Professional Documents
Culture Documents
CH 02
CH 02
CH 02
International Business
Chapter Two
The Cultural Environments
Facing Business
2-1
2004 Prentice Hall, Inc
Chapter Objectives
Understand cultural environments
Explain major causes of cultural
difference and change
Examine behavioral factors
influencing countries business
practices
Examine cultural guidelines for
companies that operate
internationally
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2004 Prentice Hall, Inc
Major Cultural Issues
Problems arise in international business
when:
• Employees have subconscious reactions
• Employees assume all societal groups are
similar
• A company implements practices of work less
well than intended
• Employees encounter distress because of an
inability to accept or adjust to foreign cultural
behaviors
• Companies/employees are insensitive to
foreign consumer preferences
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2004 Prentice Hall, Inc
Cultural Factors at Play
Cultural awareness
• Attire
• Religion
• Language
Identification and dynamics of
cultures
Behavior practices affecting
business
• Timeliness
• Ethics
Strategies for dealing with
cultural differences
• Education
• Research
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2004 Prentice Hall, Inc
Identification of Cultures
Cultures are derived with people with
shared attitudes, values, and beliefs
People also belong to national, ethnic,
professional, and organizational cultures
Points of reference:
• National
• Geographic
• Language
• Religion
International business often changes
cultures
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2004 Prentice Hall, Inc
World Output by Language Group
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2004 Prentice Hall, Inc
United States “Values”
COMPETENCE!
Intolerance for discrimination based upon:
• Gender
• Race
• Age
• Religion
Although equality is not applied perfectly, in
many other cultures, this competence is of
secondary importance
Since our values may seem radical to foreigners
it is of extreme importance that international
businesses spend the resources to determine
what foreign cultures they can ethically and
effectively conduct business in
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2004 Prentice Hall, Inc
Characteristic-Based Groups
Gender-based groups
• China
• India
• Afghanistan
• Saudi Arabia
Age-based groups (United States)
Family-based groups
Occupation (United Kingdom)
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2004 Prentice Hall, Inc
Motivation
Cultural difference in:
• Work ethic
• Materialism
• Leisure
Japan vs. United States
Europe vs. United States
• Protestant work ethic
• Expectation of success and
reward
• Assertiveness and
Masculinity index
Japan vs. Sweden
• Need Hierarchy
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2004 Prentice Hall, Inc
Relationship Preferences
Power distance: relationship
between superiors and
subordinates
Individualism vs. collectivism
• United States is clearly different
from Japan
• China is clearly different from
Mexico
Risk-taking behavior
• Uncertainty avoidance
• Trust
• Future orientation
• Fatalism
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2004 Prentice Hall, Inc
Differences in Information and Task
Processing
We perceive and reach conclusions
differently
• Perception of cues; Arabic has more than
6,000 words for camels…
• Obtaining information
Low-context cultures (United States)
High-context cultures (Saudi Arabia)
• Information Processing
Sequentially or simultaneously
Focused or broad
Handling principles or small issues first
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2004 Prentice Hall, Inc
Dealing With Cultural Differences
Be tolerant of differing perceptions of time
Understand the message sent by body
language
Be sensitive to accurate translations
• Spoken
• Written
France: “Please leave your values at the desk”
Mexico: “The manager has personally passed all the
water served here”
Norway: “Ladies are requested not to have children
in the bar”
Greece: “We will execute customers in strict rotation”
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2004 Prentice Hall, Inc
Cultural Influences
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Language Strategies
Get references for translators
Ensure the translator is familiar with
technical vocabulary for the business
Do a back translation
Use simple words
Avoid slang
Repeat words and ask questions
Expect the extra time communication will
take
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2004 Prentice Hall, Inc
Language Groups
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Cultural Orientations
International businesses adopt an attitude
towards foreign cultures
• Polycentrism: control is decentralized so
regional managers can conduct business in a
local manner
• Ethnocentrism: belief that ones own culture is
superior and ignores important factors
• Geocentrism: a hybrid of polycentrism and
ethnocentrism, the middle ground
Companies MUST evaluate their practices
to ensure they account for national
cultural norms
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Hierarchy Comparisons
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2004 Prentice Hall, Inc
Chapter Review
Understand cultural environments
Explain major causes of cultural
difference and change
Examine behavioral factors
influencing countries business
practices
Examine cultural guidelines for
companies that operate
internationally
2-20
2004 Prentice Hall, Inc