International Experience

Part 1: Understanding Culture - Culture and the
international environment
1. Definition of culture
2. Different cultural models
3. Determinants of culture
4. The international economic environment

Source: https://pixabay.com/de/h%C3%A4nde-welt-karte-global-erde-600497/
Part 1 | Understanding Culture | 1. Definition of culture 1

Readings & Literature
Required readings:
• Hill, C.W.L. and Hernández-Requejo, W., (2011) Global Business Today, Seventh edition,
Chapter 3, Differences in Culture, pp. 116-122.
• Deresky, H., (2016) International Management: Managing Across Borders and Cultures, pp.
106-110.
• Hofstede, G., (2001) Culture‘s Consequences. Comparing Values, Behaviors, Institutions,
and Organizations Across Nations. 2nd edition, pp. 9-12.
Further Literature:
• Kroeber, A.L. and Kluckhohn, C., (1952) Culture: A Critical Review of Concepts and
Definitions. Peabody Museum, Cambridge, MA, 181.
• Hall, E.T., (1976) Beyond Culture.
• Thomas, A., Kinast, E.-U. and Schroll-Machl, S. (Editors), (2010) Handbook of Intercultural
Communication and Cooperation, Volume 1: Basics and Areas of Application, 2nd edition.

Required readings: Details
Hill, C.W.L. and Hernández-Requejo, W., (2011) Global Business Today:
The book is a comprehensive work covering all areas of international management including
international economics.
About the authors: Charles W. L. Hill is the Hughes M. and Katherine Blake Professor of
Strategy and International Business at the Foster School of Business, University of
Washington, G. Tomas M. Hult is the John W. Byington Endowed Chair, professor of marketing
and international business, and director of the International Business Center in the Eli Broad
College of Business at Michigan State University.
Deresky, H., (2016) International Management:

The book details the manager's role within the global environment of business management by
exploring the political, legal, technological, competitive, and cultural factors that shape
corporations worldwide.
About the author: Helen Deresky (Ph.D., Concordia University, Montreal) is Professor of
Strategic Management and International Management and Director of the International
Business Program at the State University of New York, Plattsburgh.

Hofstede, G., (2001) Culture‘s Consequences. Comparing Values, Behaviors,
Institutions, and Organizations Across Nations:
Among the standard literature on culture in the business environment. Hofstede developed
aside from other authors like R.E. Hall one of the most prominent cultural dimension models.
About the author: A Dutch social psychologist, who worked in the personnel research
department of the multinational company IBM international. In the late sixties, he began
analyzing the data from a companywide personnel survey exercise.

• Different definitions of culture
• Iceberg-Theory by E. T. Hall
• Onion model by G. Hofstede
• “Working” definition of culture

1. Definition of Culture - What is „culture“?
Watch the video!
• https://www.youtube.com/watch?v=hTxKv5n5M2Y

Activity: Culture – What comes into your mind?
Ask yourself: What does 'culture' mean to you? Note at least eight ideas that come
into your mind.
CULTURE

Culture – The sum of its individual parts
Attitudes Beliefs
Traditions
Worldviews Values
Norms
Music
Perceptions Art
Language
Behaviours
Artifacts
Etc….
Symbols
Source: https://pixabay.com/de/puzzle-puzzleteil-r%C3%A4tsel-2784471/

Culture – A matter of definition
Very likely, you will have noticed, that your findings differ more or less from the findings of
your fellow students.
So what is culture? How can we define culture?
Actually there is no single answer to the question of what 'culture' means:

Already in 1952 Kroeber & Kluckhohn compiled 164 definitions of 'culture'!

Definition of 'culture' – A compilation I
Selection of definitions that arise in cultural concepts and theories:
• ''Culture consists of patterns, explicit and implicit, of and for behavior acquired and
transmitted by symbols, constituting the distinctive achievements of human groups,
including their embodiments in artifacts; the essential core of culture consists of
traditional (i.e. historically derived and selected) ideas and especially their attached
values; culture systems may, on the one hand, be considered as products of action, and
on the other as conditioning elements of further action'' (Kroeber & Kluckhohn 1952).
• ''Culture is man’s medium: there is not one aspect of human life that is not touched and
altered by culture. This means personality, how people express themselves (including
shows of emotion), the way they think, how they move, how problems are solved, how
their cities are planned and laid out, how transportation systems function and are
organized, as well as how economic and government systems are put together and
function. However, like the purloined letter, it is frequently the most obvious and taken-for-
granted and therefore the least studied aspects of culture that influence behavior in the
deepest and most subtle ways'' (Hall 1976, p. 16 f).

Definition of 'culture' – A compilation II
• ''Culture is defined as collective programming of the mind; it manifests itself not
only in values, but in more superficial ways: in symbols, heroes, and rituals''
(Hofstede 2001, p. 1).
• ''Culture is a universal phenomenon. All human beings live within a specific culture
and contribute to its development. Culture creates a structured environment within
which a population can function. It encompasses objects we created and use in our
daily lives, as well as our institutions, ideas and values. Culture is always
manifested in a system of orientation typical to a country, society, organization or
group. This system of orientation provides all members with a sense of belonging
and inclusion within a society or group and creates an environment in which
individuals can develop a unique sense of self and function effectively. Culture has
an influence on the perception, thought patterns, judgment and action of all
members of a given society. The culture-specific system of orientation creates
possibilities and motivation for action, but also determines the conditions and
limits of the action'' (Thomas 2010, p. 19).

Hofstede: Culture as mental programming
Three levels of uniqueness on human mental programming
Social environments, life experiences

influence patterns of thinking, feeling
and acting. Not everyone is
programmed in the same way.
 A customary term for such mental

software is CULTURE
Source: Hofstede 1994
"Culture is the collective mental programming of the human mind which

distinguishes one group of people from another."
(Geert Hofstede)

Ask yourself: Is it easy to perceive the individual parts of a culture? Why/why not?
Attitudes Beliefs
Traditions
Music
Norms Art
Values
Worldviews
Perceptions
Language
Behaviours
Artifacts
Etc….
Symbols
Source: https://pixabay.com/de/puzzle-puzzleteil-r%C3%A4tsel-2784471/

The Iceberg Theory (Edward T. Hall 1976)
Just like an iceberg only a small part of a culture (the 'tip') is visible. The big
part of a culture is hidden. This hidden part is the foundation of the visible part.
Artifacts Heroes Behaviors Music

Art Traditions Visible Symbols
Invisible
Worldviews
Norms
It is not easy to
Beliefs perceive the
individual parts
Perceptions Attitudes of a culture.
Values
Source: https://de.m.wikipedia.org/wiki/Datei:Iceberg.svg

Activity: The iceberg model of your culture
Ask yourself: What may the iceberg model for your own national culture look like? Fill
in the iceberg model for your own national culture.
Visible
Invisible
Source: https://de.m.wikipedia.org/wiki/Datei:Iceberg.svg

The Onion (Hofstede 2001)
For the invisible and visible elements of a
culture, Hofstede developed the 'Onion
Diagram' (Hofstede 2001, p. 9 ff):
• It shows the 'Manifestations of Culture at

Different Levels of Depth'
• Values represent the deepest level (the
core) of a culture; their development and
disappearance in a culture takes a very long
time
• Symbols, heroes and rituals are the layers
around the core; they are subsumed under
the term 'practices'
• Practices are visible to outsiders but their
cultural meanings are invisible
Source: Hofstede 2001, p. 11

The Onion (Hofstede 2001)
According to Hofstede…
''systems of values are a core element of culture. […] [They] are invisible until they become
evident in behavior, but culture manifests itself in visible elements too'' (Hofstede 2001, p. 10).
Hofstede (2001, p. 10) mentions three visible elements: symbols, heroes and rituals
Symbols Heroes Rituals

• Words, gestures, pictures, • Persons (dead or alive, real • Technically unnecessary
objects or imaginary) who have but socially essential
• Dress, hairstyle, flags, characteristics which are collective activities
status symbols very appreciated in a • Bounds the individual to the
• New symbols are easily culture norms of the collective
developed, old ones easily • Role models for behavior • Exist for their own sake
disappear • Examples: Asterix in • Ways of greeting, paying
• Can easily be copied by France, Batman in the respect to others, social &
other cultures United States religious ceremonies

Activity: The onion of your culture
Ask yourself:
• What may the onion for your own national
culture look like?
• What may the onion for the country of your
international experience look like?
Complete the onion for your own national

culture and for the culture of the country of
your international experience with appropriate
terms and pictures.
Source: Hofstede 2001, p. 11

The Onion for Germany – An example
CC BY-NC 2.0
Punctuality
Structures &
rules
Sources: https://www.flickr.com/photos/galaxyfm/199841303
https://pixabay.com/de/oktoberfest-hofbr%C3%A4u-festzelt-535122/;
https://de.wikipedia.org/wiki/Flagge_Deutschlands.

Working definition of culture: Focus on values and
norms
Culture: A system of values and norms that are shared among a group
of people and that when taken together constitute a design for living
Norms Values
…abstract ideas about what a

…the social rules and guidelines group believes to be good, right,
that prescribe appropriate and desirable. Put differently,
behavior in particular situations. values are shared assumptions
about how things ought to be.
Source: Hill and Hernández-Requejo, p. 120.

Part 1: Understanding Culture - Culture and the international
environment

Part 1 | Understanding Culture | 2. Different cultural models 1

Required readings:
Required readings:
• Layes, G. (2010): Cultural Dimensions. In: Thomas, A.; Kinast, E.-U.; Schroll-Machl, S.
(Hrsg.), 2010, Handbook of Intercultural Communication and Cooperation, Volume 1:
Basics and Areas of Application, pp. 53-64.
• Deresky, Helen, International Management: Managing Across Borders and Cultures, 2016,
pages 116-125.
• Neelankavil, James P., Rai, Anoop.; Basics of International Business, (2015), pages 38-66

Required readings:
Layes, G. (2010): Cultural Dimensions. In: Thomas, A.; Kinast, E.-U.; Schroll-Machl, S.
(Hrsg.), 2010, Handbook of Intercultural Communication and Cooperation
The Handbook covers the „Theoretical Basis of Intercultural Communication and Cooperation”;
“Intercultural Competence and Cooperation in Organizations” and “Central Areas of
Management from an Intercultural Perspective”. The authors discuss approaches for designing
and conducting intercultural trainings, methodology, and evaluation procedures based on
current research
Deresky, H., (2016) International Management:

The textbook details the manager's role within the global environment of business
management by exploring the political, legal, technological, competitive, and cultural factors
that shape corporations worldwide.
About the author: Helen Deresky (Ph.D., Concordia University, Montreal) is Professor of
Strategic Management and International Management and Director of the International
Business Program at the State University of New York, Plattsburgh.

Neelankavil, James P., Rai, Anoop.; Basics of International Business, (2015):
Another university textbook covering almost all areas of international management. The book
focuses on core concepts in international business. The concepts, theories, and techniques
are organized around seven major topical areas: overview of international business;
environmental variables of culture, politics, and economics; entry strategies for new markets
and countries; international trade and foreign direct investments; integration of functional
areas; specific functioning areas (marketing, finance, accounting, etc.); global outsourcing and
its role in international operations.
About the authors: James P. Neelankavil is Distinguished Professor Emeritus of Marketing and
International Business; Anoop Rai is a Professor of Finance at Hofstra University, USA.

Further literature:
Further literature:
• Fryberg, S. A.; Markus, H. R. (2007): Cultural models of education in American Indian, Asian American,
and European American contexts. In: Social Psychology of Education, 10, pp. 1381-2890
• Hofstede, G. (2001): Culture‘s Consequences. Comparing Values, Behaviors, Institutions, and
Organizations Across Nations. 2nd edition. Thousand Oaks: Sage Publications.
• Hofstede, G. & Hofstede, G. J. (2005): Cultures and Organizations: Software of the mind. 2nd revised
and expanded edition. New York: McGraw Hill
• Hofstede, G., Hofstede, G. J., Minkov, M. (2010): Cultures and Organizations: Software of the Mind. 3rd
edition. New York: McGraw-Hill
• Hall, Edward T. & Hall, Mildred Reed (1990): Understanding Cultural Differences. Maine: Intercultural
Press
• Trompenaars, Fons; Hampden-Turner, Charles (2012): Riding the Waves of Culture. Understanding
Diversity in a Global Business. 3rd revised and updated edition. New York: McGraw Hill.
• S. Schwartz (2006), A Theory of Cultural Value Orientations: Explication and Applications, Comparative
Sociology, Volume 5, issue 2-3.
• Robert J. House, et al (Editors), Culture, leadership, and organizations. the GLOBE study of 62
societies, Thousand Oaks, Sage, 2007.
• Ronald Inglehart; Wayne E Baker, Modernization, cultural change, and the persistence of traditional
values

• Different cultural models – An overview
• Cultural model by G. Hofstede
• Cultural model by M.R. Hall and E.I. Hall
• Cultural model by F. Trompenaars
• Cultural model by S.H. Schwarz
• The GLOBE Study
• Measuring culture and cultural change

Cultural models – An overview
Through the use of cultural models or culturally shaped maps, we are able to organize
and understand our social world. Cultural models consist of ideas and habits, which are
derived from culture and are present in everyday life. (Fyberg & Markus 2007)
Various scientists and authors developed cultural models, which consist of different
cultural dimensions:
Cultural models
Hofstede Hall&Hall Trompenaars Schwartz Globe Study

(1970/80/2010) (1976/90) (1993) (1994) (2004)
6 Dimensions 4 Dimensions 7 Dimensions 3 Dimensions 9 Dimensions
Cultural dimensions show similarities and differences between national cultures.

The cultural model by G. Hofstede
Geert Hofstede
• A Dutch social psychologist, born 1928
• He worked in the personnel research department of the multinational company IBM
international
• In the late sixties he began analyzing the data from a companywide personnel survey
exercise
Hofstede‘s approach
• Measuring of ‘‘work-related values‘‘
• Surveyed over 116.000 employees of the company IBM in many countries
• Identification of four cultural dimensions (‘‘Power Distance‘‘, ‘‘Individualism‘‘,
‘‘Uncertainty Avoidance‘‘, ‘‘Masculinity‘‘) in 1980 https://www.managementboek.nl/auteur/278/geert-hofstede
• Amendment of a fifth dimension (‘‘Long-term Orientation‘‘) in 1991

• Amendment of a sixth dimension (‘‘Indulgence‘‘) in 2010
See also: https://geerthofstede.com/geert-hofstede-biography/

Hofstede‘s 6-dimensions of culture
6. Indulgence vs.
Restraint
5. Long vs. Short Term

1. Power Distance Orientation
Six dimensions
to distinguish
culture 4. Masculinity vs.
2. Uncertainty Femininity
Avoidance
3. Individualism vs.
Collectivism
Source: Adapted from Hofstede

Hofstede‘s 6-dimension model - Overview
Dimension Forms
1. Power Distance (PDI) Low Power Distance High Power Distance
2. Uncertainty Strong Uncertainty Weak Uncertainty
Avoidance (UAI) Avoidance Avoidance
3. Individualism (IDV) Individualism Collectivism
4. Masculinity (MAS) Masculinity Femininity
5. Long-Term Long-Term Orientation Short-Term Orientation
Orientation (LTO)
6. Indulgence (IND) Indulgence Restraint
(Source: Hofstede 2001, 2010)

1. Hofstede‘s dimension ‘‘Power Distance‘‘
10 minutes with Geert Hofstede

Go to https://geerthofstede.com/training-consulting/online-lectures/
Watch the first minutes of the video on Power Distance and learn more about
Hofstede‘s dimension ‘‘Power Distance‘‘:

‘‘Power distance can […] be defined as the extent to which the less powerful members of
institutions and organizations within a country expect and accept that power is distributed
unequally.‘‘ (Hofstede & Hofstede 2005, p. 46)
Or in other words:
Power Distance ‘‘[…] examines the extent to which a culture accepts unequal power
distribution.‘‘ (Layes 2010, p. 54)
Cultures with Low Power Cultures with High Power

Distance Distance
Power differences in institutions Power differences in institutions
and organizations are not tolerated and organizations are tolerated
and not accepted and accepted
(Source: Layes 2010, p. 54)

Power distance correlates with other factors, like inequality…..
Low Power Distance High Power Distance

• Low income inequality • High income inequality
• Larger middle class, smaller • Smaller middle class, larger
lower class lower class
• Use of power is legitimate • Oligarchy
• Systems change by evolution • Revolution to change a system
• Younger (Business) executives • Older (Business) executives
• Spontaneous innovations • Innovations

Power Distance Index
10
20
30
40
50
60
70
80
90
0
100
Malaysia
Saudi Arabia
Iraq
Russia
United Arab Emirates
Angola
Mexico
Venezuela
Ghana
China
Libya
High Power Index

Nigeria
Syria
Indonesia
Ecuador
India
Singapore
Egypt
Morocco
Brazil
France
Hong Kong
Belgium
Part 1 | Understanding Culture | 2. Different cultural models

Namibia
Peru
Thailand
Chile
Portugal
Uruguay
Greece
South Korea
Iran
Spain
Czech Republic
Japan
Pakistan
international experience:
Italy
Argentina
South Africa
United States
Canada
Netherlands
Australia
Costa Rica
Germany
United Kingdom
Power Distance Index (PDI) of different countries
Switzerland
Finland
Sweden
Low Power Index
Ireland
New Zealand
https://www.hofstede-insights.com/country-comparison/
Check the Power Distance Index for the country of your
Denmark
Israel
Austria
(Source: Own figure. Data source: https://www.hofstede-insights.com/country-comparison/)
14
2. Hofstede‘s dimension ‘‘Uncertainty Avoidance‘‘
10 minutes with Geert Hofstede

Go to https://geerthofstede.com/training-consulting/online-lectures/
Watch the first 3 minutes of the video on Uncertainty Avoidance and learn more about
Hofstede‘s dimension Uncertainty Avoidance

‘‘Uncertainty avoidance can […] be defined as the extent to which the members of a culture
feel threatened by ambiguous or unknown situations.‘‘ (Hofstede & Hofstede 2005, p. 167)
Or in other words:
Uncertainty Avoidance ‘‘[…] shows to what extent unclear and ambiguous situations create
feelings of insecurity and anxiety in a culture.‘‘ (Layes 2010, p. 55)
Cultures with strong Uncertainty Cultures with weak Uncertainty

Avoidance Avoidance
• Rules to regulate private and public • Rules to regulate private and public
life are binding life are not binding
• Unclear circumstances lead to • Unclear or chaotic
disorientation circumstances are handled quite
easily

The degree of Uncertainty Avoidance in societies is reflected through different outcomes:
Weak Uncertainty Avoidance Strong Uncertainty Avoidance

• Uncertainty is normal • Uncertainty is avoided
• Less stress and anxiety • More stress and anxiety
• Feeling of „What is different is • Feeling of „What is different is
curious“ dangerous“
• Don‘t like rules • A need for rules
• Faster adoptance of innovations • Low adoptance of innovations
• Change of job is easier done • People tend to stay in the same
• More tolerance towards people jobs
who are different to oneself • Less tolerance towards people
who are different to oneself

Uncertainty Avoidance Index
10
20
30
40
50
60
70
80
90
0
100
Greece
Portugal
Uruguay
Russia
Belgium
Japan
Peru
France
Chile
Spain
Argentina
Costa Rica
South Korea
Iraq
Mexico
Israel
Saudi Arabia
Unit. Arab Emirates
Strong Uncertainty Avoidance

Egypt
Venezuela
Brazil
Italy
Czech Republic

Pakistan
Austria
Libya
Morocco
Ecuador
Germany
Ghana
Thailand
Angola
Syria
Iran
Finland
Switzerland
Nigeria
Netherlands
comparison/
Australia
South Africa
New Zealand
Indonesia
Canada
United States
Namibia
India
Malaysia
Uncertainty Avoidance Index (UAI) of different countries
United Kingdom
Ireland
China
Weak Uncertainty Avoidance
Hong Kong
Sweden
Check the Uncertainty Avoidance Index for
https://www.hofstede-insights.com/country-
Denmark
the country of your international experience:
Singapore
18
3. Hofstede‘s dimension ‘‘Individualism‘‘
‘‘Individualism pertains to societies in which the ties between individuals are loose: everyone is
expected to look after himself or herself and his or her immediate family. Collectivism as its
opposite pertains to societies in which people from birth onward are integrated into strong,
cohesive in-groups, which throughout people's lifetimes continue to protect them in exchange
for unquestioning loyalty.‘‘ (Hofstede & Hofstede 2005, p. 76)
Or in other words:
Individualism ‘‘[…] shows to what extent the members of a culture define themselves as part of
a social network and how committed they are to this network.‘‘ (Layes 2010, p. 54)
Members of individualistic cultures Members of collectivistic cultures

• Perceive themselves as • Perceive themselves as members
autonomous individuals of a group; relationship-oriented
• Personal goals must not be align • Personal goals should be align
and reached in accordance with the and reached in accordance with the
group group

Individualism Index
10
20
30
40
50
60
70
80
90
0
100
United States
Australia
United Kingdom
Canada
Netherlands
New Zealand
Italy
Belgium
Denmark
France
Sweden
Ireland
Switzerland
High Individualism
Germany
South Africa
Finland
Czech Republic
Austria
Israel
Spain
India
Japan
Argentina

Morocco
Iran
Russia
Brazil
Libya
Uruguay
Greece
Syria
Mexico
Iraq
Namibia
Nigeria
Portugal
Malaysia
comparison/
Saudi Arabia
Unit. Arab Emirates
Hong Kong
Egypt
Individualism Index for different countries
Low Individualism (Collectivistic cultures)
Chile
China
Singapore
Thailand
South Korea
Angola
Peru
Check the Individualism Index for the
Costa Rica
Ghana
country of your international experience:
Indonesia
Pakistan
Venezuela
Ecuador
20
4. Hofstede‘s dimension ‘‘Masculinity‘‘
‘‘A society is called masculine when emotional gender roles are clearly distinct: men are supposed to be
assertive, tough, and focused on material success, whereas women are supposed to be more modest,
tender, and concerned with the quality of life. A society is called feminine when emotional gender roles
overlap: both men and women are supposed to be modest, tender, and concerned with the quality of life.‘‘
(Hofstede & Hofstede 2005, p. 120)
Or in other words:
Individualism ‘‘[…] shows to what extent gender roles are delineated and predefined.‘‘ (Layes 2010, p. 55)
Masculine cultures Feminine cultures
• Preference in society for achievement, • Preference in society for cooperation, modesty,

heroism, assertiveness, and material rewards caring for the weak and quality of life
for success • Society at large is more consensus-oriented
• Society at large is more competitive • Both, men and women, can assume almost all
• Gender roles clearly defined roles in society. Gender roles are not limited to
clearly defined characteristics
(Source: Layes, 2010 and https://www.hofstede-insights.com)

Masculinity Index
10
20
30
40
50
60
70
80
90
0
100
Japan
Austria
Venezuela
Italy
Switzerland
Iraq
Mexico
Ireland
China
Germany
United Kingdom
Ecuador
High Masculinity
South Africa
United States
Australia
Saudi Arabia
Nigeria
New Zealand
Hong Kong
Greece
Czech Republic
India
Argentina

Belgium
Morocco
Canada
Libya
Syria
Malaysia
Unit. Arab Emirates
Pakistan
Brazil
Singapore
Israel
Indonesia
Egypt
France
comparison/
Iran
Peru
Spain
Masculinity Index for different countries
Namibia
Ghana
South Korea
Uruguay
Russia
Thailand
of your international experience:
Portugal
Chile
Finland
Costa Rica
Angola
Low Masculinity (Feminine cultures)
Check the Masculinity Index for the country
Denmark
Netherlands
Sweden
(Own figure. Data source: https://www.hofstede-insights.com/country-comparison/)
22
5. Hofstede‘s dimension ‘‘Long-Term Orientation‘‘
‘‘[…] long-term orientation (LTO) stands for the fostering of virtues oriented toward future
rewards – in particular, perseverance and thrift. Its opposite pole, short-term orientation,
stands for the fostering of virtues related to the past and present – in particular, respect for
tradition, preservation of ‘‘face,‘‘ and fulfilling social obligations.‘‘ (Hofstede & Hofstede 2005, p.
210)
Or in other words:
Long-Term Orientation ‘‘[…] shows to what extent long-term thinking is valued.‘‘ (Layes 2010,
p. 55)
Long-Term oriented cultures Short-Term oriented cultures
• Present influenced by long-standing traditions • Traditions have nostalgic value

• Today‘s actions are binding for the future • Social change easily mobilized
• Stable and binding social structures over • Unstable and non-committal social conditions
generations

Long-Term Orientation Index for different countries
100
90
Check the Long-Term Orientation Index for
80 the country of your international experience:
Long-Term Orientation Index
70
comparison/
60
50
40
30
20
10
0
China
South Korea
South Africa
United States
Germany
Czech Republic
Sweden
India
Brazil
Finland
Saudi Arabia
Namibia
Mexico
Argentina
Venezuela
Angola
Morocco
Nigeria
Egypt
Belgium
Switzerland
Pakistan
Russia
Netherlands
Italy
Canada
Thailand
Uruguay
Iraq
Ghana
Japan
Singapore
Indonesia
Hong Kong
Austria
Spain
Syria
Ireland
Libya
Australia
Iran
France
United Kingdom
Greece
Malaysia
Israel
Denmark
New Zealand
Chile
Portugal
Peru
High Long-Term Orientation Low Long-Term Orientation (Short-Term oriented cultures)

6. Hofstede‘s dimension ‘‘Indulgence‘‘
‘‘[…] Indulgence stands for a tendency to allow relatively free gratification of basic and natural
human desires related to enjoying life and having fun. Its opposite pole, restraint, reflects a
conviction that such gratification needs to be curbed and regulated by strict social norms.‘‘
(Hofstede et al. 2010, p. 281)
Indulgent cultures Restrained cultures
• People are able to gratify their needs to enjoy • People suppress gratification of needs
life relatively easily • Regulation by strict social norms
• Freedom of speech and personal control are • People feel helpless to their personal destiny
important • Customer services: Showing own happiness
• Customer services: Showing own happiness by means of smiling and friendly behavior is
by means of smiling and friendly behavior is seen as inappropriate
expected
(Source: Hofstede et al. 2010, p. 277-298)

Indulgence Index for different countries
100
90
Check the Indulgence Index for the country
80 of your international experience:
70 https://www.hofstede-insights.com/country-
comparison/
Indulgence Index
60
50
40
30
20
10
0
Venezuela
United States
Mexico
Nigeria
South Africa
Angola
Sweden
Argentina
Brazil
Finland
Ghana
Netherlends
Switzerland
Belgium
Uruguay
Saudi Arabia
Germany
South Korea
Czech Republic
China
India
Morocco
Egypt
Pakistan
Australia
Canada
Ireland
Thailand
Iran
Italy
Malaysia
Russia
Hong Kong
Iraq
New Zealand
Denmark
United Kingdom
Chile
Austria
Greece
France
Singapore
Peru
Spain
Japan
Indonesia
Libya
Portugal
Netherlands
High Indulgence Index Low Indulgence Index (Restraint Countries)

Critiques of the Hofestede model
Criticism related to Hofestede’s model:
Appropriateness of the Sample

• “Hofstede’s survey was conducted at one company, its employees may not be a
representative sample of the general population. “
Labeling of Terms
• “Hofstede studied business cultures and managers’ attitudes. The information he gathered
and the conclusions he reached may not shed light on the core societal culture and the
values that are prevalent in a given society or on a society’s behavior patterns. “
Other Biases
• “Hofstede’s survey was based on an instrument (questionnaire) and scales that were
developed for people in Western societies. Therefore, the terms used in the questionnaire
may not be exactly translated across cultures and in some cases may have entirely
different meanings in different cultures.”
(Source: Neelankavil and Rai 2015)

Practical Example
In the 19th century, the French general Jean-Baptiste Bernadotte became king of Sweden -
King Charles XIV. In his new function as king of Sweden, he addressed the Swedish
parliament not in French but in Swedish. Unfortunately, his Swedish was far away from being
fluent. The Swedes were amused and roared with laughter. The French king was absolutely
upset and never tried to speak Swedish again. (Hofstede & Hofstede 2005, p. 39)
Ask yourself:
• What happened in this situation? What was the
conflict?
• Which cultures were involved in this situation?
• What might have been the difference between the
involved cultures?
• Which of Geert Hofstede‘s Dimensions can be
used to explain the situation from a scientific
Source: https://goo.gl/images/hKmRmp
perspective regarding cultural differences?

Mildred Reed and Edward T. Hall – Another
approach in the study of cultural dimensions
Mildred Reed and Edward T. Hall
• American researcher couple
• Edward T. Hall (1914-2009) - anthropologist and cross-cultural researcher
Hall‘s approach
• Identification of fundamental dimensions of human co-existence which are relevant to all
cultures
• Identification of four cultural dimensions (‘‘Context‘‘, ‘‘Space‘‘, ‘‘Time‘‘, ‘‘Information Flow‘‘)
in 1985 and 1990
https://www.goodreads.com/photo/author/14688
9.Edward_T_Hall

Hall‘s 4-Dimension model - Overview
1. Context
Dimensions
to distinguish 4. Information flow
types of cultures
2. Space
3. Time

Hall‘s 4-Dimension model - Overview
Dimension Forms
1. Context Low context High context
2. Space Low personal distance High personal distance
3. Time Monochronic time Polychronic time
4. Information flow Low information flow High information flow
(Source: Hall & Hall 1990)

1. Hall‘s dimension ‘‘Context‘‘
‘‘Context is the information that surrounds an event; it is inextricably bound up with the
meaning of that event. The elements that combine to produce a given meaning – events and
context – are in different proportions depending on the culture. The cultures of the world can
be compared on a scale from high to low context.‘‘ (Hall and Hall 1990, p. 6).
Or in other words:
‘‘In ‘‘low-context‘‘ cultures, an effort is made to render all information as explicit as possible
leaving the listener little room for interpretation. In contrast, cultures in which ‘‘high-context‘‘
communication dominates, the prevailing atmosphere surrounding a situation, including
nonverbal signals, is perceived as an essential part of the communication process. That which
is actually verbalized is full of insinuation, ambiguity and metaphors, and can only be
understood within the context of the entire conversation.‘‘ (Layes 2010, p. 56).

1. Hall‘s dimension ‘‘Context‘‘
Have a look at this video in order to get an insight into the difference of low context and
high context cultures:
What is the difference between a high-context and low-context culture?
https://www.youtube.com/watch?v=qKViQSnW-UA

1. Low context cultures vs. High context cultures
Low context cultures High context cultures
Explicit manner to transmit a message: Implicit manner to transmit a message:

• Most of the information is in the coded, • Most of the information is in the person who
explicit, transmitted part of the message transmitters the message
• Very little of the information is in the person → high non-lingustic context (e.g. using
who transmitters the message nonverbal signals, metaphors)
→ Low non-linguistic context (explicit information • Very little of the information is in the coded,
transfer with as little space for interpretation as explicit, transmitted part of the message
possible)
• Separate personal relationships, work and • Have extensive information networks among
other aspects of day-to-day life family, friends, colleagues and clients
• Need detailed background information • Do not need detailed background information
e.g. USA, Central and North European cultures e.g. Asian, Arabian, Mediterranean cultures
(Source: Hall & Hall 1990, pp. 6-10)

2. Hall‘s dimension ‘‘Space‘‘
‘‘[…] Each person has around him an invisible bubble of space which expands and contracts
depending on a number of things: the relationship to the people nearby, the person‘s
emotional state, cultural background, and the activity being performed. Few people are
allowed to penetrate this bit of mobile territory and then only for short periods of time. Changes
in the bubble brought about by cramped quarters or crowding cause people to feel
uncomfortable or aggressive.‘‘ (Hall & Hall 1990, p. 11).
Or in other words:
‘‘The concept of space, for instance, applies to cultural differences in terms of personal
distance and the way in which it is automatically applied in interactions with friends or business
partners.‘‘ (Layes, 2010, p. 56).

