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International Marketing 16Th Edition Cateora Solutions Manual Full Chapter PDF
International Marketing 16Th Edition Cateora Solutions Manual Full Chapter PDF
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Teaching Objective
Business customs within a country are an extension of the country’s culture. There are many similarities in
how business is conducted from country to country but the differences, if not properly adjusted for, often
cause enormous problems.
It is not necessary for a business person to forsake their ways and to change to conform to local customs
but, rather, to be aware of differences and willing to accommodate those differences that can cause
misunderstandings. Just as is the case with all cultural differences, a person’s SRC can cause problems
when trying to operate under different business customs. The literature is full of examples of
misunderstandings between business persons from different cultures when each responds to the other from
his/her own SRC without an appreciation of the SRC at work. The classic example is time. In some Latin
cultures, there is a different urgency placed on time. The punctuality of someone from the United States
can appear “pushy, too much in a hurry to make a decision, and so on” while the lackadaisical response to
time by a Latin can be erroneously interpreted as being lazy or indifferent. Or, in the United States, calling
someone by their first name when first introduced implies friendliness but appears as rude or boorish to a
Frenchman or German. The teaching objectives of this chapter are to:
1) Acquaint the student with some of the more frequently encountered differences in business
customs.
2) Emphasize the importance of adaptation or accommodation to differences in behavior patterns.
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Chapter 05 - Culture, Management Style, and Business Systems
3) Discuss those business customs that are important to adapt to since many differences that exist
within a culture do not require adaptation.
4) Become aware of the disparate standards for business ethics that exist and to test one’s own
ethical values.
5) Explore a guide to help you make ethical and socially responsible decisions.
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Chapter 05 - Culture, Management Style, and Business Systems
2. To those less experienced with cultural diversity, the number of differences can be overwhelming.
Which ones of the many cultural differences are important? To bring some order out of the chaos of
cultural diversity, I suggest that business customs can be classified into three groups: those that one
must accommodate (imperatives); those that only a person of the culture can participate in (exclusives);
and, those that are optional, i.e., one can participate in or not. The only requirement is proper, courteous
manners (adiaphora). After I briefly explain the idea and define each of the groupings, I ask students to
examine their own culture and to identify some “imperatives” to which a foreigner must conform. If
there are students in class from countries other than the U.S., I ask them to answer the question from
both their country perspective and as a foreigner in the United States. I repeat the process for
“exclusives” and “adiaphora.” What becomes apparent is that there are not a large number of
imperatives or exclusives and that many of the suggestions they make are adiaphora. The point is that
there are not a large number of customs that must be adapted to but those that require adaptation are
critical for ultimate success in business relations.
3. I use the discussion on m-time and p-time to introduce the discussion on modes of doing business.
Again, I try to involve the students in the discussion by asking them to help with examples.
4. Gender bias is an important issue in business customs discussion. The main point I want to make is that
while there are cultural biases against women, there are also many myths that need to be exposed.
Nevertheless, there are some cultures where the decision to send a woman must be carefully evaluated.
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Chapter 05 - Culture, Management Style, and Business Systems
5. The other topic that needs special attention is the issue of ethical behavior. Because there is no easy
answer to the question of ethical and socially responsible behavior it is important to discuss all the
many and sometimes conflicting issues that arise. Case 2–3, Starnes-Brenner Machine Tool Company
– To Bribe or Not to Bribe is helpful in exploring many of these issues. The different variations of
bribery and U.S. law vs. other countries, and U.S. business response can all be explored by using this
case. One point I think important to stress is that abiding by the letter of the law is not the only criterion
for ethical behavior – you must abide by the law but ethical behavior requires more than just being
“legal.”
6. Exploring the various issues of acting socially responsible when making decisions can be addressed
using Exhibits 5-5 and 5-6, Transparency International 2012 Corruption Perception Index as a guide. I
create a hypothetical situation and ask the students to go through each of the three ethical principles.
