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http://www.tandfonline.com/action/journalInformation?journalCode=vjeb20

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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he฀ 21st฀ century’s฀ expansion฀ and฀ convergence฀of฀technology฀and฀the฀ burgeoning฀ entry฀ of฀ developing฀ econo-mies฀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฀ ubiq-uitous฀ 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฀busi-ness฀develops฀a฀more฀culturally฀diverse฀ environment฀and฀requires฀a฀more฀world-ly฀ 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฀ universi-ties฀in฀the฀United฀States฀(Cybermetrics฀ Lab,฀2008).฀Moreover,฀America฀has฀had฀ significant฀ influence฀ on฀ curricula฀ and฀ pedagogical฀ practices฀ in฀ several฀ thou-sand฀ additional฀ universities฀ around฀ the฀ world.฀ Most฀ often฀ at฀ the฀ educational฀ core฀are฀the฀customary฀classes฀on฀prin-ciples฀ of฀ microeconomics฀ and฀ macro-economics.฀ 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฀ ideolo-gy,฀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฀funda- mental฀and฀common฀level฀of฀understand-ing฀ between฀ students฀ and฀ professors฀฀ of฀ economics.฀ Therefore,฀ in฀ the฀ class-rooms,฀ students฀ and฀ instructors฀ have฀ probably฀ paid฀ too฀ little฀ attention฀ to฀ the฀ elementary฀ ceteris฀ paribus฀ assump-tions฀ that฀ so฀ often฀ refer฀ to—but฀ leave฀ somewhat฀unattended—the฀assumptions฀ dependent฀on฀underlying฀cultural฀diver-sity.฀ For฀ example,฀ when฀ an฀ economics฀ instructor฀presents฀the฀demand฀function,฀ he฀or฀she฀often฀refers฀to฀tastes฀or฀prefer-ences฀ 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฀ Indiffer-ence฀ 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฀pow-erfully฀ explanatory.฀ In฀ an฀ earlier฀ time,฀ when฀ developed฀ countries฀ were฀ mostly฀ concerned฀ with฀ Western฀ homogeneous฀ societies,฀ the฀ single-culture฀ practice฀

Using฀Cultural฀Diversity฀in฀Teaching฀

Economics:฀Global฀Business฀Implications

DARRYL฀J.฀MITRY NORWICH฀UNIVERSITY NORTHFIELD,฀VERMONT

T

ABSTRACT.

Globalization฀and฀increas- ing฀cross-cultural฀interactivity฀have฀impli-cations฀for฀education฀in฀general฀and฀may฀ also฀present฀valuable฀pedagogical฀opportu-nities฀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฀conten-tion฀that฀a฀valuable฀opportunity฀exists฀to฀ enhance฀traditional฀teaching฀approaches฀by฀ introducing฀measures฀of฀cultural฀diversity.฀ The฀author฀concludes฀with฀analytical฀com-ments฀and฀suggestions฀for฀further฀research.฀฀

Keywords:฀culture,฀economics,฀ globalization,฀teaching

Copyright฀©฀2008฀Heldref฀Publications

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may฀ have฀ been฀ quite฀ adequate.฀ Dur-ing฀ 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฀assump-tions฀ (hidden฀ deep฀ in฀ the฀ mysterious฀

ceteris฀paribus฀conditions).฀

However,฀ the฀ globalization฀ of฀ busi-ness,฀ growth฀ of฀ online฀ distance฀ edu-cation,฀ and฀ the฀ new฀ entrants฀ into฀ the฀ Western฀ world฀ of฀ capitalism฀ are฀ cause฀ for฀awakening.฀At฀least฀two฀major฀con-ditions฀ violate฀ the฀ assumptions฀ in฀ the฀ usual฀approach;฀we฀may฀broadly฀identi-even฀ a฀ casual฀ observation฀ would฀ indi-cate฀ that฀ many฀ students฀ are฀ not฀ doing฀ wellin฀this฀regard.฀In฀addition,฀national฀ standardized฀ test฀ results฀ show฀ that฀ stu-dents’฀ overall฀ test฀ performance฀ in฀ eco-nomics฀ 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฀ eco-nomics฀ with฀ other฀ business฀ tools฀ in฀ a฀ global฀ context.฀ The฀ other฀ disciplines฀ associated฀ with฀ the฀ functional฀ areas฀ of฀ business฀ have฀ been฀ avidly฀ incorporat-ing฀the฀implications฀of฀globalization฀for฀ teaching฀(e.g.,฀courses฀in฀finance,฀man-agement,฀ accounting,฀ and฀ marketing).฀ More฀ importantly,฀ these฀ areas฀ of฀ busi-ness฀ study฀ have฀ classroom฀ discussions฀ that฀ tendto฀ encompass฀ the฀ practical฀ application฀of฀global฀cultures.฀However,฀ for฀ most฀ students฀ in฀ the฀ principles฀ of฀ economics฀ courses,฀ this฀ same฀ atten-tion฀ to฀ diversity฀ is฀ not฀ part฀ of฀ the฀ pre-sentation.฀ 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฀lim-itation฀on฀students’฀ability฀to฀learn฀and฀

