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Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

Using Cultural Diversity in Teaching Economics:
Global Business Implications
Darryl J. Mitry
To cite this article: Darryl J. Mitry (2008) Using Cultural Diversity in Teaching Economics:
Global Business Implications, Journal of Education for Business, 84:2, 84-89, DOI: 10.3200/
JOEB.84.2.84-89
To link to this article: http://dx.doi.org/10.3200/JOEB.84.2.84-89

Published online: 07 Aug 2010.

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Using฀Cultural฀Diversity฀in฀Teaching฀
Economics:฀Global฀Business฀Implications
DARRYL฀J.฀MITRY
NORWICH฀UNIVERSITY
NORTHFIELD,฀VERMONT

ABSTRACT.฀ Globalization฀and฀increasing฀cross-cultural฀interactivity฀have฀implications฀for฀education฀in฀general฀and฀may฀
also฀present฀valuable฀pedagogical฀opportunities฀in฀the฀practice฀of฀teaching฀economics฀
for฀business฀students.฀Therefore,฀the฀author฀
investigated฀this฀proposition฀and฀offers฀
some฀empirical฀observations฀from฀research฀

and฀teaching฀experiments.฀In฀this฀article,฀
the฀author฀describes฀a฀procedure฀for฀using฀
cultural-diversity฀measures฀in฀teaching฀
economic฀principles฀courses.฀The฀author฀
performed฀experiments฀to฀test฀the฀impact฀
of฀a฀teaching฀approach฀that฀explicitly฀
includes฀cultural-diversity฀measurements฀
in฀classroom฀discussions฀and฀statistically฀
tested฀student-learning฀outcomes฀using฀this฀
approach.฀The฀findings฀support฀the฀contention฀that฀a฀valuable฀opportunity฀exists฀to฀
enhance฀traditional฀teaching฀approaches฀by฀
introducing฀measures฀of฀cultural฀diversity.฀
The฀author฀concludes฀with฀analytical฀comments฀and฀suggestions฀for฀further฀research.฀฀
Keywords:฀culture,฀economics,฀
globalization,฀teaching
Copyright฀©฀2008฀Heldref฀Publications

84฀

Journal฀of฀Education฀for฀Business


T

he฀ 21st฀ century’s฀ expansion฀ and฀
convergence฀of฀technology฀and฀the฀
burgeoning฀ entry฀ of฀ developing฀ economies฀ into฀ the฀ global฀ supply฀ chain฀ have฀
brought฀forth฀a฀new฀concept:฀The฀world฀
is฀ flat฀ (Friedman,฀ 2005).฀ Much฀ press฀
has฀ been฀ given฀ to฀ the฀ idea฀ that฀ ubiquitous฀ inexpensive฀ telecommunications฀
networks฀ and฀ lower฀ cost฀ transportation฀
eliminated฀ the฀ major฀ impediments฀ to฀
international฀ competition.฀ Indeed,฀ the฀
word฀ globalization฀ and฀ the฀ term฀ flat฀
world฀have฀become฀an฀essential฀part฀of฀
the฀ common฀ vocabulary.฀ Therefore,฀ I฀
hypothesized฀that฀growth฀in฀global฀business฀develops฀a฀more฀culturally฀diverse฀
environment฀and฀requires฀a฀more฀worldly฀ approach฀ in฀ teaching฀ principles฀ of฀
economics฀courses.฀I฀began฀by฀looking฀
at฀ the฀ educational฀ core฀ of฀ economics฀
and฀standard฀pedagogical฀practices.฀

Standard฀Pedagogical฀Practices
There฀ are฀ currently฀ 3,375฀ universities฀ in฀ the฀ United฀ States฀ (Cybermetrics฀
Lab,฀2008).฀Moreover,฀America฀has฀had฀
significant฀ influence฀ on฀ curricula฀ and฀
pedagogical฀ practices฀ in฀ several฀ thousand฀ additional฀ universities฀ around฀ the฀
world.฀ Most฀ often฀ at฀ the฀ educational฀
core฀are฀the฀customary฀classes฀on฀principles฀ of฀ microeconomics฀ and฀ macroeconomics.฀ On฀ campuses฀ across฀ the฀
United฀States฀and฀Western฀world,฀there฀
is฀a฀rather฀unified฀approach฀to฀presenta-

tions฀of฀the฀basic฀theories฀of฀economics:฀
the฀descriptions฀of฀demand฀and฀supply,฀
underlying฀ relations,฀ capitalist฀ ideology,฀and฀institutional฀infrastructure.฀This฀
type฀ of฀ presentation฀ is฀ infused฀ within฀
the฀most฀dominant฀textbooks฀distributed฀
throughout฀the฀world.฀
Historically,฀ the฀ shared฀ values฀ of฀
Western฀culture฀have฀provided฀a฀fundamental฀and฀common฀level฀of฀understanding฀ between฀ students฀ and฀ professors฀฀
of฀ economics.฀ Therefore,฀ in฀ the฀ classrooms,฀ students฀ and฀ instructors฀ have฀
probably฀ paid฀ too฀ little฀ attention฀ to฀ the฀

elementary฀ ceteris฀ paribus฀ assumptions฀ that฀ so฀ often฀ refer฀ to—but฀ leave฀
somewhat฀unattended—the฀assumptions฀
dependent฀on฀underlying฀cultural฀diversity.฀ For฀ example,฀ when฀ an฀ economics฀
instructor฀presents฀the฀demand฀function,฀
he฀or฀she฀often฀refers฀to฀tastes฀or฀preferences฀ as฀ one฀ of฀ the฀ causal฀ factors,฀ yet฀
explores฀ it฀ no฀ more฀ deeply฀ than฀ to฀ say฀
that฀ people฀ may฀ have฀ different฀ tastes.฀
When฀ the฀ instructors฀ present฀ Indifference฀ Curve฀ analysis,฀ the฀ students฀ are฀
intrigued฀or฀perhaps฀mesmerized฀by฀the฀
technical฀ aspects,฀ but฀ they฀ may฀ gain฀
no฀ greater฀ understanding฀ of฀ the฀ nature฀
of฀ the฀ underlying฀ culturally฀ dependant฀
factors.฀ However,฀ there฀ are฀ variables฀
related฀to฀cultural฀diversity฀that฀are฀powerfully฀ explanatory.฀ In฀ an฀ earlier฀ time,฀
when฀ developed฀ countries฀ were฀ mostly฀
concerned฀ with฀ Western฀ homogeneous฀
societies,฀ the฀ single-culture฀ practice฀