Case 4-6, Making Socially Responsible and Ethical Marketing Decisions: Selling Tobacco to Third-
World Countries is also helpful in exploring these issues. While a consensus is rarely reached, both of
these exercises provide an excellent opportunity for each student to examine his/her own values.
Lecture Outline
I. Business Customs and Practices in Global Marketing
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Chapter 05 - Culture, Management Style, and Business Systems
Discussion Questions
1. Define:
Cultural imperative Subornation
Cultural elective Principle of utilitarian ethics
Cultural exclusive
M-time Silent language
FCPA P-time
2. “More than a toleration of an alien culture is required . . . there is a need for affirmative acceptance as
different but equal.” Elaborate.
Adaptation is one of the key concepts for success in international marketing. Through this “affirmative
acceptance as different but equal,” adaptation becomes easier. One gains an appreciation of the outlook
of those with whom one is dealing.
3. “We should also bear in mind that in today’s business-oriented world economy, the cultures themselves
are being significantly affected by business activities and business practices.” Comment.
The business activities and the culture of a nation are intermixed. A change in one results in a change
in another. When a foreign culture encounters the domestic culture, there is a mixing of cultures. When
a foreign business encounters another, the result is the same because business and culture are
inextricably intertwined.
4. “In dealing with foreign businesses, the marketer must be particularly aware of the varying objectives
and aspirations of management.” Explain.
The marketer cannot judge what he feels that the objectives of management of a foreign firm are by
what they are in a similar firms of his own country. With every firm in our country, the objectives and
aspirations of management are different. Therefore, it is quite likely that they are quite different in
foreign countries. The marketer must deal with a company in a way to correspond with the objectives
of the company, or it is possible that he might lose his dealings with that company.
5. Suggest ways in which persons might prepare themselves to handle unique business customs that may
be encountered in a trip abroad.
The businessman should:
a. Learn all he can about foreign cultures by reading, visiting with foreigners and those who
have traveled or lived in the countries he will visit.
b. Condition and sensitize himself by projecting himself into possible situations and analyzing
his learned belief patterns.
c. Seek advice from consultants, ambassadors, and others who can provide professional
guidance.
6. Business customs and national customs are closely interrelated. In what way would one expect the two
areas to coincide and in what ways would they show differences? How could such areas of similarity
and difference be identified?
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Chapter 05 - Culture, Management Style, and Business Systems
COINCIDE
a. Language used
b. Methods of carrying on business must coincide with local customs
c. Religious effect
d. Political effect
1. Laws
2. Taxes
DIFFER
a. Subject matter
b. Degree of technicalities involved
c. Business customs are continually changing—national customs do not
d. Business customs cause some change in national customs
One would have to examine each possible difference and similarity to determine whether or not they
exist.
7. Identify both local and foreign examples of cultural imperatives, adiaphora, and exclusives. Be
prepared to explain why each example fits into the category you have selected.
Domestic examples:
a. Cultural imperatives: It is imperative that one pay income tax, license one’s car, or wear a
coat and tie to a fine restaurant, not belch in public, etc.
b. Cultural electives: One may or may not attend church, one may eat local foods, but doesn’t
have to.
c. Cultural exclusives: An African wouldn’t join the KKK. A foreigner couldn’t sell firearms
for the purpose of overthrowing the government.
Foreign examples:
a. Cultural imperatives: Not wearing shorts in Mazatlan, Mexico; not doing business on
Saturday in Israel.
b. Cultural electives: An American businessperson in Mexico may or may not drink tequila or
eat burritos.
c. Cultural exclusives: It would be inappropriate for an American to go to Vietnam and act like
a Moslem.
8. Contrast the authority roles of top management in different societies. How will the differing views of
authority affect marketing activities?
There are three main different types of authority patterns: (1) top management decision making, (2)
decentralized decision making, and (3) committee decision making. In Europe, top management makes
most of the major decisions. One of the reasons for this is their belief that subordinates are generally
inadequate people. In the United States, the subordinates are given more responsibility and top
management doesn’t have complete responsibility of decision making. This is what can be called more
decentralized decision making. In the Far Eastern countries, group decision making predominates
because of their culture.
