Cultural Sensitivity
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| understand the sociocultural components of culture | (1)aesthetics,(2)attitudes and beliefs,(3)religion,(4)material culture,(5)language,(6)societal organization,(7)education,(8)legal characteristics,and(9)political
structures.
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| culture | Sum total of beliefs, rules, techniques,
institutions, and artifacts that characterize
human populations
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| ethnocentricity | Belief in the superiority of one’s own ethnic
group
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| aesthetics | A culture’s sense of beauty and good taste
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| demonstration effect | Result of having seen others with desirable
goods
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| Protestant work ethic | Duty to glorify God by hard work and the
practice of thrift
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| Confucian work ethic | Drive toward hard work and thrift; similar
to Protestant work ethic
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| Asian religions | Primary ones: Hinduism, Buddhism, Jainism, and Sikhism (India); Confucianism and Taoism (China); and Shintoism (Japan)
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| caste system | An aspect of Hinduism by which the entire
society is divided into four groups (plus the
outcasts) and each is assigned a certain class of work
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| material culture | All human-made objects; concerned with how people make things (technology) and who makes what and why (economics)
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| technological dualism | The side-by-side presence of technologically
advanced and technologically primitive production systems
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| appropriate technology | The technology (advanced, intermediate, or primitive) that most closely fits the society using it
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| boomerang effect | Situation in which technology sold to companies in another nation is used to produce goods to compete with those of the seller of the technology
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| lingua franca | A foreign language used to communicate among a nation’s diverse cultures that have diverse
languages
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| unspoken language | Nonverbal communication, such as gestures and body language
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| bribes | Gifts or payments to induce the receiver to
do something illegal for the giver
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| extortion | Demand for payment to keep the receiver from causing harm to the payer
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| extended family | Family that includes blood relatives and relatives by marriage
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| associations | Social units based on age, gender, or common interest, not on kinship
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| recognize forces beyond management control that affect the availability of labor | Pop.are aging.Labor is shifting significantly from rural to urban locations.Unemploy.remains a problem in many regions&particularly among youths between the ages of 15 and 24.Large #s of immigrant laborers are moving within& particularly between nations.
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| understand women's labor, employment, and social roles | Women are making progress toward equality in many nations,sexism remains a problem through the world.They continue to have higher levels of illiteracy&lower levels of wages in all regions of the world,&are underrepresented in bus.&polit.positions of auth.
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| labor quality | The skills, education, and attitudes of available employees
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| labor quantity | The number of available employees with the skills required to meet an employer’s business needs
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| labor mobility | The movement of people from country to country or area to area to get jobs
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| child labor | The labor of children below 16 years of age
who are forced to work in production and usually are given little or no formal education
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| brain drain | The loss by a country of its most intelligent
and best-educated people
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| guest workers | People who go to a foreign country legally
to perform certain types of jobs
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| traditional societies | Tribal peoples before they turn to organized
agriculture or industry; traditional customs
may linger after the economy changes
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| minorities | A relatively smaller number of people identified by race, religion, or national origin who live among a larger majority
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| labor market | The pool of available potential employees
with the necessary skills within commuting distance from an employer
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| labor unions | Organizations of workers
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| collective bargaining | The process in which a union represents the interests of a bargaining unit (which sometimes includes both union members and nonmembers) in negotiations with management
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| identify how ideological forces affect business | Ideological forces include capitalism, communism, and socialism. The chapter discusses terminology (conservative, liberal, right wing, and left wing) used to describe various political positions.
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| explain the meaning of government privatization of business | Even governments that consider themselves capitalist and conservative own some businesses. But almost all governments—with the United States lagging behind—are privatizing and getting out of business.
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| describe the importance of government stability and policy continuity for business | Business can rarely thrive in a country with an unstable government or rapid, drastic policy changes. The situation in Bolivia illustrates the problems.
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| define and assess country risk | Country risk assessment is now considered a necessity by most international businesses before they commit people, money, or technology to a foreign country. CRA involves evaluating a country’s economic situation and policies as well as its politics.