Depending on the culture,

people determine their
intimate, personal, social
and public space differently.
CC BY-SA 4.0
Source: https://commons.wikimedia.org/wiki/File:Personal_spaces.svg

Have a look at this video in order to get an insight into the meaning of personal space:
Which differences can you identify between various cultures?
https://www.youtube.com/watch?v=frQdjs9UaYA

2. Low personal distance vs. High personal
distance
Low personal distance cultures High personal distance cultures
• Smaller ‘‘bubbles‘‘ of personal space • Quite large ‘‘bubbles‘‘ of personal space

• People of low personal distance cultures do • People keep their distance, one does not
not keep their distance as people of high touch others
personal distance cultures do • Apologies if a person unintentionally brushes
another one
→ People of high personal distance cultures perceive a distance as intimate while people of low
personal distance cultures perceive the same distance as normal conversational distance.
e.g. Southern France, Italy, Greece, Spain e.g. Northern Europe, Americans of northern
Europe ancestry

3. Hall‘s dimension ‘‘Time‘‘
‘‘There are many kinds of time systems in the world, but two are most important to international business.
We call them monochronic and polychronic time. Monochronic time means paying attention to and doing
only one thing at a time. Polychronic time means being involved with many things at one. Like oil and water,
the two systems do not mix‘‘ (Hall & Hall 1990, p. 13).
Or in other words:
‘‘In monochronic cultures, time is experienced and used in a linear fashion, prescribing a consecutive order
in which specific activities occur. This orientation demands a high degree of self-management in terms of
planning and reliability on a personal level, as well as in managing public systems and structures, as in the
public transportation system for example. Accordingly, monochronic cultures tend to have a lower tolerance
threshold when it comes to changes in timing, scheduling and other interruptions. In contrast, polychronic
cultures span many different levels in pursuing their intended communicative action, any number of which
can occur simultaneously. This orientation requires a high degree of flexibility and consequently, individuals
from these cultures tend to have a high tolerance with respect to time/schedule overlaps and interruptions.‘‘
(Layes 2010, p. 56).

3. Hall‘s dimension ‘‘Time‘‘
Have a look at this video in order to get an insight into the meaning of personal space:
Typical German – Time is money
https://www.youtube.com/watch?v=iNP1xWk-8xk

3. Monochronic vs. Polychronic time cultures
Monochronic time cultures Polychronic time cultures
• Experience and use time in a linear way • Experience and use time in a simultaneous
• Time is divided into segments, it is scheduled way
and compartmentalized • Many things can occur at the same time
• People concentrate on one thing • Completing human transactions is more
• High priority of schedules important than sticking to the schedule
• Monochronic time perceived as tangible: ‘‘Time • Polychronic time perceived as much less
is money‘‘, can be ‘‘spent‘‘, ‘‘saved‘‘, ‘‘wasted‘‘ tangible as monochronic time
and ‘‘lost‘‘ • Time is flexible
• Interruptions and delays are not welcome
• Time factor in personal relationships:
intensifying some relationships while
shortchanging others
e.g. USA, Central and North European cultures e.g. Latin America, Mediterranean cultures
(particularly Germany, Switzerland, Scandinavia)

3. Monochronic & Polychronic people
Monochronic people Polychronic people
• Do one thing at a time • Do many things at one

• Concentrate on the job • Are highly distractible and subject to
interruptions
• Take time commitments (deadlines, schedules) • Consider time commitments an objective to be
seriously achieved, if possible
• Are low-context and need information • Are high-context and already have information
• Are committed to the job • Are committed to people and human
relationships
• Adhere religiously to plans • Chance plans often and easily
• Are concerned about not disturbing others; • Are more concerned with those who are
follow rules of privacy and consideration closely related (family, friends, close business
associates) than with privacy
• Show great respect for private property; • Borrow and lend things often and easily
seldom borrow or lend
• Emphasize promptness • Base promptness on the relationships
• Are accustomed to short-term relationships • Have strong tendency to build lifetime
relationships
(Source: Hall & Hall 1990, p. 15)

4. Hall‘s dimension ‘‘Information Flow‘‘
‘‘The rate of information flow is measured by how long it takes a message intended to produce
an action to travel from one part of an organization to another and for that message to release
the desired response. Cultural differences in information flow are often the greatest stumbling
blocks to international understanding. Every executive doing business in a foreign land should
know how information is handled – where it goes and whether it flows easily through a society
and the business organization, or whether it is restricted to narrow channels because of
compartmentalization.‘‘ (Hall & Hall 1990, p. 22).

4. Low Information Flow vs. High Information Flow
Low Information Flow cultures High Information Flow cultures
• Typical for low-context countries • Typical for high-context countries

• Information is highly focused, • Information spreads rapidly and ‘‘on its own‘‘
compartmentalized & controlled • Information flows freely due to a high level of
• Information does not flow freely interpersonal contact
• Lower level of interpersonal contact • People tend to stay in touch and keep up to
• Information is used for ‘‘command and date with each other
control‘‘ • People are confronted with a wealth of
• Power struggles or jealousies between information
executives can lead to a deliberate blocking of
information
e.g. USA, Germany, Switzerland e.g. France, Spain, Japan

(Alfonsus) Fons Trompenaars – Trompenaars‘s
model of national culture differences
• Dutch economist and consultant, born 1953
• Development of a model of national culture differences in the business context
• The model of national culture differences has seven dimensions
• Used as a framework for cross-cultural communication
See also: http://www2.thtconsulting.com/about/people/fons-

trompenaars/

Trompenaars‘s 7-Dimension of culture model
7. Temporal
Orientation
1. Universalism 6. People-
versus particularism Nature Orientation
Seven dimensions 5. Achievement

to distinguish versus ascription
cultures
2. Individualism
versus communitarianism
3. Neutral 4. Specific
versus affective versus diffuse

Trompenaars’s 7-Dimension model - Overview
Dimensions Relevant area of life

1. Universalism versus particularism
2. Individualism versus
communitarianism
3. Neutral versus affective Interaction of human beings with others
4. Specific versus diffuse

5. Achievement versus ascription
6. People-Nature/Environment Relationship of human beings to
Orientation nature/environment
7. Temporal Orientation Relationship of human beings to time
(Sources: Trompenaars & Hampden-Turner 2012, pp. 10-14; Layes 2010, pp. 56-58)

1. Trompenaars: ‘‘Universalism / Particularism‘‘
‘‘The universalist approach is roughly: ‘‘What is good and right can be defined and always
applies.‘‘ In particularist cultures far greater attention is given to the obligations of relationships
and unique circumstances. For example, instead of assuming that the one good way must
always be followed, the particularist reasoning is that friendship has special obligations and
hence may come first. Less attention is given to abstract social codes.‘‘ (Trompenaars &
Hampden-Turner 2012, p. 11)
Rules versus Relationships

Or in other words:
Universalism/Particularism ‘‘[…] shows to what extent universally valid laws and regulations
prevail in universalistic societies. Regulations are written for everyone and must be upheld,
even enforced, in a culture to structure human co-existence. In contrast, individuals in
particularistic societies are more focused on the nature of a given circumstance and are
reluctant to follow strict and predetermined rules.‘‘ (Layes 2010, p. 57)

1. Universalistic versus Particularistic cultures
Universalistic cultures Particularistic cultures
• Focus is more on rules than on relationships • Focus is more on relationships than on rules
• Legal contracts are readily drawn up • Legal contracts are readily modified
• A trustworthy person is one who honors his or • A trustworthy person is one who honors
her word or contract changing mutuality
• There is only one truth or reality, which has • There are several perspectives on reality
been agreed to relative to each participant
• A deal is a deal • Relationships evolve
Practical example: Practical example:
A pedestrian of an universalistic culture usually A pedestrian of a particularistic culture may cross
waits until the light turns green, even when there the light although it is still red as there is no car in
is no traffic and it would be quite easy to cross the view. He or she does not strictly follow the rules
street although the light is red. He or she strictly but adapts to the circumstances.
follows the rules no matter what the circumstances
are.
e.g. USA, Germany, Sweden, Switzerland e.g. China, Indonesia, South Korea
(Source: Trompenaars & Hampden-Turner 2012; pp.39-64)

2. Trompenaars: ‘‘Individualism/Communitarianism‘‘
‘‘Do people regard themselves primarily as individuals or primarily as part of a group?
Furthermore, is it important to focus on individuals so that they can contribute to the
community as and if they wish, or is it more important to consider the community first, since
that is shared by many individuals?‘‘ (Trompenaars & Hampden-Turner 2012, p. 11)
The individuals versus the group

Or in other words:
‘‘The individualist culture sees the individual as ‘the end‘ and improvements to communal
arrangements as the means to achieve it. The communitarian culture sees the group as its
end and improvements to individual capacities as a means to that end.‘‘ (Trompenaars &
Hampden-Turner 2012, p. 75)

2. Individualist versus Communitarian cultures
Individualist cultures Communitarian cultures
• More frequent use of the ‘‘I‘‘ form • More frequent use of the ‘‘we‘‘ form
• Decisions are made on the spot by • Decisions are referred back by delegate to the
representatives organization
• People ideally achieve alone and assume • People ideally achieve in groups, which
personal responsibility assume joint responsibility
• Vacations are taken in pairs, even alone • Vacations are taken in organized groups or
• Quick decision making and sudden offers with the extended family
which are not necessarily referred to the • Decision making takes time as communitarian
headquarters of the company when doing business practice emphasizes consensus and
business consultation
• The aim is to make a quick deal when doing
business • The aim is to build lasting relationships when
doing business
e.g. USA, Germany, Scandinavia, Netherlands, e.g. China, France, Japan, South Korea
Germany

3. Trompenaars: ‘‘Neutral / Affective‘‘
‘‘Should the nature of our interactions be objective and detached, or is expressing emotion acceptable? In
North America and northwest Europe business relationships are typically instrumental and all about
achieving objectives. The brain checks emotions because these are believed to confuse the issues. The
assumption is that we should resemble our machines in order to operate them more efficiently. But farther
south and in many other cultures, business is a human affair, and the whole gamut of emotions is deemed
appropriate. Loud laughter, banging your fist on the table, or leaving a conference room in anger during a
negotiation is all part of business.‘‘ (Trompenaars & Hampden-Turner 2012, pp. 11-12)
The degree to which feelings are expressed

Or in other words:
‘‘Members of cultures that are affectively neutral do not telegraph their feelings but instead keep them
carefully controlled and subdued. In contrast, in cultures high in affectivity people show their feelings plainly
by laughing, smiling, grimacing, scowling, and gesturing; they attempt to find immediate outlets for their
feelings.‘‘ (Trompenaars & Hampden-Turner 2012, p. 87)

3. Neutral versus Affective cultures
Neutral cultures Affective cultures
• People do not reveal what they are thinking or • People reveal thoughts and feelings verbally
feeling and nonverbally
• Tension may (accidentally) be revealed in the • Transparency and expressiveness release
face and posture tension
• Emotions often dammed up will occasionally • Emotions flow easily, effusively, vehemently,
explode and without inhibition
• Cool and self-possessed conduct is admired • Heated, vital, animated expressions are
admired
• If you are doing business with members of • If you are doing business with members of
neutral cultures, negotiations are typically affective cultures, negotiations are typically
focused on the object or proposition being focused on you personally, not so much on
discussed, not so much on you personally the object or proposition being discussed
e.g. Japan, Poland, Austria, China, New Zealand, e.g. Egypt, Spain, Saudi Arabia, Venezuela,
Sweden Philippines, Russia

4. Trompenaars: ‘‘Specific / Diffuse‘‘
‘‘When the whole person is involved in a business relationship, there is a real and personal
contact, instead of the specific relationship prescribed by a contract. In many countries a
diffuse relationship is not only preferred but also necessary before business can proceed.‘‘
(Trompenaars & Hampden-Turner 2012, pp. 12)
The degree of involvement

Or in other words:
‘‘In specific societies, where work and private life are sharply separated, managers are not at
all inclined to assist. […] Doing business with a culture more diffuse than our own feels
excessively time consuming. Some nations refuse to do business in a mental subdivision
called ‘‘commerce‘‘ or ‘‘work‘‘ that is kept apart from the rest of life. In diffuse cultures,
everything is connected to everything. Your business partner may wish to know where you
went to school, who your friends are, and what you think of life, politics, art, literature, and
music. This is not a waste of time, because such preferences reveal character and form
friendships. They also make deception nearly impossible.‘‘ (Trompenaars & Hampden-Turner
2012, p. 108)

4. Specific versus Diffuse cultures
Specific cultures Diffuse cultures
• Relationships are direct, to the point, and • Forms of relating are indirect, circuitous, and
purposeful seemingly ‘‘aimless‘‘
• People are precise, blunt, definitive, and • People are evasive, tactful, ambiguous, and
transparent even opaque
• Principles and consistent morality stand • Morality is highly situational and depends on
independent of the person being addressed the person and context encountered
Business behavior: Business behavior:

• Quick, to the point, efficient • Take time, digressions are accepted
• Structured meetings with agendas • Meetings flow
• Titles or skills of business partners which are • Titles, age and background connections of
irrelevant to the issue being discussed should business partners should always be respected,
not be used or acknowledged whatever issue is being discussed
• Confrontations are part of the business, they • Indirect and circuitous behavior instead of
are not personal confrontations
• Private and business agendas are kept • Private and business issues interpenetrate
separate from each other
e.g. Sweden, Netherlands, United Kingdom, e.g. China, Japan, Venezuela (South America)
Germany, Switzerland, USA
5. Trompenaars: ‘‘Achievement / Ascription‘‘
‘‘Achievement means that you are judged on what you have recently accomplished and on
your record. Ascription means that status is attributed to you by birth, kinship, gender, or age,
but also by your connections (the people you know) and your educational record (e.g., a
graduate of Tokyo University or Haute Ecole Polytechnique).‘‘ (Trompenaars & Hampden-
Turner 2012, pp. 12)
How status is accorded

Or in other words:
‘‘All societies give certain of their members higher status than others, signaling that unusual
attention should be focused on such people and their activities. While some societies accord
status to people on the basis of their achievements, others ascribe it to them by virtue of age,
class, gender, education, and so on. The first kind of status is called achieved status and the
second ascribed status. While achieved status refers to doing, ascribed status refers to being.‘‘
(Trompenaars & Hampden-Turner 2012, p. 125)

5. Achievement versus Ascriptive cultures
Achievement cultures Ascriptive cultures
• Use of titles only when relevant to the • Extensive use of titles, especially when thy
competence the person brings to the task clarify the person’s status in the organization
• Respect for superiors in the hierarchy is based • Respect for superiors in the hierarchy is seen
on how effectively they perform their jobs and as a measure of people's commitment to the
how adequate their expertise is organization and its mission
• Most senior managers are of varying age and • Most senior managers are male, middle-aged,
gender and have shown proficiency in specific and qualified by their background
jobs
• Negotiation team should have enough data, • Negotiation team should consist of enough
technical advisers and knowledgeable people older, senior officials as well as others with
to convince the other company that the project, formal titles
jointly pursued, will work • Respecting the status and influence of the
• Showing respect towards the business business counterpart
counterparts and their expertise
e.g. Great Britain, USA e.g. Japan, South Korea

6. Trompenaars: People-Nature Orientation
‘‘An important cultural difference can also be found in the attitude toward the environment.
Some cultures see the major focus affecting their lives and the origins of vice and virtue as
residing within the person. Here, motivations and values are derived from within. Other
cultures see the world as more powerful than individuals. They see nature as something to be
feared or emulated.‘‘ (Trompenaars & Hampden-Turner 2012, pp. 13)
Or in other words: How we relate to nature
‘‘Societies that conduct business have developed two major orientations toward nature. They
either believe that they can and should control nature by imposing their will on it, as in the
ancient biblical injunction ‘‘Multiply and subdue the earth,‘‘ or they believe that humans are part
of nature and must go along with its laws, directions and forces. The first of these orientations
we shall describe as inner-directed. This kind of culture tends to identify with mechanisms; that
is, the organization is conceived of as a machine that obeys the will of its operators. The
second, the outer-directed, tends to see an organization as itself a product of nature, owing its
development to the nutrients in its environment and to a favorable ecological balance.‘‘
(Trompenaars & Hampden-Turner 2012, p. 173-174)
6. People-Nature Orientation
Internal orientated cultures (inner-directed) External orientated cultures (outer-directed)
• People exhibit an often dominating attitude • People exhibit an often flexible attitude and are
bordering on aggressiveness toward the willing to compromise and kept the peace
environment • Harmony and responsiveness convey
• Conflict and resistance mean that you have sensibility
convictions • The focus is on the ‘‘other‘, such as the
• The focus is on self, function, one‘s own customer, partner, or colleague
group, and one‘s own organization • People are comfortable with waves, shifts, and
• People are uncomfortable when the cycles, if these are ‘‘natural‘‘
environment seems ‘‘out of control‘‘ or
changeable

• Playing ‘‘hardball‘‘ is legitimate to test the • Softness, persistence, politeness, and long,
resilience of an opponent long patience will get rewards
• It is most important to ‘‘win your objective‘‘ • It is most important to ‘‘maintain your
• Win some, lose some relationship‘‘
• Disagreements and conflicts are discussed • Win together, lose apart
openly; they show that everyone is determined • People need time and opportunity to quietly
work through conflicts, which are distressing
e.g. USA e.g. Japan, Indonesia
Part 1 | Understanding Culture | 2. Different cultural models (Source: Trompenaars & Hampden-Turner 2012; pp.173-191) 59
7. Trompenaars: Temporal Orientation
‘‘The way in which societies look at time also differs. In some societies what somebody has
achieved in the past is not that important. It is more important to know what the person has
developed for the future. In other societies you can make more of an impression with your past
accomplishments than those of today.[…]. In certain cultures […], time is perceived as passing
in a straight line, a sequence of disparate events. Other cultures think of time more as moving
in a circle, the past and present together with future possibilities.‘‘ (Trompenaars & Hampden-
Turner 2012, pp. 13)
How we manage time:
- Differences about the past, the present and future

- Sequential time versus synchronic time
- Time horizon (= duration of time thinking)
- Clock time versus event time
(Tromenaars & Hampden-Turner 2012, pp. 147)

7. Temporal Orientation – Past, present, future
Cultural differences about the past, the present and future
Focus on the present and future Focus on the past
Example: Example:
US-Americans generally start from zero; what The French have an enormous sense of the past
matters is their present performance and their plan and relatively less focus on the present and future
to ‘‘make it‘‘ in the future (‘‘ancien pauvre‘‘)
Note: There are also cultures which focus mainly

on the present or on the future
(Source: Trompenaars & Hampden-Turner 2012; p.13, pp. 150-151)

7. Temporal Orientation – Sequential vs.
synchronic
Sequential time Synchronic time
• Time is conceived of as a line of sequential • Time is conceived of as cyclical and repetitive,
events passing us at regular intervals. compressing past, present, and future by what
they have in common: season and rhythms
(Source: Trompenaars & Hampden-Turner 2012; pp.151)

Exercise:
You are preparing for a business trip to Chile where you will need to interact extensively with local
professionals. Therefore, you should consider collecting information regarding local culture and
business habits prior to your departure.
A colleague from Latin America recommends you to visit the "Centre for Intercultural Learning“ at
https://www.international.gc.ca/cil-cai/country_insights-apercus_pays/ci-ic_cl.aspx?lang=eng
and read through the country insights provided for Chile.
Prepare a short description of the most striking cultural characteristics that may affect business
interactions in this country.

Shalom H. Schwartz– Schwartz Theory of Basic
Values
• US / Israeli sociologist, born 1940
• Development of a model of seven basic cultural value orientations that form three
cultural value dimensions
• Installed the Schwartz Value Survey and the Portrait Values Questionnaire to
empirically measure values and to validate his model
9.Edward_T_Hall

Shalom H. Schwartz– Schwartz Theory of Basic
Values
• Seven basic cultural value orientations

and three cultural value dimensions
• Embeddedness vs. Autonomy
• Hierarchy vs. Egalitarianism
• Mastery vs. Harmony
9.Edward_T_Hall
Source: Schwartz 2006

1. Autonomy versus Embeddedness
The first issue is the nature of the relation or the boundaries between the person and the group: To what
extent are people autonomous vs. embedded in their groups?
• In autonomy cultures, people are viewed as autonomous, bounded entities. They should cultivate and
express their own preferences, feelings, ideas, and abilities, and find meaning in their own uniqueness.
• There are two types of autonomy: Intellectual autonomy encourages individuals to pursue their own
ideas and intellectual directions independently. Examples of important values in such cultures include
broadmindedness, curiosity, and creativity. Affective autonomy encourages individuals to pursue
affectively positive experience for themselves. Important values include pleasure, exciting life, and varied
life.
• In cultures with an emphasis on embeddedness, people are viewed as entities embedded in the
collectivity. Meaning in life comes largely through social relationships, through identifying with the group,
participating in its shared way of life, and striving toward its shared goals. Embedded cultures emphasize
maintaining the status quo and restraining actions that might disrupt in-group solidarity or the traditional
order. Important values in such cultures are social order, respect for tradition, security, obedience, and
wisdom.

2. Hierarchy versus Egalitarianism
The second societal problem is to guarantee that people behave in a responsible manner that preserves the
social fabric. That is, people must engage in the productive work necessary to maintain society rather than
compete destructively or withhold their efforts.
• The polar solution labeled cultural egalitarianism seeks to induce people to recognize one another as
moral equals who share basic interests as human beings. People are socialized to internalize a
commitment to cooperate and to feel concern for everyone’s welfare. They are expected to act for the
benefit of others as a matter of choice. Important values in such cultures include equality, social justice,
responsibility, help, and honesty.
• The polar alternative labeled cultural hierarchy relies on hierarchical systems of ascribed roles to insure
responsible, productive behavior. It defines the unequal distribution of power, roles, and resources as
legitimate. People are socialized to take the hierarchical distribution of roles for granted and to comply
with the obligations and rules attached to their roles. Values like social power, authority, humility, and
wealth are highly important in hierarchical cultures.

3. Harmony versus Mastery
The third societal problem is to regulate how people manage their relations to the natural and
social world.
• The cultural response to this problem labeled harmony emphasizes fitting into the world as
it is, trying to understand and appreciate rather than to change, direct, or to exploit.
Important values in harmony cultures include world at peace, unity with nature, and
protecting the environment.
• Mastery is the polar cultural response to this problem. It encourages active self-assertion
in order to master, direct, and change the natural and social environment to attain group or
personal goals. Values such as ambition, success, daring, and competence are especially
important in mastery cultures.

The GLOBE Study
• The GLOBE (Global Leadership and Organizational Behavior Effectiveness)

research program was founded by Robert House in 1991
• An international study of cultural, leadership and organizational practices
• Within this research program, up to now three surveys (2004, 2007, 2014) on
managers worldwide where conducted
• The study 2004 identified nine dimensions of culture
Source: https://globeproject.com/study_2004_2007#societa
and House, et al., 2004 l

The GLOBE Study - Nine dimensions of culture
1. Performance Orientation: The degree to which a collective encourages and rewards (and
should encourage and reward) group members for performance improvement and
excellence.
2. Assertiveness: The degree to which individuals are (and should be) assertive,
confrontational, and aggressive in their relationship with others.
3. Future Orientation: The extent to which individuals engage (and should engage) in
future-oriented behaviors such as planning, investing in the future, and delaying
gratification.
Source: https://globeproject.com/study_2004_2007#societa
and House, et al., 2004 l

4. Humane Orientation: The degree to which a collective encourages and rewards (and
should encourage and reward) individuals for being fair, altruistic, generous, caring, and
kind to others.
5. Institutional Collectivism: The degree to which organizational and societal institutional

practices encourage and reward (and should encourage and reward) collective distribution
of resources and collective action.
6. In-Group Collectivism: The degree to which individuals express (and should express)
pride, loyalty, and cohesiveness in their organizations or families.
Source: https://globeproject.com/study_2004_2007#societal
and House, et al., 2004

7. Gender Egalitarianism: The degree to which a collective minimizes (and should
minimize) gender inequality.
8. Power Distance: The extent to which the community accepts and endorses authority,
power differences, and status privileges.
7. Uncertainty Avoidance: The extent to which a society, organization, or group relies (and
should rely) on social norms, rules, and procedures to alleviate unpredictability of future
events. The greater the desire to avoid uncertainty, the more people seek orderliness,
consistency, structure, formal procedures, and laws to cover situations in their daily lives.
Source: https://globeproject.com/study_2004_2007#societal
and House, et al., 2004

The GLOBE Study
• Go to https://globeproject.com/results!
• Check the study's results for your home country and the country of your international
experience!
• Would you have expected the results? Why/why not?
• To which culture group does your country/ country of your international experience
• belong to?
• Compare the results of both countries!

Data on culture: Trying the measure culture and
cultural changes
The World Values Survey (WVS):
• The WVS is the largest non-commercial, cross-national, time series investigation of human beliefs and
values ever executed, currently including interviews with almost 400,000 respondents
• The survey, which started in 1981, consists of nationally representative surveys conducted in almost 100
countries, which contain almost 90 percent of the world’s population, using a common questionnaire.
• The most recent questionnaire is structured along 14 thematic sub-sections measuring for example
cultural values, attitudes and beliefs towards gender, family, and religion, attitudes and experience of
poverty, education, health, and security, social tolerance and trust, attitudes towards multilateral
institutions, cultural differences and similarities between regions and societies.
• These data have also been widely used by government officials, journalists and students, and groups at
the World Bank have analyzed the linkages between cultural factors and economic development.
Source: http://www.worldvaluessurvey.org/WVSOnline.jsp/

cultural changes
The World Values Survey (WVS):
• Go to the webpage of the World Values Survey at http://www.worldvaluessurvey.org/wvs.jsp

• Go to Data & Documentation
• Got to Online Data Analysis
• Select the 2010-2014 wave of the World values survey
• Select your country or a country of your choice
• Select questions which come from the sociologist Shalom Schwartz:
• Select the question: V74.- Schwartz: It is important to this person to do something for the good of
society
• Select the question: V70.- Schwartz: It is important to this person to think up new ideas and be
creative; to do things one’s own way
• Compare the countries:
• Have a look at the results of your country (responses) and of the rest of the world (see maps)
• Would you have expected the outcome?

cultural changes
World Values Survey
Wave 6, 2010-2014:
Question V70:
It is important to this
person to think up new
ideas and be creative; to
do things one’s own way.
cultural changes
World Values Survey
Wave 6, 2010-2014:
Question V74:
It is important to this
person to do something
for the good of society.

Additional material: Cultural Change
• Is culture constant?
• Does it evolve over time?
• Possible causes for cultural change are/may be: globalization, economic progress (?)
• Read the paper:

Ronald Inglehart; Wayne E Baker, Modernization, cultural change, and the persistence of
traditional values, American Sociological Review; Feb 2000; 65, 1.
• The paper analyses cultural change by using data form the World values survey (WVS)
• What does the paper say about cultural change?


Part 1 | Understanding Culture | 3. Determinants of culture 1

Required readings:
Required readings:
• Charles W. L. Hill and G. Tomas M. Hult, Global Business Today, McGraw-Hill Education,
7ed, pages 68-87 and 122-141.
Hill, C.W.L. and Hernández-Requejo, W., (2011) Global Business Today:

The book is a comprehensive work covering all areas of international management including
international economics.
About the authors: Charles W. L. Hill is the Hughes M. and Katherine Blake Professor of
Strategy and International Business at the Foster School of Business, University of
Washington, G. Tomas M. Hult is the John W. Byington Endowed Chair, professor of marketing
and international business, and director of the International Business Center in the Eli Broad
College of Business at Michigan State University.

3. The determinants of culture
Determinants of culture are factors that influence, determine our

culture
• Political system
• Economic system
• Legal system
• Social system
• Religious and Ethical system
• Language
• Education
The determinants of culture
Political system Economic system

Legal system
The determinants Education

Social structure of culture
Religion Language
Source: Hill and Hernández-Requejo, p.122

The determinants of culture: Political system
 By political system it is meant the system of government in a nation
 Political systems can be assessed according to two dimensions:
Political system
Collectivism vs. Democratic vs.

individualism totalitarian system
• Collectivism vs. individualism represents more the general philosophy

• Democratic vs. totalitarian system more the actual reality
• The two dimensions are interrelated: systems that emphasize collectivism
tend to be totalitarian, systems that emphasize individualism tend to be
democratic.
Source: Hill and Hernández-Requejo, pp.71-77

The political system
• Please read Hill and Hernández-Requejo, Global Business Today - Seventh edition pp. 71-77
• How would you distinguish collectivism over individualism?
• How would you distinguish democracy over totalitarianism?
• Can you give country examples?
Collectivism Individualism
• xxx • xxx
• xxx • xxx
Democracy Totalitarianism
• xxx • xxx
• xxx • xxx

The political system: Collectivism vs. Individualism
Collectivism Individualism
• Collective goals stand over individual • An individual should have the
goals freedom in his or her economic/
• The needs of a society are viewed as political pursuits
being more important than individual • Individualism stresses that the
needs interests of the individual should take
• An individual's right to do something priority over the interests of the state
may be restricted on the grounds that • Dates back to the Greek philosopher
it runs counter to "the good of Aristotle, who argued that individual
society" or to "the common good” diversity and private ownership are
• Dates back to the Greek philosopher desirable
Plato, who argued that individual • The concept of individualism was
rights should be sacrificed for the refined in the 18th/19th century by
good of the majority and that British economists/philosophers like
property should be owned in David Hume, Adam Smith, John S.
common Mil
Individualism and concepts in economics
• Individualism as a key concept to classical economists
• Dominant economic and political view in “protestant trading nations” like England and
Netherland during the 16th century
• Early economists: D. Hume (1711-1776), A. Smith (1723-1790), J.S. Mill (1806-1873)
•  “welfare of a society is best served by letting people pursue their own economic self-
interest”
• Advocacy for free markets
• Concept of the “invisible hand”, meaning that free markets have self-regulating forces and
will reach the optimal welfare, state interventions and ownership should be reduced to a
minimum (A. Smith)
• 20th century economists favoring individualism: F. v. Hayek (1899-1992), M. Friedmann
(1912-2006), J. Buchanan (1919-2013)

The political system: Democracy vs.
Totalitarianism
Democracy Totalitarianism
• Government is by the people, either • Form of government in which one person
directly or through elected representatives or political party exercises absolute
• The pure form of democracy, as originally control over all spheres of human life
practiced by several city-states in ancient • Prohibition of opposing political parties
Greece, is based on a belief that citizens • Misses the right of freedom of expression
should be directly involved in decision and organization
making • No free media, censored by the
• Most modem democratic states practice government
representative democracy • Usually no regular or/and free and fair
• In a representative democracy, citizens elections
periodically elect individuals to represent • No fair court system
them

Attributes necessary for democratic systems
• Regular, free and fair elections

• Right to freedom of expression, opinion and organization
• A free media
• Limited terms for elected representatives
• A fair and independent court system
• Nonpolitical state bureaucracy
• A nonpolitical police and armed services
• Relatively free access to state information

The determinants of culture: Economic system
• Watch the video https://www.youtube.com/watch?v=5xgwYRX19VU
Three types of economic systems:
• What kind of economic systems can you detect?
• What are the differences of these systems?
Economic systems
?????