apply฀the฀theoretical฀tools฀of฀economic฀ analysis฀ in฀ a฀ practical฀ and฀ insightful฀ way.฀Because฀students฀have฀less฀under-standing฀ 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฀busi-ness฀ 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฀stud-ies.฀ 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฀find-ings฀ that฀ are฀ quite฀ useful฀ for฀ under-standing฀ 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฀dimen-sions,฀ as฀ identified฀ by฀ Hofstede฀ and฀ others,฀are฀quite฀useful฀to฀researchers฀in฀ the฀human฀sciences฀because฀the฀instru-ments฀ 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฀ cul-tural฀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฀eco-nomics฀ have฀ tended฀ to฀ shy฀ away฀ from฀ explicit฀ consideration฀ of฀ the฀ impact฀ of฀ cultural฀ diversity฀ has฀ been฀ the฀ per-ception฀ that฀ useful฀ quantifiable฀ data฀ is฀ unavailable.฀The฀summaries฀of฀cultural฀ data฀ presented฀ herein฀ came฀ from฀ more฀

than฀ 5,000฀ survey฀ participants฀ in฀ Rus-sia,฀Belarus,฀and฀Ukraine.฀Discussion฀of฀ the฀methodology฀for฀implementation฀of฀ these฀surveys฀is฀reported฀in฀detail฀else-where฀(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฀teach-ing฀economics฀is฀that฀the฀data฀support฀a฀ quantifiable฀ means฀ to฀ incorporate฀ dis- cussions฀of฀cultural฀differences฀underly-ing฀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฀ tradition-al฀ 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฀includ-ed.฀Similarly,฀the฀discussions฀reveal฀how฀ these฀factors฀may฀impede฀the฀progress฀of฀ economic฀ development฀ in฀ these฀ differ-ent฀ 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)฀ mea-sures฀ 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฀assertive-ness฀ and฀ a฀ focus฀ on฀ ambition฀ and฀ material฀goods.฀

5.฀Long-Term฀ Orientation฀ (LTO)฀ measures฀ the฀ value฀ thatis฀ placed฀฀ on฀time.

For฀example,฀Table฀1฀shows฀the฀much฀ lower฀ scores฀ on฀ IND฀ and฀ M฀ from฀ the฀ cultures฀of฀the฀Eastern฀European฀coun-tries฀as฀compared฀with฀the฀United฀States.฀

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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฀mate-rial฀ rewards฀ commonly฀ used฀ as฀ pro-ductive฀inducement฀in฀Western฀cultures฀ may฀ not฀ work฀ as฀ well฀ in฀ this฀ type฀ of฀ Eastern฀culture.฀The฀conclusion฀is฀more฀ than฀ inference฀ when฀ viewed฀ side-by-side฀ 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-assertive-ness฀ (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฀ con-sumers’฀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฀ cul-tural฀diversity.฀Likewise,฀this฀data฀helps฀ the฀students฀to฀understand฀the฀manage-rial฀ practices฀ that฀ may฀ influence฀ the฀ supply฀functions.฀The฀difficulty฀of฀man-agement฀ 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฀ mate-rial฀ 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’฀

understanding฀of฀nonprice฀determinants฀ is฀ significantly฀ enhanced฀ by฀ including฀ the฀discussion฀of฀how฀cultural฀diversity฀ may฀ affect฀ the฀ parameters฀ of฀ the฀ eco- nomic฀models฀and฀consequent฀implica-tions฀for฀development.

