GLOBAL BUSINESS 1
Emphasizing Informal Institutions:
Cultures, Ethics and Norms.
Monroe College Saint Lucia (Online)
COMPETITIVE ENVIRONMENT 2
1) Informal institutions come from the socially transmitted information and are part of
the heritage recognized as culture, ethics, and norms. These are socially shared rules,
usually unwritten, created, communicated, and enforced outside of official channels
within society, perceived as the natural, rational, and morally right. This self-centered
mentality is known as ethnocentrism.
2) Informal institutions are difficult to learn; however, three approaches help understand
their culture’s systematic differences better. Of the three approaches, the context
approach is the most straightforward, according to Peng, 2017. The author defined
context as the fundamental basis where social interaction happens. Cultures can be
categorized into low-context or high-context cultures. Low-context cultures are those
that communicate information in a precise, direct, explicit manner. Communication is
taken at face value, without depending on the interpretation of unspoken context.
