Question

Short notes
1. Differentiate high-context & low-context cultures
2. Instruments of trade policy
3. Global economy
4. First mover advantage & disadvantage

Answer 1

1) In anthropology, high context and low context culture is a measure of how explicit the messages exchanged in a culture are, and how important the context is in communication. High and low context cultures fall on a continuum that describes how a person communicates with others through their range of communication abilities: utilizing gestures, relations, body language, verbal messages, or non-verbal messages.

----> High context culture:

• Less verbally explicit communication, less written/formal information
• More internalized understandings of what is communicated
• Multiple cross-cutting ties and intersections with others
• Long term relationships
• Strong boundaries- who is accepted as belonging vs who is considered an "outsider"
• Knowledge is situational, relational.
• Decisions and activities focus around personal face-to-face relationships, often around a central person who has authority.
• Examples : Small religious congregations, a party with friends, family gatherings etc.

-----> Low context culture:---

• Rule oriented, people play by external rules
• More knowledge is codified, public, external, and accessible.
• Sequencing, separation--of time, of space, of activities, of relationships
• More interpersonal connections of shorter duration
• Knowledge is more often transferable
• Task-centered. Decisions and activities focus around what needs to be done, division of responsibilities.
• Examples : a chain supermarket, a cafeteria, a convenience store etc.

2) Trade policy refers to the regulations and agreements that control imports and exports to foreign countries. Various countries impose various restrictions in multiple forms on account of multiple reasons such as protection of domestic industry, trade wars etc.The most common ones are tariffs, import and export quotas and export taxes and subsidies.

3) The international economy is the economy of all humans of the world, considered as the international exchange of goods and services that is expressed in monetary units of account. Beyond the minimum standard concerning value in production, use and exchange the definitions, representations, models and valuations of the world economy vary widely. It is inseparable from the geography and ecology of Earth.

4)The advantages of first movers include time to develop economies of scale—cost-efficient ways of producing or delivering a product. The disadvantages of first movers include the risk of products being copied or improved upon by the competition. Amazon and eBay are examples of companies that enjoy first movers status.