Criteria to distinguish the different forms of economic systems:
• Ownership of productive activities

 Privately owned vs. owned by the government
• Determination of production
 By supply and demand vs. by government control
• Determination of prices
 By supply and demand vs. by government control
• Role of the government

 Actively involved in economic issues vs. just giving the structure and rules

Economic systems
Market economy Command economy
Mixed economy
Traditional economy Basically in ancient times

Market Economy Command Economy Mixed Economy
• All productive • All productive • Certain sectors of the
activities/businesses are activities/businesses are economy are left to
privately owned state owned private ownership and
• Production and the price • The government plans the free market mechanisms
system is determined by goods and services that a • Other sectors have
the interaction of supply country produces, the significant state
and demand quantity in which they are ownership and
• The role of government is produced, and the prices government planning
to encourage vigorous at which they are sold • Certain degree of industry
free and fair competition regulation
between private
producers and to prevent
monopolies
Source: Hill and Hernández-Requejo, pp.77-

79
• Discuss with your fellow students or friends: To which economic system would you categorize the
following states:
• Germany, France, Brazil, China, North Korea, Thailand, …… (or choose a country of your
choice)
• Do you get the same results?
Economic systems
Market economy Command economy
Mixed economy

The determinants of culture: Legal system
 The legal system of a country refers to the rules, or laws, that regulate behavior along
with the processes by which the laws are enforced and through which redress for grievances
is obtained
Legal system Can be based on….
Common law Civil law Theoretic law

87

Legal system
Common law Civil law Theoretic law
• Based on tradition, • Based on a detailed set of • Based on religious

precedent and custom laws organized into codes teaching
• Larger flexibility of • Less flexibility in • Mainly concerned with
interpreting the law interpreting the law moral behavior
• Judges have the power to • Judges have the power • Examples: Islamic law
“interpret” the law only to “apply” the law and until twentieth century
• Examples: Great Britain • In more than 80 countries Hindu and Jewish law
und USA (Japan, France, Germany)

87

The economic system is implemented through a conductive legal code.
Crucial determinants of the legal system in the business environment
are:
• Property rights and level of corruption
• Protection of the intellectual property
• Product safety and liability
• Contract law

87

Property rights and level of corruption
• Property rights:
The extent to which a country’s legal framework allows individuals to
accumulate private property freely, secured by clear laws that the government enforces
effectively
• Corruption:
Dishonest or fraudulent conduct by those in power, typically involving bribery.
Example: Demanding bribes from businesses in return for the rights to
operate in a country.

87

Different levels of corruption worldwide
The Corruption Perceptions Index 2017 by Transparency International
Source: www.transparency.org/cpi
This work from Transparency International (2019) is licensed under CC BY-ND 4.0
Check the full data set on

https://www.transparency.org/cpi2018
Protection of the intellectual property:
• Intellectual property are “creations of the mind” like computer software, literary
and artistic works, designs, symbols, names, chemical formula,..
• The ownership rights of these inventions can be protected by patents,
copyrights and trademarks
• Countries differ in the extent to which this kind of property is protected, hence it
is crucial for the economic prosperity and the creation of new enterprises
• International Organizations formed in order to enforce intellectual property
(World Intellectual Property Organization, Paris Convention of Industrial
Property)

87

Intellectual Property Protection
The Global Competitiveness Report by the The

World Economic Forum, 2018
Sub indicator: Intellectual Property Protection
Question asked:
In your country, to what extent is
intellectual property protected?
[1 = not at all; 7 = to a great extent]
See results for the different countries at:
http://reports.weforum.org/global-competitiveness-
index-2017-2018/competitiveness-
rankings/#series=EOSQ052

The Economic Freedom Index
The Economic Freedom Index by The Heritage Foundation
It is a measure of the economic freedom in a country based on 12 quantitative and qualitative

factors, grouped into four broad categories of economic freedom:
• Rule of Law (property rights, government integrity, judicial effectiveness)

• Government Size (government spending, tax burden, fiscal health)
• Regulatory Efficiency (business freedom, labor freedom, monetary freedom)
• Open Markets (trade freedom, investment freedom, financial freedom)
Each of the twelve economic freedoms within these categories is graded on a scale of 0 to
100. A country’s overall score is derived by averaging these twelve economic freedoms, with
equal weight being given to each.
According to The Heritage Foundation, there is a positive relationship between the economic
freedom and economic progress, healthier societies, cleaner environments, greater per capita
wealth, human development, democracy, and poverty elimination.


For detailed scores of each country worldwide go to

https://www.heritage.org/index/download and download
the raw data!

The determinants of culture: Social system
 Social system = basic social organization of a society
 Social system can be assessed according to two dimensions:
Social system
Individuals vs. Degree of Social

Groups Stratification

128

The social system: Individuals vs. Groups
Focus on the Individual Focus on the Group
• Emphasis of individual achievement • Important for the social standing is the
• Predominant in Western Societies and group, to which one individual belongs to
especially in the USA • Less emphasis on the individual
• High value of entrepreneurship as an performance
expression of high individualism • Strong identification with groups and the
• High managerial mobility and less loyalty firm an individual is working for
to one firm (=group) • Less managerial mobility, more life-time
• Less team work and cooperation employment
surveyed than in more group related • But less dynamism and entrepreneurship
societies recognized

128

The social system: Degree of social stratification
Social stratification
Degree of Social Degree of

Mobility Significance
• Extent to which individuals can move • Degree of how significant the division in
from one class to another classes effects society
• In a class system, an individual usually • Degree of how strong the impact is for
can change her position in the society example on business operations and
• Societies differ in how easy the change business daily-life
is (Britain more rigid than USA) • In Britain for example the division into
• Indian caste system as an example of a classes effects business life in contrast
system with no social mobility* to the USA

*Though it is officially abolished 128

The social system: Degree of social mobility
• Watch the video: https://www.youtube.com/watch?v=5QWmi3WRT6o
• How would you describe the degree of social mobility in your home country compared to that
in Great Britain?

The determinants of culture: Religious and Ethical
Systems
Source: https://www.independent.co.uk/news/world/what-are-the-largest-religious-groups-around-the-world-and-where-are-they-
a6982706.html139

The determinants of culture: Language and
Education
Language Education
• Formal education plays a

key role in a society
Spoken language Unspoken language • It is the medium through
which individuals learn the
• Countries with more than • Nonverbal communication skills that are seen as
one language often have • Often different meanings in indispensable in a society
more than one culture different cultures/countries
• Sometimes field of inner- • Examples are: gestures
country tensions and personal space

141


Part 1 | Understanding Culture | 4. The international economic environment 1

Readings and Literature
Required readings:
• Charles W. L. Hill and G. Tomas M. Hult, Global Business Today, McGraw-Hill Education, 7ed, pages 87 – 98 and 154 –
185.
• Deresky, H., (2016) International Management: Managing Across Borders and Cultures, pp. 62 - 80
Further literature:
• Acemoglu, D., Johnson, S. and Robinson, J.A. (2001) The Colonial Origins of Comparative Development: An Empirical
Investigation. American Economic Review 91(5): 1369-401.
• Acemoglu, D., Johnson, S. and Robinson, J.A. (2005) “Institutions as a Fundamental Cause of Long-Run Growth.”
Handbook of Economic Growth 1A: 386-472.
• Hall, R.E. and Jones, C.I. (1999) Why do some countries produce so much more output per worker than others? Quarterly
Journal of Economics 114 (1): 83.
• North, D.C. (1991) Institutions. Journal of Economic Perspectives 5(1): 640–655.
• North, D.C. (1994) Economic performance through time. American Economic Review 84(3): 359–368.
• La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. W. (1999) The Quality of Government. Journal of Law,
Economics, and Organization 15(1): 222-79.

• National differences in the economic development
• Ethics and responsibility in the international context

National differences in the economic development
 Several studies indicate a linkage between the discussed determinants of culture like the
political, economic and juridical system and the economic development of one country
 The following indicators can measure the economic standing and development of a
country:
• Gross Domestic Product (GDP)
• GDP Growth
• Gross Domestic Product per Capita (GDP/C) or Gross National Income per Capita (GNI/C)
• Gini Coefficient
• Human Development Index (HDI)
See also: Hill and Hernández-Requejo, pp.87

ff.

The Gross Domestic Product (GDP)
= The sum of gross value added by all resident

producers in the economy
 Gives the value of all produced products and

services by resident producers in one country and
within one year
But: Doesn’t say anything about how rich a country is,

nor about a country’s economic development
 GDP growth gives the annual change in GDP and

therefore information about the economic development
Source: World Bank Open Data, https://data.worldbank.org/

The Gross Domestic Product (GDP) per Capita and Gross
National Income (GNI) per Capita:
• GDP/Capita: The sum of gross value added by all

resident producers in the economy divided by the
population
• GNI/Capita: Gives the total annual income received by
residents of a country divided by the population (GNI =
GDP + Net receipts of income from abroad)
• Can measure the richness and the living standard of a
country/economy and can be used to compare different
countries and different years
• But: Doesn’t say anything about how equal or unequal
the wealth is distributed

The Gross Domestic Product (GDP) per Capita worldwide

The Gross Domestic Product (GDP) per Capita worldwide
By looking at the map on the previous slide, please try to answer the following questions:
• Which countries would you describe as being the most poorest according to the map?
• Which countries would you describe as being among the richest in the world?
• Which areas in the world are among the poorest and among the richest in the world?

The Gini Coefficient - measuring economic inequality
• A measure of inequality of any quantity such as income or wealth, varying from a value of
zero (if there is no inequality) to one (if a single individual receives all of it)
• If everyone has the same income, so that there is no income inequality, the Gini coefficient
takes a value of 0. If a single individual receives all the income, the Gini coefficient takes
its maximum value of 1.
• The Gini coefficient is defined as: 𝑔𝑔= half the relative mean difference in income among all
pairs of individuals in the population
Source: The Economy, Unit 5.12 Measuring

economic inequality, https://core-econ.org/the-
economy/
Please read The Economy, Unit 5.12 Measuring economic inequality at https://core-
econ.org/the-economy/book/text/05.html#512-measuring-economic-inequality

The Human development Index (HDI) by the United Nation Development Programme:
„A composite index measuring average achievement in three basic dimensions of human

development—a long and healthy life, knowledge and a decent standard of living.” Based on
the ideas of the economist A. Sen, who argued that the concept of development should be
broadened to include more than just economic development.
Source: United Nations Development Programme, Human Development Index.
See also: Hill and Hernández-Requejo, p. 91.

The Human development Index
Source: DICE Database (2015), "Human Development Index, 1980 - 2013", ifo Institute, Munich, online available at http://www.cesifo-
group.de/DICE/fb/45TQj9pWJ
Studies on culture and economic development I
• North (1991, 1994) sees institutions as the “underlying determinants of economic
performance”. He differentiates between formal institutions (political, economic, juridical
system) and informal institutions (customs, traditions, code of conducts) which he calls
“culture”
• Other studies confirm that these institutions are crucial for the economic development, see
for example: Acemoglu et al. (2001), (2005) and Hall and Jones (1999)
• Legal system: La Porta et al. (1999) analyze the effect of different legal systems (civil law
vs. common law) and find out that countries with common law derive more efficient
institutions which are important for economic growth

Studies on culture and economic development II
• Hall and Jones (1999) also analyzed the effect of language on the formation of “social
infrastructure” and on productivity. They used as an explanatory variable the fractions of the
population speaking English and a European language and found a positive correlation
• Religion was the body of several studies, trying to answer the question which religion
(mainly focusing on Protestantism, Catholicism and Islam) serves best for economic
growth. Early studies see Protestantism closely linked to economic prosperity (see Weber’s
work The Protestant Ethic and the Spirit of Capitalism), more recent studies also see
catholic countries delayed in their economic development compares to protestant countries
(Landes 1998, Grier 1997). Concerning Muslim countries different studies come to different
conclusions (see for example Landes 1998, Gier 1997 and in contrast Sala-i-Martin et al.
2004 and Noland 2005)

Studies on culture and economic development III
Cited literature:
• Acemoglu, D., Johnson, S. and Robinson, J.A. (2001) The Colonial Origins of Comparative Development: An Empirical
Investigation. American Economic Review 91(5): 1369-401.
• Acemoglu, D., Johnson, S. and Robinson, J.A. (2005) “Institutions as a Fundamental Cause of Long-Run Growth.”
Handbook of Economic Growth 1A: 386-472.
• Grier, R. M. (1997) The Effects of Religion on Economic Development: A Cross National Study of 63 Former Colonies.
Kyklos 50: 47-62.
• Hall, R.E. and Jones, C.I. (1999) Why do some countries produce so much more output per worker than others? Quarterly
Journal of Economics 114 (1): 83.
• North, D.C. (1991) Institutions. Journal of Economic Perspectives 5(1): 640–655.
• North, D.C. (1994) Economic performance through time. American Economic Review 84(3): 359–368.
• Landes, D. (1998) The Wealth and Poverty of Nations Why some are so rich and some so poor. New York: W.W. Norton &
Co.
• La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. W. (1999) The Quality of Government. Journal of Law,
Economics, and Organization 15(1): 222-79.
• Sala-i-Martin, X., Doppelhofer, G. and Miller R. I. (2004) Determinants of Long-Term Growth: A Bayesian Averaging of
Classical Estimates (BACE) Approach. American Economic Review 94(4): 813-35.
• Weber, M. (1930). The Protestant Ethic and the Spirit of Capitalism, London, Allen & Unwin.

Ethics and Responsibility in the international
business context
• Please read the chapter 4 on ethics in Hill and Hernández-Requejo, Global Business Today - Seventh
edition, pp. 155-169.
• Read also carefully the opening case, the management focuses and the closing case
• Please think about the readings and try to answer the following questions:
• Why do companies outsource their production to other countries?
• In your opinion, under which conditions would it be not defensible or ethical to outsource
production to other countries where labor costs are lower?
• xxx
• xxx
• xxx

business context
What are Business ethics?
• Ethics: The term ethics refers to accepted principles of right or wrong that govern the
conduct of a person, the members of a profession, or the actions of an organization
• Business ethics: Business ethics are the accepted principles of right or wrong governing
the conduct of businesspeople.
• Ethical strategy: An ethical strategy is a strategy, or course of action, that does not violate
these accepted principles.
• In the international business setting, the most common ethical issues involve employment
practices, human rights, environmental regulations, corruption, and the moral obligation of
multinational corporations.
Source: Hill and Hernández-Requejo, pp.155ff.

business context: CSR and Code of conduct
Corporate social responsibility (CSR):
• Reflects the awareness of a corporate responsibility towards society, including social,
environmental and economic issues
Code of conduct:
• Guidelines how to behave to ensure that business ethics and the corporate social
responsibility is being lived within an organization
• The Organization for Economic Cooperation and Development (OECD) publishes

the so called Guidelines for Multinational Enterprises, these guidelines include a set
of voluntary principles and standards for responsible business conduct, including
employment practices, human rights and environmental pollution

Ethical issues: Employment practices
• Countries across the world differ significantly in their labor legislation and working
standards
• If working conditions in a host country are clearly inferior to those in a firm’s home nation,
what standards should be applied? How much divergence is acceptable?
• Common issues of concern:

• Working hours
• Salary
• Work safety
• Child work
• Forced or compulsory labor
• Missing worker representation bodies, trade unions,…
 Example: 12-hour workdays, extremely low pay and exposure to chemicals…
See also: Hill and Hernández-Requejo, pp.155

ff.

Ethical issues: Employment practices
• The Organization for Economic Cooperation and Development (OECD) publishes the so
called Guidelines for Multinational Enterprises
• These guidelines include a set of voluntary principles and standards for responsible
business conduct, including employment practices
• Please download the OECD Guidelines for Multinational Enterprises

http://mneguidelines.oecd.org/guidelines/
(English version: http://www.oecd.org/daf/inv/mne/48004323.pdf)
• Please read the pages 35 – 37 on Employment and Industrial Relations (Part I, Chapter V).
• What can you identify to be important issues in the area of employment practices to ensure ethical
business behavior?
• xxx
• xxx
• xxx

Ethical issues: Human rights
• Basic human rights happen not to be respected all across the world
• What Are Human Rights?

“Human rights are rights inherent to all human beings, regardless of race, sex, nationality,
ethnicity, language, religion, or any other status. Human rights include the right to life and
liberty, freedom from slavery and torture, freedom of opinion and expression, the right to
work and education, and many more. Everyone is entitled to these rights, without
discrimination.” (United Nations, http://www.un.org/en/sections/issues-depth/human-
rights/)
• These include also human rights like for example: Freedom of…
 speech, association, assembly, movement and
 freedom from political repression
Please read, watch and listen to: The United Nations (UN) on Human Rights:
• http://www.un.org/en/sections/issues-depth/human-rights/
• http://www.un.org/en/events/humanrightsday/
See also: Hill and Hernández-Requejo, Global

Part 1 | Understanding Culture | 4. The international economic environment Business Today - Seventh edition, pp.155ff. 20
Ethical issues: Human rights
business conduct, including human rights

• Please read the page 31 on Human rights (Part I, Chapter IV).
• What can you identify to be important issues in the area of human rights to ensure ethical business
behavior?
• xxx
• xxx
• xxx

Ethical issues: Environmental pollution
• Not all countries have the same strict regulations governing environmental pollutions
• That can include environmental issues like

 Emission of pollutants
 Dumping of toxic chemicals
 Dumping of waste (e.g. plastics)
 Polluting the water (rivers, the sea, ocean)
• Pollution can effect the living conditions in a country, but also worldwide
Please read: The United Nations (UN) on Water, Climate Change and Oceans and the Law of the
Sea:
• http://www.un.org/en/sections/issues-depth/water/index.html
• http://www.un.org/en/sections/issues-depth/climate-change/index.html
• http://www.un.org/en/sections/issues-depth/oceans-and-law-sea/index.html
See also: Hill and Hernández-Requejo, Global

Part 1 | Understanding Culture | 4. The international economic environment Business Today - Seventh edition, pp.155ff. 22
Ethical issues: Environmental pollution
business conduct, including environment

• Please read the page 42-44 on environment (Part I, Chapter VI).
• What can you identify to be important issues in the area of environment to ensure ethical business
behavior?
• xxx
• xxx
• xxx

Ethical issues in the business context
• Please read the article from the Economist on McDonald’s and business ethics (see in literature section
of moodle)
• What can you identify to be important issues in the area of business ethics according to this article?
• xxx
• xxx
• xxx

context: Roots of unethical behavior
Decision making
processes
Personal ethics Leadership
Un-/Ethical
behavior
Unrealistic
performance
expectations
Organization
culture
Source: Hill and Hernández-Requejo, pp. 167-

169.

context: Philosophical approaches to ethics
Cultural Relativism
Friedman Doctrine
Utilitarian and
Kantian Ethics
The Righteous
Moralist
„Straw men“
The Naive
Immoralist Philosophical
approaches to ethics
Rights Theories
Justice Theories
Source: Hill and Hernández-Requejo, pp. 169-

176.

context: Philosophical approaches to ethics
Please read Hill and Hernández-Requejo, Global Business Today - Seventh edition, pp. 169-175.
1. Summarize the most important ideas of the different philosophical approaches to ethics and try to find
the most important differences
• „Straw men“: Friedman Doctrine, Cultural Relativism, The Righteous Moralist, The
Naive Moralist
• Justice Theories
• Utilitarian and Kantian Ethics
• Rights theories
2. What do you think about the „Straw men“ approaches? Discuss!

2. Intercultural Communication
2.1. Introduction and Definitions
Part 2: Intercultural Communication 2.1. Introduction and Definitions 1

Required Readings: Details
McQuail, Denis; Windahl, Sven (1993): Communication Models. For the study of mass communications.
Presents the main existing models of the mass communications process which have been developed during the last thirty years,
providing brief descriptions of the most significant concepts and ideas in the study of mass communication, using graphic and verbal
models.
Thomas, Alexander; Kinast, Eva-Ulrike; Schroll-Machl, Sylia (Hg.) (2010): Handbook of Intercultural Communication and Cooper.
Basics and Areas of Application : Volume 1: Basics and Areas of Application.
Intercultural competence and collaboration with individuals from diverse national origins are today important skills. This handbook
comprehends an overall strategic concept for interculturality in corporations. The ability to communicate with people from diverse
cultural backgrounds is becoming increasingly important. Many employers consider intercultural competence to be a key criterion for
selecting qualified candidates. The authors discuss practical approaches for intercultural trainings, methodology, and evaluation
procedures based on current research. They explore the intercultural factor within corporations particularly as it relates to human
resource development, negotiating, dealing with conflict, and project management. Thoughts on developing an overall strategy for
interculturality round off this handbook.
About the author: Alexander Thomas (* 4. November 1939 in Cologne) is a German emeritus university professor with a research focus
on intercultural psychology.

Outline
1. The definition of communication

2. The definition of intercultural
3. The origin of the Intercultural Communication
4. The importance of Intercultural Communication
5. Good communicator

• Already 1977 over 170 definitions of communication existed

• Here are some examples: Communication is …
• … “The transmission of information , ideas, attitudes, or emotion from one person or group to another (or others) primarily through symbols” (Theodorson
& Theodorson, 1969)
• … “In the most general sense, we have communication wherever one system, a source, influences another, the destination, by manipulation of alternative
symbols, which can be transmitted over the channel connecting them” (Osgood et al., 1957)
• … “Communication may be defined as “Social inaction through messages” (Gerbner, 1967)
Source: Broszinsky-Schwabe, 2017, pp. 30

• As a generally accepted distinction, a wide and a narrow communication concept are enforced:
• Wide communication concept: communication between living organism, technical systems and/ or machines and humans (f. e. human – PC)
• Narrow communication concept: communication between humans and it is based on common goals
• Communication can be any or all of the following:
• An action on others
• An interaction with others
• A reaction to others
Source: Broszinsky-Schwabe, 2017, pp. 31; McQuail and Windahl, 1982

Activity 1: The following Figure 1 shows a common model of communication. Please try to fill in the missing words in the empty boxes. Please try to explain the meaning
behind the terms.
Noise
c c
o o
n n
Receiver
t Encoding Receiver t
e Response e
x x
t Feedback t

Communication can be defined as the exchange of meaning. This involves the sending and receiving of information between a sender and a receiver. It happens not
only through the use of words, but also through non-verbal factors like gestures and facial expressions. The message received can be very different from the message
that was sent.
Figure 1: Model for Communication
Noise
c c
o o
n Receiver n
t Source Encoding Message Channel Receiver Decoding t
Response
e e
x x
t Feedback t
The idea or feeling comes from the source. It is put into symbols (encoded) to produce a message which is transmitted through a channel. The channel is the medium
used for communication. The message is interpreted by the receiver (decoded) who responds. The context is the environment in which the communication takes place.
Noise here means anything which distorts the message.
Intercultural communication takes place when the sender and the receiver are from different cultures.
Source: Gibson, 2000, pp. 18

• Intercultural as an encounter and understanding to people who belong to different cultures.

• The cultural overlap generates the intercultural.
Activity 2: Please read the following scenario. Try to understand and interpret the different views and understandings of the two involved persons.
The scenario is played out to explain the cultural overlap: the unsuccessful cooperation between an American manager and his Greek colleague.
• The American supervisor was raised, socialized and educated in the United States of America. Being a successful specialist in his field, he was chosen for an
international assignment.
• The Greek employee was raised, socialized and educated in Greece and has enjoyed a successful career and therefore was hired by an American subsidiary
in Greece. If he were not considered qualified, he would not have been assigned to complete the complicated report in such a short time period.
• Both partied do not seem to be prejudiced in any way. Both accept the hierarchical relationship they share. Neither one of them is aggressive, they are
friendly and cooperative in an effort to achieve a common goal.
• There are no language barriers.
• Common goal: a report must be written and completed by a certain deadline.
• The following figure 2 shows the course of interaction between the American and the Greek.
• The column “behavior” lists the dialogue and the column “attribution” lists the corresponding thoughts, intentions and feelings.
Source: Thomas et al., 2010, pp. 40 ff.; Broszinsky-Schwabe, 2017, pp. 30

Figure 2: The American supervisor and his Greek employee
Behavior Attribution
American: How long will it take you to finish this report? American: I asked him to participate.
Greek: I don`t know. How long should it take? Greek: His behavior makes no sense. He is the boss. Why doesn`t he tell me?
American: I asked him for instructions.
American: You are in the best position to analyze time requirements. American: I press him to take responsibility for his actions.
Greek: What nonsense! I`d better give him an answer.
Greek: Ten days. American: He lacks the ability to estimate time; this estimate is totally inadequate.
American: Take 15. So it`s agreed, you will do it in 15 days? American: I offer him a contract.
Greek: These are my words: 15 days.
Actually. The report required 30 working days. The Greek employee worked day and night but at
the end of day 15, he needed an additional day.
American: Where`s my report? American: I´m making sure he fulfills his contract.
Greek: He is asking for the report.
Greek: It`ll be ready tomorrow. Both attribute that it isn`t ready.
American: But we had agreed it would be ready today. American: I must teach him how to fulfill a contract
Greek: The stupid, incompetent boss! Not only did he give me the wrong orders, but he doesn`t
appreciate that I did a 30-day job in 16 days.
The Greek hands in his resignation. The American is surprised.
Greek: I can`t work for this person.
Source: Triandis & Vassiliou, 1972

• Interpretation of the scenario in figure 2:

• These are all optimal conditions for a productive cooperation. Still, the Greek employee hands in his resignation at the end of the episode: “I can’t work for
this person!” The American is taken by surprise by his employee’s behavior. Why?
• The example illustrates the different behaviour patterns shown by both partners, including the way each person interprets the other’s actions can be
understood in light of the respective concepts of role distribution, that is, the role of supervisor and that of an employee. The respective role characteristics
are derived from a corporate culture specific and, to a larger extent, from a national culture-specific foundation. Seen from this perspective, the partners’
behaviour makes sense. During their encounter, the partners are not aware of this underlying national and corporate culture-specific premise, which would
explain their utterly different and unexpected behaviour. Instead, each interprets the other’s behaviour as inappropriate. On the one hand, the supervisor’s
behaviour is interpreted as incompetent. The employee, on the other hand, is seen as poorly organized and reluctant to assume responsibility.
• Both partners think and act form the perspective of their own cultural understanding (mono-cultural), although they are actually in a situation of cultural overlap.
Source: Thomas et al., 2010, pp. 40 ff.

Figure 3: The dynamic in situations where cultural overlap occurs • Cultural overlap occurs when otherness impacts own-culture
perspective and when interaction occurs between dissimilar
others.
• Situations of cultural overlap are created by dynamics between
experience and behaviour.
• To deal successful with the challenges in the situation of cultural
overlap, one must be aware of:
• Requirements of own culture orientation
 Recognize, reflect on and acknowledge conditions
underlying own-culture perception, thinking, feeling
and acting
• Requirements of other culture orientation
 Recognize, reflect on and acknowledge conditions

underlying other-culture perception, thinking, feeling
and acting
• Requirements of intercultural orientation
 Own and other-culture mental scripts must, for the
Source: Thomas et al., 2010, p. 41 sake of intercultural cooperation, be mutually
adaptable and integrated into shared meanings.

• The term “Intercultural Communication” was defined by Edward T. Hall 1959 in his book “The silent language”.
• Hall discovered the “hidden dimensions”: these are cultural differences in ideas of time, in a culturally influenced feeling for distance and closeness.
• Hall`s definition of culture as communication has significantly influenced the development of Intercultural Communication as an independent scientific discipline.
• The focus of research on Intercultural Communication tries to make intercultural encounter and cooperation with its difficulties transparent and to convey the
realization that cultural misunderstandings are normal and that it can be learnt how to deal with them.
• The process of globalization enforces the increasing need to communicate across cultural boundaries.
Source: Broszinsky-Schwabe, 2017, pp. 2 ff.

Source: Gierach, 2017

4. The importance of the Intercultural Communication
Why is Intercultural Communication important?

• Globalization
• Growth of the world population
• Human migratory movements in the world
 The countries with the highest number of immigrants are (numbers from 2014):
 USA (328,4 million people): 46 million immigrants, including 13 million Mexicans
 Russia (144 million people): 11 million immigrants
 Saudi Arabia (33,05 million people): 9 million immigrants
 United Arab Emirates (10,4 million people): 8 million immigrants
• Understanding each other
• Recognition of cultural differences
• Applied in business, management, marketing, advertising and website design  impact on business but also on social life
If two persons of two cultural characteristics need to deal with each other, they must come into play while developing a new “third” culture in the course of their
interaction that commands thought patterns and behavior of both parties.
Source: Broszinsky-Schwabe, 2017, pp. 4 ff.

5. Good communicator
Activity 3: What makes a good communicator?

Choose the top 3 from the list below.
1. Fluency in the language

2. A sense of humour
3. An extensive vocabulary
4. Grammatical accuracy
5. Being a good listener
6. Not being afraid of making mistakes
7. Physical appearance
8. An awareness of body language
9. …. anything else you like to add?

Literature
Broszinsky-Schwabe, Edith (2017): Interkulturelle Kommunikation. Missverständnisse und Verständigung. 2. Auflage. Wiesbaden: Springer VS. Online available under
http://dx.doi.org/10.1007/978-3-658-13983-4.
Gerbner. G. (1967): Mass media and human communication theory. In: F.E.X. Dance (Hg.): Human Communication Theoy. New York: Holt, Rinehart and Winston.
Gibson, Robert (2010): Intercultural business communication. 1. Aufl., 3. Dr. Berlin: Cornelsen (Studium kompakt: Fachsprache Englisch).
Gierach, Juliane (2017): Script: Intercultural Communication. Technische Universität München
McQuail, Denis; Windahl, Sven (1993): Communication Models. for the study of mass communications. 2. Aufl. New York: Longman Publishing.
Osgood, C. E.; Suci, G. J.; Tannenbaum, P. H. (1957): The Measurement of Meaning. Urbana: University of Illinois Press.
Ratha, Dilip; Mohapatra, Sanket; Silwal, Ani (2011): The Migration and Remittances Factbook: World Bank.
Theodorson, S. A.; Theodorson, A. G. (1969): A Modern Dictionary of Socialogy. New York: Cassell.
Thomas, Alexander; Kinast, Eva-Ulrike; Schroll-Machl, Sylia (Hg.) (2010): Handbook of Intercultural Communication and Cooper. Basics and Areas of Application :
Volume 1: Basics and Areas of Application. 2nd revised edition. Göttingen, Berlin: Vandenhoeck & Ruprecht GmbH & Co. KG; Knowledge Unlatched. Online available
under http://www.oapen.org/search?identifier=1000245.
Triandis, H. C.; Vassiliou, V. (1972): A comparative analysis of subjective culture. In: H. C. Triandis (Hg.): The Analysis of Subjective Culture. New York, pp. 299–335.

2.2. The Models of Communication
Part 2: Intercultural Communication 2.2. The Models of Communication 1

McQuail, Denis; Windahl, Sven (1993): Communication Models. For the study of mass communications.
Presents the main existing models of the mass communications process which have been developed during the last thirty years,
providing brief descriptions of the most significant concepts and ideas in the study of mass communication, using graphic and verbal
models.
Picot, Arnold; Reichwald, Ralf; Wigand, Rolf (2008): Information, Organization and Management.
Information, Organization and Management is a comprehensive treatment of the economic and technical foundations for new
organizational forms, relations and processes. It provides a wide range of underlying concepts and frameworks that help the reader
understand the major forces driving organizational and marketplace change, rather than presenting these changes as simple outcomes
of technological or management fads.
About the authors: Arnold Picot is the Chair of the Institute of Organization at the Ludwig-Maximilians University of Munich. Ralf
Reichwald holds the Chair for Information, Organization and Management at the TUM–Business School, Technische Universität
Munich. Rolf Wigand holds the Maulden-Entergy Chair and is Distinguished Professor of Information Science and Management at the
University of Arkansas at Little Rock.

Outline
1. Introduction
2. Encoder-/ Decoder Models
1. The Technical Communication Model by Shannon and Weaver
2. The Communication Model by Schulz von Thun
3. Intentionalist Models
1. Communication Model by Grice
4. Perspective-taking Models
1. Rogers`s Rules for Communication
5. Dialogic Models
1. Axioms of Communication
6. Summary
7. Literature
8. Solution of Activity 6

1. Introduction
Intercultural Communication is part of the concept “Communication”. Therefore it is useful to first introduce the most common theories of communication and
afterwards to emphasize the characteristic of Intercultural Communication.
In the last script section “Introduction and Definitions” we looked already at a common model of communication. During this script section the goal is to learn more
about different theories and models of communication and therefore to better understand the entirety of communication.
Many different models of communication and the process of communication exist, which differ in terms of their scientific tradition, complexity and thematic focus.
It is possible to figure out four different groups of communication models:
Figure 1: The four groups of communication models
Model of
Communication
Encoder-/ Decoder Intentionalist Perspective-taking

Dialogic Models
Models Models Models
In the following each group of communication models will be explained, and examples of communication models, which fit into this group will be introduced.
Source: Röhner & Schütz, 2012, pp. 19 ff; Broszinsky-Schwabe, 2017, pp. 2 ff.