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may฀ have฀ been฀ quite฀ adequate.฀ During฀ classroom฀ presentations,฀ almost฀
everyone฀ could฀ sleepily฀ ignore฀ some฀
of฀ the฀ underlying฀ substance฀ of฀ models฀
without฀ much฀ concern.฀ Most฀ students฀
came฀ from฀ Western฀ cultures,฀ sharing฀
similar฀ customs,฀ beliefs,฀ and฀ practices,฀
and฀they฀could฀understandably฀relate฀to฀
the฀broader฀theory,฀as฀it฀applied฀to฀their฀
domestic฀economies,฀without฀exploring฀
the฀details฀of฀the฀basic฀cultural฀assumptions฀ (hidden฀ deep฀ in฀ the฀ mysterious฀
ceteris฀paribus฀conditions).฀
However,฀ the฀ globalization฀ of฀ business,฀ growth฀ of฀ online฀ distance฀ education,฀ and฀ the฀ new฀ entrants฀ into฀ the฀
Western฀ world฀ of฀ capitalism฀ are฀ cause฀
for฀awakening.฀At฀least฀two฀major฀conditions฀ violate฀ the฀ assumptions฀ in฀ the฀
usual฀approach;฀we฀may฀broadly฀identify฀these฀as฀cultural฀diversity฀and฀spatial–฀
geographic฀variation.฀
For฀students฀to฀gain฀profitable฀skills,฀
they฀need฀to฀be฀able฀to฀apply฀the฀basic฀
economic฀models.฀It฀is฀unfortunate,฀but฀
even฀ a฀ casual฀ observation฀ would฀ indicate฀ that฀ many฀ students฀ are฀ not฀ doing฀

well฀in฀this฀regard.฀In฀addition,฀national฀
standardized฀ test฀ results฀ show฀ that฀ students’฀ overall฀ test฀ performance฀ in฀ economics฀ has฀ been฀ lower฀ than฀ in฀ other฀
subjects,฀with฀the฀exception฀of฀sciences฀
such฀ as฀ physics฀ (Educational฀ Testing฀
Services,฀ 2006).฀ Today,฀ students฀ also฀
need฀ to฀ learn฀ how฀ to฀ synthesize฀ economics฀ with฀ other฀ business฀ tools฀ in฀ a฀
global฀ context.฀ The฀ other฀ disciplines฀
associated฀ with฀ the฀ functional฀ areas฀ of฀
business฀ have฀ been฀ avidly฀ incorporating฀the฀implications฀of฀globalization฀for฀
teaching฀(e.g.,฀courses฀in฀finance,฀management,฀ accounting,฀ and฀ marketing).฀
More฀ importantly,฀ these฀ areas฀ of฀ business฀ study฀ have฀ classroom฀ discussions฀
that฀ tend฀ to฀ encompass฀ the฀ practical฀
application฀of฀global฀cultures.฀However,฀
for฀ most฀ students฀ in฀ the฀ principles฀ of฀
economics฀ courses,฀ this฀ same฀ attention฀ to฀ diversity฀ is฀ not฀ part฀ of฀ the฀ presentation.฀ Of฀ course,฀ students฀ can฀ take฀
courses฀ in฀ international฀ trade฀ theory฀
and฀ learn฀ about฀ international฀ exchange฀
rates,฀trade-offer฀curves,฀and฀balance฀of฀
payments,฀ but฀ again฀ the฀ presentations฀
rarely,฀if฀ever,฀include฀exploration฀of฀the฀

ceteris฀ paribus฀ from฀ a฀ globally฀ diverse฀
cultural฀perspective.฀This฀imposes฀a฀limitation฀ on฀ students’฀ ability฀ to฀ learn฀ and฀


apply฀the฀theoretical฀tools฀of฀economic฀
analysis฀ in฀ a฀ practical฀ and฀ insightful฀
way.฀Because฀students฀have฀less฀understanding฀ of฀ cross-cultural฀ implications฀
of฀the฀theories,฀we฀can฀understand฀why฀
they฀ would฀ have฀ less฀ understanding฀ of฀
the฀ applicability฀ of฀ the฀ models,฀ both฀
domestically฀and฀internationally.฀
Furthermore,฀ the฀ cognitive฀ task฀ of฀
integrating฀ economics฀ with฀ the฀ global฀
business฀disciplines฀is฀often฀left฀entirely฀
to฀the฀student.฀Some฀graduates฀of฀business฀ schools฀ have฀ assumed฀ executive฀
positions฀in฀global฀corporate฀enterprise฀
and฀blundered฀because฀they฀never฀really฀
learned฀ how฀ to฀ use฀ the฀ power฀ of฀ the฀
economic฀ models.฀ This฀ is฀ regrettable฀
and฀ may฀ be฀ costly฀ to฀ corporations฀ and฀

economies฀ in฀ general.฀ Therefore,฀ in฀
teaching฀economics,฀instructors฀need฀to฀
better฀ prepare฀ the฀ students฀ by฀ offering฀
them฀a฀framework฀with฀simple฀synergy฀
among฀ the฀ disciplinary฀ languages฀ of฀
economics,฀business,฀and฀cultural฀studies.฀ This฀ requires฀ a฀ slight฀ modification฀
of฀ the฀ usual฀ approach.฀ For฀ example,฀ I฀
have฀ studied฀ the฀ reforming฀ economies฀
of฀ Eastern฀ Europe฀ for฀ many฀ years.฀ My฀
research฀has฀uncovered฀interesting฀findings฀ that฀ are฀ quite฀ useful฀ for฀ understanding฀ management฀ problems฀ and฀
economic฀thinking.฀Such฀research฀often฀
involves฀ collating฀ not฀ only฀ economic฀
aggregates฀ but฀ also฀ surveys฀ of฀ cultural฀
values฀ (Hofstede,฀ 1980,฀ 1991,฀ 1998,฀
2003).฀These฀indexes฀of฀cultural฀dimensions,฀ as฀ identified฀ by฀ Hofstede฀ and฀
others,฀are฀quite฀useful฀to฀researchers฀in฀
the฀human฀sciences฀because฀the฀instruments฀ are฀ well฀ documented,฀ validated,฀
and฀have฀a฀long฀history฀(Bradley,฀1999).฀
Therefore,฀I฀decided฀to฀utilize฀such฀data฀
during฀usual฀presentations฀of฀economic฀