The฀cultural฀scores฀in฀the฀present฀arti-cle฀reveal฀that฀the฀Eastern฀cultures฀place฀ a฀low฀value฀on฀independent฀action,฀asser-tiveness,฀ accountability,฀ and฀ individual฀ performance.฀The฀Western฀expectations฀ for฀entrepreneurial฀behavior฀and฀person-al฀ 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฀ Rus-sians฀ would฀ prefer฀ to฀ avoid฀ the฀ higher฀ risks฀ normally฀ associated฀ with฀ eco-nomic฀ development฀ (e.g.,฀ investment,฀ marketing,฀ management฀ practices).฀ In฀ accordance,฀ we฀ find฀ that฀ the฀ low฀ score฀ on฀IND฀corresponds฀to฀and฀is฀character-istic฀of฀risk฀avoidance฀behavior.฀A฀high฀ tolerance฀ for฀ risk฀ taking฀ is฀ a฀ hallmark฀ of฀Western฀capitalists’฀approach฀to฀busi- ness,฀management,฀and฀economic฀devel-opment,฀but฀it฀is฀antithetical฀to฀cultural฀ dimensions฀ found฀ in฀ Russia฀ (or฀ Belar-us).฀ 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฀econom-ics฀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฀glob-al฀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฀ materi-ally฀ 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฀implica-tions฀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฀ con-cepts฀ as฀ well,฀ such฀ as฀ those฀ of฀ produc-tion฀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฀cross-cultural฀differences฀on฀the฀fundamental฀ models฀of฀economics฀(such฀an฀approach฀ is฀dependent฀on฀neither฀the฀idea฀of฀cultur-al฀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฀ deter-mined฀ behavioral฀ code฀ and฀ create฀ an฀ ethnocentric฀ unilateral฀ system฀ prevent-ing฀ genuine฀ understanding.฀ However,฀ with฀ quantifiable฀ measures,฀ such฀ com-parisons฀ 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฀econom-ic฀thought฀did฀not฀have฀to฀deal฀with฀such฀ a฀complex฀array฀of฀cultural฀perceptions฀

TABLE฀1.฀Differences฀in฀Cultural฀Values฀Measures

Country฀ IND฀ PD฀ UA฀ M฀ LTO

United฀States฀ 91฀ 40฀ 46฀ 62฀ 29

Russia฀ 31฀ 43฀ 103฀ –5฀ 24

Belarus฀ 58฀ 44฀ 100฀ –3฀ 22

Ukraine฀ 51฀ 23฀ 57฀ 13฀ 56

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

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in฀ a฀ global฀ organizational฀ pluralism.฀ However,฀ globalization฀ means฀ that฀ understandings฀ of฀ these฀ factors฀ influ-ence฀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฀ commu-nicating฀ the฀ universal฀ realities฀ of฀ our฀ economic฀models฀and฀their฀applicability฀ and฀usefulness.฀

In฀ recent฀ years,฀ economists฀ discov-ered฀that฀natural฀and฀cultural฀geography฀ is฀ an฀ important฀ area฀ of฀ study฀ (Fujita฀ &฀ Krugman,฀ 1995).฀ This฀ should฀ have฀ been฀ expected฀ in฀ light฀ of฀ the฀ increas-ing฀ globalization฀ of฀ business.฀ In฀ the฀ classroom,฀ students฀ can฀ be฀ introduced฀ to฀ data฀ files฀ of฀ cultural–geographic฀ information฀ and฀ then฀ be฀ asked฀ to฀ con-sider฀ 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฀ underlying฀ factors฀ in฀ economic฀ theory,฀ as฀ well฀ as฀ empirical฀ findings฀ in฀ ques-tions฀ 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.฀ Like-wise,฀ cultural฀ attitudes฀ toward฀ savings฀ and฀investment฀affect฀development฀pos-sibilities,฀ as฀ do฀ (a)฀ cultural฀ attitudes฀ toward฀labor฀versus฀leisure฀and฀(b)฀the฀ cultural฀ choices฀ derived฀ from฀ the฀ indi-vidual฀ 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฀ exam-ine฀ 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฀ mod-els฀ because฀ they฀ have฀ only฀ gained฀ a฀ minimal฀ understanding฀ of฀ the฀ models฀ under฀ the฀ strict฀ceteris฀ paribus฀ condi-tions,฀which฀are฀often฀unexplored.฀Many฀ times฀ I฀ have฀ heard฀ students฀ and฀ even฀ some฀business฀professors฀say,฀“The฀eco-nomic฀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. a฀ priori฀ arguments.฀ Nevertheless,฀ a฀ question฀ remains:฀ What฀ is฀ the฀ extent฀ of฀ impact฀ on฀ the฀ students฀ of฀ economic฀ principles฀ and฀ their฀ learning฀ experi-ence?฀ 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฀eco-nomics฀ 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฀discus-sions,฀ I฀ used฀ the฀ cultural-value฀ dimen-sions฀from฀my฀studies฀and฀others฀cited฀ in฀the฀present฀article.

The฀ research฀ testing฀ methodology฀ that฀I฀used฀is฀supported฀by฀my฀involve-ment฀with฀the฀experiment,฀has฀historical฀ grounding฀in฀the฀case฀study฀methods—฀ as฀ suggested฀ in฀Yin฀ (1994)—and฀ with฀ the฀ developmental฀ research฀ methodol-ogy฀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฀teach-ing฀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฀consid-eration.฀ Therefore,฀ the฀ group฀ member-ships฀were฀compared฀along฀demographic฀ lines฀ and฀ academic฀ backgrounds.฀ Vari-ables฀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฀sur-prising,฀ because฀ the฀ student฀ population฀ is฀ characterized฀ by฀ specific฀ standards฀ of฀ university฀ enrollment฀ serving฀ a฀ popula-tion฀ 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฀ experi-ment.฀ The฀ character฀ of฀ these฀ students฀ reflected฀ the฀ profile฀ of฀ the฀ overall฀ stu-dent฀ 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฀ cultural-diversity฀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฀ objective-based฀ economics฀ tests,฀ with฀ all฀ ques-tions฀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’฀ abili- ties฀to฀apply฀economic฀analysis฀(Buck-les฀ &฀ Siegfried,฀ 2006).฀ Nevertheless,฀

