One Framework That Helps with Studying the Influence of Culture

question 3

Multiple Choice

One framework that helps with studying the influence of culture on global advertising is the cultural classification scheme developed by Dutch researcher
Geert Hofstede. One dimension refers to the degree of inequality that is seen as
Acceptable within the country. This dimension would best be described as:

• A) power distance.
• B) long-termism.
• C) uncertainty avoidance.
• D) individualism.
• E) masculinity.

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Definitions:

Cost of Capital

The requisite rate of profit an enterprise should attain in investment activities to keep its market presence and secure funding.

Terminal Value

The estimated value of a business or project at the end of a forecast period, used in financial modeling.

NPV

Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of all cash inflows and outflows associated with it.

Discount Rate

The discount rate applied in the discounted cash flow method to calculate the current value of future cash flows.