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THE DETERMINANTS OF CULTURE - Coggle Diagram
THE DETERMINANTS OF CULTURE
Religious and Ethical Systems
Ethical systems refer to a set of moral principles, or values, that are used to guide and shape behavior
Most of the world’s ethical systems are the product of religions
Religion may be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred
In Business
Different religions shape attitudes toward work and entrepreneurship and the degree to which religious ethics affect the costs of doing business in a country.
At places where strong religious beliefs have a positive impact on economic growth rates (?)
The Economic System
Three broad types of economic systems
Market Economy - all productive activities are privately owned
Command Economy - The government controls all factors of production and retains the power to determine the use of factors of production as well as the distribution of income
Mixed Economy - Combination of market economy and command economy
In countries where individual goals are given primacy, more likely to find free market economic systems.
In countries where collective goals are given preeminence, the state may have taken control over many enterprises; markets in such countries are likely to be restricted rather than free
Political ideology and economic systems are connected
The political system
Individualism
A political system that stresses the interests of the individual should take precedence over the interests of the state
In Business: As a support for a free market economy, creating a favorable environment for international businesses to operate
Democracy
Democracy refers to a political system in which government is by the people, exercised either directly or through elected representatives
In Business: Similar to individualism
Collectivism
A political system that stresses the primacy of collective goals over individual goals
In Business: Many companies are protected from competition by their monopoly position and guaranteed government financial support
Totalitarianism
A form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties
In Business: State controls over business activities gave public officials ample opportunities to enrich themselves by demanding bribes in return for permission to expand operations or enter new lines of business
The political system of a country shapes its economic and legal systems.
Structure of a society
The degree to which the basic unit of social organization is the individual, as opposed to the group
The degree to which a society is stratified into classes or castes.
In business
Social structure is important in business organizations (management-employee relations, respect and lack of cooperation associated that are related to class divisions. Those increase the cost of doing business and effect to competitive advantage)
refers to its basic social organization
Language
Language enables people to communicate with each other. language structures the way we perceive the world, shapes the way people perceive the world, it also helps define culture. Countries with more than one language often have more than one culture
In Business
Language is primary to establishing quality international business relationships.
Correct understanding of the language helps to avoid confusion in communication, especially in business culture
One of the defining characteristics of a culture: Spoken and Unspoken language
Education
is the medium through which individuals learn many of the language, conceptual, and mathematical skills
plays a key role in a society
In Business
Education is its role as a determinant of national competitive advantage. (availability of a pool of skilled and entirely educated workers)
Heading to the location choices of international businesses.
Nations that invest more in education will have higher growth rates because population is a more productive