Jelena Pahić

Culture and International Business: Dimensions of culture & analysis of one

aspect of culture*UAE*

RESUME

1. Culture and International Business 2. The impact of culture on business 3. Culture is the best way in which people solve problems 4. Feelings and relationships- affective vs neutral cultures 5. Intercultural communication 6. Reconciling neutral and affective cultures 7. Analysis of one aspect of culture- UNITED ARAB EMIRATES 8. Literature

1. CULTURE AND INTERNATIONAL BUSINESS

about cultural differences and how they effect the process of doing business and managing, and not about how to understand the people of different nationalities

2. THE IMPACT OF CULTURE ON BUSINESS 1/2

in every culture in the world such phenomena as authority, bureaucracy, creativity, good fellowship, verification and accountability are experienced in different ways

2. THE IMPACT OF CULTURE ON BUSINESS 2/2

there is a theory that internationalization will create, or at least lead to, a common culture worldwide- this would make the life of international managers much simpler

3. CULTURE IS THE BEST WAY IN WHICH PEOPLE SOLVE PROBLEMS

culture is the best way in which a group of people solve problems and reconciles dilemmas

culture comes in layers, like an onion- to understand it you have to unpeel it layer by layer

the layers of values are deeper within the “onion”, and are more difficult to identify

4. FEELINGS AND RELATIONSHIPS- AFFECTIVE VS NEUTRAL CULTURES

memebers of cultures which are affectively neutral do not show their feelings but keep them carefully controlled

in cultures high in affectivity, people show their feelings by laughing, smiling and gesturing

Kuwait

Saudi Arabia

France

Germany

USA

Hungary

UAE

China

Poland

Japan

Ethiopia

0 10 20 30 40 50 60 70 80 90

Percentage of respondents who would not show emotions openly

Percentage of respondents who would not show emotions openly

%

5. INTERCULTURAL COMMUNICATION

communication is essentially the exchange of information, ideas or emotions; information is the carrier of meaning

it is possible only between people who share a system of meaning

Verbal communication Western society has a predominantly verbal culture,

and Europeans communicate with paper, film and conversation

Non-verbal communication rasearch has shown that at least 75% of all

communication is non-verbal

6. RECONCILING NEUTRAL AND AFFECTIVE CULTURES

overly neutral or affective (expressive) cultures have problems doing business with each other

the neutral person is easily accused of being ice-cold with no heart; the affective person is seen as out of control

when such cultures meet the first, essential is to recognize the differences

7. ANALYSIS OF ONE ASPECT OF CULTURE- UNITED ARAB EMIRATES

UNITED ARAB EMIRATES- OVERVIEW 1/2

a relatively young federation of seven small Gulf states each with their own unique identity and history

the discovery of oil in the mid 20th century drastically changed the UAE’s economy making it one of the wealthiest nations in the Muslim world

with a large foreign expatriate population, it is the most

(socially) liberal country in the Middle East

UNITED ARAB EMIRATES- OVERVIEW 2/2

the president of the Emirates is His Highness Shaikh Zayed Bin Sultan Al Nahayan, who has ruled the country since its inception

citizens now have a high standard of living and level of education, and the country is investing a great deal in transforming the desert into a green and pleasant land

GEOGRAPHY 1/2

Official name – United Arab Emirates Population: 4.621.399 (July 2008) Official Language – Arabic Currency – Emirati Dirham (AED) Capital city – Abu Dhabi GDP- US$189.6 billion (2007 est.) GDP per CAPITA- US$37,300 (2007

est.)

RELIGION

Islam is the official religion 76% of the population are Muslims, with the remaining 15%

Christians, and 9% Hindus and others as with all of the Arab states, Islam has a profound influence on

most aspects of life in the UAE the Emirates are tolerant of other religions as well

ECONOMY

the UAE’s strong economy is due to its oil and gas reserves, as well as its strategic location at the mouth of the Arabian Gulf

the Government has used much of its wealth to improve the living conditions and quality of life within the country

the Government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private-sector involvement

GENERAL ATTITUDES

Arabs are generally known for their informal, relaxed behaviour, good manners and consideration of others

the quality of sabur, which means both ‘patience’ and ‘steadfastness’ in adversity is much admired

in business situations, it may take some time before the topic of conversation is directed to your main reason for meeting, but this process should not be hurried

BUSINESS ETIQUETTE

the working week traditionally starts on Saturday and it ends on Wednesday

people and relationships are more important than schedules and punctuality

many traditional attitudes and business practices are evolving towards Western approach, but it is still important to be aware and respectful of some differences that might exist

STRUCTURE IN EMIRATI COMPANIES

there is a strong vertical hierarchy in most Emirati companies

age, money and family connections are all key determining factors of a person’s status

it is not uncommon to find many members of one family working for the same company

WORKING RELATIONSHIPS AND BUSINESS PRACTICE

people in the UAE prefer to do business in person Emirati people prefer to do business with those

they know in line with Muslim customs, avoid shaking hands

with a woman unless they extend their hand fi rst if you do intend to use business cards in the

UAE, ensure that the information is printed in both English and Arabic

DRESS ETIQUETTE

it is very common to wear traditional clothes-> codes of dress are determined by Islamic Law which requires modesty for both men and women

long skirts and sleeves are commonly worn by women traditional clothing for men includes the white robe and a

white head-cowering tied by a black headband women should dress conservatively ensuring that the

shoulders and knees are covered

WOMEN

Emirati women are permitted to drive, work, own property and businesses and attend school and university,

women are not permitted to live alone or co-habitate with a member of the opposite sex outside of marriage

it is accepted that Western women may be involved in some official functions as part of a larger delegation

Emirati women will not usually be present at official events or meetings

8. LITERATURE

Riding the Waves of Culture: Understanding Diversity in Global Business Second Edition, Fons Trompenaars, Charles Hampden-Turner

Internet