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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.฀

Hypothesis฀Testing

The฀ null฀ hypothesis฀ tested฀ was฀ the฀ following:฀“The฀mean฀score฀of฀students฀ receiving฀cultural฀diversity฀augmentation฀ equals฀the฀mean฀score฀of฀students฀receiv-ing฀ the฀ usual฀ instructional฀ presentation,฀

ceteris฀paribus.”฀Therefore,฀I฀had฀the฀null฀ hypothesis฀ and฀ straightforward฀ inferen-tial฀analyses฀testing฀the฀standard฀error฀of฀ the฀statistic฀and฀using฀the฀t฀distribution฀at฀ the฀.05฀level฀of฀significance.฀The฀differ-ences฀ in฀ mean฀ scores฀ were฀ statistically฀ significant,฀ therefore฀ rejecting฀ the฀ null฀ hypothesis฀ where฀ the฀ computed฀t(38)฀ value฀ was฀ 2.03฀ and฀ exceeded฀ the฀ criti-cal฀value฀of฀1.69.฀These฀differences฀and฀ scores฀indicate฀that฀the฀degree฀of฀learn-ing฀was฀indeed฀different฀between฀the฀two฀ groups฀of฀students฀and฀that฀the฀students฀ in฀ the฀ cultural฀ augmentation฀ Group฀ 2฀ scored฀ significantly฀ better฀ on฀ the฀ stan-dard฀economics฀tests.฀

Of฀ course,฀ one฀ would฀ intuitively฀ tend฀ to฀ agree,฀ given฀ the฀ difference฀ in฀ scores฀for฀these฀tests.฀Furthermore,฀the฀ additional฀ responses฀ to฀ student-learn-ing฀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฀ten-dency฀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฀ standard-ized฀economics฀tests.฀The฀self-reported฀ data฀ might฀ otherwise฀ be฀ considered฀ anecdotal,฀ but฀ alongside฀ the฀ objective฀ economics฀ test฀ scores,฀ these฀ learning฀ outcomes฀ are฀ supportive.฀ Neverthe-less,฀ the฀ finding฀ that฀ the฀ students฀ in฀ Group฀ 2฀ consistently฀ surpassed฀ those฀ in฀ Group฀ 1฀ in฀ their฀ understanding฀ of฀

economic฀ principles,฀ as฀ determined฀ from฀the฀standardized฀economics฀tests,฀ is฀more฀important.฀It฀is฀a฀stronger฀indi-cation฀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฀admin-istered.฀The฀posttest฀scores฀showed฀that฀ group฀performance฀was฀again฀meaning-fully฀different,฀with฀t(38)฀= ฀2.20฀exceed-ing฀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฀ find-ing฀supports฀the฀logical฀justification฀of฀ increased฀retention.฀

After฀ the฀ conclusion฀ of฀ this฀ experi-ment,฀ 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฀statis-tically฀significant฀at฀the฀.05฀level.฀This฀ replication฀ further฀ supports฀ the฀ impor-tance฀ and฀ universality฀ of฀ this฀ teaching฀ approach.

Conclusion

In฀the฀present฀article,฀I฀reported฀find-ings฀ of฀ research฀ on฀ teaching฀ econom-ics฀ by฀ using฀ information฀ on฀ cultural฀ diversity.฀I฀demonstrated฀how฀a฀cultural- diversity฀approach฀to฀teaching฀econom-ic฀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฀ cul-tural-diversity฀ approach฀ were฀ com-pared,฀ and฀ implications฀ for฀ economics฀ in฀the฀global฀business฀environment฀have฀ been฀ pointed฀ out.฀ The฀ findings฀ sup-port฀ the฀ contention฀ that฀ in฀ the฀ present฀

global฀ economy,฀ the฀ practice฀ of฀ rela-tively฀culture-free฀teaching฀of฀economic฀ fessors฀ 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฀ oppor-tunities฀ for฀ theoretical฀ and฀ empirical฀ studies฀in฀pedagogy.฀At฀the฀universities฀ where฀ the฀ present฀ research฀ was฀ under-taken,฀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฀ pedagogi-cal฀ 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฀augmenta-tion฀ in฀ their฀ future฀ research฀ and฀ peda-gogy.฀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฀simultane-ously฀ ฀ 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฀ per-spective,฀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฀ con-cerned฀ 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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