
Definition
Individuals and firms regards as part of 'us'
Term
Out-group
Definition
Individual and firm not regards as part of 'us'
Term
Cultural intelligence
Definition
An individual's ability to understand and adjust to new cultures
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