principles.฀ Essentially,฀ the฀ data฀ of฀ cultural฀distinctions฀is฀used฀to฀identify฀and฀
explain฀ the฀ underlying฀ ceteris฀ paribus฀
conditions฀ during฀ the฀ presentation฀ of฀
the฀economic฀models.฀
Use฀of฀Cultural-Diversity฀Indexes
One฀of฀the฀reasons฀professors฀of฀economics฀ have฀ tended฀ to฀ shy฀ away฀ from฀
explicit฀ consideration฀ of฀ the฀ impact฀
of฀ cultural฀ diversity฀ has฀ been฀ the฀ perception฀ that฀ useful฀ quantifiable฀ data฀ is฀
unavailable.฀The฀ summaries฀ of฀ cultural฀
data฀ presented฀ herein฀ came฀ from฀ more฀

than฀ 5,000฀ survey฀ participants฀ in฀ Russia,฀Belarus,฀and฀Ukraine.฀Discussion฀of฀
the฀methodology฀for฀implementation฀of฀
these฀surveys฀is฀reported฀in฀detail฀elsewhere฀(Bradley,฀1999;฀Hofstede,฀1991).฀
These฀ instruments฀ have฀ more฀ than฀ 4฀
decades฀of฀progressive฀development฀and฀
application฀in฀the฀study฀of฀culture.฀The฀
most฀important฀consideration฀for฀teaching฀economics฀is฀that฀the฀data฀support฀a฀
quantifiable฀ means฀ to฀ incorporate฀ discussions฀of฀cultural฀differences฀underlying฀economic฀variables.฀The฀most฀recent฀
data,฀ discussions,฀ and฀ implications฀ for฀

teaching฀economics฀are฀first฀reported฀in฀
this฀article.฀
Application฀of฀Diversity฀to฀the฀
Classroom฀Experience
When฀ considering฀ the฀ traditional฀ approach฀ to฀ teaching฀ demand฀ and฀
supply฀ functions,฀ I฀ found฀ that฀ student฀
understanding฀of฀nonprice฀determinants฀
is฀greatly฀enhanced฀when฀the฀discussion฀
of฀ how฀ cultural฀ differences฀ may฀ affect฀
the฀parameters฀of฀the฀models฀are฀included.฀Similarly,฀the฀discussions฀reveal฀how฀
these฀factors฀may฀impede฀the฀progress฀of฀
economic฀ development฀ in฀ these฀ different฀ countries.฀ I฀ used฀ cultural-diversity฀
discussions฀in฀the฀classroom฀to฀explore฀
the฀ framework฀ of฀ economic฀ theory฀ by฀
introducing฀the฀cultural-value฀measures,฀
particularly฀ those฀ of฀ Hofstede.฀ There,฀
the฀ details฀ are฀ customarily฀ identified฀฀
as฀follows:฀
1.฀Uncertainty฀ Avoidance฀ (UA)฀ measures฀ the฀ extent฀ to฀ which฀ ambiguity฀
and฀uncertainty฀are฀tolerated.
2.฀Power฀ Distance฀ (PD)฀ measures฀ the฀
extent฀ to฀ which฀ unequal฀ distribution฀
of฀power฀is฀accepted.
3.฀Individualism฀ (IND)฀ measures฀ the฀
extent฀ to฀ which฀ the฀ culture฀ is฀ based฀
on฀individual฀interest.฀
4.฀Masculinity฀(M)฀measures฀the฀extent฀
to฀which฀value฀is฀placed฀on฀assertiveness฀ and฀ a฀ focus฀ on฀ ambition฀ and฀
material฀goods.฀
5.฀Long-Term฀ Orientation฀ (LTO)฀
measures฀ the฀ value฀ that฀ is฀ placed฀฀
on฀time.
For฀example,฀Table฀1฀shows฀the฀much฀
lower฀ scores฀ on฀ IND฀ and฀ M฀ from฀ the฀
cultures฀of฀the฀Eastern฀European฀countries฀as฀compared฀with฀the฀United฀States.฀
November/December฀2008฀

85

TABLE฀1.฀Differences฀in฀Cultural฀Values฀Measures
Country฀
United฀States฀
Russia฀
Belarus฀
Ukraine฀

IND฀

PD฀

UA฀

M฀

LTO

91฀
31฀
58฀
51฀

40฀
43฀
44฀
23฀

46฀
103฀
100฀
57฀

62฀
–5฀
–3฀
13฀

29
24
22
56

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Note.฀IND฀=฀individualism;฀PD฀=฀power฀distance;฀UA฀=฀uncertainty฀avoidance;฀M฀=฀masculinity;฀
LTO฀=฀long-term฀orientation.

