3 CHAPTER SUMMARY 1. Culture is a complex whole that includes knowledge, beliefs, art, morals, law, customs, and other capabilities acquired by people as members of society. 2. Values and norms are the central components of a culture. Values are abstract ideals about what a society believes to be good, right, and desirable. Norms are social rules and guidelines that prescribe appropriate behavior in particular situations. 3. Values and norms are influenced by political and economic philosophy, social structure, religion, language, and education. 4. The social structure of a society refers to its basic social organization. 2 main dimensions along which social structures differ are that individual-group dimension and the stratification dimension 5. In some societies, the individual is the basic building block of social organization. These societies emphasize individual achievements above all else. In other societies, the group is the basic building block of social organization. These societies emphasize group membership and group achievements above all else. 6. All societies are stratified into different classes. Class-conscious societies are characterized by low social mobility and a high degree of stratification. Less class-conscious societies are characterized by high social mobility and a low degree of stratification. 7. Religion may be defined as a system of shared beliefs and rituals that is concerned with the realm of the sacred. Ethical systems refer to a set of moral principles, or values, that are to used guide and shape behavior. The world's major religions are Christianity, Islam, Hinduism, and Buddhism. Although not a religion, Confucianism has an impact on behavior that is as profound as that of many religions. The value systems of different religious and ethical systems have different implications for business practice. 8. Language is one defining characteristic of a culture. It has both spoken and unspoken dimensions. In countries with more than one spoke language, we tend to find more than one culture. 9. Formal education is the medium through which individuals learn skills and are socialized into the values and norms of a society. Education plays an important role in the determination of national competitive advantage. 10. Geert Hofstede studied how culture relates to values in the workplace. Hofstede isolated 4 dimensions that he claimed summarized different cultures: power distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus femininity. 11. Culture is not a constant; it evolves. Economic progress and globalization seem to be 2 important engines of cultural change. 12. One danger confronting a company that goes abroad for the first time is being illinformed. To develop cross-cultural literacy, international businesses need to employ host-country nationals, build a cadre of cosmopolitan executives, and guard against the dangers of ethnocentric behavior. 13. The value systems and norms of a country can affect the costs of doing business in that country.