REVIEW QUESTION ANSWERS FOR CHAPTER 4
Where do informal institutions come from, and how do they lead to ethnocentrism?
Informal institutions are represented by cultures, ethics, and norms. Where do informal
institutions come from? They come from socially transmitted information and are part of
the heritage that we call cultures, ethics, and norms.
Ethnocentrism is a term for situations in which those within a society tend to perceive
their own culture, ethics, and norms as “natural, rational, and morally right.”
What language is considered the lingua franca of the modern business world? Why?
Lingua franca: a global business language (English is currently the example) and recent
globalization has called for the use of one common language. Reasons: English-
speaking countries contribute the largest share of global output, drive trade and
investment around the world and produce products and services marketed in English
Using Figure 3.3, identify the four major religions in the world and where they are
The four leading religions are (1) Christianity (approximately 1.7 billion adherents), (2)
Islam (1 billion), (3) Hinduism (750 million), and (4) Buddhism (350 million).
Christianity is concentrated in the Americas, Australia, and Europe. Islam is in Northern
Africa, Western Asia, Malaysia, and Indonesia. Hinduism is in India. Buddhism is in
Name two major components and three minor components of a country’s culture.
Two major components: language and religion: Minor components include the (1)
context, (2) cluster, and (3) dimension approaches.
What is the difference between a low-context culture and a high-context culture? How
would you classify your home country’s culture?
High-context cultures: communication relies on the underlying unspoken context, which
is as important as the words used. Low-context cultures
ommunication is usually taken
at face value without much reliance on unspoken context.
In regards to classifying one’s
culture, the important thing is not so much the answer as the extent to which the student
demonstrates thought in providing the answer.
Name and describe the three systems for classifying cultures by clusters.
The first is the Ronen and Shenkar clusters of eight geographic areas.
The second set of
clusters is called the GLOBE cluster, named after the Global Leadership and
Organizational Behavior Effectiveness project which identifies ten clusters. The third set
of clusters is the Huntington civilization, which divides the world into eight civilizations.