Name: Judil T.

Banastao Year&Course: BSBA FM,2

BACC 5 (MWF 3:00pm - 4:00pm)

BACC 5 SEMI-FINAL HANDOUT

TOPIC 1: THE CULTURAL AND LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS

II. Start-up! Introductory Activity: Check the pictures below. Identify the picture. Choices are
specified below.

A. Cultural Dimensions B. Democracy C. Intellectual Property

Choices are the following: Cultural Dimensions, Intellectual Property, Democracy

Answer the guide questions:

1. Why do we need to study the cultural, legal, and political environment in international
business?
○ We need to first study the culture that locals have when we conduct
business because culture reflects the external societal environment and its
values. For it has implications on the business operations, sales, clients
and employees. Second, we also need to consider the political situation
because it has huge implications for the development and growth driven to
provide a more conducive environment for business to operate. Third, legal
that prevent companies from entering a market and allows organizations to
follow the stated process and proceed smoothly as also to consider either
when deciding to set up base here or not.

2. What do you think will happen if we will not follow and consider the cultures from other
countries, the legal and political environment that our country has?
○ Well, I think the business will not grow and succeed in the long run
because for example if we are not considered the culture of the local
community and we are going to build a restaurant in the area knowing that
all target prospects are Japanese people. But our restaurant has a Korean
menu. So do you think people will eat or buy in your restaurant? Well,
definitely none because they are Japanese they have their own taste of
food and even the legal and political environment that a country has we
need also consider to help sustain and ofcourse to make our business
legal and survive in a long competitive run.

● Discuss what is culture. Make sure to give an example. 20pts

a. culture is a way of life of a group of people, an integrated pattern of human
knowledge like the behaviors, beliefs, attitudes, values, morals, goals, and
customs shared by a society that they accept and that are passed along by
communication and imitation from one generation to the next.
 For example :
b. Language f. Material elements
c. Religion g. Aesthetics
d. Values and attitudes h. Education
e. Manners and customs i. Social institutions

● Discuss the types of Legal system in the Philippines. 20pts

1. Civil Law Legal Systems - rely on written statutes and other legal codes that are
constantly updated and which establish legal procedures, punishments, and what
can and cannot be brought before a court.
2. Common Law Legal Systems -The basis for common law is tradition, past
practices, and legal precedents developed by judges through their decisions,
orders, or judgments.
3. Theocratic Law Legal Systems - This system is based on religious teachings, as
they are enshrined in the religious scriptures. Islamic law, Shari at, is the most
widely practiced religious legal system in today’s world. It is based on morality
rather than commercial requirement of human behaviour in all aspects of a
person’s self and social life.

III. Rev-up! Activity 1: Reality Check. 20 points in each question.

1. Talk about your experience about our political system, which is democracy. You may
research or collaborate with someone on this.
● Well, for me I experience democracy in our country in the sense of a young
voter and a SK member in our barangay. I have the right to vote for my
desired politician who leads our country or even in our barangay, I feel my
freedom to participate as citizens, in politics and civic life. I also feel the
safeness for us citizen of the Philippines because I know that we have
rights as human to be protected and a rule of law in which the laws and
procedures apply equally to all citizens, no gender, no age, no status in life
and etc. we all have the rights to choose what we want to be and who will
lead us into a successful country.

2. Indicate what reference groups are most important to you. How important are these reference
groups when conducting business in foreign countries? Why?
● For me, the most important reference groups are my family and friends or
even people surrounding me because they impact my cognitions, affective
responses, and behaviors or even the way I interact with other people.

Activity 2: Forum 20 points in each number. Answer this question in no less than five sentences
each.
1. Why is communication a key function in business?
● because communication is a vital tool for any business. For this we
are able to clearly explain to someone else what we are
experiencing and what we need. The act of communicating not only
helps to meet our needs, but it also helps us to connect with the
other person. It is crucial to communicate effectively in negotiations
to ensure our achieve goals. Communication is also important
within the business. Effective communication can help to foster a
good working relationship between you and your staff, which can in
turn improve morale and efficiency. This guide will explain the key
aspects of both verbal and non-verbal communication, how to listen
to and understand others, and how to make the best possible first
impression on the people you encounter in and around your
business.

2. Compare and contrast each law. What is the importance of this in our country?
● For me, I cannot go this far to think or to compare and contrast our
law that we have today because every law created has a different
purpose and functions in our lives and all of these are very
important in our country because it’s fundamental to international
peace and security and political stability; to achieve economic and
social progress and development; and to protect people's rights and
fundamental freedoms. So, I don’t need to compare or even contrast
it.

3. Why is culture not inherited?

● Culture is learned, and not genetically inherited. However, it does
have a genetic basis, the genes involved determining the structure
of the brain. Cultural inheritance is considered to be the latest stage
in the evolution of heredity. It is thought to have evolved by
epigenetic mechanisms from genetic inheritance.

4. Under elements of culture, compare the Philippines to another country (choose your own
country) and describe the similarities or differences.
● First of all in Language, Filipino have different kinds of language
used but like in US countries Filipino use English language as a
medium of conversation in our day to day basis even though
different the way we deliver the words. Second, in religion The
Philippines proudly boasts to be the only Christian nation in Asia
but Christianity is the largest religion in the U.S also. Third, in US
values and attitudes Philippines citizens are very friendly,
accommodating, fair and etc. like the US. Fourth, Philippines
manners and customs are the same in the US because US citizens
also for example they like working way too many hours and FIlipino
 known for being hardworking, eating fast food, driving everywhere
like especially in today's generation Filipino love and like to travel.
Fifth, for material elements and aesthetics well, like US citizens we
all so love music, art, dance and etc. because for us life is boring
without adding color in our lives. Six, for education, Formal
education in the U.S. is divided into a number of distinct educational
stages. Most children enter the public education system around
ages five or six. Children are assigned into year groups known as
grades. Well, same as here in the Philippines we have also pre-
school ,kindergarten, 1-6 grade, high school and now even senior
high school before we proceed to college and lastly social
institutions.

5. What is the impact of the political and legal system in global business?
● The impact of the political and legal system in global business is
that governments intervene in trade to protect their nation’s
economy and industry, as well as promote and preserve their social,
cultural, political, and economic structures and philosophies.
Governments have several key policy areas in which they can create
rules and regulations in order to control and manage trade,
including tariffs, subsidies; import quotas and VER, currency
controls, local content requirements, antidumping rules, export
financing, free-trade zones, and administrative policies.
Additionally, political and legal systems can affect the
attractiveness of a country as a market or investment site.

Source: Google website

Other: handouts