The marketing approach to each of these different situations is quite varied. The problem is to
determine what system is being used, and who is in authority.
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Chapter 05 - Culture, Management Style, and Business Systems
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Chapter 05 - Culture, Management Style, and Business Systems
15. Explore the various ways in which business customs can affect the structure of competition.
The customs would affect the structure of competition mainly by determining whether or not there is
competition in that country. If the industries are government controlled, then there is obviously no
competition. There may be different policies on how competition may occur in different countries.
Some countries might have a rigid competition requirement, whereas another could have a quite loose
competition requirement.
16. Why is it important that the business executive be alert to the significance of business customs?
The business executive must be very sensitive to the cultural variations; he must be alert and prepared
to adapt when necessary; he must realize that he is not a native and will always be treated as an outsider.
If he does not follow these points, he will be excluded from doing business or will lose out in doing
business in different countries.
17. Suggest some cautions that an individual from a high-context culture should take when dealing with
someone from a low-context culture. Do the same for low- to high-context situations.
An individual from a high-context culture operating in a low-context culture should be careful about:
a. assuming that he has communicated when he has not.
b. leaving out major elements of communication.
c. depending too much on the spoken word and not enough on writing.
d. becoming frustrated by lack of feedback in interpersonal communication.
An individual from a low-context culture operating in a high-context culture should be careful about:
a. communicating messages he did not intend.
b. becoming frustrated from the imprecision of his counterpart’s communication.
c. expending too much on reports and letters.
d. missing important communication cues.
18. Political payoffs are a problem; how would you react if you faced the prospect of paying a bribe? If
you knew that by not paying you would not be able to complete a $10 million contract?
The response to this question is obviously, one deals with an individual’s own code of ethics. In
discussing the question, it should be stressed that paying the bribe or any other illegal act is not
permissible by most company rules. Further, to do so would violate U.S. law as well as a law in many
host countries.
19. Differentiate among the following:
Subornation
Lubrication
Extortion
Bribery
Subornation generally involves large sums of money, frequently not properly accounted for, which
are designed to entice an official to commit an illegal act of magnitude on behalf of the one paying the
bribe.
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Chapter 05 - Culture, Management Style, and Business Systems
Lubrication, on the other hand, involves a relatively small sum of cash, gift, or service made to a low-
ranking official in a country where such offerings are not prohibited by law; the purpose of such a gift
being to facilitate or expedite a normal, lawful performance of a duty by an official.
Extortion is payment extracted under duress by someone in authority from a person seeking only what
one is lawfully entitled to.
Bribery is money voluntarily offered by someone seeking unlawful advantage. Lubrication payments
are a request for a person to do a job more rapidly or more efficiently, whereas subornation is a request
for officials to turn their heads, not do their job, or to break the law. An example of extortion would be
a Finance Minister of a country demanding heavy payments under the threat that millions of dollars of
investment would be confiscated.
20. Distinguish between P-time and M-time.
Edward Hall defines two kinds of time systems in the world – monochronic and polychronic time. M-
time (monochronic) typifies most North Americans, Swiss, Germans, and Scandinavians. In these
Western cultures, they tend to concentrate on one thing at a time. They divide time into small units and
are concerned with promptness. M-time is used in a linear way and it is experienced as being almost
tangible in that we save time, waste time, bide time, spend time and lose time. Most low context cultures
operate on M-time.
P-time is more dominant in high context cultures where the completion of a human transaction is
emphasized more than holding to schedules. P-time is characterized by the simultaneous occurrence of
many things and by “a great involvement with people.” P-time allows for relationships to build and
context to be absorbed that are a part of high-context cultures. In Japan there is a mix between P-time
and M-time. For appointments, Japan is very M-time but for all other interaction, they are more P-time.
The American desire to “get straight to the point,” to “get down to business” and other indications of
directness are all manifestations of M-time cultures. While the P-time system gives rise to looser time
schedules, deeper involvement with individuals and a “wait and see what develops” attitude. For
example, two Latins conversing would likely opt to be late for their next appointments rather than
abruptly terminate the conversation before it came to a natural conclusion.