2. Encoder-/ Decoder Model
… views communication as a process in which the internal representation is encoded (i.e., transformed into code) by one information processing device (the source)
and transmitted over a channel, where it is received by the other information processing device (the destination) and decoded as a representation. Encoding and
decoding are the means by which information processing devices affect, and are affected by, the other.
Encoder/decoder models therefore predominantly aim a comprehensive understanding of encryption (i. e. encoding), transmission and decryption (i. e. decoding) of
messages and attempt to answer the question of how best to convey a message. In this context possible sources of interference and problems are also discussed,
which can impair a smooth communication flow.
Two examples of Encoding-/ Decoding Models are the technical communication model by Shannon and Weaver (1949) and the communication model by Schulz von
Thun (2000).
Source: Röhner & Schütz, 2012, pp. 19 ff; Broszinsky-Schwabe, 2017

2. Encoder-/ Decoder Model: The Technical Communication Model by Shannon and Weaver
• The Technical Communication Model by Shannon and Weaver (1949) as a classic communication model is often cited.
• Originally it was technical orientated for the telecommunication field, in which Shannon and Weaver worked.
• The model deals not with the meaning of a message, but only with its sending and its receiving.
• The goal of the Technical Communication Model by Shannon and Weaver was the optimization of the communication in the technical transmission.
• Communication is described as a linear, one way process.
Source: McQuail & Windahl, 1993, pp. 16; Picot et al., 2008, pp. 79 ff.

Figure 2 shows the Technical Communication Model by Shannon and Weaver.

First in the process is the information source, producing a message or a chain of messages to be communicated. In the next step the message is formed into signals by a
transmitter. The signals should be adapted to the channel leading to the receiver. The function of the receiver is the opposite of that of the transmitter. The receiver
reconstructs the message from the signal. The received message then reaches the destination. The signal is vulnerable in so far as it may be disturbed by noise. This may
result in a difference between transmitted and received signal, which in its term, may mean that the message produced by the source and that reconstructed by the receiver
and having reached the destination do not have the same meaning.
Figure 2: Technical Communication Model by Shannon and Weaver

Received
Message Signal signal Message
Information
Transmitter Receiver Destination
source
Noise
source
Source: McQuail & Windahl, 1993, pp. 16 ff.

Disadvantages of the Technical Communication Model:
• It is not taken into account that there is a constant change of sender and receiver, each has both roles. Both partners usually act simultaneously; e. g. one speaks
while the other communicates something through his body language.
• Without the answer of the receiver the communication between the sender and the receiver can not be continued.
• It is not taken into account that each person places a received message in the context of his knowledge, brings in associations, views about the situation and
assumptions about the intentions of the sender.
• The model assumes that there is a intention to communicate. In many cases a sender communicates unintentionally or unconsciously. This applies to a high degree
to non-verbal statements. With regard to Intercultural Communication the possibility to send a unconscious or unintentional message and to receive an answer is
high.
Source: McQuail & Windahl, 1993, pp. 16 ff.; Broszinsky-Schwabe, 2017

2. Encoder-/ Decoder Model: The Communication Model by Schultz von Thun
• Based on the work of Watzlawick et al. (1967), Schulz von Thun developed 1993 an expanded socio-psychological perspective on interpersonal communication
• Strong application reference
• High degree of practicality
• Not empirical tested, it rather has a heuristic value
Source: Picot et al., 2008, pp. 81 ff.

According to Schulz von Thun every message contains four different components: Content, a relational aspect, appeal and self-revelation.
Content: Every message contains the transmission of facts, which the sender wants to communicate to the receiver.
Relationship: Under certain circumstances, the interpersonal relationship between communication partners lays the foundation for the interpretation of content.
Appeal: It is used to have a certain effect on the communication partner.
Self-revelation: Any form of communication can include an intended improvement of one`s public image, as well as unintended self-disclosure.
Figure 3: Four sides of a message
Activity 4: Please give examples from real life fitting the four different components.
Source: Picot et al., 2008, pp. 81

• Communication interferences are inevitable since both the sender and the receiver interpret the sent and received messages differently
• One reason for such a message misinterpretation may lie in the interpretative key that receivers use and that is derived from their self-image
• Possibilities to solve this type of misunderstanding on the relational and self-revelation level:
• Both communication partners use a meta-communication: they have to mutually communicate how a message is to interpreted in order to agree on its
underlying meaning.
• Standardization of the communication processes
• Issue of the individuality of communication processes
Activity 5: Give an example for an misunderstanding on the relational and self-revelation level.
Source: Picot et al., 2008, pp. 81 ff.

3. Intentionalist Models
… are primarily concerned with the intention of the communicator to convey “what is meant” to the recipient.
The main focus is on the question, how it manages to communicate successful.
Central to the Intentionalist position is the idea that words and their intended effects on the listener do not bear a fixed relationship. A phrase like "I love social
psychology," used sincerely, will be understood to mean one thing, and the same words, used ironically, will be understood to mean something quite different. The
assumption about the relation of words and meanings is reflected in the distinction between sentence-meaning (i.e., the literal meaning of a word or phrase) and
speaker-meaning (i.e., the meaning the communicator intends to convey by using that sentence meaning). Although the sentence-meanings of the sincere and ironic
utterances in the example were identical, their speaker-meanings are not. Most pragmatic models of communication, including Grice's, assume that speaker meaning
is identified by way of sentence meaning. That is, although the two types of meanings are distinct, sentence meaning forms the basis for determining speaker meaning.
Sentence meaning is evaluated in light of the context of conversation, and used to draw inferences about the intended meaning.
Source: Röhner & Schütz, 2012, pp. 19 ff.; Krauss & Fussell, 2007, pp. 28 ff.

3. Intentionalist Models: Grice`s Conversational Maxims
• Grice (1969) has argued that intentionality is intrinsic to understanding messages function communicatively. According to Grice, a message can be considered
intentional if and only if
a) the speaker intended the message to create an effect (i.e., a belief) in the listener; and
b) the speaker intended that effect to result from the listeners' recognition of that intention
• According to Grice communication is a cooperative endeavour
• Irrespective of the goal communication partners pursue (from declaration of love to insult), they must convey their message to their counterparts in such a way
that they can understand the message and understand its meaning
• According to Grice communication fails if the communication partners do not share a common interest –> a Cooperative Principle must be given
• The Cooperate Principle is comprised of four basic rules, which are termed the Conversational Maxims (Figure 4)

Figure 4: Conversational Maxims
Maxims of quality Maxims of quantity Maxims of relation Maxims of manner
“Be truthful!” “Contain neither more or less “Be relevant to the ongoing “Be brief, unambiguous.”
information than is required!” discussion.”
Do not say what you believe to Make your contribution as Be relevant. Avoid obscurity of expression.
be false. informative as required (for the Avoid ambiguity.
Do not say that for which you current purpose of the Be brief, avoid unnecessary
lack adequate evidence. exchange). prolixity.
Do not make your contribution Be orderly.
more informative than is
required.
According to Grice violations of the maxims lead to misunderstandings and inefficiency (e.g. loss of time).
Disadvantage of Grice`s Conversational Model:
• A strict adherence to Grice`s Maxims reflects more an ideal rather than the reality
• It is limited in its ability to account for the social nature of communication

Activity 6: In your next conversation try to obey the four Maxims by Grice. Which Maxim is the most difficult for you to implement?

4. Perspective-taking Models: Rogers`s Rules for Communication
… are primarily concerned with the question of how people can put themselves in each other's shoes and understand each other better in this way.
The focus of the Perspective-taking Model is on the willingness of the participants to view the situation through the eyes of the other.
Carl Rogers (1991) has described some of the ways in which this adoption of perspective can be realized in his rules of client-centered conversational therapy.
Rogers`s “Rules for Communication” are based on a human perspective, after which every person is aiming for autonomy and self-fulfilment. In order to adapt a
successful communication to the respective situation, three basic characteristics should be observed:
• Empathic understanding
• Authenticity (congruence)
• Positive emotional esteem
To adapt the perspective of the other person the empathic understanding is the most important characteristic. On the one hand it is important to put yourself in the
other`s shoes and to understand his/ her feelings, on the other hand it is telling the other person, what you have understood.
Source: Röhner & Schütz, 2012, pp. 19 ff.

5. Dialogic Models: Axioms of Communication
… deal centrally with the question of how common reality is constructed between those involved in a communication process.
Watzlawick et al., (1990) developed a comprehensive, socio-psychological-oriented model of human communication, that focuses on behavioural effects.
• Description of general characteristics of human communication
• Offer of five Axioms of Communication
• Fundamental assumption: some communication noise is actually caused by pragmatic communication situations, which thus help to create paradoxical
communication situations.
• Based on a circular communication process
• Feedback effects can influence the communication
Source: Picot et al., 2008, pp. 79; Röhner & Schütz, 2012, pp. 19 ff.

Table 2: Axioms of Communication according to Watzlawick et al., 1990
Axiom #1 One cannot not communicate.
Axiom #2 Every communication has a content and relationship aspect.
Axiom #3 The relationship of the communication partners is established by the use of punctuation during encounters.
Axiom #4 Human communication makes use of digital and analog modes of communication
Axiom #5 Communication is based on symmetrical and complementary relationships.
Source: Picot et al., 2008, pp. 79

Interpretation of the Five Axioms
• The first axiom: any form of behaviour is a form of communication and all behaviour conveys a message. Consequently all human behaviour is open to interpretation.
• The second axiom: all communication contains a content aspect and a relational aspect. The content aspect is only concerned with the transmission of facts, the relational aspect
refers to the interpersonal relationship between communication partners, that lays the foundation for the interpretation of content.
• The third axiom: punctuation is described as a combination of the interpretation and causal perception of the communication partner`s statements and behaviours. Different uses
of punctuation can lead to context-dependent communication interferences. Such divergences in punctuation can occur easily, particularly in intercultural communication, which
often lead to considerable misunderstandings and even the failure of the communication process as a whole.
• The fourth axiom: distinguishes between digital and analog communication. Digital communication mostly occurs in written or spoken language. Due to its clear syntax it is
especially suitable for the transmission of the content aspects of communication. Analog communication occurs mostly outside the actual language`s scope. Although analog
communication does not have a clear syntax, it has various semantic possibilities and mainly serves to convey relational aspects.
• The fifth axiom: distinction between symmetric and complementary communication relationships. Symmetric relations exist when all communication partners perceive
themselves as being on the same level. Complementary relationships exist when communication partners can compensate for their differences.
The Axioms of Communication by Watzlawick et al. do not offer a complete communication model. Their theories do shed light on some important aspects of communication, which
have considerable influence on interpersonal communication.
All the models we discussed earlier assume that people communicate to convey information. But for dialogic models the goal of communication is the achievement of
intersubjectivity. Information exchange does occur, but as a means of reaching the intersubjective state.
Source: Picot et al., 2008, pp. 79 ff.; Krauss & Fussell, 2007, pp. 79

6. Summary
Activity 7: Please complete the following list with the introduced models of communication.
Model of communication Communication group Most important facts about the model Positiv Negative
Technical Communication Model by Shannon • Simple

and Weaver • Optimization of the communication in the
technical transmission
Encoder-/ Decoder Model
• Communication is a cooperative
endeavour
• Cooperative Principle must be given
• Communication partners must convey
their message to their counterparts in
such a way that they can understand the
message and understand its meaning
• Based on the willingness of the

participants to view the situation through
the eyes of the other
• based on a human perspective
• Based on client-centered conversational
therapy
Axioms of Communication • Not a complete communication model

6. Summary
Summary of the model categories and the related key issues:
• Encoder-/Decoder Model: How are messages encrypted (encoded)? How are they transmitted? How are they decoded? How can messages be exchanged optimally? What
problems and sources of interference can occur during transmission?
The Communication Model of Shannon and Weaver would answer these questions as follows: The information source (e. g. Tom's brain) selects a message (e. g. “I like you,
Lisa!";) and transmits it via a transmitter (i. e. Tom's vocal chords) that generates the changing sound pressure (i. e. the signal). This process is called encoding. The signals are
now transmitted through the channel (i. e. the air) to the addressee (i. e. Lisa). Lisa has to decode the message using her hearing and brain afterwards. Ideally, the message
would be transmitted if Lisa could understand it without problems. It would be possible though that noise disturbs the correct sending of the message (e. g. a car that is
passing by).
• Intentionalist Model: How can one, as the sending person, achieve that the receiving person understands what is meant? How can agreement be reached on what has been said?
According to Grice, we would receive the following answers: Four maxims (i. e. maxim of quantity, maxim of quality, maxim of relation and maxim of manner) are intended to
help increase the efficiency of communication and ensure communication. Violations of these maxims lead to misunderstandings, disagreement and loss of time. So if Tom
wants to say Lisa that he likes her, he should not say too much or too little (i. e. maxim of quantity), he should tell the truth (i. e. maxim of quality), he should avoid irrelevant
information (i. e. maxim of relation), and he should not speak unclearly or confusingly (i. e. maxim of manner).

6. Summary
• Perspective-taking Model: How can people better understand each other in the process of communication?
Roger's Rules for Communication refer to empathy to answer this question. So it is important, firstly, to empathize with the other person and, secondly to
communicate what has been understood to the other person. So Lisa should try to put herself in Tom's place and empathize while he communicates the
message to her. Afterwards she should tell him what she understood.
• Dialogic Model: How is reality constructed together in communication?
According to the five Axioms of Communication by Watzlawick et al., it is not just about a pure exchange of messages (e. g. Tom doesn't want to make a fool of
himself and this influences his communication). Sending and receiving information is guided by interests (e. g. Lisa is not interested in Tom at all and therefore
does not listen). 1. Axiom: Even if Tom does not tell Lisa that he likes her, his posture or shy gaze may be hinted at a meeting of the two. 2. Axiom: Depending
on how Tom formulates the message [the what] (seriously vs. ironically), Lisa will understand it differently. 3. Axiom: Tom and Lisa will sequence their course of
conversation differently in relation to the sequence of causes and effects - who acted and who reacted? 4. Axiom: Tom could convey through his words that he
likes Lisa on the digital path. Analogously, he could convey it by looking at her, taking their hand, etc.. and 5. Axiom: Tom and Lisa can communicate
symmetrically or complementarily, depending on whether their relationship is based on difference or equality.

7. Literature
http://dx.doi.org/10.1007/978-3-658-13983-4.
Krauss, Robert M.; Fussell, Susan R. (2007): Social Psychological Models of Interpersonal Communication. In: Arie W. Kruglanski und E. Tory Higgins (Hg.): Social
psychology. Handbook of basic principles. 2nd edition. New York, London: Guilford Press, p. 655–701.
McQuail, Denis; Windahl, Sven (1993): Communication Models. for the study of mass communications. 2. Aufl. New York: Longman Publishing.
Picot, Arnold; Reichwald, Ralf; Wigand, Rolf (2008): Information, Organization and Management. Berlin, Heidelberg: Springer-Verlag Berlin Heidelberg. Online available
under http://dx.doi.org/10.1007/978-3-540-71395-1.
Röhner, Jessica; Schütz, Astrid (2012): Psychologie der Kommunikation. Wiesbaden: Springer Fachmedien Wiesbaden (Basiswissen Psychologie). Online available under
http://dx.doi.org/10.1007/978-3-531-18891-1.

8. Solution of Activity 7
Model of communication Communication group Most important facts about the model Positiv Negative
Technical Communication Model by Shannon Encoder-/ Decoder Model • Technical model • Simple • Constant change of transmitter and
and Weaver • Linear • Optimization of the communication in the receiver not taken into account
• One way process technical transmission
The Communication Model by Schultz von Encoder-/ Decoder Model • Socio-psychological perspective on • Strong application reference • Message misinterpretation
Thun interpersonal communication • High degree of practicality • Not empirical tested
• Gives solutions for message
misinterpretation
Grice`s Conversational Maxims Intentionalist Models • Communication is a cooperative • Gives rules how it manages to • A strict adherence to Grice`s Maxims
endeavour communicate successful reflects more an ideal rather than the
• Cooperative Principle must be given • Clear instructions especially for the reality
• Communication partners must convey sender • It is limited in its ability to account for the
their message to their counterparts in social nature of communication
such a way that they can understand the
message and understand its meaning
Rogers`s Rules for Communication Perspective-taking Models • Based on the willingness of the
participants to view the situation through
the eyes of the other
• based on a human perspective
• Based on client-centered conversational
therapy
Axioms of Communication Dialogic Models • Comprehensive, socio-psychological- • Circular communication process • Not a complete communication model
oriented model of human • Feedback effects can influence the
communication, that focuses on communication
behavioural effects
• Some communication noise is actually
caused by pragmatic communication
situations
• The goal of communication is the
achievement of intersubjectivity

2.3. Barriers to Intercultural Communication
Part 2: Intercultural Communication 2.3. Barriers to Intercultural Communication 1

Gibson, Robert (2000): Intercultural business communication.

Intercultural communication has become a 'hot topic' in the training of business people (both language-focused and
general). Robert Gibson draws on his own experience as a training manager in a multinational company to provide an
introduction to this diverse and fascinating subject.
Part 3: Intercultural Management 3.1. Introduction 2

Outline
1. What is special about Intercultural Communication?

2. Introduction
3. Attitude
4. Perception
5. Stereotyping
6. Interpretation
7. Culture Shock
8. Literature

1. What is special about Intercultural Communication?
In the last section we discussed the different models of communication. These are also meant for the Intercultural Communication. Intercultural Communication
implies communication (forms, means and disruptions) under conditions of cultural overlap while the communication partners` cultural differences strongly influence
the communication episode in terms of the process. During the process of Intercultural Communication, the following psychological perceptions are stimulated and
amplified:
- Dealing with the contrast between familiarity and otherness.
- A feeling of personal involvement, the intensity of which depends on the impact of prior experience and future action in cultural overlap situations.
- Cognitive and emotional conditions required for restructuring perception and judgement of persons, events and symbols.
- A need for social support for orientation and identity security.
- A need for interpersonal consistency, found in the increased tendency to strengthen cultural identity, group security and space-time stability
Misunderstandings frequently arise when people communicate because of information deficits, incompatible goals and expectations, mood and situational
interpretation. These misunderstandings occur more frequently in intercultural encounters where interdependency exist between individuals from different cultures.
• Intercultural Communication comprises all forms of communication between individuals from different cultures. Mutual understanding in communication is difficult
enough to achieve within one culture, and yet the challenges multiply in intercultural communication due to the use of alternating and unfamiliar verbal and
nonverbal symbols, such as foreign language and body language. Divergent attribution of own-culture meaning of familiar symbols such as the tradition of gift-
giving, invitations and favor-granting increases the complexity.

2. Introduction
In the following section the most important barriers to intercultural communication will be discussed. Afterwards we want to look at verbal and non-verbal
communication and communication style, in specific for Intercultural Communication.

3. Attitude
Activity 8: Please comment on these statements.
1) Globalisation means that there is now one business culture everywhere in the world.
2) If they want to do business with me then they`ll have to adapt to my culture.
3) “When in Rome do as the Romans do”.
4) It is impossible to generalise about cultures – there are so many differences.
5) Intercultural training just confirms stereotypes.
6) Today I am dealing with the Americans, tomorrow with a group from Japan. I cannot possibly learn all I need to know about all the cultures I have to deal with.
7) What I need when I go abroad is a list of do`s and don`ts.
Source: Gibson, 2000, pp. 18 ff.

3. Attitude
These statements reflect some of the attitudes which can create barriers to successful intercultural communication.
1) Business people do share certain beliefs and values but it is highly misleading to believe that they are always stronger than other types of cultural influence (e.g.
national culture). The pressure of globalisation can in fact lead to the strengthening of local identities; in Europe the growth of the European Union is arguably
leading to the strengthening of regional identity. The idea that people from different cultures can be fused together is at the heart of the concept of the melting
pot. It was succeeded by concepts of cultural pluralism and the salad bowl, where individual elements retain their own identity.
2) This is an ethnocentric approach and is unlikely to lead to success. Many opportunities will be missed if this is taken into account.
3) This is a commonly used phrase and is to some extend useful in that it stresses that it is important to consider the culture of the host. In practice culture is so
deeply rooted that it needs a long time to change one`s culture and take on a new one.
4) Care has to clearly be taken with generalisations but they are necessary and can be useful as long as allowance is made for individual differences.
5) Bad intercultural training can do this. Good training avoids stereotyping and encourages trainees to change their view in the light of what they observe.
6) Although this is true, intercultural training can sensitise you to the sorts of factors that may be influencing communication.
7) Simple lists of do`s and don`ts are of rather limited help in making communication successful. But really effective intercultural interaction requires more than a
knowledge of some basic facts.
Source: Gibson, 2000, pp. 19 ff.

4. Perception
Activity 9: Please take a look at the following picture (figure 1). What do you see?
Figure 1: Rubin`s Vase

4. Perception
The picture shown in figure 1 is a famous example of how perception works. It can be seen as a vase or two heads opposite each other. Most people cannot see both
the same time, some see the vase first and some the heads. People perceive the same thing in different ways. This fact is particularly important in Intercultural
Communication. The way we perceive is culturally determined. Lack of awareness of this is another barrier to intercultural communication.
Culture manifests in a system of sense-giving/orientation characteristic to a nation, society, organization or group. The system of orientation influences the perception,
thought, values, feelings and actions of all members of a society. Problems arise when the individual encounters others, whose inherent system of orientation deviate
considerably from his own that unexpected reactions on the part of the partner are almost inevitable, possibly causing a total lack of understanding or, even worse,
misunderstanding. In such cases, misperception, misinterpretation, misunderstanding and even conflict are almost pre-programmed and often occur while observing,
interpreting and attributing traits to the partner’s behaviour.
Source: Gibson, 2000, pp. 20; Thomas et al., 2010, pp. 86 ff.

4. Perception
Table 1: Cognitive differences between cultures
Western culture Eastern culture

Tend to context-independent perceptual processes  object important Tend to context-dependent perceptual processes
Analytic (rule-based, narrow focus in visual attention) pattern Holistic (thematic, family-resemblance-based  relationship) pattern
noun-orientated  focus on separate objects verb-orientated  interactions in focus
attention is narrow (focal object fixated) attention is broader (rapid eye movements in entire picture)
 Cognitive and perceptual process are (in part) influenced by culture.

 https://www.youtube.com/watch?v=ZoDtoB9Abck
Source: Nisbett & Miyamoto, 2005

4. Perception
A four-level model discusses different forms of designating intercultural divergence. It assumes that cultural differences constitute a relevant variable in cultural
overlap situations. Different forms of problem-solving strategies are applied depending on the individuals and the difficulties inherent in the overlap situation:
1) Dominance aspect: Own culture values and norms are considered superior to those of the other culture. The other-culture partners are pressured to acquire new
skills and to adapt their behaviour to won-cultural standards.
2) Assimilation concept: The other-culture values and norms are willingly accepted and integrated into the own modus operandi. Tendencies to adapt to the other-
culture values and norms can be so intense that the identification with one’s own culture pales as the wish to merge with the other culture intensifies.
3) Divergency concept: Own- and other-culture values and norms are considered significant and effective. Many aspects, however, are incompatible and often
contradictory leading to permanent and continual shifts between cultures. This becomes particularly evident in the beginning phase of the collaboration, when
uncertainty about one’s own values, norms and behaviour emerge, affecting both individual quality of life and productivity at work in the long term.
4) Synthesis concept: Culture-specific differences are considered to be equally important and valuable in developing overall potential. Efforts are made to synergize
the salient resources of both cultures to create a new norm for future cooperation.

4. Perception
It could be argued that the emphasis of the four side model is on other-culture perception with intercultural perception playing a lesser role. The main focus is on how
the person perceives the other-culture individual. Intercultural perception must ideally be aware of, and take into consideration, both own-culture and other-culture
idiosyncrasies. This ability can be nurtured and developed by sensitization to own-cultural idiosyncrasies and orientation systems. From this vantage point of self-
knowledge, other-culture systems of orientation can be perceived as different yet equally valid in their respective cultural domain. Congruent own- and other-culture
perception is a prerequisite for the third, new and very specific level of stimuli configuration.

5. Stereotyping
A stereotype is a fixed notion about persons in a certain category, with no distinctions made among individuals.
People hold heterostereotypes about others, and autostereotypes about their own groups. The evaluation depends strongly on culturally determined standards.
The valid part of a stereotype is a statistical statement about a group, not a prediction of the properties of particular individuals.
Stereotypes are at best half-truths.
Usually heterostereotypes is viewed more negatively than autostereotypes.
One function of stereotypes is the creation of order out of the chaos of social reality. Stereotypes provide guidelines for cross-cultural interaction and expectations for
the behaviour of others.
Source: Hofstede, 2001, pp. 14; Gudykunst, 2003, pp. 114

5. Stereotyping
Activity 10: Look at the postcard below and comment on the stereotypes.
Figure 2: The perfect European

6. Interpretation
Activity 11: What is the communication problem here?
A Japanese businessman is negotiating with a Norwegian partner. The Japanese says that the deal will be very difficult. The Norwegian asks
how her company can help to solve the problems. The Japanese is puzzled by the question.

6. Interpretation
Suggested answer:
For the Japanese the message was quite clear – for him the statement that it would be difficult meant that there would be no deal. He expressed it indirectly to be
polite and avoid “loss of face”. The Norwegian, not being aware of this, thought that there were some problems that could be resolved.
This is a case of misinterpretation: the two people have interpreted the same statement in completely different ways.
There are three ways of checking our interpretation of the behaviour of others:
• Perception checking: The aim of perception checking is to check that our interpretation of the other person`s behaviour is what he or she meant to be. First it is
necessary to describe what we thought the other person meant before asking if this interpretation is correct.
• Listening effectively: It is important to distinguish between hearing (the physical process) and listening which involves much more and includes absorbing new
information, checking it with what you already know, selecting ideas, categorising information and predicting what is coming next. Active listening involves showing
the speaker that we are involved in the conversation and trying to understand them.
• Giving feedback: the verbal and non-verbal response to others.
• Be specific
• Separate feedback from a person
• Present the problem as a mutual one
• Mix negative with positive feedback
• Provide feedback at an appropriate time
• Use “I” statements where possible
Source: Gibson, 2000, pp. 23 f.

7. Culture Shock
What does culture shock mean?

7. Culture Shock
The term culture shock was first used in 1960 by the anthropologist Kalvero Oberg. It is a mental
state, where suddenly all known values and behaviour patterns seem to have lost their validity Figure 3: The Acculturation Curve
for the individual in the foreign cultural environment. The symptoms are homesickness,
depression, nervousness, excessive cleanliness, withdrawal, inexplicable attacks of wine, loss of
the ability to work effectively and aggressive behaviour in the new environment. Culture shock is
not a disease, but a defensive reaction against the influences of a foreign culture. The shock is
normal for stays of more than 6 months, only some symptoms occur during shorter stays.
Figure 3 shows an acculturation curve. Feelings are plotted on the vertical axis and time is
plotted in the horizontal.
Phase 1 is a (usually short) period of euphoria: the honeymoon, the excitement of traveling and
seeing new lands.
Phase 2 is the period of culture shock, when real life starts in the new environment.
Phase 3, the acculturation/ adjustment, sets in when the visitor has slowly learned to function
under the new conditions, has adopted some of the local practices, finds increased self-
confidence, and becomes integrated into a new social network.
Phase 4 is the stable state of mind/ adaptation eventually reached. It may remain negative
compared to home (a), for example if the visitor continues feeling discriminated against others.
It may be just as good as before (b), in which case the visitor can be considered to be biculturally
adapted, or it may even be better (c). In the last case the visitor has “gone native”.
Source: Hofstede, 2001, pp. 426

Source: Hofstede, 2001, pp. 425 f.; Broszinsky-Schwabe, 2017, pp. 232

7. Culture Shock
Outcomes of culture shock

7. Culture Shock
Outcomes of culture shock

7. Culture Shock
Reverse culture shock can be experienced on returning to the home country. This can be more difficult than the culture shock of going abroad. After the positive
feelings of being back can come a feeling of alienation connected with the realisation that things have changed since one departed. There follows a period of
adjustment and “breaking through”.
How far you experience culture shock will depend on a number of factors, including personality, the differences in cultures, the received social support and the
purpose of the stay.
Are there recipes against culture shock?

1. You can reduce the shock by understanding what culture is. If culture has been learned, one can also learn the foreign culture. When one realizes that all cultures
have an inner logical structure, one will no longer label them primitive or stupid
2. An important step in dealing with the culture shock is to become familiar with the local patterns of communication, both verbal and non-verbal. The learning of the
national language enables a better understanding of the partners and opens ways to other areas of culture. Deciphering the non-verbal signals reduces the risk of
frustration and misunderstanding.
3. You have to develop cultural self-confidence. Before you can get another culture, one must first understand how one's own culture influences what we are and
what we do.
4. It is essential to collect as much information as possible about the country's culture before starting your stay, the sources are available in many different ways. The
more details are known beforehand, the less shock will be caused by the unexpected.
Source: Gibson, 2000, pp. 26 ; Broszinsky-Schwabe, 2017, pp. 233 ff.

7. Culture Shock
Reverse culture shock
Source: Gibson, 2000; Gierach, 2017

7. Culture Shock
Activity 12: What stage of culture shock you think the individual concerned is most likely to be in?
1. 'We do that too, only in a different way.' 7. 'Only ... more months before I can go home
2. 'Why can't they just ... ?' 8. 'Actually, 1 am beginning to like this'
3. 'I can't wait to tell ... about this.' 9. 'Everything here is so difficult!'
4. 'You don't understand them like I do.' 10. 'We would never do that where 1 come from'
5. 'lsn't this exciting?' 11. 'On the other hand, why shouldn't they do that?'
6. 'These people are so damn .. .‘

7. Culture Shock
Activity 12: What stage of culture shock you think the individual concerned is most likely to be in?
1. 'We do that too, only in a different way.' Adaptation 7. 'Only ... more months before I can go home Shock
2. 'Why can't they just ... ?' Disorientation 8. 'Actually, 1 am beginning to like this' Adaptation Adjustment
3. 'I can't wait to tell ... about this.' Honeymoon 9. 'Everything here is so difficult!' Disorientation Shock
4. 'You don't understand them like I do.' Adjustment 10. 'We would never do that where 1 come from' Shock
5. 'lsn't this exciting?' Honeymoon 11. 'On the other hand, why shouldn't they do that?' Adaptation
6. 'These people are so damn .. .‘ Shock

8. Literature
http://dx.doi.org/10.1007/978-3-658-13983-4.
Gibson, Robert (2000): Intercultural business communication. 1. Aufl., 3. Dr. Berlin: Cornelsen (Studium kompakt: Fachsprache Englisch).
Gudykunst, William B. (2003): Cross-cultural and intercultural communication. [Repr.]. Thousand Oaks: Sage.
Hofstede, Geert (2001): Culture's consequences. Comparing values, behaviors, institutions, and organizations across nations. 2. ed., [8. print.]. Thousand Oaks: Sage
Publ.
Nisbett, Richard E.; Miyamoto, Yuri (2005): The influence of culture: holistic versus analytic perception. In: TRENDS in Cognitive Sciences Vol.9 No.10

2.4. Communication Types
Part 2: Intercultural Communication 2.4. Communication types 1

Gibson, Robert (2000): Intercultural business communication.

Intercultural communication has become a 'hot topic' in the training of business people (both language-focused and
general). Robert Gibson draws on his own experience as a training manager in a multinational company to provide an
introduction to this diverse and fascinating subject.
William B. Gudykunst und Bella Mody (Hg.) (2002): Handbook of international and intercultural communication
This Second Edition illustrates how the field is composed and looks at how it has grown. The four parts examine: cross-
cultural communication; intercultural communication; international communication; and development communication.
Each part begins with a chapter on theories and closes with one on issues. This edition is thoroughly revised and
reorganized with expanded coverage of international, development, and cross-cultural communication and new chapters.
• Lim, Tae-Seop (2002): Language and Verbal Communication Across Cultures page 69–87.
• Andersen, Peter A.; Hecht, Michael L.; Hoobler, Gregory D.; Smallwood, Maya (2002): Nonverbal Communication
Across Cultures page 89–106.
Samovar, Larry A.; Porter, Richard E.; McDaniel, Edwin R. (2010): Communication between cultures.
This intercultural communication text gives readers an understanding and appreciation of different cultures and helps
them develop practical skills for improving their communication with people from other cultures. COMMUNICATION
BETWEEN CULTURES is renowned for being the only text on the market to consistently emphasize religion and history as
key variables in intercultural communication. Packed with the latest research and filled with numerous compelling
examples that force readers to examine their own assumptions and cultural biases, this book helps students understand
the subtle and profound ways culture affects communication.