Economic฀ theory฀ in฀ the฀ United฀ States฀
is฀ grounded฀ on฀ the฀ IND฀ score’s฀ being฀
high,฀ but฀ the฀ score฀ on฀ IND฀ is฀ found฀ to฀
be฀very฀low฀for฀the฀Russian฀and฀Eastern฀
European฀ economies.฀ Therefore,฀ with฀
low฀ IND฀ scores,฀ the฀ incremental฀ material฀ rewards฀ commonly฀ used฀ as฀ productive฀inducement฀in฀Western฀cultures฀
may฀ not฀ work฀ as฀ well฀ in฀ this฀ type฀ of฀
Eastern฀culture.฀The฀conclusion฀is฀more฀
than฀ inference฀ when฀ viewed฀ side-byside฀ with฀ the฀ other฀ cultural฀ differences฀
as฀compared฀with฀the฀United฀States.฀
For฀ example,฀ there฀ is฀ a฀ strongly฀
negative฀ opposition฀ of฀ the฀ measure฀ for฀฀
Materialistic฀motives฀and฀Self-assertiveness฀ (which฀ are฀ subsumed฀ within฀ M)฀
for฀ the฀ Russian฀ culture฀ as฀ compared฀
with฀ that฀ of฀ the฀ United฀ States฀ (a฀ large฀
difference฀between฀scores฀of฀–5฀and฀62,฀
respectively).฀ This฀ helps฀ the฀ students฀
to฀ see฀ the฀ implications฀ for฀ the฀ consumers’฀demand฀functions฀as฀related฀to฀
the฀discipline฀and฀practice฀of฀marketing฀
in฀ a฀ global฀ environment.฀ Discussions฀
take฀on฀a฀more฀animated฀thoughtfulness฀
when฀ the฀ subject฀ of฀ demand฀ and฀ price฀
elasticity฀ are฀ addressed฀ in฀ light฀ of฀ cultural฀diversity.฀Likewise,฀this฀data฀helps฀
the฀students฀to฀understand฀the฀managerial฀ practices฀ that฀ may฀ influence฀ the฀
supply฀functions.฀The฀difficulty฀of฀management฀ practices฀ associated฀ with฀ the฀
supply฀functions฀of฀labor฀in฀this฀global฀
context฀ is฀ illuminated฀ and฀ explained.฀
For฀example,฀the฀scores฀found฀in฀Russia฀
are฀ definitely฀ not฀ associated฀ with฀ the฀
same฀ level฀ of฀ ambition฀ for฀ acquisition฀
of฀ material฀ goods;฀ therefore,฀ the฀ labor฀
supply฀ responses฀ to฀ incremental฀ material฀ rewards฀ could฀ be฀ expected฀ to฀ be฀
weaker.฀As฀students฀consider฀these฀types฀
of฀implications,฀they฀gain฀understanding฀
from฀ the฀ thoughtful฀ contemplation฀ of฀
cultural฀ diversity.฀ Therefore,฀ students’฀
86฀

Journal฀of฀Education฀for฀Business

understanding฀of฀nonprice฀determinants฀
is฀ significantly฀ enhanced฀ by฀ including฀
the฀discussion฀of฀how฀cultural฀diversity฀
may฀ affect฀ the฀ parameters฀ of฀ the฀ economic฀models฀and฀consequent฀implications฀for฀development.
The฀cultural฀scores฀in฀the฀present฀article฀reveal฀that฀the฀Eastern฀cultures฀place฀
a฀low฀value฀on฀independent฀action,฀assertiveness,฀ accountability,฀ and฀ individual฀
performance.฀The฀Western฀expectations฀
for฀entrepreneurial฀behavior฀and฀personal฀ accountability฀ will฀ likely฀ clash฀ with฀
the฀ culturally฀ determined฀ response฀ of฀
workers฀in฀these฀cultures฀and฀therefore฀
affect฀ the฀ shape฀ of฀ the฀ supply฀ function฀
for฀labor.฀
Another฀ example฀ can฀ be฀ found฀ in฀
the฀ measure฀ of฀ UA฀ in฀ Russia,฀ which฀
is฀ extraordinarily฀ high฀ when฀ compared฀
with฀ that฀ of฀ the฀ United฀ States฀ (103฀ vs.฀
46).฀ Therefore,฀ Russia฀ exhibits฀ a฀ low฀
tolerance฀ for฀ uncertainty฀ and฀ the฀ risk฀
taking฀ that฀ is฀ clearly฀ associated฀ with฀
Western฀ business฀ practices.฀ The฀ Russians฀ would฀ prefer฀ to฀ avoid฀ the฀ higher฀
risks฀ normally฀ associated฀ with฀ economic฀ development฀ (e.g.,฀ investment,฀
marketing,฀ management฀ practices).฀ In฀
accordance,฀ we฀ find฀ that฀ the฀ low฀ score฀
on฀IND฀corresponds฀to฀and฀is฀characteristic฀of฀risk฀avoidance฀behavior.฀A฀high฀
tolerance฀ for฀ risk฀ taking฀ is฀ a฀ hallmark฀
of฀Western฀capitalists’฀approach฀to฀business,฀management,฀and฀economic฀development,฀but฀it฀is฀antithetical฀to฀cultural฀
dimensions฀ found฀ in฀ Russia฀ (or฀ Belarus).฀ Once฀ again,฀ I฀ would฀ expect฀ that฀
this฀ type฀ of฀ information฀ and฀ culturally฀
augmented฀ approach฀ would฀ be฀ helpful฀
to฀ students฀ learning฀ economics฀ as฀ they฀
become฀aware฀of฀the฀theory฀of฀economics฀and฀all฀the฀nonprice฀determinants฀in฀
the฀ equations.฀ The฀ importance฀ of฀ the฀
ceteris฀paribus฀assumptions฀in฀econom-

