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International BusinessChapter Two

The Cultural EnvironmentsFacing Business

InternationalBusin

ess10e

Daniels/Rade

baugh/Sullivan

2004 Prentice Hall, Inc 2-1

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2004 Prentice Hall, Inc

Chapter Objectives

Understand cultural environments

Explain major causes of culturaldifference and change

Examine behavioral factorsinfluencing countries businesspractices

Examine cultural guidelines forcompanies that operateinternationally

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Major Cultural Issues

Problems arise in international businesswhen: Employees have subconscious reactions

Employees assume all societal groups aresimilar

A company implements practices of work lesswell than intended

Employees encounter distress because of an

inability to accept or adjust to foreign culturalbehaviors

Companies/employees are insensitive toforeign consumer preferences

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Cultural Factors at Play

Cultural awareness Attire Religion Language

Identification and dynamics ofcultures Behavior practices affecting

business Timeliness Ethics

Strategies for dealing withcultural differences Education Research

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Identification of Cultures

Cultures are derived with people withshared attitudes, values, and beliefs

People also belongto national, ethnic,professional, and organizational cultures

Points of reference: National Geographic Language

Religion International business often changes

cultures

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World Output by Language Group

33%

Other

2%

Hindi

3%

Arabic

5%

French

7%

German

7%

Spanish

10%

Mandarin

33%

English

% OF WORLD OUTPUT

LANGUAGE

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Major Religions of the World

14Judaic

23Sikh

360,000Buddhist

384,000Chinese folk

811,000Hindu

1,188,000Muslim

2,000,000Christian

NUMBER OF ADHERENTS(in millions)

RELIGION

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Behavioral Practices

Social Stratification Systems Individuals status with the culture

Managerial groups may be highly valued

Employees may be valued less Ascribed group memberships

Gender, family, age, caste, and ethnic,racial or national origin

Acquired group memberships Religion, political affiliations, and

professional and other associations

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Motivation

Cultural difference in:

Work ethic

Materialism

Leisure

Japan vs. United States

Europe vs. United States

Protestant work ethic

Expectation of success andreward

Assertiveness andMasculinity index

Japan vs. Sweden

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Relationship Preferences

Power distance:relationship betweensuperiors and subordinates

Individualism vs.collectivism United States is clearly

different from Japan

China is clearly different fromMexico

Risk-taking behavior Uncertainty avoidance

Trust

Future orientation

Fatalism

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Differences in Information and Task

Processing

We perceive and reach conclusionsdifferently 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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Dealing With Cultural Differences

Be tolerant of differing perceptions of time

Understand the message sent by bodylanguage

Be sensitive to accurate translations Spoken

Written France: Please leave your values at the desk

Mexico: The manager has personally passed all thewater served here

Norway: Ladies are requested not to have childrenin the bar

Greece: We will execute customers in strict rotation

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Cultural Influences

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Language Strategies

Get references for translators

Ensure the translator is familiar withtechnical 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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Language Groups

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Cultural Orientations

International businesses adopt an attitudetowards foreign cultures Polycentrism: control is decentralized so

regional managers can conduct business in a

local manner Ethnocentrism: belief that ones own culture issuperior and ignores important factors

Geocentrism: a hybrid of polycentrism andethnocentrism, the middle ground

Companies MUST evaluate their practicesto ensure they account for nationalcultural norms

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Hierarchy Comparisons

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Chapter Review

Understand cultural environments

Explain major causes of culturaldifference and change

Examine behavioral factorsinfluencing countries businesspractices

Examine cultural guidelines forcompanies that operateinternationally

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Documents

IBCh02.Pps (2)