Introduction to communication types
Figure 1: Types of communication

2.4. Communication Types
2.4.1. Non-verbal Communication

Outline
1. Introduction
2. Immediacy
1. Proxemics
2. Body language
3. Eye contact
4. Body distance
5. Touch
6. Paralanguage
7. Turn taking
8. Differences from country to country
3. Individualism – collectivism
4. Power distance
5. Context
6. Uncertainty Avoidance
7. Gender
8. Effective non-verbal communication
9. Summary
10. Literature

1. Introduction
In each intercultural encounter, the partners who are involved not only exchange words, but also messages conveyed through body language and objects. What is
special about this non-verbal communication, is that many of these messages are unconscious and spontaneous and in most cases cannot be controlled by the
individual. While information given through language, it can also refer to past and future, non-verbal messages always refer to persons or things that are present now.
However, all these signs are part of the communication, form a unit with linguistic utterances, but can also be used on their own. In all cultures, a large part of
communication takes place non-verbally, round about 70 % of all communication is non-verbal.
Human body language includes posture, gestures (body gestures), facial expressions (facial expressions), eye contact, touching, information from smells and the use of
space (distance and proximity). In the broader sense, signs in non-verbal communication are also clothing, hairstyles, body care, body jewellery (piercings, tattoos),
artefacts such as watches and jewellery and colour or graphic symbols. Gifts and flowers also belong to these “messages without words“.
In the following section we want to discuss some important characteristics of non-verbal communication.
Source: Andersen et al., 2002, pp. 90; Broszinsky-Schwabe, 2017, pp. 133

1. Introduction
Figure 2: Types of non-verbal communication

2. Immediacy
Humans communicate interpersonal closeness through a series of actions called immediacy behaviours.
The immediacy dimension is anchored at one extreme by actions that communicate warmth, closeness, approach, and accessibility and at the other extreme by
behaviours expressing avoidance and distance.
Immediate behaviours include smiling, touching, eye contact, open body positions, closer distances, and more vocal animation.
Distinction of high-contact culture and low-contact culture:
• High-contact culture: Cultures that display considerable interpersonal closeness or immediacy, because people in these countries touch more, stand closer and
prefer more sensory stimulation. (e.g. South Americans, southern and eastern Europeans and Arabs). Most high-contact cultures are located in warmer countries,
closer to the equator.
• Low-contact culture: People in this culture prefer less sensory involvement. (e.g. Asians and northern Europeans). Low-contact cultures are generally located in
cooler climates at high latitudes.
Explanations for latitudinal variations have included energy level, climate and metabolism. Evidently, cultures in cooler climates tend to be more task-oriented and
interpersonally “cool” (low-contact cultures), whereas cultures in warmer climates tend to be more interpersonally oriented and interpersonally “warm” (high-contact
cultures).
Source: Andersen et al., 2002, pp. 91 f.

2. Immediacy: Proxemics

2. Immediacy: Body language
Body language includes body movement, body position and facial expressions as well as dress.
Activity 13: Look at the pictures in figure 3 and sag what each of the gestures means to you.
Figure 3: Gestures

2. Immediacy: Body language
The same can mean different things to people from different cultures. These are a few examples (answers to figure 1 from slide 5):
1. In the USA this means “A-OK”, in France “zero”, in Japan “money” and in Tunisia “I´ll kill you”.
2. In Germany this means “2” or “victory”, in Britain it means “victory” if the palm of the hand is facing inwards and is a rude gesture if the palm is facing outwards.
3. In Greece and Italy this means “goodbye”, in the USA it means “come here”.
4. In many cultures this means that everything is fine. In Nigeria and Australia it is a rude gesture.
Also the way people dress for business differs widely across cultures.
In some cultures particular parts of the body should not be exposed. For example the sole of the foot is considered dirty in some Arab cultures and should never been
shown.
Source: Gibson, 2000, pp. 37 f.

2. Immediacy: Eye contact
Activity 14: What do you think is happening here?
1. A British expatriate living in Munich complains about being stared at in the underground train. “They star at me straight in the face as if I've come from another
planet,” he said.
2. A US manager reports problems with Japanese staff. “I asked them how the project was going and , of course, not much has been done. I was suspicious when they
didn`t even look me in the eye,” he said.
Comments on these situations:
1. How long it is acceptable to look directly at someone can also differ – what in some cultures indicates interest would in others be considered to be intrusive staring.
2. In some cultures it is seen as a sign of interest and honesty to look people in the eye. In others this can be seen as a sign of disrespect and people learn to turn
away from the person they are talking to.

2. Immediacy: Body distance
How close you get to another person when talking to them differs widely across cultures. Research has shown that in the USA the “comfort zone” is about an arm`s
length. In Latin America the tendency is for people to get closer to each other than people for instance in the UK.
Scheflen (1976) emphasizes the distinction between touch-friendly cultures and cultures with little contact. Among the cultures in which physical contact is part of
communication and is perceived as pleasant and reassuring because it conveys human warmth and togetherness, he counts the Eastern Europeans (especially the
Russians), Southern Europeans, Jews, Arabs and Latin Americans. The French are also regarded as sociable (the proximity of other people in the metro is not
unpleasant for them. ). Germans, on the other hand, are among those peoples who avoid close contact with strangers (e. g. in a full means of transport). Also
Englishmen and North Europeans deal with body contact very sparingly.
→ Similar to the distinction of “high-contact cultures” and “low-contact cultures” by Andersen et al., 2002.
Source: Gibson, 2000, pp. 38; Broszinsky-Schwabe, 2017, pp. 153

2. Immediacy: Touch
Where how and how often people touch each other varies widely across cultures. Even in the business world there are large variations. In the USA male employees
touching female employees has led to law suits for sexual harassment.
When and how often people shake hands varies widely too: a group of British investment bankers felt that their German colleagues shook hands excessively and
advised a British colleague going to a meeting in Germany to “shake hands with anything that moves”. In other cultures hugging or kissing are more appropriate forms
of greeting even in a business context.

2. Immediacy: Paralanguage
Intonation patterns and tone of voice vary widely in different cultures. What in one culture sounds like a hysterical argument, in another would be considered to be the
norm for a reasonable discussion.

2. Immediacy: Turn taking
Researchers looking into intercultural communication asked an Italian and a Japanese businessman to find out particular information from each other. They
interviewed them separately after the conversation. The Italian said “He seemed like a nice enough guy, but he never really said anything´”. The Japanese said “he was
very friendly but he never gave me a chance to speak”.
How turn taking works in a conversation and the role of silence also differ between cultures. In some it is acceptable and even desirable to interrupt, in others it is
normal to wait for your partner to finish speaking before making your point, and in some cultures a period of silence between contributions is the norm. The following
figure 4 illustrates this.
Figure 4: Turn taking in different cultures

2. Immediacy: Differences from county to country
Table 1: Differences between countries
Custom Japan Argentina India Italy Your country
Hug hello on first No Yes No – depending of sex Yes

meeting
Shaking hands Yes Yes No – depending of sex yes
Eye contact No Yes Yes Yes

3. Individualism – collectivism
A basic cultural dimension is individualism – collectivism. Collectivistic cultures emphasize community, collaboration, shared interests, harmony, tradition, the public good, and
maintaining face (Eastern cultures). Individualistic cultures emphasize personal rights and responsibility, privacy, voicing one`s own opinion, freedom, innovation, and self-expression
(Western cultures; the United States is accepted as the most individualistic country). The degree of individualism or collectivism in a culture determines how people live together
(alone, in families, in tribes), their values, and their reasons for communicating. Individualism is inextricably entwined with accessibility aspects of immediacy and the use of space.
Extreme emphasis on owning space is based on individualism. Property ownership distances people, limits sensory stimulation, and regulates access to privacy.
A culture`s individualism or collectivism affects nonverbal behaviour in many ways:
People in individualistic cultures…
• Are more distant.
• Smile more than in normatively oriented cultures, probably because individualists are responsible for their own relationships and their own happiness.
• Are encouraged to express emotions because individual freedom is of paramount value.
• Are more nonverbally affiliative and must provide intimacy cues.
• Do one thing at a time (monochronistic patterns).
• Are more task oriented.
People in collectivistic cultures…
• Are interdependent and kinesic behaviour tends to be more synchronised.
• Suppress emotional displace that are contrary to the mood of the group, because maintaining group affect is a primary value.
• Smile less because personal or interpersonal happiness is secondary.
• Have a more fixed social network and it is less reliant on individual initiative.
• Do multiple things at a time (polychronistic patterns).
• Are more relational and socioemotional oriented.
Source: Andersen et al., 2002, pp. 93 ff.
4. Power distance
Power distance is the degree to which power, prestige, and wealth are unequally distributed in a culture.
High power distance cultures: power is seen as a basic fact in society and stress coercive or referent power. Control and influence is concentrated in the hands of a few.
The highest power distance countries are: Philippines, Mexico, Venezuela, India, Singapore, Brazil, France, Colombia.
Low power distance cultures: power should be used only when it is legitimate. Control and influence is equally distributed. The lowest power distance countries are:
Austria, Israel, Denmark, New Zealand, Ireland, Sweden, Norway, Finland, Switzerland.
Power distance is highly correlated with authoritarianism (.80). Also a fundamental determinant of power distance is the latitude of a country, because in colder
climates technology is needed for survival, therefore children are less dependent on authority and learn from people other than authority figures.
Power distance affects nonverbal behaviour of a culture. Here are some examples:
High power distance cultures may severely limit interaction. They often prohibit free interclass dating, marriage and contact. People are expected to show only positive
emotions to others with high status and to display negative emotions to those with low status.
Low power distance cultures allow free interclass dating, marriage, and contact are taken for granted. People show more bodily tension and smile more in an effort to
appease superiors and appear polite.
Source: Andersen et al., 2002, pp. 96

5. Context
The German marketing manager of a major car producer was finding it increasingly difficult to work in Japan. In meetings the Japanese colleagues hardly ever said
anything. When they were asked if they agreed to his suggestions they always said yes, but they did not do anything to follow up the ideas. The only time they opened
up was in a bar in the evening but that was getting stressful as they seemed to expect him to go out with them regularly.
This illustrates what Hall called “low and high context” cultures.

5. Context
A important communication dimension is context.
High context communication relies mainly on the physical context or the relationship for information with little explicitly encoded. Therefore in a high context culture
meanings are internalized and there is a large emphasis on nonverbal codes. Non verbal cues are as important as is the context in which the situation takes place.
Relationship building is important and there is an emphasis on getting to know the business partner.
In low context communication the mass of information is vested in the explicit code. The meaning is made explicit and put into words. Therefore people in low context
cultures look for the meaning in others` behaviours in the messages that are plainly and explicitly coded. These cultures tend to be task centred rather than
relationship centred.
The diagrams in figure 5 show Hall`s concept and a possible positioning of some national cultures on the scale low – high context.
Figure 5: Low and high context
High context
High context
Japan
Greece
Spain
Italy
Meaning
UK
France
USA
Scandinavia Low context

Germany
Source: Gibson, 2000, pp. 42; Andersen et al., 2002, pp. 99

Low context

5. Context
Trompenaars relates this to what he calls “circling around or getting to the point”. In high context cultures people start from the general and then later get down to the
specific while in low context cultures it is the other way around, starting with the specific and then getting to the general.
Figure 6: Context of non-verbal communication

Figure 4: Circling around

After taking over a British investment bank, German bankers in the corporate finance department were surprised to find out both that their British partners were earning
considerably more than them and that the team was frequently changing, with senior staff being recruited by rival banks. Most of the German team had been in the Bank since the
beginning of their careers and would not consider a change to a rival bank, even if they were offered more money.
This incident reflects different attitudes to what is called “uncertainty avoidance”. It is the extent to which the members of a culture feel threatened by uncertain or unknown
situations. Cultures with high uncertainty avoidance have a lower tolerance for ambiguity, which expresses itself in higher levels of anxiety and energy release, greater need for
formal rules and absolute truth and less tolerance for people or groups with deviant behaviour. For high uncertainty avoidance cultures “what is different, is dangerous´”, while in low
uncertainty avoidance cultures “what is different, is curious”.
Weak uncertainty avoidance cultures tend to have the following features: (for example: Singapore, Jamaica, Denmark, Sweden, Great Britain)
- Uncertainty is a normal feature of life
- People are comfortable in ambiguous situations
- There should not be more rules than necessary
- Tolerance of innovative ideas
- Motivation by achievement
Strong uncertainty avoidance cultures tend to have the following features: (for example: Greece, Portugal, Belgium, Japan, Guatemala)
- Uncertainty is a threat
- People fear ambiguous situations
- There is an emotional need for rules
- Resistance to innovation
- Motivation by security

You will also find the paper “Anxiety, uncertainty, and perceived effectiveness of communication across relationships and cultures” by William Gudykunst and Tsukasa
Nishida (2001) in tumonline. Please work this out for yourself.

7. Gender
Gender has been neglected as a cultural dimension. It refers to the rigidity of gender roles. In masculine cultures the riles of men and women are distinct, men are supposed to be
assertive, tough and focused on material success, whereas women are supposed to be more modest, tender, and concerned with the quality of life. In feminine cultures the roles of
men and women overlap, both men and women are supposed to be modest, tender, and concerned with the quality of life.
Feminine cultures tend to have the following features: (for example: Sweden, Norway, the Netherlands, Denmark, Finland, Chile, Portugal and Thailand)
- Caring for others is dominant value
- Relationships are important
- People should be modest
- Both men and women deal with facts and feelings
- People work to live
- Managers aim for consensus
- Equality, solidarity and quality are important at work
- Conflicts are solved by compromise
Masculine cultures tend to have the following features: (for example: Japan, Austria, Venezuela, Italy, Switzerland, Mexico, Ireland, Great Britain, Germany)
- Material success is a dominant value
- Things are important
- Men are assertive
- Women deal with feelings
- People live to work
- Managers are expected to be decisive
- Competition and performance are important to work
- Conflicts are fought out
8. Effective non-verbal communication
1. Improve your posture: no nervous mannerism

2. Look at the big picture: you won’t be able to control your entire body, rather be clear and honest
3. Say what you mean and mean what you say: verbal and non-verbal messages are coexpressive
4. Pay attention to what your body is saying: often reveals your feelings
5. When thinking a signal has been misinterpreted, say so (crossing arms  cold)
6. Do never fake gestures or facial expression  may be interpreted as phony or hypocritical
7. Use most positive gestures and facial expressions first and last: memorable expressions within first 5-10 seconds

6. Summary
In this chapter we discussed the theoretical framework for nonverbal communication, which is used by scholars investigating nonverbal communication. These
discussed 6 dimensions (Immediacy, Individualism – collectivism, Power distance, Context, Uncertainty Avoidance and Gender) are neither exhaustive nor discrete, but
they do provide a conceptual framework by which the thousands of intercultural differences in nonverbal communication may be understood.

7. Literature
Andersen, Peter A.; Hecht, Michael L.; Hoobler, Gregory D.; Smallwood, Maya (2002): Nonverbal Communication Across Cultures. In: William B. Gudykunst und Bella
Mody (Hg.): Handbook of international and intercultural communication. 2. ed., 3. [Dr.]. Thousand Oaks: Sage, p. 89–106.
http://dx.doi.org/10.1007/978-3-658-13983-4.
Gibson, Robert (2000): Intercultural business communication. 1. Aufl. Berlin: Cornelsen (Studium kompakt: Fachsprache Englisch).
Scheflen, Albert (1976): Körpersprache und soziale Ordnung. Kommunikation als Verhaltenskontrolle. Stuttgart

2.4. Communication types
2.4.2. Verbal communication

Outline
1. Language and culture: the essential partnership

2. What is language
3. Language Variations
1. Accent
2. Dialect
3. Argot
4. Slang
5. Branding
4. Language as a reflection of cultural values
1. Linguistic relativism and universalism
2. Functional relativity
5. Differences in Language use across cultures
1. Values on Speech
2. Language styles
3. Speech Acts
6. Types of Communication Styles
7. Communication skills
8. Literature

1. Language and culture: the essential partnership
• Language is at the core of human interaction.

• Language is the basis of oral and written communication.
• It enables us to exchange abstract ideas.
• It is the basis for thinking, notification and self reflection.
• The language of one culture is learnt and it reflects the culture.
• Through language personal identity is expressed.
• Language serves important communicative functions:
• Directly expressing and exchanging ideas and thoughts with another person or persons
• Verbally conveying emotions
• Invoking assistance from the supernatural
• ….
• Culture gives the language its meaning: “You can master grammar and the dictionary, but without culture you won’t communicate“ (Ajar 1994, S. 23).
Source: Samovar et al., 2010, pp. 221 ff.

2. What is language?
At the most basic level language is a set of shared symbols or signs that a cooperative group of people has mutually agreed to use to create meaning.
For the oral communication there are three common rules for all languages:
• phonetic (sounds are combined to words)
• grammatical (order of words in sentence)
• semantic (relationship between words and things) and rules on how to interpret utterances
Language communities form groups, that have three functions:
• informative, i. e. to provide others with knowledge information
• expressive, i. e. sharing our emotions and feelings with others
• instructing function, i. e. trigger or prevent action
A language is a set of symbols that a cultural group has agreed to use to create meaning. The symbols and their meanings are often arbitrary.
Source: Samovar et al., 2010, pp. 221 ff.; Broszinsky-Schwabe, 2017, pp. 115

2. What is language?
The 12 world languages that are most widely used today as both mother tongues and foreign languages are listed below:
Table 1: World languages
World language Native speaker (in millions) Spokesperson (in millions)

English 375 1500
Chinese 982 1100
Hindi 460 650
Spanish 330 420
French 79 370
Arabic 206 300
Russian 165 275
Portuguese 216 235
Bengalis 215 233
German 105 185
Japanese 127 128
Korean 78 78 Source: Broszinsky-Schwabe, 2017, pp. 115

3. Language Variations: Accent
Accents are simply variations in pronunciation that occur when people are speaking the same language. These are often a result of geographical or historical
differences, such as those among English speakers. In the United States, you often hear regional accents characterized as “Southern,” “New England,” or “New York.”
Additionally, someone using English as a second language may have a noticeable accent, and it can sometimes be associated with a specific country, such as Germany
or India.
Activity 18: Unfortunately, cultures sometimes ascribe behavioural or intellectual characteristics to different accents. For example, what characteristics do you
associate with a slow Southern drawl or a rapid Brooklyn accent? What mental images come to mind when you hear someone speaking English with an obvious
Spanish or Italian accent? How have media stereotypes influenced your perception of accents?
Source: Samovar et al., 2010, pp. 227.

3. Language Variations: Dialect
In addition to pronunciation variations that characterize accents, dialects are distinguished by differences in vocabulary, grammar, and even punctuation. Black English
Vernacular, represents a very distinct dialect in the United States. The Japanese, often considered a homogeneous culture, have a number of dialects, and some, like
Kagoshimaben and Okinawaben in the south, are extremely difficult for outsiders to understand. Chinese is usually considered to have eight separate major dialects
(Cantonese, Mandarin, Hakka, etc.), which are bound by a common writing system but are mutually unintelligible when spoken. Indeed, some scholars consider the
dialects as separate languages.
Source: Samovar et al., 2010, pp. 227

3. Language Variations: Argot
Argot is a private vocabulary peculiar to a co-culture or group. In the United States, many individuals employ a specialized vocabulary that identifies them as a member
of a particular co-culture or group, such as prisoners or those engaged in criminal activities, gay men, street gangs, and professional or sporting groups. Members of
these groups may employ a specialized vocabulary to obscure the real meaning, or to create a sense of identity. While technically an argot, professional terminology is
often referred to as jargon. Workers in vocational fields such as medicine, engineering, or computer science make extensive use of professional jargon. The sports
world is also filled with jargon specific to each particular type of athletic activity.

3. Language Variations: Slang
Slang designates those terms, used in instances of extreme informality, which serve as a “means of marking social or linguistic identity.” Slang can be regionally based,
associated with a co-culture, or used by groups engaged in a specific endeavour. Young Japanese provide us an example of regional slang. In the Tokyo area,
McDonald’s (Maku Donarudo) is referred to as Maku, but further to the west, in Osaka, it becomes Makudo. And in both locations, Starbucks is Sutaba. The word
“dude” can help us understand slang identifiable with a particular endeavour. Originally, “dude” was a derisory term used by rural inhabitants to refer to someone from
the city. Later, it became popular among the early Southern California surfing community and then spread to the general population, where it is now commonly used
to address or refer to another person.

3. Language Variations: Branding
Corporate marketing has created a phenomenon, referred to as branding, that frequently transcends language differences. Branding is the use of a corporate name or
symbol (i.e., a logo) to prominently identify a product or create a widely recognized image. Globalization has resulted in many major “brands” being recognized around
the world, irrespective of national language. Symbols such as McDonald’s golden arches, Nike’s “swoosh,” the Starbucks mermaid, or the distinctive Mercedes-Benz
three-pointed star in a circle, along with numerous other logos like those of Yahoo!, Google, or Coca Cola, are immediately recognized by millions of people around the
world, irrespective of the language they speak.

4. Language as a reflection of cultural values: Linguistic relativism and universalism
Linguistic relativism and universalism are two opposing perspectives in language and thought. Both of them are hypothetical approaches.
Linguistic relativity has become a common phrase since Whorf (1956) used it to crystalize the fundamental incommensurability between different languages. Linguistic
relativity holds that the structure of a language affects its speakers' world view or cognition. In simpler terms, language could to some extent determine the nature of
our thinking.
Linguistic universalism assumes that language is merely a reflection of human thought, and so all languages are significantly similar in their conceptual categories.
Therefore thinking is built in an inner language that is structurally the same for all human beings and is not related to the facts of linguistic diversity. Humans share a
kind of “Psychic unitiy”.
Linguistic relativism and universalism seem to have irreconcilable differences. They are nevertheless very "compatible, as long as one subscribes to the distinction
between atomic and molecular levels of semantic representation“ (Gumperz & Levinson, 1996). On an atomic level (i.e., on the lexical level), semantic representations
are drawn from a universal language of thought, whereas on the molecular level (i.e., on the grammatical level), there are language-specific combinations of universal
atomic primitives, which may have specific conceptual effects on the users.
Source: Lim, 2002

4. Language as a reflection of cultural values: Functional relativity
Most empirical research on language use across cultures seems to adopt functional relativism rather than linguistic relativism.
Functional relativism assumes that the particular form taken by the grammatical system of language is closely related to the social and personal needs that language is
required to serve.
Forms of language not only reflect people`s social position and the circumstances but also express their view of the way society is organized, and of their own position
within the social network.
The forms of language encode a socially constructed representation of the world. Because different cultures have different environments, values, beliefs and attitudes,
their languages tend to be different from each other.
Functional relativism, although it assumes that the linguistic forms are the product of necessity, believes that once the linguistic forms are systematized, they influence
the thought patterns of the users.
Source: Lim, 2002

5. Differences in language use across cultures: Values on Speech
The eastern and the western attitude towards values on speech is very different.
The rhetorical tradition reflects in a profound way the Western cultural pattern of logical, rational, and analytic thinking. A primary function of speech in this tradition is
to express one`s ideas and thoughts as clearly, logically, and persuasively as possible, so the speaker can be fully recognized for his or her individuality in influencing
others. Therefore silence in the West is often considered a pause, empty space, absence of sound, or blank in communication.
The Asian attitude toward speech and rhetoric is characteristically a holistic one. The words are only part of and are inseparable from, the total communication
context, which includes the personal characters of the parties involved and the nature of the interpersonal relationships between them. In Asia silence is valued rather
than feared, compared to western cultures. Silence is preferred to verbalization only when the latter poses a threat to the face of self or the other such as in
disagreement, challenge, talking back to superiors, interrupting the other`s speech, breaking peace by initiating a conversation and speaking out one`s knowledge. But
when a response or active participation is expected by the other person, keeping silent is rather considered impolite and uncooperative. Particularly when
communicating with strangers, silence is considered more negative than it is in America.
Source: Lim, 2002

5. Differences in language use across cultures: Language Styles
Two linguistic characteristics: Status-markedness and group-orientedness
In comparison of Japanese and American English, the Japanese focuses much more on two elements, status and group, than does the Americans.
The Asians are much more concerned with status than are Westerners, and their concerns are always manifested in their messages and speeches.
Whereas Indo-European languages use some isolated linguistic devices, such as pronouns, address terms, and more or less imposing speech acts, to mark status
differences, Japanese manifest the differences in the whole system of language.
Source: Lim, 2002

5. Differences in language use across cultures: Speech Acts
Arabic Speech Acts
• Arabic cultures tend to be overly expressive.
• Over-assertiveness and over-expressiveness Asian Speech Acts
• Over-assertiveness and over-expressiveness reflect the tendency of the • Emphasis of global goals over local goals in Asian communication
Arabic culture to emphasize affect over accuracy, image over meaning, and
form over function. • Asians are very low in self-assertiveness
Western Speech Acts • Asians tend to suppress confrontations or expressions of negative verbal
messages
• Italian culture, Slavic culture, Jewish culture, and American black culture are
very expressive. These cultures value “uninhibited emotional expression” • Japanese Culture is called “a culture of consideration”, in which people
whether the feelings are good or bad. always try not to cause trouble for others and not to hurt their feelings.
• Meanings are relatively well elaborated. • Asians often suppress expression of their emotions. For example they will
say good instead of fantastic or not very good instead of terrible.
• Indirectness is built on grammatical structures, the subjunctive and
conditional moods. • Under-assertiveness and under-expressiveness
• Directness varies in Western societies. But most of Western cultures are very
direct. For example English cultural norms favor indirectness in acts aimed at
bringing about an action from the addressee. But compared with some other
languages as Australian Aboriginal norms or Anglo-Saxon norms encourage
directness in seeking information from the addressee.
• The Israel culture, as compared with the cultures of English-speaking
societies, is reported to be generally more direct. Israelis are less concerned
with social distance, and therefore their interaction style is oriented toward
solidarity politeness. Source: Lim, 2002

6. Types of communication styles
Each person has a unique way of communicating.
There are many communication models; that is, theories about the different ways that people communicate and the ways in which communication works. Knowing
how to improve communication skills will become easier once you are aware of your own communication style; how you express yourself and how others perceive
you.
Activity 19: The quiz on the next slide will help you to identify your communication approaches and attitudes. Please tick the statements that apply to you.
Source: Hasson, 2015

Table 2: Communication style quiz
Part 2: Intercultural Communication 2.4. Communication types Source: Hasson, 2015 45

Solution for the quiz:

• Now add up how many of each letter you ticked.
• If you ticked mostly As you are an Active communicator.
• If you ticked mostly Cs you are a Connector.
• If you ticked mostly Ts you are a Theorist.
• If you ticked mostly Ps you are a Purposeful communicator.
• If (which is quite likely) you had similar scores for two or more communication styles, you use a combination of styles and communicate in different ways in
different situations.

Figure 6: Communication styles
Activity 20: Which type of communication

do you use?

The introvert and extrovert continuum
A further way that communication styles can be understood is according to the extent to which a person’s communication style is external or internal. Introverts (most
obviously, Theorists) are motivated by their inner worlds while extroverts (most noticeably, Active communicators) are energised by outer worlds. So, introverts get
their energy, inspiration and motivation from within – their own ideas, emotions and impressions. Extroverts get their energy and inspiration from external realities –
other people and activities, and things outside of themselves.
Extroversion and introversion are usually viewed as a continuum. This means that one style of communicating might not be particularly different from another.
Purposeful communicators, for example, appear to have both introvert and extrovert qualities. The extremes – the Active communicators and Theorists – are very
different from each other.
It is thought that everyone has both an extroverted side and an introverted side, with one being more dominant than the other. But, of course, people shift in their
behaviour all the time, and even extreme introverts and extroverts do not always act according to their type

7. Communication skills
Activity 21: Please watch the following video:

https://www.youtube.com/watch?v=4kyvjEpXuPg
Summarize the important facts from the video.
1. Use open-ended questions

2. Active Listing
3. The cocoon
4. Engage with the other person
5. Don´t make assumptions
6. Avoid antagonistic sentences

8. Literature
http://dx.doi.org/10.1007/978-3-658-13983-4.
Hasson, Gill (2015): Brilliant Communication Skills, revised 1st edition. 1st. Harlow, United Kingdom: Pearson (Brilliant Business).
Lim, Tae-Seop (2002): Language and Verbal Communication Across Cultures. In: William B. Gudykunst und Bella Mody (Hg.): Handbook of international and
intercultural communication. 2. ed., 3. [Dr.]. Thousand Oaks: Sage, p. 69–87.
Samovar, Larry A.; Porter, Richard E.; McDaniel, Edwin R. (2010): Communication between cultures. 7th ed. Belmont, CA: Wadsworth/Cengage Learning (Wadsworth
series in communication studies).

3. Intercultural Management
3.1. Introduction

Koch, Eckart (2012): Interkulturelles Marketing

This book deals with all aspects of management-related interaction with employees and superiors, customers and
suppliers, partners and decision-makers - both in foreign cultures and with representatives of other cultures.
About the author: Eckart Koch is Professor of International Economics at the Hochschule für Angewandte Wissenschaften
München

Outline
1. Definition of Management
2. Definition of Intercultural Management
3. Situations of Intercultural Management
4. Intercultural Management Dimensions
5. Summary
6. Literature

1. Definition of Management
Management is the (ongoing) (professional) goal-oriented design, control and development of (complex) structures and processes of organizations.
Three important dimensions of management can be distinguished:
• Management field  professional expertise
• Management process  process expertise
• Leadership  leadership skills
International Management is the (ongoing) (professional) goal-oriented design, control and development of (complex) structures and processes of organizations -
taking into account different national framework conditions.
Source: Koch, 2012, pp. 49 f.

 Intercultural Management is part of the International Management

Figure 1: Management types
Intercultural Management is…

Intercultural  …the combination of knowledge, insights and skills which are necessary for adequately
Management
dealing with national and regional cultures and differences between cultures, at several
management levels within and between organizations.
 …goal-oriented design, governance, evolution of structures and processes of
International
organizations in a context where at least two different cultures coincide.
Management
Source: Koch, 2012, pp. 49 f.
General Management

Intercultural Management is viewed as a subset of international management. Therefore the same features are relevant as for international management. These
features are:
• Fluid structural forms such as organic modes
• Teams constituted of internationally representative managers
• Leadership encompassing versatile skills appropriate for the global context
• Motivation appropriate for diversity
• Organizational cultures such as those characterizing learning organizations
• Communication methods and systems
• Negotiation for the mutual benefit of all players
• Human resource management systems and practices that reflect the dynamics of operating in a global context. These range from managing expatriates, to liaison
with foreign consulates, to procuring visas and work permits.
Source: Koch, 2012, pp. 49 ff.

3. Situations of Intercultural Management
Intercultural management can be necessary in very different situations, which only partly overlap and for which different demands are made on the management.
Table 1: Management in, for or of other cultures
Intercultural Management Place Competence Example
Management in other cultures Foreign countries Mediation, implementation and realisation of The French vice president, who is head of the expanding
organisational goals in a culturally different context subsidiary of a French software company in china.
Management for other cultures Home country/ Development and implementation of suitable strategies The Austrian leader of the eastern European operations in
foreign countries (from outside) for other cultures Vienna, who is also responsible for the personnel of the still
small branch in Slovakia.
Management of other cultures Home country/ Leading teams/ units of other cultures at home or abroad. The Spanish manager, who is leading an international
foreign countries composed research department.
All situations may call for cultural, intercultural or transcultural competences that relate to the balancing of different culturally specific behavioural peculiarities. This
applies to the dominant management field, management processes and leadership competencies, where questions of communication and management style,
motivation and persuasiveness as well as basic social competencies play a role.