ic฀ functions฀ becomes฀ more฀ apparent฀ to฀
the฀students฀confronted฀with฀these฀global฀distinctions฀and฀diverse฀realities.฀The฀
students฀ can฀ better฀ understand฀ some฀
of฀ the฀ reasons฀ for฀ the฀ higher฀ material฀
standard฀ of฀ living฀ in฀ the฀ United฀ States.฀
They฀ come฀ to฀ more฀ fully฀ appreciate฀
why฀ American฀ workers฀ are฀ so฀ materially฀ productive฀ and฀ consumptive.฀ It฀ is฀
culturally฀ understandable.฀ Of฀ course,฀
from฀ a฀ purely฀ theoretical฀ standpoint,฀ it฀
does฀not฀matter฀whether฀these฀measures฀
replicate฀ cultural฀ diversity฀ exactly;฀ it฀
only฀ matters฀ that฀ relative฀ differences฀
exist,฀ so฀ cultural฀ diversity฀ can฀ be฀ used฀
in฀the฀classroom฀to฀explore฀the฀implications฀of฀applying฀economic฀models.฀
This฀ type฀ of฀ cross-cultural฀ analysis,฀
presentation,฀ and฀ discussion฀ assists฀ the฀
students฀as฀they฀attempt฀to฀conceive฀the฀
implications฀ for฀ other฀ economic฀ concepts฀ as฀ well,฀ such฀ as฀ those฀ of฀ production฀functions฀and฀production฀possibility฀
frontiers.฀ Therefore,฀ I฀ expect฀ that฀ this฀
type฀of฀information฀and฀cultural-diversity฀
approach฀ to฀ teaching฀ will฀ be฀ helpful฀ to฀
professors฀and฀their฀students.฀
Cross-cultural฀analysis฀is฀a฀technique฀
that฀ embraces฀ an฀ integrative฀ approach฀
by฀discussing฀the฀implications฀of฀crosscultural฀differences฀on฀the฀fundamental฀
models฀of฀economics฀(such฀an฀approach฀
is฀dependent฀on฀neither฀the฀idea฀of฀cultural฀convergence฀nor฀that฀of฀divergence).฀
The฀ traditional฀ approach฀ to฀ presenting฀
economic฀theory฀in฀the฀classroom฀does฀
not฀ effectively฀ transcend฀ the฀ diverse฀
cultural฀ aspects฀ of฀ the฀ many฀ emerging,฀
reforming,฀ and฀ developing฀ economies.฀
Likewise,฀it฀fails฀to฀illuminate฀the฀weak฀
performance฀ of฀ many฀ economies.฀ As฀
Bogorya฀ (1985)฀ stated,฀ people฀ attach฀
to฀ communications฀ their฀ own฀ system฀
of฀ values,฀ beliefs,฀ and฀ attitudes,฀ which฀
combine฀ with฀ their฀ culturally฀ determined฀ behavioral฀ code฀ and฀ create฀ an฀
ethnocentric฀ unilateral฀ system฀ preventing฀ genuine฀ understanding.฀ However,฀
with฀ quantifiable฀ measures,฀ such฀ comparisons฀ are฀ more฀ easily฀ grasped,฀ and฀
the฀power฀of฀economic฀theory฀leads฀to฀a฀
higher฀level฀of฀understanding.฀
Each฀culture฀perceives฀the฀information฀
in฀a฀different฀context,฀resulting฀not฀only฀
in฀ confusion฀ but฀ wasteful฀ mistakes.฀ In฀
the฀past,฀Western฀business฀and฀economic฀thought฀did฀not฀have฀to฀deal฀with฀such฀
a฀complex฀array฀of฀cultural฀perceptions฀

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in฀ a฀ global฀ organizational฀ pluralism.฀
However,฀ globalization฀ means฀ that฀
understandings฀ of฀ these฀ factors฀ influence฀our฀economic฀axioms฀and฀are฀very฀
important.฀By฀incorporating฀these฀types฀
of฀ cultural-diversity฀ discussions฀ in฀ the฀
context฀ of฀ teaching฀ economic฀ theory,฀
instructors฀ do฀ a฀ better฀ job฀ of฀ communicating฀ the฀ universal฀ realities฀ of฀ our฀
economic฀models฀and฀their฀applicability฀
and฀usefulness.฀
In฀ recent฀ years,฀ economists฀ discovered฀that฀natural฀and฀cultural฀geography฀
is฀ an฀ important฀ area฀ of฀ study฀ (Fujita฀
&฀ Krugman,฀ 1995).฀ This฀ should฀ have฀
been฀ expected฀ in฀ light฀ of฀ the฀ increasing฀ globalization฀ of฀ business.฀ In฀ the฀
classroom,฀ students฀ can฀ be฀ introduced฀
to฀ data฀ files฀ of฀ cultural–geographic฀
information฀ and฀ then฀ be฀ asked฀ to฀ consider฀ the฀ relations฀ to฀ the฀ constructs฀ of฀
economic฀ models.฀ If฀ this฀ opportunity฀
arises,฀ I฀ find฀ that฀ the฀ students฀ swiftly฀
conclude฀ that฀ physical฀ and฀ cultural฀
geography฀ are฀ complementary฀ to฀ their฀
economic฀studies.฀They฀understand฀that฀
geographic฀ fertility฀ is฀ a฀ potential฀ antecedent฀to฀economic฀development.฀Conversely,฀ geographic฀ infertility฀ is฀ a฀ lack฀
of฀natural฀and฀cultural฀resources,฀which฀
can฀obstruct฀economic฀development.฀
Using฀the฀cultural-diversity฀data฀illuminates฀the฀critical฀importance฀of฀such฀
underlying฀ factors฀ in฀ economic฀ theory,฀
as฀ well฀ as฀ empirical฀ findings฀ in฀ questions฀ of฀ economic฀ development.฀ This฀
is฀a฀strongly฀integrative฀perception฀and฀
helps฀ the฀ student฀ to฀ develop฀ a฀ broader฀
perspective฀ capable฀ of฀ including฀ more฀
knowledge฀ into฀ every฀ equation.฀ Likewise,฀ cultural฀ attitudes฀ toward฀ savings฀
and฀investment฀affect฀development฀possibilities,฀ as฀ do฀ (a)฀ cultural฀ attitudes฀
toward฀ labor฀ versus฀ leisure฀ and฀ (b)฀ the฀
cultural฀ choices฀ derived฀ from฀ the฀ individual฀ tendencies฀ versus฀ the฀ collective฀
tendencies.฀ However,฀ most฀ economic฀
educators฀ have฀ not฀ yet฀ discovered฀ the฀
significant฀ nuances฀ in฀ cross-cultural฀
value฀ differences฀ and—often฀ unaware฀
that฀such฀quantifiable฀data฀exists—they฀
continue฀to฀teach฀the฀principles฀from฀the฀
bibles฀ of฀ domestic฀ Western฀ textbooks฀
with฀ a฀ much฀ narrower฀ view฀ of฀ peoples฀
and฀ places฀ than฀ reality฀ would฀ warrant.฀
Even฀the฀upper฀division฀courses,฀such฀as฀
comparative฀ economics,฀ tend฀ to฀ examine฀ only฀ the฀ institutional฀ differences฀


