1. A country’s “degree of globalization” is based on social, political, and economic activities.
2. In the United States, the direct investment of foreign-based companies grew from $9 billion in
1966 to more than $166 billion in 2012.
3. Foreign investors are more likely to start new American businesses than purchase existing
businesses.
4. It’s been estimated that 20 to 40 percent of American managers fail to perform adequately
abroad because they haven’t been sufficiently prepared for adjusting to the foreign culture.
5. Culture is what we grow up in.
6. Differences between cultures must be understood but not accepted for international business.
7. Uncertainty avoidance indicates the extent to which a society accepts the fact that power in
institutions and organizations is distributed unequally.
8. The Philippines, Venezuela, and Mexico are countries with low power distance.
9. A manager in a country with high power distance might favor a controlling strategy and
behave like an autocrat.
10. Hofstede’s dimensions are similar for countries that are geographically close together.
11. Collectivism is evidenced by people taking care of only their immediate families.