4. Intercultural Management Dimensions
To identify the relevant intercultural management aspects, it is very useful to distinguish between the different management dimensions: management field,
management process and leadership.
Figure 2: Intercultural management dimensions
Intercultural relevant questions:
• Which specific cultural knowledge (i.e. about markets and market players)
must exist?
• In what form must cultural values and norms be strategically taken into
account?
• Which specific cultural interests, attitudes and expectations must be taken
Intercultural into account?
management • Which cultural synergic potentials exist?
field
• Which cultural potentials for conflicts exist?
(i.e. marketing, • What culturally different meanings do important steps, concepts, processes,
staff, research)
contents and obligations have?
• How can and should different ideas and reactions be dealt with?
Intercultural
• What typical intercultural competences are needed?
management • Which attitudes and reactions can be expected?
• How must different attitudes and reactions be reacted to?
• Which intercultural negotiation and conflict reduction mechanisms should be
Intercultural used?
management Intercultural
process leadership • Should and can a specific culturally relevant style of communication be
(i.e. vision, applied?
(i.e. to plan, to
decide, to strategy,
control) motivation) Source: Koch, 2012, pp. 49 ff.

5. Summary
Activity 22: The following table 2 summarizes the most important dimensions of management and situations of management. Maybe you can use
it for your own stay abroad?
Table 2: Overview to analyse intercultural management dimensions and situations
Selected Management Management processes Leadership
management fields situations
In Set goals, plan, To implement, To control, to give To develop visions To inform, to To motivate, to
For decide organize feedback and strategies communicate convince
Of/ with
Another country*s
Supply-chain
Management
Management of
marketing
Management of
cooperation
Contract
Management
Staff Management
Networking
Management of
Innovation
Public Relations (PR)

6. Literature
Koch, Eckart (2012): Interkulturelles Marketing. TestOrt: UVK.

3.2. Intercultural Management Skills
Part 3: Intercultural Management 3.2. Intercultural Management Skills 1

Koch, Eckart (2012): Interkulturelles Marketing

This book deals with all aspects of management-related interaction with employees and superiors, customers and
suppliers, partners and decision-makers - both in foreign cultures and with representatives of other cultures.
About the author: Eckart Koch is Professor of International Economics at the Hochschule für Angewandte Wissenschaften
München

Outline
1. Management skills between standardisation and specialisation

2. EPRG model by Howard V. Perlmutter
3. The Integrative Management Model
4. Intercultural Management Competence

1. Management skills between standardisation and specialisation
The success of intercultural management depends on whether and to what extent cross-cultural standardisation is possible (standardisation) or whether adaptation to
local peculiarities is necessary (specialisation).
Standardisation: The transfer of proven central approaches, such as corporate principles, corporate identity, central corporate cultural parameters, corporate strategy
or brand and image policy, to the global corporate structure.
Specialisation: Consideration of country-specific peculiarities, for example in the areas of organisation, production and marketing, but in particular also in relation to
market relations, i.e. towards customers and suppliers.
The EPRG-model by Perlmutter shows four different strategies, how to handle and combine standardisation and specialisation.

2. EPRG-model by Perlmutter
Figure 1: EPRG*-model by Perlmutter
The various approaches, shown in figure 1, are

management models for globally active
companies.
The geocentric approach stands for a globally
comprehensive management concept that is
linked to a decentralized organizational model
with predominantly local managers.
*EPRG stands for ethnocentric – polycentric – regiocentric and geocentric

Source: Koch, 2012, pp. 85 ff.; Gierach, 2017

2. EPRG-model by Perlmutter
Figure 2: Comparison of the different approaches

Figure 2 shows the four different approaches
of the EPRG-model by Perlmutter with some
examples.
Source: Koch, 2012, pp. 85 ff.; Gierach, 2017

3. The Integrative Management Model
Intercultural management requires a balance between standardized and specific approaches.

Figure 3: Integrative management model
Generally proven management Attitudes and reactions that are
procedures influenced by a variety of cultures
Standard Management Fully localized management

“culture free” “culture bound”
Integrative model
Adaptation of management standards to action-relevant
cultural peculiarities
 The integrative model should be based on a conscious decision.

 It requires the intelligent inclusion of culturally relevant action parameters.
 The “missing ratio” depends on the situation.
Source: Koch, 2012, pp. 91

National cultures and cultural differences have to be taken into account by international managers who want to be successful in intercultural contexts. The managers
have to integrate cultural and intercultural aspects into their proven management know how, experiences and tools. Intercultural management competence
encompasses high-level professional, process and leadership competencies and the ability and willingness to blend these competencies with general and specific
knowledge on cultural and intercultural aspects. As an output of this learning process single intercultural competencies will have to be developed. These competencies
have to be tested, improved and supplemented in an intercultural environment. Finally - supported by tailored training and coaching - the manager will arrive at an
integrated intercultural management competence, which would enable him to also cope with challenging intercultural situations and flexibly find creative solutions.
Today process models are used to show the different aspects of intercultural competencies, which are perceived as synergetic products of the permanent interplay of
partial competencies.
Intercultural management competence is the result of the interaction of different partial competences. A model, which illustrates this interaction is the four-step-
process-model.

The four-step-process-model:
1. To determine whether necessary management and social competencies (basic competencies) are available and, if so, to ensure their availability. (“to have”)
2. The competency acquisition process begins with step 2, where specific knowledge about the own and foreign cultural peculiarities and intercultural differences is
acquired. (“to know”)
3. This knowledge is combined with the existing competencies in training sequences to form intercultural action competencies, e. g. adequate behaviour in defined
intercultural situations. (“to can”)
4. In a fourth step, which must predominantly take place in practice and should be accompanied by special training and/or coaching, the individual competencies are
then condensed into an overall intercultural management competency (“to be”). These enable the person to work successfully in different intercultural contexts.
Figure 4 shows the four-step-process-model.

Figure 4: Four-step-process-model
•Existence of relevant •Acquisition of goal-oriented

general management general and specific
competencies and selected theoretical and practical
intercultural basic knowledge about cultural
competencies and intercultural
peculiarities and other
parameters influencing
behaviour
Step 1: Step 2:
Basic Intercultural
competencies knowledge
„to have“ “to know”
Step 4: Step 3:
Intercultural Intercultural
Management decision making
competence competencies
“to be” “to can”
•Transformation and •Acquisition and
extension of action implementation of the
competencies into an ability to combine
integrated action-oriented intercultural knowledge
intercultural management with intercultural core
competence. competencies and to reflect
one's own behaviour.

Literature

Koch, Eckart (2012): Interkulturelles Marketing. TestOrt: UVK.

3.3. Patterns of Cross-Cultural Business Behavior
Part 3: Intercultural Management 3.3. Patterns of Cross-Cultural Business Behavior 1

Gesteland, Richard R. (2002): Cross cultural business behavior. Marketing, negotiating and managing across
cultures.
This is intended as a practical guide for the men and women in the front lines of world trade, those who face
every day the frustrating differences in global business customs and practices. Cultural differences frustrate
people because they are confusing and unpredictable. This book aims to reduce that confusion and introduce
some predictability by classifying international business customs and practices into logical patterns.
About the author: Richard Gesteland (Richard R. Gesteland) is an author, speaker, and international
consultant. His expertise lies in negotiating, selling, marketing, and managing across cultures. He authored
various books, including ‘Cross-cultural Business Behavior.’ In this book, his experience in international
management is narrowly and practically described

Outline
1. Patterns of Cross-Cultural Business Behaviour

2. Deal-focus versus relationship-focus
3. Informal versus formal cultures
4. Rigid-time versus fluid-time cultures
5. Expressive versus reserved cultures

1. Patterns of Cross-Cultural Business Behaviour
Here are a few questions you will find answers in the following pages:
• What cultural gaffe caused top executives of a major Saudi Arabian company to break off promising negotiations with a California firm?
• Where did a Danish export manager go wrong when he lost a lucrative contract by inadvertently insulting a Mexican customer?
• Why did a North American importer end up with 96,000 cotton shirts he could not sell because they were improperly labelled?
• What did a world famous European brewery do to cause their Vietnamese partners to abruptly halt negotiations on a joint venture project?
Why is a thorough knowledge of international business customs and practices especially important for export marketers? Because of Iron Rule #1: In International
Business, the Seller is Expected to Adapt to the Buyer. If you are the buyer in an international transaction, cultural differences are less important - unless of course you
want to negotiate the best deal! What if you are not involved in a buy-sell transaction. Suppose you are travelling abroad to negotiate a joint-venture agreement, an
acquisition or a strategic alliance? Now who is expected to do the adapting? That is where Iron Rule #2 comes into play: In International Business, the Visitor is
Expected to Observe Local Customs.
Therefore being yourself should include being aware of local sensitivities and generally honouring local customs, habits and traditions.
Source: Gesteland, 2002, pp. 20 ff.

2. Deal-Focus versus Relationship-Focus
This is the Great Divide between business cultures. Deal-focused (DF) people are fundamentally task-oriented while relationship-focus (RF) folks are more people-
oriented. Conflicts arise when deal-focused export marketers try to do business with prospects from relationship-focused markets. Many RF people find DF people
pushy, aggressive and offensively blunt. In return DF types often consider their RF counterparts dilatory, vague and inscrutable.
Relationship-Focus: Preferring to deal with family, friends and persons or groups well known to them. Uncomfortable doing business with strangers, especially
strangers who also happen to be foreigners. It is very important to know their prospective business partners very well before talking business to them.
 Arab world, most of Africa, Latin America, Asia/ Pacific region.
 The marketer cannot make initial contact to the prospective buyer in DF cultures without any previous relationship or connection.
 The first contact to RF business partners can be done at an international trade show, by joining an international trade mission, by a third-party introduction
(business partner, embassy officials, bank officials, friend)
 In the RF world, people get things done through relatives, friends, contacts and connections
Deal-Focus: People are relatively open to do business with strangers.  Northern Europe, North America, Australia, New Zealand
 In DF cultures people are open to deal with strangers, therefore export marketers can normally make direct contact with potential buyers in these markets.
 In DF cultures the marketer can make initial contact with the prospective buyer without any previous relationship or connection

Formal cultures tend to be organized in steep hierarchies which reflect major differences in status and power. Informal cultures value more egalitarian organizations
with smaller differences in status and power. These contrasting values cause conflict at the conference table. Business people from formal cultures may be offended by
the breezy familiarity of counterparts from informal, relatively egalitarian societies. On the other hand, those from informal cultures may see their formal counterparts
as stuffy, distant, pompous or arrogant.
Formal cultures: are about status, hierarchies, power and respect. They value hierarchies and status differences. Formal ways of addressing people is one important
way of showing respect to persons of high status.
 Most of Europe and Asia, the Mediterranean Region, Arab World, Latin America
Informal cultures: value status equality.

 Australia, USA, Canada, New Zealand, Denmark, Norway, Iceland

Activity 23: Case Study: What happened? Why decided the Mexican importer not to do business with the Danish company?
José Garcia Lopez, a Mexican importer, had been negotiating with a Danish manufacturing company for several months when he decided to visit Copenhagen to
finalize a purchase contract. The business meetings went smoothly, so on the last day of his visit Sr. Garcia confided that he looked forward to signing the contract after
his return to Mexico. That evening the Danes invited Sr. Garcia out for an evening on the town. Flemming, the 40 year-old export manager and his 21 year-old assistant
Margrethe hosted an excellent dinner and then took their Mexican prospect on a tour of Copenhagen nightspots. Around midnight Flemming glanced at his watch. “Sr.
Gracia, I have a very early flight tomorrow to Tokyo. I hope you`ll forgive me if I Leave you now. Margrethe will make sure you get back to your hotel and then drive you
to the airport tomorrow morning. I wish you a good flight!”.
Next morning in the car on the way to the airport Sr. Garcia was uncharacteristically silent. Then he turned to the young assistant: “Margrethe, would you please tell
your boss I have decided not to sign that contract after all. It is not your fault of course. If you think about what happened last evening I believe you will understand
why I no longer wish to do business with your company.”

Showing respect in Europe

• Age confers status
• An academic distinction confers status  including the title when addressing such a person
Showing respect to the customer  All over the world the customer is the king. “The seller has to show respect to the buyer.”
Nonverbal ways of showing respect
• Show proper respect and deference when dealing with government officials in hierarchical countries. This is particular important in countries with a history of
Western colonial domination.
• Wearing a suit and tie to meetings, no matter what temperature is outside.
• Keeping one`s jacket on in a non-air conditioned office
• In an unfamiliar situation, always err on the side of formality at first.
• Addressing people by their surname and title rather than their first name.
• Dress formally
• Follow local etiquette when shaking hands and exchanging business cards.
• Being on time is a key way of showing respect – all over the world.
Status Barriers
There are four classes of international business people who have to operate at an even greater disadvantage when trying to sell goods to strongly hierarchical buyers.
These are:
• People on the lower rungs of the corporate ladder in their own company
• Young people of either sex  Youth Barrier
• Women  Gender Barrier
• Men and women of any age involved in international sales and marketing

How to overcome the Youth Barrier with Hierarchical Buyers

• Get introduced by an older man
• Be a true expert in your field (expertise covers status  all over the world)
• Learn the local business protocol
Other status factors

• Family background
• Level of education
• Knowledge of “high culture”

People look at time and scheduling differently in different parts of the world. Orientation of time varies not only among different countries but often within a given
country as well. Figure 1 shows a summary of the three perceptions of time in the world.
Figure 1: The perception of time
Monochronic business cultures Moderately Monochronic Polychronic business cultures

Nordic and Germanic Europe Australia/ New Zealand The Arab World
North America Russia and most of East-Central Europe Most of Africa
Japan Southern Europe, Singapore, Hong Kong, Latin America
Taiwan, China, South Korea, South Africa South and Southeast Asia
In rigid time societies punctuality is critical, schedules are set in concrete, agendas are fixed and business meetings are rarely interrupted. These clock-obsessed,
schedule-worshipping cultures are called “monochromic cultures”. In direct contrast “polychronic cultures”, are cultures, where people place less emphasis on strict
punctuality and are not obsessed with deadlines. These cultures value loose scheduling as well as business meetings where several meetings-within-meetings may be
taking place simultaneously.

Activity 24: Case Study: What happened? Does the following scenario concern a polychronic culture shock or a monochronic culture shock?
A Malaysian business woman flew to the USA for an important conference scheduled for 10 am on a Monday. She arrived in Boston late that Sunday evening, had
trouble falling asleep because of jet lag and overslept a little the next morning.
On Monday the Malay lady had difficulty finding the meeting location in her rental car, got lost and finally arrived well after lunch – four hours late for her meeting. The
Americans she was supposed to meet came out of the conference room to tell her, “ Oh sorry, right now we are in the middle of our afternoon meeting. And our
calendar seems to be kind of full this week… Well let`s see, can you make it for Wednesday of next week?” But since she had to be back in Kuala Lumpur by that date,
she was never able to reschedule that important meeting.
Back home she related that sad story as an exemplar of how rude and scheduled- obsessed Americans can be: “So there I was in Boston, having flown half-way around
the world just for a meeting. And those people did not even have the common decency to rearrange their schedule for a foreign visitor who was a little late. Can you
believe it?”

Here are three practical tips for rigid-time business travellers
• Find out in advance which of the markets you are going to visit are in fluid-time cultures. Forewarned is fore-armed.
• Come armed with a well filled briefcase. Instead of wasting time in the reception area twiddling your thumbs, compulsively looking at your watch and muttering
curses, catch up on all that paperwork you never seem to have time for.
• Above all: BE PATIENT!

Varying degrees of expressiveness in paraverbal and nonverbal behaviour cause unexpected problems for international managers and negotiators.
Figure 2 shows the different shaping of expressive and reserved cultures.
Figure 2: Expressive and Reversed Cultures
Very Expressive Cultures Variably Expressive Reserved Cultures

The Mediterranean Region USA and Canada East and Southeast Asia
Latin Europe Australia and New Zealand Nordic and Germanic Europe
Latin America Eastern Europe
South Asia, Africa
Vocal volume and Inflection
The meaning of silence  Expressive people tend to be uncomfortable with more than a second or two silence during a conversation. Reserved people feel at ease
with much longer silences.
Turntaking versus conversational overlap  “Conversational overlap” is a term for interrupting another speaker. While expressive people regard interruptions as a
normal part of conversation, overlap is considered extremely rude by people from reserved societies.

Distant behaviour  Every human being is surrounded by an invisible envelope of air called a “space bubble” which caries in size according to (a) where in the world
we grew up and (b) the particular situation. Figure 3 shows the approximate range of same-gender space-bubble sizes across cultures in a business situation.
Figure 3: Distance behaviour – the use of space

Space  Expressive people engage in more physical contact in public than men and women from more reserved cultures. Figure 4 classifies cultures by the degree to
which touch behaviour is accepted.
Figure 4: Space

Touching  Touch behaviour regarded as proper in one culture may be quite inappropriate in another.
 Among business people the world over the handshake is the most common form of physical contact. Figure 5 lists a few of the variations.
Figure 5: Handshakes and countries

Eye contact  the subtlest form of body language is gaze behaviour. We are easily confused when people use either stronger or weaker eye contact than we do. Figure
6 displays the variations. Very expressive cultures seem to value strong, direct eye contact.
Figure 6: Exe contact among cultures

Ambiguous Gestures
• Use of the left hand. The left hand is considered unclean in Muslim, Hindu and Buddhist cultures. Avoid touching people or handing them objects such as you business card with
the left hand.
• Showing the sole of your shoe. The bottom of your shoe or your foot are also regarded as unclean in the same cultures. Foreign visitors should avoid crossing their legs in such a
way that the sole of their shoe is visible to anyone.
• Fist in palm. (Southeast Asia)
• Index finger pointing. Throughout East and Southeast Asia it is rude to point at anyone with the forefinger. Instead, use your whole hand – flat with the palm down in Japan,
clenched with the thumb on top in most if the Asian countries.
• Index finger beckoning. All over Asia that particular gesture is reserved for calling dogs and prostitutes.
• Tapping your head. The meaning of this gesture varies within the European countries.
 In France, Italy and Germany if you tap your forehead while looking at someone you are saying nonverbally “Hey, you are stupid!”
 In Spain or Great Britain that same gesture is self-referential and means, “I am so clever”.
• The “Thumbs Up” Sign. In many countries this sign means “great”. In Germany and other parts of Europe it signifies the numeral one. But to many Europeans and in the Middle
East it is a very rude sexual sign.

Ambiguous Gestures
• The “Peace” Sign. The two-fingered gesture - forefinger and second finger extended with palm facing outwards – meant V for victory during World War II. The peace
sign reversed means the same thing as “flipping the bird” – raising your middle finger with the palm in.
• The “A-OK” Sign. The thumb-and-forefinger circle is easily the most dangerous and ambiguous of gestures.
 In USA it means “Everything OK.”
 For Japanese the circular shape looks like a coin, so it means “Now we are talking about money”
 In the south of France that shape symbolizes the zero, so it indicates quite the opposite – “nothing” or “worthless”.
 In the Iberian peninsula, much of Latin America, parts of Europe and Russia it is used as a vulgar sexual suggestion – extremely insulting.

6. Summary
Characteristics of relationship-focused business cultures

• People are usually reluctant to do business with strangers
• Make initial contact indirectly: at trade shows, on official trade missions or via intermediaries, introductions and referrals.
• At meetings, take plenty of time to build trust and rapport before getting down to business.
• It is important to maintain harmony, avoid conflict and confrontation during discussions.
• Negotiators tend to be sensitive to issues of face, dignity, self-respect.
• A preference for indirect, high-contact communication to avoid offending others.
• Effective communication and problem-solving require frequent face-to-face contacts.
• Lawyers are usually kept in the background during negotiations.
• A reliance on close relationships rather than contracts to resolve disagreements.

6. Summary
Characteristics of deal-focused business cultures

• An openness to talking business with strangers.
• Though introductions and referrals are always helpful, it is generally possible to contact potential customers or business partners directly.
• At meetings, people get down to business after just a few minutes of general conversation.
• When communication, the priority is clarity of understanding. Little thought is given to maintaining harmony with counterparts during negotiations.
• Little attention paid to issues of face.
• Expect direct, frank, low-context communication most of the time.
• Much communication and problem-solving handled via telephone, fax and e-mail rather than in face-to-face meetings.
• Lawyers are often seated at the negotiating table.
• A reliance on written agreements rather than personal relationships to resolve disagreements.

6. Summary
Characteristics of formal, hierarchical business cultures

• Formality in interpersonal communication is an important way of showing respect.
• Status differences are valued and tend to be larger than in egalitarian societies.
• Expect to address counterparts by family name and title rather than by given name.
• Protocol rituals are often numerous and elaborate.
Characteristics of informal, egalitarian business cultures

• Informal behaviour is not regarded as disrespectful.
• People are uncomfortable with obvious status differences, which are smaller than in hierarchical societies.
• Expect to address most counterparts by given name rather than surname and title shortly after meeting them.
• Protocol rituals are relatively few and simple.

6. Summary
Characteristics of polychronic business cultures

• People and relationships are more important than punctuality and precise scheduling.
• Schedules and deadlines tend to be quite flexible.
• Meetings are frequently interrupted.
Characteristics of monochronic business cultures

• Punctuality and schedules are very important to business people.
• Schedules and deadlines tend to be rigid.
• Meetings are seldom interrupted.

6. Summary
Characteristics of reserved business cultures

• People speak more softly, interrupt each other less and are more comfortable with silence than is the vase in expressive cultures.
• Expect interpersonal distance of about an arm`s length and little physical contact aside from the handshake.
• Avoid intense, continuous eye contact across the negotiating table.
• Expect very few hand and arm gestures and restrained facial expression.
Characteristics of expressive business cultures

• People often speak quite loudly, engage in conversational overly and are uncomfortable with silence.
• Expect interpersonal distance of half arm`s length or less and considerable physical touching.
• Direct, even intense eye contact across the negotiating table signals interest and sincerity.
• Expect lively facial expressions along with vigorous hand and arm gesturing.

Literature
Gesteland, Richard R. (2002): Cross cultural business behavior. Marketing, negotiating and managing across cultures. 2. ed., 5. impr. Copenhagen: Handelshøjskolens
Forlag.

3.4. International Negotiator Profiles
Part 3: Intercultural Management 3.4. International Negotiator Profiles 1

Gesteland, Richard R. (2002): Cross cultural business behavior. Marketing, negotiating and managing across
cultures.
This is intended as a practical guide for the men and women in the front lines of world trade, those who face
every day the frustrating differences in global business customs and practices. Cultural differences frustrate
people because they are confusing and unpredictable. This book aims to reduce that confusion and introduce
some predictability by classifying international business customs and practices into logical patterns.
About the author: Richard Gesteland (Richard R. Gesteland) is an author, speaker, and international
consultant. His expertise lies in negotiating, selling, marketing, and managing across cultures. He authored
various books, including ‘Cross-cultural Business Behavior.’ In this book, his experience in international
management is narrowly and practically described

Outline
1. Relationship-Focused, Formal, Polychronic and Reserved: India

2. Relationship-Focused, Formal, Monochronic and Reserved: Japan
3. Relationship-Focused, Formal, Polychronic and Expressice: Saudi Arabia
4. Relationship-Focused, Formal, Polychronic and Variably Expressive: Russia
5. Moderately Deal-Focused, Formal, Variably Monochronic and Expressive: France
6. Moderately Deal-Focused, Formal, Variably Monochronic and Reserved: The Baltic States
7. Deal-Focused, Moderately Formal, Monochronic and Reserved: Germany
8. Deal-Focused, Informal, Monochronic and Variably Expressive: USA

1. Relationship-Focused, Formal, Polychronic and Reserved
Countries, which are falling under this heading are:

India
Bangladesh
Indonesia
Malaysia
Vietnam
Thailand
Philippines
In the following India is described in detail, as a representative of this group.

1. Relationship-Focused, Formal, Polychronic and Reserved: India*
• Capital city: New Delhi

• Official language: Hindi, English, over 300 different languages are spoken in the country
• Currency: Indian Rupee
• Total gross domestic product (GDP): 2,602 bn US$
• Population total: 1,339,180,000
• Religion: majority of Indians are Hindus, over 100 million are Muslims. Other religions include Sikhism, Buddhism and Christianity
• Extremely complex culture: multi-lingual, multi-ethnic and multi-religious
*All numbers are from 2018.

Source: destatis

The Language of Business

• Hindi is the most important indigenous language, but it is spoken fluently by only about a third of the population.
• English is promoted as the lingua franca within the country.
• Most Indians business people speak English fluently.
• Indian variety of English is sprinkled with local terms.
Hierarchy, Status and Caste

• Indians respect age, rank and social position.
• Younger people are expected to defer to elders.
• Hindus belong to whatever caste they are born into, they cannot move up the caste.
Polychronic Time
• Time has a different meaning in India, clocks seem to tick to a slower beat.
• Expect to be kept waiting half an hour or more without the courtesy of an apology.
• Meetings are likely to be interrupted every few minutes
• It`s a mistake to interpret this behaviour as rude or reflective of sloppy work habits. Indian officials enjoy higher status than business people.

Dress Code
• Men wear dark suit when meeting government officials. For most private sector meetings, a suit, shirt and tie.
• Women wear conservative dress or blouse and skirt (below-the-knee length). Avoid revealing garb such as thin T-shirts, sleeveless blouses and tank tops.
Meeting and Greeting

• Men usually shake hands, using moderate pressure.
• With female counterparts the graceful “Namaste” gesture may be used: Palms together with fingertips just below chin level while bowing the head slightly.
Forms of Address
Usage varies widely across the subcontinent, especially between northern and southern India. Two useful rules:
• Ask your counterpart how they wish you to address them
• Always use a person`s professional or academic title.
Exchanging Cards
Offer and receive cards with the right hand only.

Garlanding
This elegant custom is the South Asian way of greeting honoured guests. But what do you do with the garland after is has been draped around your neck? The
appropriate response is to smile in thanks, remove it gently as soon as the flush bulbs stop popping, and carry it in your hand until your hosts relieve you of the
fragrant burden.
Wining and Dining

• Most Hindus are serious vegetarians.
• Neither Muslims nor Hindus eat pork.
Negotiating Behaviour
• Once a comfortable relationship is built with the local counterpart, the formal negotiation process can begin.
• Be prepared for tough, drawn-out bargaining sessions.

2. Relationship-Focused, Formal, Monochronic and Reserved

Japan
China
South Korea
Singapore
In the following Japan is described in detail, as a representative of this group.

2. Relationship-Focused, Formal, Monochronic and Reserved: Japan*
• Capital city: Tokyo

• Official language: Japanese
• Currency: Yen
• Population total: 126,786,000

Source: destatis


Many Japanese speak foreign languages, especially English. Check before the meeting if an interpreter is needed.
Hierarchy, Status and Respect

• Younger, subordinate individuals are expected to defer to alder, higher-ranking persons. Since few women have reached positions of authority in this traditional,
hierarchical society, most men are not used to dealing with females on the basis of equality in a business context.
• In Japan the buyer automatically enjoys higher status than the seller in a commercial transaction. To reflect that status difference, buyers expect to be treated with
great respect. Hence young foreigners face significant cultural obstacles when trying to sell to Japanese customers. Here are four ways to overcome age and gender
barriers with the Japanese:
 Be introduced by the eldest, most senior male colleague available.
 Learn the verbal, paraverbal and nonverbal ways of showing proper respect. Showing respect gains you respect.
 Gradually establish your professional or technical credentials, taking care not to appear cocky or boastful. Expertise confers status.
 Women are often more skilled than males in reading body language. This ability is particularly valuable when dealing with Japanese, who rely heavily on
nonverbal communication.

Formality and Rituals

To maintain surface harmony and prevent loss of face, Japanese rely on codes of behaviour such as the ritual of the meishi -business cards. Japanese negotiators dress
and behave formally and are more comfortable with visitors who do likewise.
Dress Code
• Dark suit, white shirt, conservative tie for men.
• Conservative suit or dress for women.

Expect a bow and a soft handshake. Avoid an excessively firm handshake or overly direct eye contact.
Exchanging Business Cards

It is polite to master the ritual of the meishi, or business card. Offer your card using both hands, holding it between thumb and forefinger with the side showing the
Japanese printing facing up. Shake hands with a slight bow and state your name and your company's name. Receive your counterpart's card with both hands, study it
for several seconds and then place it respectfully on the conference table in front of you or in your leather (not plastic) card holder.

Forms of Address
Address your counterpart with his or her family name plus the suffix san, as in Watanabe-san. In Japan the family name comes first, followed by given names. But on
business cards meant for foreigners they may reverse the order, so when in doubt ask which is the family name.
Gift Giving and Receiving

• Exchanging gifts is an important part of the business culture, contributing to relationship building.
• Be prepared with appropriate gifts for your Japanese counterparts.
• A good choice is an expensive cognac, a good single malt whisky or a tasteful item which is typical of your city, region or country.
• Note that the wrapping and presentation of the gift are more important than the contents. Have your gifts wrapped in Japan or by someone knowledgeable
Japanese customs.
• Present the gift to your partner with both hands. The recipient will probably put it aside and open it later. You should also receive a gift with both hands and open it
later.

Wining and Dining

• Entertaining and being entertained are essential parts of building a close relationship with your counterpart.
• To show your commitment to Japanese customs, master the art of eating with chopsticks and toasting appropriately.
• For males, ritual drinking is a traditional way to get to know your counterpart. It is sometimes appropriate to drink heavily, even to get drunk. For some Japanese
businessmen, drinking alcohol seems to dissolve the stiffness and formality you may encounter during business meetings.
Making Your Presentation

• Avoid opening with a joke or humorous anecdote. This would show lack of respect for the topic and for the audience.
• Speak clearly and simply.
• Avoid using double negatives and convoluted sentences, jargon, slang or unusual words.
• Take care not to over-praise your product or company.
Bargaining Range
Have a cogent reason for any major concession on price or terms

Role of the Contract

• The final written agreement is less important than the strength of the relationship with your counterpart.
• But do put everything in writing anyway. The Japanese side may expect to renegotiate the contract, if circumstances change. For them, the contract is an
expression of intent.
• Look for areas of agreement before discussing the difficult items.

3. Relationship-Focused, Formal, Polychronic and Expressive

Saudi Arabia
Egypt
Greece
Brazil
Mexico
In the following Saudi Arabia is described in detail, as a representative of this group.

3. Relationship-Focused, Formal, Polychronic and Expressive: Saudi Arabia*
• Capital city: Riyadh

• Official language: Arabic
• Currency: Saudi Riyal
• Total gross domestic product (GDP): 687 bn US$
• Religion: Islam

Source: destatis

3. Relationship-Focused, Formal, Polychronic and Expressive: Saudi Arabia

Many Arabs speak English fluently
Exchanging Favours
The exchange of mutual favours is the cornerstone of any relationship with an Arab. If asked for a favour, agree to do it even if you think you may not be able or willing
to do it. Your Arab friend will understand if circumstances later make it impossible to fulfil his request and will appreciate the fact that you agreed to try to help.
Hierarchy, Status and Gender

An Arab's status is determined primarily by his or her social class and family background. Saudis and many other Arabs are not used to seeing women in business. For
this reason they may have difficulty relating to female executives. Tips for women wishing to do business in the Arab World:
• Be introduced by an older, high-ranking male. His gender and status can rub off on you.
• Gradually establish your professional or technical credentials, without appearing cocky or boastful. Expertise confers status.
• With luck you may be regarded as a foreigner who happens to be female.

The Role of Islam

The Arab world is a conservative, traditional society strongly influenced by Islam, which pervades every aspect of life. Visitors are advised to learn as much as possible
about Arab customs, practices and taboos before arriving.
Honour and the Family

• An Arab's honour, dignity and reputation are precious to him and must be protected at all cost.
• Loyalty to the family is a paramount value.
• Family needs often come before individual needs.
Expressive Indirect Communication Style

• Arabs express emotion and use elaborate verbal language marked by frequent exaggeration for effect.
• Arabs avoid confrontation, they usually avoid saying “no” directly.