among฀ economies฀ without฀ addressing฀
the฀underlying฀cultural฀determinants.฀In฀
schools฀ across฀America,฀ even฀ graduate฀
business฀ students฀ are฀ not฀ well฀ versed฀
in฀ the฀ application฀ of฀ economic฀ models฀ because฀ they฀ have฀ only฀ gained฀ a฀
minimal฀ understanding฀ of฀ the฀ models฀
under฀ the฀ strict฀ ceteris฀ paribus฀ conditions,฀which฀are฀often฀unexplored.฀Many฀
times฀ I฀ have฀ heard฀ students฀ and฀ even฀
some฀business฀professors฀say,฀“The฀economic฀models฀are฀inapplicable฀because฀
they฀ are฀ unrealistic.”฀ Such฀ unfortunate฀
pronouncements฀would฀not฀be฀the฀case฀
if฀ they฀ learned฀ the฀ real฀ power฀ in฀ the฀
economic฀ models.฀ In฀ the฀ 21st฀ century,฀
teaching฀ practices฀ are฀ moving฀ more฀
toward฀ interactive฀ pedagogy฀ (Becker,฀
2000).฀ Classroom฀ discussions฀ on฀ these฀
cultural-diversity฀ issues฀ offer฀ much฀
opportunity฀ for฀ deeper฀ exploration฀ and฀
understanding.
Learning฀Assessment฀Methodology฀and฀
Measuring฀Impact
The฀theoretical฀argument฀for฀a฀cultural-฀
diversity฀approach฀to฀teaching฀economics฀ is฀ supported฀ by฀ the฀ aforementioned฀
a฀ priori฀ arguments.฀ Nevertheless,฀ a฀
question฀ remains:฀ What฀ is฀ the฀ extent฀
of฀ impact฀ on฀ the฀ students฀ of฀ economic฀
principles฀ and฀ their฀ learning฀ experience?฀ To฀ investigate฀ whether฀ students฀฀
learn฀ any฀ better฀ with฀ this฀ approach,฀ I฀
tested฀ undergraduate฀ business฀ students฀
in฀economic฀principles฀classes.฀
For฀ the฀ experiment,฀ I฀ tested฀ two฀
groups฀of฀students฀in฀principles฀of฀economics฀ classes.฀ The฀ first฀ group฀ was฀
treated฀to฀the฀usual฀level฀of฀presentation฀
and฀discussion,฀and฀the฀second฀received฀
treatments฀ that฀ included฀ discussions฀ of฀
cultural฀ diversity฀ (as฀ described฀ in฀ the฀
present฀article).฀For฀the฀cultural฀discussions,฀ I฀ used฀ the฀ cultural-value฀ dimensions฀ from฀ my฀ studies฀ and฀ others฀ cited฀
in฀the฀present฀article.
The฀ research฀ testing฀ methodology฀
that฀I฀used฀is฀supported฀by฀my฀involvement฀with฀the฀experiment,฀has฀historical฀
grounding฀in฀the฀case฀study฀methods—฀
as฀ suggested฀ in฀Yin฀ (1994)—and฀ with฀
the฀ developmental฀ research฀ methodology฀considered฀by฀Gummesson฀(1991),฀
Andersen฀ (1995),฀ and฀ many฀ others.฀ In฀
this฀ approach,฀ the฀ researcher฀ plays฀ a฀
dual฀ role,฀ because฀ in฀ such฀ research,฀

a฀ valuable฀ input฀ is฀ typically฀ provided฀
through฀ the฀ researchers’฀ experiences.฀ I฀
have฀many฀years฀of฀experience฀in฀teaching฀economics.฀
The฀ students฀ in฀ Group฀ 2฀ encountered฀
the฀ same฀ basic฀ principles฀ presentations฀
but฀ with฀ the฀ addition฀ of฀ the฀ cultural-฀
diversity฀data,฀and฀they฀were฀encouraged฀
to฀discuss฀the฀underlying฀implications฀for฀
the฀customary฀ceteris฀paribus฀conditions.฀
To฀ ensure฀ comparability฀ of฀ classes,฀ it฀
was฀important฀to฀determine฀if฀each฀of฀the฀
groups฀was฀equivalent฀for฀purposes฀of฀the฀
study฀or฀if฀other฀variables฀needed฀consideration.฀ Therefore,฀ the฀ group฀ memberships฀were฀compared฀along฀demographic฀
lines฀ and฀ academic฀ backgrounds.฀ Variables฀collected฀included฀gender,฀ethnicity,฀
age,฀and฀academic฀background฀based฀on฀
GPA.฀A฀ profile฀ of฀ the฀ students฀ reflected฀
the฀ homogeneous฀ nature฀ of฀ the฀ general฀
student฀ population฀ in฀ the฀ school.฀ The฀
GPA,฀ variance,฀ and฀ distributions฀ were฀
essentially฀the฀same฀for฀both฀groups฀with฀
no฀significant฀difference.฀This฀is฀not฀surprising,฀ because฀ the฀ student฀ population฀
is฀ characterized฀ by฀ specific฀ standards฀ of฀
university฀ enrollment฀ serving฀ a฀ population฀ of฀ business฀ students฀ with฀ a฀ rather฀
narrow฀age฀range฀within฀the฀same฀school.฀
At฀first,฀the฀roster฀had฀shown฀that฀a฀much฀
older฀ student฀ had฀ enrolled฀ in฀ one฀ of฀ the฀
classes,฀but฀this฀student฀dropped฀the฀class฀
before฀the฀first฀meeting.
Therefore,฀ the฀ characteristics฀ of฀ the฀
two฀groups฀of฀students฀were฀found฀to฀be฀
equivalent฀ for฀ purposes฀ of฀ the฀ experiment.฀ The฀ character฀ of฀ these฀ students฀
reflected฀ the฀ profile฀ of฀ the฀ overall฀ student฀ population฀ enrolled฀ in฀ the฀ basic฀
economics฀ courses.฀ Both฀ study฀ groups฀
received฀the฀same฀lecture฀presentations,฀
with฀the฀only฀exception฀being฀that฀Group฀
2฀ students฀ were฀ exposed฀ to฀ culturaldiversity฀values.฀Both฀groups฀were฀given฀
the฀ same฀ standard฀ objective฀ economics฀
exam฀ questions,฀ and฀ these฀ exams฀ did฀
not฀ include฀ any฀ explicit฀ references฀ to฀
the฀cultural฀data฀or฀related฀materials.฀All฀
the฀ exams฀ were฀ the฀ typical฀ objectivebased฀ economics฀ tests,฀ with฀ all฀ questions฀taken฀from฀the฀textbook’s฀standard฀
test-banks฀ as฀ supplied฀ by฀ the฀ textbook฀
publisher.฀ I฀ admit฀ that฀ some฀ questions฀
in฀ these฀ standard฀ exams฀ may฀ not฀ be฀
the฀ best฀ evaluators฀ of฀ students’฀ abilities฀to฀apply฀economic฀analysis฀(Buckles฀ &฀ Siegfried,฀ 2006).฀ Nevertheless,฀
November/December฀2008฀

