FOB

FACULTY OF BUSINESS

BBCB3033
INTERNATIONAL BUSINESS

prepared by
MR SIMI

Chapter 3
Differences in Culture

1
 Introduction

• In international business, firms

enter different cultural
environments, which are
c h a ra c te r i ze d b y u n fa m i l a r
languages and unique value
systems, beliefs, and behaviours.

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 Introduction (con't)

• People differ not only in their skin colour, which represents physical
differences, but also in their cultures, which represent spiritual
differences.

• These differences can present cross-cultural problems, such as

miscommunication and cross-cultural conflict.

• Cross-cultural problems often arise in internaonal business because of

the various diverse cultures among firms around the world.

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 Introduction (con't)

• Culture determines the way people think, speak, perceive, and behave.

• In international business, culture is significant not only because it can

influence the way business is conducted and the way decisions are made,
it also is one of the most difficult factors to handle and control.

• Culture is strongly linked with values, which decide the ethical behaviour
of people, which varies between nations.

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Meaning of Culture

• Culture is a word used to describe

the behaviours tht represent the
general operating norms in a
government.

• Culture is comprised of shared

values, understandings,
assumptions, and goals that are
learned from earlier generations.

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 Some Characteristics of Culture

• Culture is not inhereted but

learned.

• Various aspects of culture are

interrelated.

• Culture is shared and it defines

t h e b o u n d a r i e s o f d i ffe re nt
groups.

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 Facts of Culture

• Culture is not right or wrong. This means that culture is relative. There is
no cultural absolute. People of different nationalities simply perceive
the world differently. Each culture has it own views of what is acceptable
and unacceptable behaviour.

• Culture is not about individual behaviour. Culture is about group

behaviour. It refers to a collective occurance of shared values and
meanings. Thus, while culture defines the collective behaviour of society,
individuals often behave differently.

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Components of Culture

• Values and norms

• Attitude

• Manners and customs

• Religion

• Personal Communication

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 Culture Change

• Culture is not constant but evolves over time.

• Changes in values systems can be slow and pinful for society.

• For example, at the beginning of the 1960s, the idea that women are
able to hold senior management positiomns in major corporations was
not widely accepted in Asia.

• Many laughed at the idea and some parents did not send their
daughters to tertiary educationwith the belief that women did not have
career opprtunities.

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Cultural Confict

• Religious warfare

• Ethnic conflict

• Ideology

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 Cultural and Ethics

• Ethical behaviour involves individual decisions, while social

responsibility deals with business decisions.

• In spite of that, suggests deals with the certain values remain the same
morality, integrity, principles simply because they areand values of a
culture, and in ethically and morally some case, even religion.

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The Importance of Ethics in a
Business Environment

• Increase Productivity

• Strengthen the business

image

• Secure business

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 References
• Cullen, J., & Parboteeah, P. (2018). International business. New York, NY: Routledge.

• Cullen, J. & Parboteeah, P. (2017). International Business: Perspectives from Developed

and Emerging Markets. Rouledge

• J. W. J. & L. W. K. (2018) International Business: The Challenges of Globalization (9th

Edition) (What's New in Management). Pearson.

• Charles H. & M. H. G. T. (2018) International Business: Competing in the Global

Marketplace. McGraw-Hill Education.

• John D, Lee R. & Daniel S. (2017) International Business (16th Edition). Pearson.

• D. D. J, H. R. L. & Daniel S (2015). International Business, Global Edition. Pearson.

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