Expect a gentle hand shake and strong, direct eye contact. Arabs of the same sex like to stand or sit very close to each other, closer than many foreigners are
accustomed to. Try not to move away, since this would signal coldness to your Arab counterpart.
Touch Behaviour
As representatives of an expressive culture, Arabs engage in frequent touching among friends. The amount of physical contact between business acquaintances varies
within the Arab world.
Taboos
• Always use your right hand only when eating or when passing something to an Arab. The left hand is considered unclean. If you are left-handed, train yourself to
use your right hand as much as possible.
• When seated, avoid showing the soles of your shoes to an Arab. The feet and shoes are considered unclean.
Dress Code
Conservative suit and tie. Accessories such as watch, pens and briefcase should be of high quality. Some Arab business people judge foreign counterparts by how they
dress.

Forms of Address
Address your Arab counterpart by the first of his three names, preceded by "Mr." Example: Mr. Aziz. Expect to be addressed in the same way. Titles are important,
more widely used in Arabic than in English. "Sheikh" is a tide of respect for a wealthy, influential or elderly man. Address government ministers as "Excellency.“
Refreshments
You will frequently be offered tea or coffee. This is an important feature of Arab hospitality; it is impolite not to accept.
Entertaining
Entertaining and being entertained is an essential part of building a close relationship with your counterpart. If invited to dinner at an Arab businessman's home expect
to eat a great deal as a way of showing your appreciation. Your host will press you to eat more you than really want to. Eat as much as you can. When you have
reached your limit, you may have to decline further helpings three times, emphatically, in order to make the point. Similarly, when hosting Arabs you must keep
pushing them to eat and drink. But remember that alkoholic beverages and pork products are forbidden to Muslims.
Bargaining Range
Arab negotiators tend to be enthusiastic bargainers and may expect their counterparts to grant major concessions on price and terms during the course of the
negotiation.

Concession Behaviour
Be prepared for "bazaar haggling" - hard bargaining. Take care to make each concession with great reluctance and onIy on a strict "if ... then," conditional basis. Always
demand something equivalent in return for each concession in price, terms or other issues.
Decision-Making
Negotiating in the Arab world tends to proceed at a leisurely pace. It would be a tactical error to press hard for a quick decision. Go with the flow. Decisions take time,
so adjust your expectations accordingly.
The Contract
Get everything in writing to avoid future misunderstandings.

4. Relationship-Focused, Formal, Polychronic and Variably Expressive

Russia
Poland
Romania
In the following Russia is described in detail, as a representative of this group.

4. Relationship-Focused, Formal, Polychronic and Variably Expressive: Russia*
• Capital city: Moscow

• Official language: Russian
• Currency: Russian Ruble
• Religion: Christianity, Islam

Source: destatis

Personal Relationships
As in other relationship focused markets, personal relationships are needed to get things done.
Business is done fact-to-face. Frequent visits and phone calls are essential.
Direct, low-context Communication

Russians negotiators tend to be direct, even blunt, saying what they mean and meaning what they say.
Formality, Status and Hierarchies

• Russians deeply resent it when others have more than they do.
• Egalitarian values coexisting with formal, hierarchical behaviour.
• Russian formality shows up in the way people dress and in their meeting and greeting rituals, while hierarchies are evident in the top-down approach to
management as well as the scarcity of women in positions of authority.
• All important decisions are reserved for the top men in the organisation. In Russia it is even more important than in most other business cultures to make sure one
is negotiating with the real decision-maker.

Polychronic Time Behaviour

Meetings usually start late (often one hour or more), run on well beyond the anticipated ending time and are frequently interrupted.
Variable Expressiveness
At the first meeting expect a quiet, restrained manner; at subsequent session be prepared fore more demonstrative behaviour. Be ready for emotional outbursts and
displays of temper at critical points in the discussion.
Paraverbal and nonverbal Behaviour

• Voice Volume: Moderate. Visitors should avoid loud, boisterous conversation in public.
• Interpersonal Distance: From close to medium - 12 to 18 inches (20 to 30 cm).
• Touch Behaviour: Among friends, frequent touching, bear hugs and cheek-kissing.
• Eye Contact: Direct gaze across the negotiating table.
• Taboo Gestures: The "A-OK" thumb-and-forefinger sign is obscene. Standing with hands in one's pockets is rude.

Dress Code
Conservative. In winter, adopt the layered look. Expect to check your overcoat in most public buildings.

Shake hands and state your name.
Forms of Address
When introduced, use title plus last name, not first names. Later you might move to using the first name plus patronymic, but wait until your counterpart suggests it.
Exchanging Cards
Bring plenty of cards which show your organizational title and any advanced degrees. Do not be surprised if your Russian counterpart does not have a card.
Topics of Conversation
Avoid discussions of war, politics and religion.
Business Gifts
Quality pens, books, music CDs, solar-powered calculators, liquor, card wallets, gift soaps, T-shirts.

Business Entertaining
lt is a signal honour to be invited to a Russian home: Be sure to accept. Most business entertaining is done at restaurants.
Drinking
Russians seem to have a high tolerance for alcohol. Few foreigners succeed in staying with the locals drink for drink. To limit your intake, drink only when someone
proposes a toast. If there are many toasts, switch to sipping. Be prepared to drink at least one or two small vodkas.
Making a Presentation
Especially at the first meeting, avoid starting off with a joke. Show that you are taking business seriously. Pack your presentation with facts and technical details.
Bargaining Style
Be ready for hardball tactics – a tough, sometimes confrontational approach, possibly punctuated with table-pounding, temper tantrums, emotional outbursts,
brinkmanship, loud threats and walkouts.

5. Moderately Deal-Focused, Formal, Variably Monochronic and Expressive

France
Belgium
Italy
Spain
Hungary
In the following France is described in detail, as a representative of this group.

5. Moderately Deal-Focused, Formal, Variably Monochronic and Expressive: France*
• Capital city: Paris

• Official language: French
• Currency: Euro
• Religion: Christianity

Source: destatis


Many French business people speak English, even though French is the language of business.
Making the initial Contact

Connections count heavily in this market.
Importance of Relationships
France is definitely a country of personal networks. The French want to know a good deal about you before discussing business, but building rapport involves less small
talk than in same other cultures. Showing a knowledge of French history, literature, art and philosophy is a good way to build rapport. Discussing French cuisine and
wine over a meal is another good way.
Orientation to Time
Business behaviour tends toward the polychromic, though visitors are expected to be roughly on time for business meetings, particularly if they are selling. Meetings
usually do not follow a fixed agenda.

Hierarchy and Status

Level of education along with family background and wealth determine status in France. Graduates of the select Grandes Ecoles hold high positions in government and
industry. Freneh bosses tend to run their companies in an authoritarian style. Managers are expected to be highly competent and to know the answer to virtually every
question that arises. They are often reluctant to delegate authority. Fraternization with the rank and file is not common.
Communication Style
• The French are verbally and nonverbally expressive.
• They relish verbal conflict the French dislike getting strait to the point. They tend to favour subtle, indirect language and like to present their point of view with
elegant phrasing and verbal flourishes.
• Among friends and relatives the French display high-contact behaviour, including in public.
• Always shake hands, when meeting and when leaving someone.
Dress Code
Dress and behave formally in a business setting.


Handshake with moderate pressure and steady eye contact.
Forms of Address
Greet your local counterparts with monsieur, madame or mademoiselle without the person's name, as in "Bon jour, monsieur.''' Always use the vous (formal) pronoun rather than the
informal tu.
Wining and Dining

Entertaining and being entertained is an important way to build rapport.
Sales Presentation
Avoid hard-sell tactics, hyperbole and flippant humour. Prepare a sober presentation with a logical sequence of arguments. If you encounter forceful disagreement on same points, be
prepared to respond with factual counter-arguments. Vigorous disagreement wirb specific issues does not necessarily signal lack of interest in your overall proposal.
Bargaining Style
Be prepared for long, relatively unstructured negotiating sessions punctuated frequently with verbal confrontation.


The Baltic States (Lithuania, Estonia, Latvia)
In the following these three countries are classified under the Baltic States, and are described as one group in detail.

6. Moderately Deal-Focused, Formal, Variably Monochronic and Reserved: The Baltic States*
Lithuania Latvia
• Capital city: Vilnius • Capital city: Riga
• Official language: Lithuanian • Official language: Latvian
• Currency: Euro • Currency: Euro
• Total gross domestic product (GDP): 47 bn US$ • Total gross domestic product (GDP): 30 bn US$
• Population total: 2,828,000 • Population total: 1,941,000
• Religion: Christianity • Religion: Christianity
Estonia
• Capital city: Tallinn
• Official language: Estonian
• Currency: Euro
• Total gross domestic product (GDP): 26 bn US$
• Population total: 1,315,000 *All numbers are from 2018.
• Religion: Christianity Source: destatis


English
Moderately Deal-Focused
Compared to Asians, Arabs and Latin Americans, most Latvians and Lithuanians are deal-focused. In Vilnius and especially in Riga you can expect to get down to
business fairly quickly; preliminaries are not as drawn-out as in southern Europe or the Mediterranean region. Business discussions tend to move along point by point
in a linear fashion as in Germany. On the other hand, making direct contact with prospective customers and business partners is less effective than in the deal-focused
cultures of North America and northern Europe. Marketers from abroad will have better luck if they have a good referral or introduction - even better luck if they meet
prospects at a trade show of on an organized trade mission. In this sense Latvia and Lithuania can perhaps be best described as moderately or variably RF business
cultures while Estonia is definitely more deal-focused.
Formality, Status and Hierarchies

Reflective of their hierarchical cultures, Latvians and Lithuanians conduct business in a more formal manner than Americans and the egalitarian Canadians, Australians
and Scandinavians. It is important to show a certain degree of respect to older and senior persons.
Moderately Monochronic
Time Business meetings generally start on time; visitors are expected to be punctual. As opposed to more polychronic societies, meetings in Lithuania and Latvia tend
not to be interrupted.

Communication Style
• Voice volume: Like Scandinavians, most Balts speak relatively softly in business situations.
• Silence: Expect long pauses during discussions in Estonia, less often in Latvia.
• Conversational overlap: Interrupting another speaker in mid-sentence is considered rude behaviour, especially in Estonia and Latvia. Wait until your counterpart has
finished talking before speaking up.
• Interpersonal space: Expect the typical northern European-sized space bubble - about an arm's length between people in a business situation.
• Touch behaviour: Little physical touching in a business situation. Expect somewhat more expressiveness after a relationship has been established.
• Eye contact: It is polite to maintain a steady (but not intense, in-your face) gaze across the conference table, much as one would in Germany or Scandinavia.
• Gestures: Especially in Latvia and Estonia, expect controlled facial expressions and few gestures. Avoid hands in pockets while conversing.
Dress Code
Neat and conservative

State name clearly, handshake, exchange business card.

Forms of Address
Expect to use your counterpart's family name and professional title, if any. Avoid use of first names until your Baltic counterpart clearly invites you to do so.
Gift Giving
Business gifts are welcome but not expected.
Wining and Dining

Business entertaining normally takes place outside the home, at lunch or dinner.
Negotiating Behaviour
• Negotiating an agreement is likely to take longer than it would In Western Europe or North America. It takes time to build a climate of trust.
• Finding the right local representative or distributor is the main key to achieving satisfactory results. Having patience is another important key.
• Expect older Latvians and Lithuanians to show the influence of decades of Soviet influence. Many younger Balts are less bureaucratic, more open and more deal-focused.
• Visitors should stay cool, avoid table-pounding and open displays of temper.
• When you do reach agreement, expect it to be formalized in a detailed contract. Take the time to review the document carefully before signing, and insist that the English
Ianguage version be the binding one.

7. Deal-Focused, Moderately Formal, Monochronic and Reserved

Britain
Denmark
Finland
Germany
The Netherlands
Czech Republic
In the following Germany is described in detail, as a representative of this group.

7. Deal-Focused, Moderately Formal, Monochronic and Reserved: Germany*
• Capital city: Berlin

• Official language: German
• Currency: Euro

Source: destatis

Many German mangers are comfortable conducting business in foreign languages, especially English.
Initial Contact
Introduction through a third party is useful, but making direct contact is also a viable option in Germany.
Verbal Communication
• Germans generally pride themselves on speaking their mind. Clarity of understanding is the prime goal of communication. Even negotiators from other northern
European cultures may not be fully prepared for Germanic abruptness and readiness to get to the point. Expect Germans answer the telephone by giving their last
name rather than saying hello. Germans tend to be uncomfortable with the effusive compliments that are common in some other cultures.
• Your counterparts are likely to be reserved, not given to enthusiastic public displays of emotion - although southern Germans are somewhat more expressive. As
opposed to Latin Europeans and Latin Americans, most Germans eschew wide gestures, animated facial expressions and conversational overlap. Interrupting
another speaker is regarded as very rude.
Nonverbal Communication
The normal interpersonal distance in a business context is about an arm's length. Gennans tend to stand and sit further apart than Arabs and Latins and may feel ill at
ease when their "space bubble" is invaded. A low-contact culture: Expect little physical contact beyond the obligatory handshake. Hand and arm gestures are
restrained.

Orientation to Time
Germany is a strongly monochronic culture. Tardiness signals unreliability.
Forms of Address
• Formal behaviour shows appropriate respect to people with high rank, professional titles and higher academic qualifications.
• Address “Dr. Wilhelm Schmidt” as “Dr. Schmidt” or “Herr Doktor”. His female colleague with a Ph.D would be “Dr. Luise Schmidt” or “Frau Doktor”.
• As the case with most other European tongues, the German language employs two different personal pronouns for "you”. "Sie” is the formal pronoun appropriate
far business relationships while the informal “Du” is reserved for close personal friends, small children and pets. Stay with titles, family names and “Sie” unless and
until your counterpart suggests moving to a less formal mode of address. You can expect to work with a German business counterpart for many years without
shifting to first names.
Dress Code
• A dark suit and conservative tie for men, suit or dress for women.
• The exchange of business cards is less formal than in East and Southeast Asia but less casual than in North America. Present your card after greeting your
counterpart and shaking hands.


Handshakes are expected whenever you meet or leave someone.
Business Gifts
This is not a gift-giving culture.
Wining and Dining

Many Germans prefer to maintain a clear separation between their professional and private lives. Altough they are excellent hosts, Germans may place less emphasis
on business entertainment than visitors from many relationship-focused cultures.
Germans respond best to thorough, detailed presentations supported by copious facts. They look for plenty of history and background information rather than fancy
visuals. Use references and testimonials whenever possible. Be wary of including jokes in the presentation. Humour rarely translates well and sales presentations are a
serious business in Germany.

Bargaining Range
Most Germans respond better to realistic initial quotations than to the classic "high-Iow" tactic. They may react negatively to what they perceive as bazaar haggling.
Consider building a small margin into your opening bid to cover: unexpected developments, but take care to avoid over-inflating your initial offer.
Decision-Making
Germans take their time to deliberate and to confer with responsible colleagues before making an important decision. Expect them to take more time than Americans
but perhaps less than the Japanese and most other Asians.
The Contract
Look for heavy emphasis on the legal aspects and the fine points of the written agreement. Germans tend to depend more on the wording of the contract than on the
relationship with their counterpart to solve any problems and disagreements that may develop. Contract terms are considered "cast in concrete“, so attempts to
renegotiate the contract soon after it has been signed may not be welcomed.

8. Deal-Focused, Informal, Monochronic and Variably Expressive

Australia
Canada
USA
In the following USA is described in detail, as a representative of this group.

8. Deal-Focused, Informal, Monochronic and Variably Expressive: United States of America (USA)*
• Capital city: Washington D.C.

• Official language: English
• Currency: United States Dollar (US$)
• The USA is a complex multi-ethnic, multiracial, multicultural society. Because of this diversity it is not possible to predict in detail the negotiating behaviour of any
individual U.S. American.
• For example, you can expect most U.S. American negotiators to be very time-conscious ("Time is money"), deal-focused ("Let's gel down to business") and informal
("What's your first name?"). On the other hand, an U.S. American negotiator's degree of expressiveness in communication is likely to be strongly influenced by his
or her particular ethnic background.

Source: destatis

8. Deal-Focused, Informal, Monochronic and Variably Expressive: United States of America (USA)
The Language of Business: American English

Very few U.S. Americans speak a foreign language well enough to handle a complex business negotiation. If your English is not adequate, consider hiring an interpreter
or asking your U.S. counterpart to do so.
Making Contact
• Most U.S. Americans are used doing business with strangers.
• Direct contact, without going through an intermediary.
Deal-Focused
U.S. Americans are usually ready to get down to brass tacks shortly after meeting a potential business partner for the first time. It is not that U.S. negotiators are
unaware of the importance of getting to know their counterpart, of building a relationship. It is simply that the deal focused Yank prefers to build trust and rapport
while the business discussions are proceeding. They tend to regard extended small talk and preliminaries as a waste of precious time.
Orientation to Time
U.S. Americans are as obsessed with time as many other cultures are with relationship-building. Famously monochronic, they treat time as a tangible asset which can
be saved, spent, lost) found) invested and wasted.

Informality
A key U.S. American value is egalitarianism. Yanks tend to feel uncomfortable in the face of overt status distinctions, except those based on individual achievement.
Women and young men face relatively few obstacles to doing business in the U.S., where personal achievement is generally regarded as more important than one's
social class, family background or gender. The relative lack of status distinctions is reflected in the breezy informality for which Americans are famous. They want to get
on a first-name basis quickly, even with people they have just met. Informality is meant to show friendliness and warmth. Business visitors from more formal cultures
should realize that easy familiarity is not intended to show disrespect to high-status persons.
Communication Style
• Depending on their ethnic background as well as their individual personality, U.S. negotiators show great variation in the way they communicate.
• The low-context U.S. Americans tend to "say it like it is.“ They value a frank, straightforward exchange of information.
• Many U.S. negotiators speak louder at the bargaining table than people from more reserved cultures. Uncomfortable with silence, they may aIso feel compelled to
quickly fill in any gaps in the conversation.
Interpersonal Distance
The normal spacing in a business context is about an arm's length. U.S. Americans generally stand and sit further apart than Arabs, southern Europeans and Latin
Americans.

Touch Behaviour
Varies from moderate to relatively high-contact.
Dress Code
Varies somewhat according to location and type of business. Visitors are well advised to wear a suit and tie.

Firm handshake and direct eye contact
Forms of Address
• Start out with Mr, Mrs., Miss or Ms. but do not be surprised if your counterpart suggests switching to a first name basis soon after meeting you.
• Titles are likely to be ignored.
Gift Giving
The U.S. business world is not a gift-giving culture.

Wining and Dining

Many U.S. American negotiators prefer to maintain a separation between their professional and private lives as well as between business and pleasure.
Americans respond best to brisk, factual presentations delivered by a competent speaker of English and enlivened by visual aids where appropriate. They may interrupt
with questions rather than hold their questions until the end.
Bargaining Range
U.S. negotiators experienced in international business are used to a wide variation in bargaining ranges.
Concession Behaviour
Be prepared for some hard bargaining. Take care to make each concession with great reluctance, and then only on a strict "if ... then," conditional basis. Always
demand something of equivalent value in return.

Decision Making
American negotiators are very fast decision makers.
Role of the Contract

Heavy emphasis on the legal aspects and the fine points of the written agreement.

Literature
Destatis: https://www.destatis.de/DE/ZahlenFakten/LaenderRegionen/Internationales/Staat/Staat.html
Gesteland, Richard R. (2002): Cross cultural business behavior. Marketing, negotiating and managing across cultures. 2. ed., 5. impr. Copenhagen: Handelshøjskolens
Forlag.

Study Questions Advanced International Experience
Part 1: Understanding Culture - Culture and the international environment
1.1. Definition of culture
1
How many definitions of culture already existed in 1952
according to a compilation by A.L. Kroeber and C. Kluckhohn? More than 150
Two definitions About 10 definitions About 50 definitions definitions
2 Who defined culture as "collective mental programming of the Alfred L. Kroeber &
mind"? Edward T. Hall Geert Hofstede Alexander Thomas Clyde Kluckhohn
3 “…collective mental “...consisting of
Geert Hofstede defined culture as… “….a man’s programming of the “…a universal patterns, explicit and
medium”. mind”. phenomenon”. implicit,…”.
4 A theory by Edward T. Hall suggests that most aspects of
culture remain invisible. What is this theory called? Iceberg theory Mountain theory Onion theory Tree theory
5 According to the Iceberg theory by Edward T. Hall, which of the
following elements would be considered visible aspects of
culture? Traditions Values Beliefs Norms
culture? Worldviews Attitudes Music Values
culture? Values Beliefs Art Worldviews
following elements would be considered invisible aspects of
culture? Music Beliefs Art Heroes
Study Questions, Part 1
1
following elements would be considered invisible aspects of
culture? Artefacts Heroes Traditions Values
10 What are the three practices of culture according to the Onion Symbols, heroes and Symbols, heroes and Values, heroes and Symbols, values and
Model by Geert Hofstede? rituals values rituals rituals
11 According to the Onion Model by Geert Hofstede, what
represents the deepest level (the core) of a culture? Symbols Values Heroes Rituals
12 According to the Onion Model by Geert Hofstede, which of the
following elements does not belong to the layers, or
“practices,” around the core of the onion? Symbols Values Heroes Rituals
1.2. Different cultural models
Hofstede
1 Which were the first four cultural dimensions identified by Power Distance, Power Distance, Power Distance, Power Distance,
Geert Hofestede for his cultural model? Individualism, Individualism, Individualism, Individualism,
Uncertainty Uncertainty Uncertainty Uncertainty
Avoidance, Avoidance, Space Avoidance, Time Avoidance,
Masculinity Information flow
2 One of the cultural dimensions of Hofstede's cultural model Smaller middle class High income Larger middle class, Control and
is called "power distance". Which of the following and larger lower inequality and smaller lower influence is
characterizations corresponds to a low power distance class class concentrated in the
culture according to Hofstede? hands of a few
2
3 One of the cultural dimensions of Hofstede's cultural model High income Larger middle class Low income Control and
is called "power distance". Which of the following inequality and smaller lower inequality influence is equally
characterizations corresponds to a high power distance class distributed
culture according to Hofstede?
4 One of the cultural dimensions of Hofstede's cultural model
is called "uncertainty avoidance". Which of the following
characterizations corresponds to a culture with weak Feeling of „What is
uncertainty avoidance according to Hofstede? different is Low adoptance of Feeling of „What is
dangerous“ A need for rules innovations different is curious“
is called "uncertainty avoidance". Which of the following Change of job is
characterizations corresponds to a culture with strong Feeling of „What is People don‘t like People tend to stay much more easily
uncertainty avoidance according to Hofstede? different is curious“ rules in the same jobs done
is called "indulgence versus restraint". Which of the People suppress Freedom of speech People feel helpless
following characterizations corresponds to an indulgent gratification of and personal control Regulation by strict to their personal
culture according to Hofstede? needs are important social norms destiny
is called "indulgence versus restraint". Which of the People are able to
following characterizations corresponds to a restrained People suppress Freedom of speech gratify their needs
culture according to Hofstede? gratification of and personal control to enjoy life Less regulation by
needs are important relatively easily strict social norms
is called "long term orientation versus short term Stable and binding
orientation". Which of the following characterizations The present is Today‘s actions are social structures
corresponds to a culture with a short-term orientation influenced by long- binding for the Social change is remain in place for
according to Hofstede? standing traditions future easily mobilized generations
3
is called "long term orientation versus short term
orientation". Which of the following characterizations
corresponds to a culture with a long-term orientation Today‘s actions are Unstable and non-
according to Hofstede? Traditions have binding for the committal social Social change easily
nostalgic value future conditions mobilized
Personal goals Personal goals must
is called "individualism versus collectivism". Which of the
Perceive themselves should be in not be in
following characterizations corresponds to an
as members of a Greater relationship accordance with the accordance with the
individualistic culture according to Hofstede?
group -orientation group group
11 One of the cultural dimensions of Hofstede's cultural model Everyone is
is called "individualism versus collectivism". Which of the expected to look
following characterizations corresponds to a collectivistic Personal goals after himself or Members perceive
culture according to Hofstede? should be in herself and his or themselves as
accordance with the her immediate autonomous Ties between
group family individuals individuals are loose
is called "masculinity versus femininity". Which of the Gender roles are not
following characterizations corresponds to a more Preference for Society at large is limited to clearly
masculine culture according to Hofstede? cooperation in more consensus- Society at large is defined
society oriented more competitive characteristics
Hall
13 Which of the following elements does not belong to Hall's
People-Nature
4-dimensions-cultural model?
Context Space Orientation Information flow
14 "Depending on the culture, people determine their
intimate, personal, social and public space differently." To
which cultural dimension of Hall's cultural model does this
correspond? Long term
Low personal orientation versus
distance vs. high short term Indulgence versus Individualism versus
personal distance orientation restraint collectivism
4
15
One of the cultural dimensions of Hall's cultural model is People experience People experience Many things can
called "time". To which characteristic does the concept of and use time in a and use time in a occur at the same
monochromic time cultures correspond? linear way simultaneous way time Time is flexible
16
One of the cultural dimensions of Hall's cultural model is People experience Many things can
called "time". To which characteristic does the concept of and use time in a Time is divided into occur at the same People concentrate
polychromic time cultures correspond? linear way segments time on one thing
17 Very little of the Most of the Most of the
information is in the information is in the information is in the
One of the cultural dimensions of Hall's cultural model is person who coded, explicit, Need of detailed person who
called "high and low context cultures". To which does the transmits the transmitted part of background transmits the
concept of high context cultures correspond? message the message information message
18 Most of the Very little of the Very little of the
information is in the information is in the information is in the
One of the cultural dimensions of Hall's cultural model is person who coded, explicit, person who Do not need
called "high and low context cultures". To which does the transmits the transmitted part of transmits the detailed background
concept of low context cultures correspond? message the message message information
In the field of cross-cultural research, various scientists
have defined so-called cultural dimensions. Read the
following cultural dimensions and think about which
scientist is behind it.
19 Which cultural dimension was defined by which scientist?
Time Hall Schwartz Hofstede Trompenaars
People-Nature orientation Hall Schwartz Hofstede Trompenaars
Uncertainty avoidance Hall Schwartz Hofstede Trompenaars
Information flow Hall Schwartz Hofstede Trompenaars
5
Long term versus short term orientation Hall Schwartz Hofstede Trompenaars
Low context versus high context Hall Schwartz Hofstede Trompenaars
Universalism versus particularism Hall Schwartz Hofstede Trompenaars
Masculinity versus Femininity Hall Schwartz Hofstede Trompenaars
Embeddedness vs. Autonomy Hall Schwartz Hofstede Trompenaars
Neutral versus affective Hall Schwartz Hofstede Trompenaars
Specific versus diffuse
Hall Schwartz Hofstede Trompenaars
Low Information Flow vs. High Information Flow Hall Schwartz Hofstede Trompenaars
Low personal distance versus high personal distance Hall Schwartz Hofstede Trompenaars
Indulgence versus restraint Hall Schwartz Hofstede Trompenaars
Low power distance versus high power distance Hall Schwartz Hofstede Trompenaars
Hierarchy vs. Egalitarianism
6
Monochromic time versus polychromic time Hall Schwartz Hofstede Trompenaars
Mastery versus Harmony Hall Schwartz Hofstede Trompenaars
Achievement versus ascription
Specific versus diffuse Hall Schwartz Hofstede Trompenaars
Performance Orientation Hall Schwartz Globe Study Hofstede
Uncertainty avoidance Hall Schwartz Globe Study Hofstede
Information flow Hall Schwartz Globe Study Hofstede
Assertiveness Hall Schwartz Globe Study Hofstede
1.3. Determinants of culture
1 The political system of a country can be Collectivism vs. Collectivism vs. Democracy vs. Collectivism vs.
assessed according to two dimensions. One Individualism Democracy Individualism Totalitarianism
of them is…:
2 The political system of a country can be Democracy vs. Collectivism vs. Democracy vs. Collectivism vs.
assessed according to two dimensions. One Individualism Democracy Totalitarianism Totalitarianism
of them is…:
3 The antithesis of democracy would be Totalitarianism Market economy State economy Individualism
7
4 Which of the following statements would A and B A and C A and D B and C
you consider correct?
A: Political systems that
emphasize individualism tend to be
democratic.
B: Political systems that
emphasize individualism tend to be
totalitarian.
C: Political systems that
emphasize collectivism tend to be
democratic.
D: Political systems that
emphasize collectivism tend to be
totalitarian.
5 The concept of political individualism can be Plato Aristotle Socrates Epicurus

traced to the following Greek philosopher:
6 The concept of political collectivism can be Plato Aristotle Socrates Epicurus

traced to the following Greek philosopher:
7 The theory of the "invisible hand" by the Totalitarianism Collectivism State economy Individualism
British economist Adam Smith can be
related to the political concept of….:
8 What is a common attribute of a totalitarian Censored media Free elections Opposing political parties Right of freedom of
system? expression
9 What is not a common attribute of a Free elections Censored media Limited state information Political police and armed
totalitarian system? forces
8
10 What is not a common attribute of a Free elections Censored media Right of freedom of Opposing political parties
democratic system? expression
11 What is a common attribute of a democratic No free elections A fair and independent Limited state information Limited right of freedom
system? court system of expression
12 What is a common attribute of a democratic Limited right of freedom Free elections Limited state information Censored media
system? of expression
13 The concept of individualism best A B C
corresponds to the economic system of a…:
A: Market economy?
B: Command economy?
C: Traditional economy?
14 The concept of collectivism best A B C