87

the฀large฀scale฀and฀ubiquitous฀nature฀of฀
these฀ standard฀ exams฀ serves฀ to฀ support฀
the฀universality฀of฀the฀research฀findings.
The฀ student฀ standard฀ economics฀
exams฀comprised฀80฀observations฀on฀40฀
students฀in฀the฀experiment.฀

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Hypothesis฀Testing
The฀ null฀ hypothesis฀ tested฀ was฀ the฀
following:฀ “The฀ mean฀ score฀ of฀ students฀
receiving฀cultural฀diversity฀augmentation฀
equals฀the฀mean฀score฀of฀students฀receiving฀ the฀ usual฀ instructional฀ presentation,฀
ceteris฀paribus.”฀Therefore,฀I฀had฀the฀null฀
hypothesis฀ and฀ straightforward฀ inferential฀analyses฀testing฀the฀standard฀error฀of฀
the฀statistic฀and฀using฀the฀t฀distribution฀at฀
the฀.05฀level฀of฀significance.฀The฀differences฀ in฀ mean฀ scores฀ were฀ statistically฀
significant,฀ therefore฀ rejecting฀ the฀ null฀
hypothesis฀ where฀ the฀ computed฀ t(38)฀
value฀ was฀ 2.03฀ and฀ exceeded฀ the฀ critical฀value฀of฀1.69.฀These฀differences฀and฀
scores฀ indicate฀ that฀ the฀ degree฀ of฀ learning฀was฀indeed฀different฀between฀the฀two฀
groups฀of฀students฀and฀that฀the฀students฀
in฀ the฀ cultural฀ augmentation฀ Group฀ 2฀
scored฀ significantly฀ better฀ on฀ the฀ standard฀economics฀tests.฀
Of฀ course,฀ one฀ would฀ intuitively฀
tend฀ to฀ agree,฀ given฀ the฀ difference฀ in฀
scores฀for฀these฀tests.฀Furthermore,฀the฀
additional฀ responses฀ to฀ student-learning฀enrichment฀questions฀on฀an฀entirely฀
separate฀ posttest฀ of฀ student฀ responses฀
to฀ their฀ learning฀ experience฀ showed฀
that฀Group฀2฀rated฀higher฀than฀Group฀1฀
in฀ learning฀ experience.฀ Because฀ these฀
enrichment฀ results฀ were฀ measured฀ as฀
ordinal฀data฀in฀Likert-type฀scale฀scores฀
ranging฀from฀1฀(lowest)฀to฀5฀(highest),฀
the฀appropriate฀measure฀of฀central฀tendency฀is฀the฀simple฀mode,฀and฀not฀the฀
mean.฀ Thus,฀ the฀ students฀ in฀ the฀ usual฀
course฀ scored฀ 4,฀ whereas฀ the฀ students฀
in฀the฀second฀group฀scored฀5.฀Note฀that฀
these฀ responses,฀ higher฀ for฀ Group฀ 2,฀
are฀consistent฀with฀the฀aforementioned฀
objective฀ test฀ scores฀ on฀ the฀ standardized฀economics฀tests.฀The฀self-reported฀
data฀ might฀ otherwise฀ be฀ considered฀
anecdotal,฀ but฀ alongside฀ the฀ objective฀
economics฀ test฀ scores,฀ these฀ learning฀
outcomes฀ are฀ supportive.฀ Nevertheless,฀ the฀ finding฀ that฀ the฀ students฀ in฀
Group฀ 2฀ consistently฀ surpassed฀ those฀
in฀ Group฀ 1฀ in฀ their฀ understanding฀ of฀
88฀

