Question

Which of the following is true of commercial relationships in countries with collectivistic and high-context cultures?

1) They are based on individualistic values and direct communication.
2) They prioritize personal relationships and indirect communication.
3) They rely on formal contracts and legal agreements.
4) They value efficiency and productivity over personal relationships.

Answer 1

Commercial relationships in collectivistic and high-context cultures prioritize personal relationships and indirect communication, reflecting the cultural importance of group needs and social harmony.

Step-by-step explanation:

The question pertains to the nature of commercial relationships in collectivistic and high-context cultures. The correct statement is that they prioritize personal relationships and indirect communication. In such cultures, which are common in parts of Asia, Africa, and South America, the group's needs and social harmony take precedence over individual achievement. Business practices often revolve around building trust and understanding through long-term relationships rather than through direct and explicit communication or formal contracts. High-context communication relies on shared understanding and non-verbal cues, reflecting the importance of established interpersonal connections. Rather than valuing efficiency and productivity over personal relationships, such cultures integrate the two, often seeing the maintenance of good relationships as essential to productive business dealings.