21. Discuss how a P-time person reacts differently from an M-time person in keeping an appointment.
When business people from M-time and P-time meet, adjustments on both sides need to be made for a
harmonious relationship. P-time is characterized by a much “looser” notion of what is “on time” or
“late.” Interruptions are routine, delays to be expected. It is not so much putting things off until
“manana” but the concept that human activities are not expected to proceed like clockwork.
One study comparing perceptions of punctuality in the U.S. and Brazil found that Brazilian timepieces
were less reliable and public clocks less available than it was in the United States. Researchers also
found that Brazilians more often described themselves as late arrivers, allowed greater flexibility in
defining early and late, were less concerned about being late, and were more likely to blame external
factors for their lateness than were Americans.
Often clarity can be gained by specifying tactfully, for example, whether a meeting is to be on “Mexican
time” or “American time.” An American who has been working successfully with the Saudis for many
years says he has learned to take plenty of things to do when he travels. Others schedule appointments
in their offices so they can work until their P-time friend arrives.
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Chapter 05 - Culture, Management Style, and Business Systems
22. What is meant by “laws are the markers of past behavior that society has deemed unethical or socially
irresponsible?”
It means that to be ethical does not mean just abiding by the law. Most laws reflect societies’ concern
that some type of behavior is not proper and that people do not voluntarily refrain from the offensive
behavior, thus, laws are passed. In many countries, the law may help define the borders of minimum
ethical or social responsibility, but the law is only the floor above which one’s social and personal
morality is tested. Ethical business conduct should normally exist at a level well above the minimum
required by law.
23. What are the three ethical principles that provide a framework to help distinguish between right and
wrong?
Explain.
There are three ethical principles that provide a framework to help the marketer distinguish between
right and wrong, determine what ought to be done, and properly justify his or her actions. They are:
- Utilitarian ethics, i.e., does the action optimize the common good or benefits of all
constituencies?
- Rights of the parties, i.e., does the action respect the rights of the individuals involved?
- Justice or fairness, i.e., does the action respect the canons of justice or fairness to all parties
involved?
Answers to these questions can help the marketer ascertain the degree to which decisions are beneficial
or harmful, right or wrong, or whether the consequences of actions are ethical or socially responsible.
24. Visit Transparency International Web page and check to see how the CPI Index for countries listed in
Exhibit 5-5 has changed. Searching TI’s databank, explain why the changes have occurred. The site
is found at: http://www.transparency.de.
25. Discuss the pros and cons of “there is no controlling legal authority,” as a basis for ethical behavior.
In many countries, the law may help define the borders of minimum ethical or social responsibility, but
the law is only the floor above which one’s social and personal morality is tested. The statement that
“there is no controlling legal authority” may mean that the behavior is not illegal but it does not mean
that the behavior is morally correct or ethical. “Ethical business conduct should normally exist at a level
well above the minimum required by law” or “controlling legal authority.” In fact, laws are the markers
of past behavior that society has deemed unethical or socially irresponsible.
One researcher suggests that regardless of how corrupt a society might be, there are core human values
that serve as the underpinning of life, no matter where a person lives. Participants in 43 countries and
more than 50 faiths were given 17 values and asked to rate each as a core value. Five values—
compassion, fairness, honesty, responsibility, and respect for others—were the most often selected
regardless of culture.1 The researcher suggests that an action should only be taken if the answer is no
to the question, “Is the action a violation of a core human value?” When people are clear about their
own values and can identify the principles and core values that make up ethical behavior, they have the
tools for looking at potential decisions and deciding whether or not a decision is ethical.
1
Patricia Digh, "Shades of Gray in the Global Marketplace," HRMagazine, April 1997, p. 90.
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Chapter 05 - Culture, Management Style, and Business Systems
26. “The company.com page is a company’s front door and that doorway should be global in scope.”