Journal฀of฀Education฀for฀Business

economic฀ principles,฀ as฀ determined฀
from฀the฀standardized฀economics฀tests,฀
is฀more฀important.฀It฀is฀a฀stronger฀indication฀that฀this฀global฀cultural-diversity฀
approach฀better฀serves฀the฀students฀and฀
provides฀them฀with฀material฀that฀helps฀
them฀ to฀ master฀ the฀ standard฀ learning฀
objectives.฀
Weeks฀later,฀another฀test฀was฀administered.฀The฀posttest฀scores฀showed฀that฀
group฀performance฀was฀again฀meaningfully฀different,฀with฀t(38)฀=฀2.20฀exceeding฀the฀critical฀value฀for฀significance฀at฀
.05.฀Therefore,฀ posttests฀ indicated฀ that,฀
on฀ average,฀ the฀ culturally฀ augmented฀
Group฀ 2฀ students฀ were฀ better฀ able฀ to฀
remember฀ the฀ economic฀ concepts฀ and฀฀
use฀the฀tools฀of฀economics฀to฀solve฀test฀
problems฀ (as฀ per฀ differences฀ in฀ mean฀
scores).฀ Moreover,฀ the฀ statistical฀ finding฀ supports฀ the฀ logical฀ justification฀ of฀
increased฀retention.฀
After฀ the฀ conclusion฀ of฀ this฀ experiment,฀ I฀ performed฀ a฀ replication฀ of฀ the฀
study฀ abroad.฀ The฀ research฀ design฀ for฀
examining฀ this฀ teaching฀ approach฀ was฀
identical฀ to฀ the฀ U.S.฀ experience฀ and฀
was฀ undertaken฀ at฀ the฀ State฀ Financial฀
Economics฀ Institute,฀ Crimea,฀ Ukraine.฀
The฀ procedures฀ were฀ the฀ same฀ except฀
that฀ the฀ local฀ instructor฀ of฀ economics฀
taught฀both฀of฀these฀classes฀in฀his฀native฀
language.฀ (Class฀ size฀ was฀ similar฀ to฀
the฀ U.S.฀ size,฀ with฀ approximately฀ 20฀
students฀ per฀ class.)฀ Once฀ again,฀ the฀
differences฀in฀mean฀scores฀were฀statistically฀significant฀at฀the฀.05฀level.฀This฀
replication฀ further฀ supports฀ the฀ importance฀ and฀ universality฀ of฀ this฀ teaching฀
approach.
Conclusion
In฀the฀present฀article,฀I฀reported฀findings฀ of฀ research฀ on฀ teaching฀ economics฀ by฀ using฀ information฀ on฀ cultural฀
diversity.฀I฀demonstrated฀how฀a฀culturaldiversity฀approach฀to฀teaching฀economic฀principles฀may฀significantly฀improve฀
student฀ learning฀ of฀ the฀ principles฀ of฀
economics฀and฀better฀address฀the฀issues฀
of฀globalization.฀The฀outcomes฀between฀
the฀ traditional฀ approach฀ and฀ this฀ cultural-diversity฀ approach฀ were฀ compared,฀ and฀ implications฀ for฀ economics฀
in฀the฀global฀business฀environment฀have฀
been฀ pointed฀ out.฀ The฀ findings฀ support฀ the฀ contention฀ that฀ in฀ the฀ present฀

global฀ economy,฀ the฀ practice฀ of฀ relatively฀culture-free฀teaching฀of฀economic฀
paradigms฀does฀not฀serve฀us฀as฀well฀as฀
the฀culturally฀augmented฀approach฀suggested฀here.฀The฀policy฀implications฀are฀
interesting฀and฀significant.
Nonetheless,฀the฀challenge฀is฀for฀professors฀ of฀ economics฀ to฀ replicate฀ this฀
approach฀ in฀ research฀ and฀ education฀
and฀ perhaps฀ provide฀ further฀ evidence฀
similar฀ to฀ the฀ findings฀ of฀ this฀ study.฀
Certainly,฀ such฀ further฀ research฀ would฀
be฀ interesting.฀ There฀ are฀ many฀ opportunities฀ for฀ theoretical฀ and฀ empirical฀
studies฀in฀pedagogy.฀At฀the฀universities฀
where฀ the฀ present฀ research฀ was฀ undertaken,฀the฀class฀sizes฀were฀smaller฀than฀
some฀ at฀ larger฀ campuses฀ elsewhere,฀
and฀ this฀ is฀ a฀ limitation฀ of฀ the฀ present฀
experiments.฀ Such฀ limitation฀ implies฀
merit฀ for฀ replication฀ of฀ the฀ pedagogical฀ experiment฀ by฀ teachers฀ with฀ larger฀
class฀ enrollments.฀ Irrespective฀ of฀ the฀
outcome฀ of฀ our฀ pedagogical฀ research,฀
this฀article฀indicates฀that฀there฀is฀a฀need฀
for฀ economists฀ to฀ adopt฀ perspectives฀
that฀provide฀explicit฀cultural฀augmentation฀ in฀ their฀ future฀ research฀ and฀ pedagogy.฀Underlying฀the฀Western฀capitalist฀
system฀ is฀ an฀ economic฀ ideology฀ with฀
a฀ set฀ of฀ cultural฀ distinctions฀ that฀ help฀
define฀the฀reasons฀for฀global฀economic฀
activity฀ and฀ relative฀ rates฀ of฀ economic฀
growth.฀In฀this฀new฀age฀of฀globalization,฀
to฀better฀advise฀and฀assist฀the฀struggling฀
economies฀of฀the฀world฀and฀simultaneously฀ ฀ strengthen฀ and฀ defend฀ our฀ own฀
systems,฀ we฀ need฀ to฀ understand฀ the฀
implications฀ of฀ cultural฀ diversity฀ and฀
better฀illuminate฀the฀strength฀and฀power฀
of฀ economic฀ theory฀ and฀ analysis.฀With฀
this฀broader฀economic฀perspective฀and฀a฀
more฀global฀framework,฀we฀can฀expect฀
larger฀gains฀from฀research:฀educational,฀
theoretical,฀ and฀ empirical.฀ Such฀ perspective,฀framework,฀and฀research฀gains฀
can฀better฀serve฀our฀students.฀
NOTES฀
Dr.฀ Darryl฀ J.฀ Mitry฀ is฀ a฀ former฀ university฀
department฀ chair฀ and฀ Fulbright฀ Senior฀ Scholar.฀
He฀ continues฀ to฀ teach,฀ and฀ his฀ research฀ is฀ concerned฀ with฀ emerging฀ economies฀ and฀ questions฀
of฀ sustainable฀ economic฀ growth฀ in฀ the฀ fields฀ of฀
economic฀ development,฀ international฀ trade,฀ and฀
labor฀and฀industrial฀organization.
Correspondence฀ concerning฀ this฀ article฀ should฀
be฀ addressed฀ to฀ Dr.฀ Darryl฀ J.฀ Mitry,฀ 38180฀ Del฀
Webb฀Blvd,฀Palm฀Desert,฀CA฀92211,฀USA.
E-mail:฀dmitryusa@msn.com

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