corresponds to the economic system of a…:
A: Market economy?
B: Command economy?
C: Traditional economy?
15 In a market economy, production is The interaction of supply Central government State owned enterprises The ruling political party
determined by… and demand planning
16 In a command economy, production is The interaction of supply Central government Consumers Privately owned
determined by… and demand planning enterprises
17 In a market economy, the price of a good is The interaction of supply Central government State owned enterprises The ruling political party
determined by… and demand planning
18 In a command economy, the price of a good The interaction of supply Central government Consumers Privately owned
is determined by… and demand planning enterprises
9
19 In a mixed economy, …. all productive all productive certain sectors of the nobody owns the
activities/businesses are activities/businesses are economy are privately productive
state owned. privately owned. owned, others have state activities/businesses.
ownership.
20 Read the following two statements. Which A B A and B none
of them would you consider correct?
A: In countries where individual goals are
given primacy over collective goals, we are
more likely to find market-based economic
systems.
B: In countries where collective goals are
given primacy, the state may have taken
control over many enterprises; markets in
such countries are likely to be restricted
rather than free.
21 Read the following two statements. Which A B A and B none
of them would you consider correct?
A: In countries where individual goals are
given primacy over collective goals, we are
more likely to find command economic
systems.
B: In countries where collective goals are
given primacy, the state may have taken
control over many enterprises; markets in
such countries are likely to be free rather
than restricted.
10
22 What kind of political philosophy A B Both None
corresponds to a command economy, i.e.
one whose objective is for the government
to allocate resources for "the good of
society."
A: Collectivism
B: Individualism
23 What would the Greek philosopher Aristotle A B C None
have said regarding a country’s political and
legal system?
A: "Private property is more productive than
communal property."
B: "Communal property is more productive
than Private property."
C: "Both are equally productive."
24 On which elements is a common law system Tradition, customs and A detailed code of laws Religious beliefs A mixture of religion and
based? precedents tradition
25 On which elements is a civil law system Tradition, customs and A detailed code of laws Religious beliefs A mixture of religion and
based? precedents tradition
26 In which of the following legal systems do A B in A and B the same
judges have greater flexibility in interpreting
the law?
A: In a common law system
B: In a civil law system
27 According to Transparency International’s Estonia, Ireland, Japan Tunisia, Bulgaria, Burkina Denmark, New Zealand, Germany, United
2017 Corruption Perceptions Index, which Faso Finland Kingdom, Australia
three countries have the lowest level of
corruption?
11
28 According to the World Economic Forum’s Switzerland, Finland, France, Canada, Australia Indonesia, Cyprus, Kuwait, Honduras,
2018 Global Competitiveness Report, which Luxembourg Cameroon Dominican Republic
three countries rank highest in the
protection of intellectual property?
29 Which of the following descriptions best The group to which one Strong identification with Less dynamic and less High managerial mobility
characterizes a social system that individual belongs is groups and the place of appreciation of and less loyalty to a single
emphasizes the individual? important for one’s social employment entrepreneurship company
standing
30 Which of the following descriptions best Less emphasis on Less teamwork and Entrepreneurship highly High managerial mobility
characterizes a social system that individual performance cooperation valued and less loyalty to a single
emphasizes the group? company
1.4. The international economic environment
1 What does the Gross Domestic The sum of the gross value The average disposable The sum of the gross value The total annual income of a
Product (GDP) of a country of all resident producers in income of a country’s of all resident producers in country’s residents
measure? the country residents the country, divided by the
population
2 What does the GDP per capita of a The sum of the gross value The average total annual The total annual income of a The sum of the gross value
country measure? of all resident producers in income of a country’s country’s residents of all resident producers in
the country residents the country, divided by the
population
3 The standard of living of a country GDP per capita GDP growth GDP GDP x Population
is often measured by:
4 What does the GINI coefficient Economic inequality Achievement in three basic Economic growth Gross domestic product
measure? dimensions of human
development
12
5 What does the Human Income or wealth inequality Achievement in three basic Economic growth compared Gross national product
Development Index (HDI) measure? dimensions of human to the previous year
development
6 Which of the following indicators
would you consider most adequate
to measure economic inequality? Human Development Index Gini Coefficient GDP growth GDP per capita
7 The GINI Coefficient can be used as
a measure for income inequality.
Below you find a list of fictional
countries and the corresponding
GINI coefficient. In which of the
countries is the economic
inequality the lowest? Country Alfa: 0.5 Country Beta: 0.8 Country Gamma: 0.7 Country Delta: 0.1
8 What are the three dimensions of
Long and healthy life, Economic growth, Long and healthy life, Long and healthy life,
the Human Development Index?
Knowledge, Knowledge, Economic growth, Knowledge,
A decent standard of living A decent standard of living A decent standard of living Economic growth
9 You are in a foreign country and
wish to compare the country's
economic inequality to that of your
home country. Which of the
following indicators would you
consider most adequate? Human Development Index Gini Coefficient GDP growth GDP per capita
economic development in the last
year to that of your home country.
Which of the following indicators
would you consider most
adequate? Human Development Index Gini Coefficient GDP growth GDP per capita
13
wish to compare how big the
country's economy is compared to
that of your home country. Which
of the following indicators would
you consider most adequate? Human Development Index Gini Coefficient GDP growth GDP
development apart from economic
factors to that of your home
country. Which of the following
indicators would you consider most
adequate? Human Development Index Gini Coefficient GDP growth GDP
13 What might you call a set of
guidelines on how to behave to
ensure that business ethics and
corporate social responsibility are
lived within an organization? A code of conduct A labor code A business strategy A product strategy
14 In the context of business ethics,
what does the abbreviation CSR Corporate special Corporate social Common social
stand for? responsibility responsibility Corporate social reaction responsibility
15 To ensure ethical employment
practices, the OECD recommends in
its "Guidelines for Multinational
Enterprises" that workers should
have the right of constructive
negotiations with the employer.
With which employment practice Limited number of working Worker representation
could this be ensured? hours per day bodies like trade unions Workplace safety standards Abolishment of forced labor
14
16 When were the United Nations
Universal Declaration of Human
Rights adopted? 1969 1948 1985 1945
17 Which of the following ethical
issues in the international business
context would not be considered
an environmental issue? Dumping of toxic chemicals Exceeding working hours Emission of pollutants Polluting of rivers
18 To which philosophical approach to
ethics does the following statement
best correspond?
"The only social responsibility of
business is to increase profits." Justice Theories Rights Theories Friedman Doctrine Kantian Ethics
19 Which of the following
theories/approaches is not
discussed among the philosophical
approaches to ethics? Justice Theories Rights Theories Personal ethics Kantian Ethics
20 Which of the following
philosophical approaches to ethics
does not belong to the straw men The Righteous The Naive
approaches? Utilitarian Ethics Cultural Relativism Moralist Immoralist
21 To which philosophical approach to
best correspond?
"One should adopt the ethics of the
culture in which one is doing The Righteous The Naive
business" Cultural Relativism Friedman Doctrine Moralist Immoralist
15
22
To which philosophical approach to
best correspond?
"The best decisions are those that
produce the greatest good for the
greatest number of people." Straw men Utilitarian Ethics Justice Theories Rights Theories
23
Which philosophical approach to
ethics was the underlying
motivation for the United Nations
Universal Declaration of Human
Rights? Rights Theories Justice Theories Straw men Utilitarian Ethics
24 Which philosophical approach to
ethics can be traced to the
philosopher John Rawls? Kantian ethics Justice Theories Straw men Utilitarian Ethics
16
Study Questions Advanced International Experience
Part 2: Intercultural Communication
2.1. Introduction and Definitions
1 Intercultural communication takes place ...the sender and the …the sender and the …the sender and the ...the sender and the receiver are
when… receiver are from receiver are from the receiver are from the from different generations.
different cultures. same cultures. same generations.
2 Communication can be… …an action on others. …an interaction with … a reaction to others. …an action on others and/or an
others. interaction with others and/or a
reaction to others.
3 What does the narrow communication Communication Communication between Communication Communication between humans.
concept mean? between living technical systems and/or between humans,
organisms. machines and humans. based on common
goals.
4 What generates the intercultural? The cultural overlap. The encounter of people The cultural The encounter of people belonging
belonging to different understanding. to different nations.
cultures.
5 What requirements are important to deal Requirements of own Requirements of other Requirements of Requirements of own culture
successfully in the situation of cultural culture orientation. culture orientation. intercultural orientation, requirements of other
overlap? orientation. culture orientation and
requirements of intercultural
orientation.
6 Who defined the term "intercultural Robert Gibson Geert Hofsteede Edward T. Hall William B. Gudykunst
communication"?
1
7 a) Intercultural communication is a) counts because a) counts and a) counts, a) does not count,
important, because, b) globalization takes
b) counts. b) counts. b) does not count. b) counts.
place, while the world population is growing
and humans migrate around the world.
2.2. Models of Communication
1 Which are the four different groups of Encoder-/ decoder Encoder-/ decoder Models, Dialogic Models, Encoder-/ decoder
communication models? Models, Intentionalist Intentionalist Models, Intentionalist Models, Models, Intentionalist
Models, Perspective Perspective Taking Models, Perspective Taking Models, Dialogical
Taking Models, Dialogic Technical Models Models, Technical Models, Technical Models
Models Models
2 Which model is an example for encoder-/ Technical communication Communication model by Rodger`s Rules for Axioms of
decoder models? model by Shannon and Grice communication Communication
Weaver
6 During the process of the Technical a) counts because b) a) counts and b) counts. a) counts, b) does not a) does not count, b)
Communication Model by Shannon and Weaver counts. count. counts.
the message is formed into signals. The signals
should be adapted to the channel leading to the
receiver. The a) signal is vulnerable because b) it
is disturbed by noise.
2
4 Please read the following characteristics 1) Communication is 2) High degree of 3) Communication is a 4) A Comprehensive, socio-
of the different types of models. Assign described as a linear, one practicality. cooperative psychological-oriented model of human
the characteristics to the model type way process. endeavour. communication, that focuses on
correctly. behavioural effects.
4a The Technical Communication Model by 1) 2) 3) 4)

Shannon and Weaver
4b Axioms of Communication 1) 2) 3) 4)
4c The Communication Model by Schultz von 1) 2) 3) 4)
Thun
4d Grice`s Conversational Maxims 1) 2) 3) 4)
5 Which model deals not with the meaning The Technical The Communication Rodger`s Rules for Axioms of Communication
of a message but with its sending and its Communication Model by Model by Grice Communication
receiving? Shannon and Weaver
6 Which model is an example for The Communication The Communication Rodger`s Rules for Axioms of Communication
intentionalist models? Model by Schultz von Model by Grice Communication
Thun
7 Which model is an example for The Communication The Communication Rodger`s Rules for Axioms of Communication
perspective-taking models? Model by Schultz von Model by Grice Communication
Thun
8 Which model is an example for dialogic The Communication The Communication Rodger`s Rules for Axioms of Communication
models? Model by Schultz von Model by Grice Communication
Thun
3
9 Which of the following possibilities Both communication The communication Standardization of the Issue of the individuality of
cannot help to solve the partners have to process has to be communication processes. communication processes.
misunderstanding on the relational and communicate how a repeated.
self-revelation level from the point of message is to be
view of the Communication Model by interpreted in order to
Schultz von Thun? agree on its underlying
meaning.
10 According to Schultz von Thun, every …Self-aggrandizement. …Self-mockery. …Self-revelation. …Self-esteem.
message contains four different
components: Content, Relationship,
Appeal and …
11 Grice has argued that intentionality is a) counts because b) a) counts and b) a) counts, b) does not a) does not count, b) counts.
intrinsic to the understanding of how counts. counts. count.
messages function communicatively.
According to Grice, a message can be
considered intentional if and only if
a)the speaker intended the message
to create an effect (i.e., a belief) in the
listener; because b)the speaker
intended that effect to result from the
listener`s recognition of that
intention.
12 What are the Conversational Maxims? Maxims of quality, Maxims of quality, Maxims of quality, Maxims Maxims of quality, Maxims of
Maxims of quantity, Maxims of quantity, of quantity, Maxims of reality, Maxims of relation, Maxims
Maxims of relation, Maxims of relation, reality, Maxims of manner of manner
Maxims of manner Maxims of reality
13 Which of the following statements is The Axioms of Not a complete Feedback effects can
not considered as an advantage of the Communication is a communication influence the
Axioms of Communication, according circular communication model communication
to Watzlawick et al.? process
4
14 The Axioms of Communication, according Communication is based Communication is Communication is based on Communication is based on
to Watzlawick, comprise 5 Axioms: on relationships. based on complementary symmetrical and complementary
Axiom #1: One cannot not communicate. symmetrical relationships. relationships.
Axiom #2: Every communication has a relationships.
content and relationship aspect. Axiom
#3:The relationship of the
communication partners is established by
the use of punctuation during
encounters. Axiom #4: Human
communication makes use of digital and
analog modes of communication and
Axiom #5:...
Please complete the 5th Axiom.
15 What distinguishes Dialogic Models from Nothing distinguishes For Dialogic Models For Dialogic Models the
the other models (the Encoder-/Decoder Dialogic Models from the the goal of goal of communication is
Model, the Intentionalist Model, the other models. They all communication is the achievement of
Perspective-taking Model)? have the goal of the achievement of objectivity.
communication to convey inter-subjectivity.
information.
2.3. Barriers to Intercultural Communication
1 Which of the following perceptual processes Attention is Holistic pattern Noun-orientated

fits for the Western Culture? broader
2 Which of the following perceptual processes Attention is Holistic pattern Noun-orientated

fits for the Eastern Culture? narrow
5
3 "The other-culture values and norms are Dominance Assimilation Divergency concept Synthesis concept
willingly accepted and integrated into the aspect concept
own modus operandi. Tendencies to adapt to
the other-culture values and norms can be so
intense that the identification with one’s own
culture pales as the wish to merge with the
other culture intensifies."
This form of designating intercultural
divergence describes the ...
4 Stereotyping can be described as…. ... a prediction … a statistical … an evaluation depending … a fixed notion about
of the properties statement about a strongly on culturally persons in a certain
of particular group. determined standards. category, with no
individuals. distinctions made among
individuals.
5 What is the problem in the following Attitude Perception Stereotyping Misinterpretation

example?
A Japanese businessman is negotiating with a
Norwegian partner. The Japanese says that
the deal will be very difficult. The Norwegian
asks how her company can help to solve the
problems. The Japanese is puzzled by the
question.
6
6 Please read the following statements: perceptions interpretations attitudes stereotypes
"Globalisation means that there is now one
business culture everywhere in the world.
If they want to do business with me then
they`ll have to adapt to my culture.
When in Rome do as the Romans do."
Please complete the sentence:
These statements reflect some of the .......
which can create barriers to successful
intercultural communication.
7 Which of the following statements describes It is a disease. It is a defence It is a mental state, where It is a phase of
culture shock? reaction against the suddenly all known values interpersonal stress and
influences of a and behaviour patterns seem conflict.
foreign culture. to have lost their validity for
the individual in the foreign
cultural environment.
8 What stage of culture shock do you think the Honeymoon Disorientation Shock Adaption Adjustment
individual concerned is most likely to be in?
Please answer for/ refer to the following
statement: "We do that too, only in a
different way.”
9 Which of the following phases is the first Culture shock Adaption Honeymoon Adjustment
phase of culture shock?
Please answer this for the following
statement: "We would never do that where I
come from."
7
statement: "I cannot wait to tell about this."
statement: "Why can`t they just wait?"
2.4. Types of Communication – Non-verbal Communication
1 Communication is divided into areas. Please select A and B A and C none A and B and C
these areas from the following:
A: Verbal Communication
B: Para-verbal communication
C: non-verbal communication.
2 Which one of the following groups is part of the non- Eye contact, proxemics, Eye contact, proxemics, Eye contact, proxemics, Eye contact, intonation,
verbal communication? body language, touch body language, intonation, touch body language, touch
intonation
3 Read the following two statements. Which of them A B A and B none

would you consider correct?
A: High contact cultures are cultures that display
considerable interpersonal closeness or immediacy,
because people in these countries touch more, stand
closer and prefer more sensory stimulation.
B: Low-contact cultures are cultures where people
prefer more sensory involvement.
8
4 An OK Zero Money I`ll kill you!
Please look at this picture. What does this gesture

mean in Japan?
5 In which of the following countries do you hug to Japan Germany India Argentina
indicate hello at the first meeting?
6 In which of the following countries do you not shake Japan Argentina India Italy
hands?
A: People in individualistic cultures are more distant.
B: People in collectivistic cultures have a more fixed
social network.
8 Please read the following statement. What does it Low power distance High power distance Moderate power None
represent? cultures. cultures. distance cultures.
“Power is seen as a basic fact in society and stress
coercive or referent power. Control and influence is
concentrated in the hands of a few.”
9 Please read the following statement. What does it Low power distance High power distance Moderate power none
represent? cultures. cultures. distance cultures.
“Power should be used only when it is legitimate,
control and influence is equally distributed.”
9
10 Please read the following example. Power distance Immediacy Individualism - Context
"The German marketing manager of a major car Collectivism
producer was finding it increasingly difficult to work in
Japan. In meetings the Japanese colleagues hardly
ever said anything. When they were asked if they
agreed to his suggestions, they always said yes, but
they did not do anything to follow up the ideas. The
only time they opened up was in a bar in the evening
but that was getting stressful as they seemed to
expect him to go out with them regularly." Which part
of Non-verbal Communication does this illustrate?
A: Low context communication relies mainly on the
physical context or the relationship for information
with little explicitly encoded.
B: In high context communication, the mass of
information is vested in the explicit code.
12 Please read the following example: Power distance Immediacy Uncertainty Avoidance Context
“After taking over a British investment bank, German
bankers in the corporate finance department were
surprised to find out, both that their British partners
were earning considerably more than them and that
the team was frequently changing, with senior staff
being recruited by rival banks. Most of the German
team had been in the Bank since the beginning of
their careers and would not consider a change to a
rival bank, even if they were offered more money.”
Which part of Non-verbal Communication does this
illustrate?
10
13 Which group of features represents weak uncertainty Uncertainty is a normal Uncertainty is a normal Motivation by security, Uncertainty is a normal
avoidance cultures? feature of life, tolerance feature of life, tolerance of innovative feature of life, tolerance
of innovative ideas and motivation by security ideas and there should of innovative ideas and
there should not be and there should not be not be more rules than motivation by security.
more rules than more rules than necessary.
necessary. necessary.
14 Which one of the following countries is an example for Singapore Denmark Great Britain Japan
a strong uncertainty avoidance culture?
15 Which group of features represents feminine Relationships are Relationships are Relationships are Material success is a
cultures? important, both men and important, both men and important, material dominant value, both
women deal with facts women deal with facts success is a dominant men, women deal with
and feelings and conflicts and feelings and material value and conflicts are facts and feelings, and
are solved by success is a dominant solved by compromise. conflicts are solved by
compromise. value. compromise.
11
2.4. Types of communication – verbal communication
1 For the oral communication, there are three common … informative, phonetic … phonetic, grammatical … phonetic, grammatical … phonetic, informative
rules for all languages. These rules are… and grammatical. and semantic. and informative. and semantic.
2 Please complete the following sentence: Accent… Dialect… Slang… Argot…

”... is a simple variation in pronunciation that occur
when people are speaking the same language.”

“... is distinguished by differences in vocabulary,
grammar, and even punctuation.”

“… is a private vocabulary peculiar to a co-culture or
group.”
12
5 Please complete the following Accent… Dialect… Slang… Argot…
sentence:
“… designates those terms, used in
instances of extreme informality, which
serve as a “means of marking social or
linguistic identity.”
6 Read the following two statements. A B A and B none
Which of them would you consider
correct?
A: Linguistic universalism assumes that
the structure of a language affects its
speakers' worldview or cognition.
B: Linguistic universalism assumes that
language is merely a reflection of
human thought, and so all languages
are significantly similar in their
conceptual categories.
correct?
A: Linguistic relativity assumes that the
structure of a language affects its
speakers' worldview or cognition.
B: Functional relativism assumes that
the particular form taken by the
grammatical system of language is
closely related to the social and
personal needs that language is
required to serve.
8 Please select from the following Meanings are relatively well Over-assertiveness and Under-assertiveness and Indirectness is built on
qualities, the quality which best elaborated. over-expressiveness. under-expressiveness. grammatical structures, the
describes the Arabic Speech Act. subjunctive and conditional
moods.
13
9 Please select from the following Meanings are relatively well Over-assertiveness and Under-assertiveness and Indirectness is built on
qualities, the quality which best elaborated. over-expressiveness. under-expressiveness. grammatical structures, the
describes the Asian Speech Act. subjunctive and conditional
moods.
10 Please select from the following Meanings are relatively well Over-assertiveness and Under-assertiveness and Suppression of
qualities, the quality which best elaborated. over-expressiveness. under-expressiveness. confrontations or
describes the Western Speech Act. expressions of negative
verbal messages.
11 Please read the following 1) direct, straightforward, 2) approachable, show 3) talk about ideas rather 4) stay on track, logical order
characteristics and assign them to the quick decisions, large empathy, promote than feelings, rational of discussion, practical and
right communication styles. gestures, animated facial harmony, use intuition, arguments, low body realistic communication, no
expressions, strong listen more than talk language, talk less think waste of time, controlling
language more
11a Purposeful communication style 1) 2) 3) 4)
11b Theorist communication style 1) 2) 3) 4)
11c Connector communication style 1) 2) 3) 4)
11d Active communication style 1) 2) 3) 4)

correct?
A: Extroverts are motivated by their
inner worlds.
B: Introverts are energised by outer
worlds.
14
Part 3: Intercultural Management
3.2. Intercultural Management Skills
1 The EPRG-Model shows different Howard V. Paul Watzlawick Friedemann Schutz von Thun E.T. Hall
management models for globally active Perlmutter
companies. Who developed the EPRG-
Model?
2 The EPRG-Model describes four different Ethnocentric Regiocentric approach Polycentric approach Geocentric Monocentric
management approaches. Which one of approach approach approach
the following does not belong to the
EPRG-Model?
3 Which of the following statements Own cultural group Building up a workforce of locals Integrating qualified locals
describes the ethnocentric approach is superior to because they know best the into the management team
according to the EPRG-Model? others. region`s style, work style, etc. can be a successful strategy.
4 Which of the following statements Own cultural group Building up a workforce of locals The same management style
describes the polycentric approach is superior to because they know best the is used as in home country of
according to the EPRG-Model? others. region`s style, work style, etc. the business concerned.
5 Which of the following statements Neither home nor Building up a workforce of locals Own cultural group is
describes the geocentric approach host country are because they know best the superior to others.
according to the EPRG-Model? preferred. region`s style, work style, etc.
6 Which of the following statements Neither home nor Standardisation within defined Own cultural group is
describes the regiocentric approach host country are economic areas. superior to others.
according to the EPRG-Model? preferred.
15
3.3. Patterns of Cross-Cultural Business Behaviour
1 Read the following two statements. Which of them would you A B A and B none
consider correct?
A: Deal-focused people are fundamentally task-oriented.
B: Deal-focused people are people-oriented.
consider correct?
A: In deal-focused cultures, people are not open to do business
with strangers.
B: In relationship-focused cultures, people prefer to deal with
family, friends and persons or groups well known to them.
3 Which of the following regions belongs to relationship-focused Northern Europe Australia North America Latin America
cultures?
4 In which of the following regions is it important to know the Northern Europe Australia North America The Arab World
prospective business partners very well before talking business
with them?
5 Which of the following regions belongs to deal-focused cultures? Asia Latin America Northern Europe The Arab World
6 In which of the following regions is it possible to make direct Asia Latin America North America The Arab World
contact with potential buyers?
7 Which of the following regions belongs to formal cultures? Asia Australia North America Denmark
8 Which of the following regions belongs to informal cultures? Asia Australia Arab World Latin America
consider correct?
A: Formal cultures value status equality.
B: Informal cultures are about status, hierarchies, power and
respect.
10 Showing respect to the customer is important … …all over the … in Europe. … in Latin America. … in Asia.
world.
16
11 What is the gender barrier? Women have to Young people of either sex Men and women of
operate at an have to operate at an any age involved in
even greater even greater disadvantage international sales
disadvantage when trying to sell goods and marketing
when trying to to strongly hierarchical operate at an even
sell goods to buyers. greater disadvantage
strongly when trying to sell
hierarchical goods to strongly
buyers. hierarchical buyers.
12 Which instructions are useful to help to overcome the youth Get introduced Make direct contact Get introduced by an Get introduced by
barrier with hierarchical buyers? by an older man; yourself; be a true expert older man; make an older man; be a
be a true expert in your field or learn the direct contact true expert in your
in your field or local business protocol. yourself or learn the field or make direct
learn the local local business contact yourself.
business protocol.
protocol.
consider correct?
A: In monochronic business cultures punctuality is critical,
schedules are set in concrete, agendas are fixed and business
meetings are rarely interrupted.
B: In polychronic business cultures, people place less emphasis on
strict punctuality and are not obsessed with deadlines.
14 Which part of the World is considered to be a monochronic Nordic Europe Africa Latin America Southeast Asia
business culture?
15 Which part of the World is considered to be a polychronic Nordic Europe North America Japan Southeast Asia
business culture?
17
16 Read the following scenario. "A Malaysian business woman flew polychronic monochronic culture informal culture formal culture
to the USA for an important conference scheduled for 10 am on a culture shock shock shock shock
Monday. She arrived in Boston late that Sunday evening, had
trouble falling asleep because of jet lag and overslept a little the
next morning.
On Monday, the Malay lady had difficulty finding the meeting
location in her rental car, got lost and finally arrived well after
lunch – four hours late for her meeting. The Americans she was
supposed to meet came out of the conference room to tell her, “
Oh sorry, right now we are in the middle of our afternoon
meeting. And our calendar seems to be kind of full this week…
Well, let`s see, can you make it for Wednesday of next week?”
But since she had to be back in Kuala Lumpur by that date, she
was never able to reschedule that important meeting.
Back home she related that sad story as an example of how rude
and scheduled- obsessed Americans can be: “So there I was in
Boston, having flown half-way around the world just for a
meeting. And those people did not even have the common
decency to rearrange their schedule for a foreign visitor who was
a little late. Can you believe it?”"
What pattern of cross-cultural business behaviour does the
scenario describe?
consider correct?
A: In reserved business cultures, people often speak quite loudly,
engage in conversation overly and are uncomfortable with
silence.
B: In expressive business cultures, people often speak quite
loudly, engage in conversation overly and are uncomfortable with
silence.
18
consider correct?
A: In reserved business cultures expect interpersonal distance of
about an arm`s length and little physical contact aside from the
handshake.
B: In expressive business cultures expect interpersonal distance
of half arm`s length or less and considerable physical touching.
19 Please finish the following sentence: Touch behaviour is regarded ...formal cultures. ...informal cultures. ...expressive cultures. ...reserved cultures.
as more proper in …
20 Please finish the following sentence: Intense eye contact is more ...Japan. ...Korea. ...Latin Europe. ...Thailand.
common in….
21 Please finish the following sentence: One ambiguous gesture ...clean. ...unclean. ...small. ...big/ large.
affects the left hand. In Muslim, Hindu and Buddhist cultures, the
left hand is considered…
consider correct?
A: In reserved business cultures, people avoid intense, continuous
eye contact across the negotiating table.
B: In reserved business cultures, people signal interest and
sincerity by direct, even intense eye contact across the
negotiating table.
23 Which part of the world is considered to be an expressive culture? Latin America USA South Asia Africa
24 Which part of the world is considered to be a reserved culture? Latin America The Mediterranean Region Latin Europe Eastern Europe
3.4. International Negotiator Profiles
1 Which of the following countries is Japan India Saudi Arabia Russia

relationship-focused, formal,
polychronic and reserved?
19
2 Which of the following countries is India Saudi Arabia Japan Russia
monochronic and reserved?
3 Which of the following countries is Japan Saudi Arabia Russia Germany

polychronic and expressive?
4 Which of the following countries is Saudi Arabia Russia France Germany

polychronic and variably
expressive?
5 Which of the following countries is Russia France India Germany

moderately deal-focused, formal,
variable monochronic and
expressive?
6 Which of the following countries is France India Saudi Arabia Germany

deal-focused, moderately formal,
monochronic and reserved?
7 Which of the following Making direct contact Get to the point promptly A key value is egalitarianism. Entertaining and being
characteristics does not fit for the with prospective after meeting a potential entertained is an important way
United States of America? business partners. business partner for the first to build rapport.
time.
8 Which of the following Language of business is Deal-focused. Business meetings generally Negotiating an agreement is
characteristics does not fit for the French. start on time; visitors are likely to take longer than it
Baltic States? expected to be punctual. would In Western Europe or
North America. It takes time to
build a climate of trust.
20
9 Which of the following Introduction through a Clarity of understanding is the Strongly polychronic. This is not a gift-giving culture.
characteristics does not fit for third party is useful, but prime goal of communication.
Germany? making direct contact is
also a viable option.
10 Which of the following Connections count Business behaviour tends People are verbally and Entertaining and being
characteristics does not fit for heavily in this market. toward the monochronic. nonverbally expressive. entertained is an important way
France? to build rapport.
11 Which of the following Relationship-focused. Russians negotiators tend to Egalitarian values coexisting Strongly monochronic.
characteristics does not fit for be direct, even blunt, saying with formal, hierarchical
Russia? what they mean and meaning behaviour.
what they say.
12 Which of the following Deal-focused. The exchange of mutual Loyalty to the family is a People engage in frequent
characteristics does not fit for Saudi favours is the cornerstone paramount value. touching among friends.
Arabia? of any relationship.
13 What is the language of business in Hindi English The regional language

India?
correct?
A: Entertaining and being
entertained are essential parts of
building a close relationship with
your counterpart in Japan.
B: The final written agreement is
less important than the strength of
the relationship with your
counterpart in Japan.
21
correct?
A: Time has a different meaning in
the United States of America, clocks
seem to tick to a slower beat.
B: American negotiators are very
fast decision makers.
correct?
A: Entertaining and being
entertained are essential parts of
building a close relationship with
your counterpart in India
B: Time has a different meaning in
India, clocks seem to tick to a
slower beat.
17 Which of the following Younger, subordinate A bow and a soft handshake. Entertaining and being This is not a gift-giving culture.
characteristics does not fit for individuals are expected entertained are essential
Japan? to defer to elder, higher- parts of building a close
ranking persons relationship with your
counterpart.
18 Which of the following Polychronic. Once a comfortable Men usually shake hands, Age, rank and social position is
characteristics does not fit for relationship is built with the using moderate pressure. not important.
India? local counterpart, the formal
negotiation process can begin.
19 In Saudi Arabia the exchange of … not important. … the cornerstone of any … important after building
mutual favours is … relationship. the relationship.
22
20 In Russia personal relationships are … needed to get things … the cornerstone of any … not important.
… done. relationship.
21 The dress code in the Baltic States ...neat and conservative. ...free. …formally.
is…
22 Germany introduction through a … useful, but making … the cornerstone of any … not important.
third party is … direct contact is also a relationship.
viable option.
correct?
A: Many U.S. American negotiators
prefer to maintain a separation
between their professional and
private lives as well as between
business and pleasure.
B: U.S. negotiators experienced in
international business are used to a
wide variation in bargaining ranges.

correct?
A: In Japan, it is not important to
have a cogent reason for any major
concession on price or terms.
B: In Japan, exchanging gifts is an
important part of the business
culture, contributing to relationship
building.
23

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Part 1: Understanding Culture - Culture and the

2. Different cultural models

4. The international economic environment

Part 1 | Understanding Culture | 1. Definition of culture 1

Part 1 | Understanding Culture | 1. Definition of culture 2

Deresky, H., (2016) International Management:

Part 1 | Understanding Culture | 1. Definition of culture 3

Part 1 | Understanding Culture | 1. Definition of culture 4

• Different definitions of culture

• Onion model by G. Hofstede

• “Working” definition of culture

Part 1 | Understanding Culture | 1. Definition of culture 5

Watch the video!

Part 1 | Understanding Culture | 1. Definition of culture 6

Part 1 | Understanding Culture | 1. Definition of culture 7

Part 1 | Understanding Culture | 1. Definition of culture 8

So what is culture? How can we define culture?

Actually there is no single answer to the question of what 'culture' means:

Part 1 | Understanding Culture | 1. Definition of culture 9

Part 1 | Understanding Culture | 1. Definition of culture 10

Part 1 | Understanding Culture | 1. Definition of culture 11

Social environments, life experiences

 A customary term for such mental

Source: Hofstede 1994

"Culture is the collective mental programming of the human mind which

Part 1 | Understanding Culture | 1. Definition of culture 12

Part 1 | Understanding Culture | 1. Definition of culture 13

Artifacts Heroes Behaviors Music

Part 1 | Understanding Culture | 1. Definition of culture 14

Part 1 | Understanding Culture | 1. Definition of culture 15

• It shows the 'Manifestations of Culture at

Source: Hofstede 2001, p. 11

Part 1 | Understanding Culture | 1. Definition of culture 16

Symbols Heroes Rituals

Part 1 | Understanding Culture | 1. Definition of culture 17

Complete the onion for your own national

Source: Hofstede 2001, p. 11

Part 1 | Understanding Culture | 1. Definition of culture 18

Part 1 | Understanding Culture | 1. Definition of culture 19

…abstract ideas about what a

Source: Hill and Hernández-Requejo, p. 120.

Part 1 | Understanding Culture | 1. Definition of culture 20

2. Different cultural models

4. The international economic environment

Part 1 | Understanding Culture | 2. Different cultural models 1

Part 1 | Understanding Culture | 2. Different cultural models 2

Deresky, H., (2016) International Management:

Part 1 | Understanding Culture | 2. Different cultural models 3

Part 1 | Understanding Culture | 2. Different cultural models 4

Part 1 | Understanding Culture | 2. Different cultural models 5

• Different cultural models – An overview

• Cultural model by G. Hofstede

• Cultural model by M.R. Hall and E.I. Hall

• Cultural model by F. Trompenaars

• Cultural model by S.H. Schwarz

• The GLOBE Study

• Measuring culture and cultural change

Part 1 | Understanding Culture | 2. Different cultural models 6

Hofstede Hall&Hall Trompenaars Schwartz Globe Study

6 Dimensions 4 Dimensions 7 Dimensions 3 Dimensions 9 Dimensions

Cultural dimensions show similarities and differences between national cultures.

Part 1 | Understanding Culture | 2. Different cultural models 7

• Amendment of a fifth dimension (‘‘Long-term Orientation‘‘) in 1991

Part 1 | Understanding Culture | 2. Different cultural models 8