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| communism | Marx’s theory of a classless society, developed by his successors into control of
society by the Communist Party and the attempted worldwide spread of communism
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| expropriation | Government seizure of the property within
its borders owned by foreigners, followed by
prompt, adequate, and effective compensation paid to the former owners
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| confiscation | Government seizure of the property within its borders owned by foreigners without payment to them
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| capitalism | An economic system in which the means of
production and distribution are for the most
part privately owned and operated for private profit
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| socialism | Public, collective ownership of the basic
means of production and distribution, operating for use rather than profit
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| conservative | A person, group, or party that wishes to
minimize government activities and maximize private ownership and business
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| right wing | A more extreme conservative position
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| liberal | In the contemporary United States, a person, group, or party that urges greater government involvement in business and other aspects of human activities
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| left wing | A more extreme liberal position
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| privatization | The transfer of public sector assets to the
private sector, the transfer of management of state activities through contracts and leases, and the contracting out of activities previously conducted by the state
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| terrorism | Unlawful acts of violence committed for a wide variety of reasons, including for ransom,to overthrow a government,to gain release of imprisoned colleagues,to exact revenge for real or imagined wrongs, and to punish nonbelievers of the terrorists’ religion
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| stability | Characteristic of a government that maintains itself in power and whose fiscal, monetary, and political policies are predictable and not subject to sudden, radical changes
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| instability | Characteristic of a government that cannot maintain itself in power or that makes
sudden, unpredictable, or radical policy
changes
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| traditional hostilities | Long-standing enmities between tribes, races, religions, ideologies, or countries
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| country risk assessment (CRA) | An evaluation,conducted by a bank/busi.having an asset in/payable from a foreign country /considering a loan/an invest.there,that assesses the country’seconomic situat.& policy &its politics to determine how much risk exists oflosingthe asset/notbeingpaid
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| dumping | Selling a product abroad for less than the cost of production, the price in the home market, or the price to third countries
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| subsidies | Financial contributions, provided directly or
indirectly by a government, which confer a
benefit; include grants, preferential tax treatment, and government assumption of normal business expenses
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| countervailing duties | Additional import taxes levied on imports that have benefited from export subsidies
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| tariffs | Taxes on imported goods for the purpose of raising their price to reduce competition for local producers or stimulate local production
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| ad valorem duty | An import duty levied as a percentage of the invoice value of imported goods
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| specific duty | A fixed sum levied on a physical unit of an
imported good
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| compound duty | A combination of specific and ad valorem duties
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| variable levy | An import duty set at the difference between world market prices and local government-supported prices
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| nontariff barriers (NTBs) | All forms of discrimination against imports other than import duties
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| quotas | Numerical limits placed on specific classes of imports
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| voluntary export restraints (VERs) | Export quotas imposed by the exporting nation
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| orderly marketing arrangements | Formal agreements between exporting and importing countries that stipulate the import or export quotas each nation will have for a good
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| define the legal forces that confront international business | International business is affected by many thousands of laws and regulations issued by states, nations, and international organizations. Some are at cross-purposes, and some diminish the ability of firms to compete with foreign companies.
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| explain why foreign law is important | Miscellaneous laws in host countries can trip up foreign business people or tourists. Charges can range from not carrying an alien registration card to narcotics possession.
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| define contract devices and intellectual property | Patents,trademarks,trade names,copyrights,& trade secrets R referred 2 as intellectual properties.Pirating of those properties is common&is expensive for their owners.The UN’s World Intel.Proty.Org.was created 2 administer international property treaties.
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| define antitrust laws | The United States and the European Union enforce anti-trust laws extraterritorially. This is a concern for companies operating in many countries because of the complexity of
dealing with so many laws in different jurisdictions.
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| describe how U.S. laws affect international business operations | Many US laws affect intern.bus.opera.The US applies federal employ.laws to any US co.opera.anywhere.This extraterritoriality means that U.S. co.opera.in foreign countries are required to follow US employ.law as it applies to US nationals.
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| public international law | Legal relations between governments
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| private international law | Laws governing transactions of individuals and companies that cross international borders
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| treaties | Agreements between countries, which may be bilateral (between two countries) or multilateral (involving more than two countries); also called conventions, covenants, compacts, or protocols
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| extraterritorial application of laws | A country’s attempt to apply its laws to
foreigners or non-residents and to acts and activities that take place outside its borders
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| arbitration | A process, agreed to by parties to a dispute in lieu of going to court, by which a neutral person or body makes a binding decision
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| intellectual property | Patents, trademarks, trade names, copyrights, and trade secrets, all of which result from the exercise of someone’s intellect
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| nonrevenue tax purposes | Purposes such as redistributing income, discouraging consumption of products such
as tobacco and alcohol, and encouraging
purchase of domestic rather than imported products
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| foreign tax credits | Allowances by which U.S. taxpayers who reside and pay income taxes in another country can credit those taxes against U.S. income tax
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| tax treaties | Treaties between countries that bind the
governments to share information about tax-
payers and cooperate in tax law enforcement; often called tax conventions
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| antitrust laws | Laws to prevent price fixing, market sharing, and business monopolies
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| competition policy | The EU equivalent of antitrust laws
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| product liability | Standard that holds a company and its officers and directors liable and possibly
subject to fines or imprisonment when their product causes death, injury, or damage
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| strict liability | Standard that holds the designer/manufacturer liable for damages caused by a product without the need for a plaintiff to prove negligence in the product’s design or manufacture
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| questionable or dubious payments | Bribes paid to government officials by companies seeking purchase contracts from those governments
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| Foreign Corrupt Practices Act (FCPA) | U.S. law against making payments to foreign government officials for special treatment
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