1. Home-country laws are the laws that apply in the country where a company is headquartered, while host-country laws are the laws that apply in the country where a company is doing business. Home-country laws are the laws that the company is familiar with and has to follow in its home country, while host-country laws are the laws that the company has to follow in the country where it is doing business.
2. In a low-context culture, a contract is viewed as a legal document that specifies the obligations of each party and is expected to be followed strictly. In a high-context culture, a contract is viewed as a starting point for negotiations and is expected to be flexible and adaptable to changing circumstances.
3. Ethics are not the same around the world because different cultures have different values and norms. What is considered ethical in one culture may not be considered ethical in another culture. For example, in some cultures, it is acceptable to offer gifts or bribes to business partners, while in other cultures, this is considered unethical.
4. The four governance structures are market, bureaucratic, clan, and adhocracy. The market structure is characterized by competition, the bureaucratic structure is characterized by rules and procedures, the clan structure is characterized by loyalty and tradition, and the adhocracy structure is characterized by flexibility and innovation.
5. Power dynamics can be difficult to learn about before going to another country to do business because they are often subtle and complex. In many cultures, power is not openly discussed or acknowledged, and it can be difficult to understand the unwritten rules and expectations that govern social interactions. Additionally, power dynamics can vary widely within a culture depending on factors such as age, gender, and social status.