Discuss. Visit several Web pages of major multinational companies and evaluate their “front door” to
the global world.
The company.com page is a company’s front door and that doorway should be global in scope. Not
only can you select and purchase goods through a company’s Web page, but support services, training
programs, additional product literature, even career information, are all being moved to the home page.
Thus, the precept, “think globally, act locally, applies not only to global marketing strategies but to the
World Wide Web as well.”
The message on a Web site is an extension of the company and should be as sensitive to business
customs as any other company representative would be. Once a message is posted, it can be anywhere
at any time. As a consequence, the opportunity to convey an unintended message is always present.
Nothing about the Web will change the extent to which people identify with their own languages and
cultures, thus, language should be at the top of list when examining the viability of a company’s Web
site.
The solution to the problem is to have country specific Web sites such as IBM, Microsoft and others
have. Dell Computer, for example, makes its Premier Pages Web sites, built for its business clients,
available in 12 languages. There are a host of companies that specialize in Web site translations and, in
addition, there are software programs to translate the company message into another language.
However, cultural and linguistic correctness can be a problem with machine translation. If not properly
done, there is the likelihood that English phrases will be translated in a way that will embarrass or even
damage a company. One way to avoid this is to prepare the original source material in easy-to-translate
English devoid of complicated phrases, idioms or slang. Unfortunately, no machine translation is
available to manage all the nuances of language or syntaxes.
In addition to being language friendly, a Web site should be examined for any symbols, icons, and other
non-verbal impressions that could convey an unwanted message. Icons that are frequently used on a
Web site can be misunderstood. For example, an icon such as a hand making a high-five sign will be
offensive in Greece; an image of a thumb-to-index finger, the A-OK gesture, will infuriate visitors in
Brazil, and a two-fingered peace sign when turned around has a very crude meaning to the British.
Colors can also pose a problem; green is a sacred color in some Middle Eastern cultures and should not
be used for something frivolous like a Web background.
Besides being language and icon friendly, is the site customer friendly? A European could not
understand why his on-line order from an American company was repeatedly rejected. It took him some
time to determine that since he couldn’t fill out the “state” section, the order form was incomplete and
thus, rejected. He sent the company an e-mail describing his trouble but it didn’t respond. The company
probably doesn’t realize its address information is preventing it from getting as much business as it
could.
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Chapter 05 - Culture, Management Style, and Business Systems
27. Visit the Web sites of Shell and Nike and compare their statements on corporate values. What are the
major issues each address? Do you think their statements are useful as guides to ethical and socially
responsible decision-making?
28. Go to your favorite Web reference source and access some recent news articles on Nike and alleged
human rights violations. Access the Nike statement on corporate values and write a brief statement on
the alleged violations and Nike’s statement of corporate values.
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Another random document with
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Fig. 107—A, Larva of Orthoperus brunnipes (after Perris); B, O.
atomarius, perfect Insect. Britain.
The larvae are much more active than beetle-larvae usually are, and
many of them are very conspicuous when running about on plants to
hunt their prey. They usually cast their skins three times, and
sometimes concomitantly change a good deal in colour and form; the
larval life does not usually exceed four or five weeks; at the end of
which time the larva suspends itself by the posterior extremity, which
is glued by a secretion to some object; the larval skin is pushed back
to the anal extremity, disclosing the pupa; this differs in several
respects from the usual pupa of beetles; it is harder, and is coloured,
frequently conspicuously spotted, and dehisces to allow the escape
of the beetle, so that the metamorphosis is altogether more like that
of Lepidoptera than that of Coleoptera. There is much variety in the
larvae; some of them bear large, complexly-spined, projections;
those of the group Scymnites have small depressions on the
surface, from which it has been ascertained that waxy secretions
exude; but in Scymnus minimus no such excretions are formed.
Certain species, when pupating, do not shuffle the skin to the
extremity of the body, but retain it as a covering for the pupa. The
larvae that feed on plants are much less active than the predaceous
forms. We are well supplied with Coccinellidae in Britain, forty
species being known here.