International Business Presentation

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Understanding cultural differences can help
promote good global business.
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• To explain how culture affects international
  business
• To describe the elements of cultures
• To describe the elements of subcultures

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Understanding culture and its effect on
international business provides a foundation for
working in the global community.
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the set of beliefs, customs, and attitudes of a
distinct group of people
culture
strongly held concepts that are present in culture
values
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social rules that affect behaviors and actions,
and represent cultural values
norms
folkways andmores
cultural customs that dictate how people act
socially
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the part a person plays in a social situation
role
a smaller group or subset within a larger culture
subculture
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Culture in International Business

• The cultures of two trading partners can affect a
  business relationship.
• Understanding culture is the foundation, or
  basis, of understanding every other aspect of
  conducting international business.

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Understanding Culture

• Each level of culturenational, regional, or
  localhas an impact on the lives of people who
  live on that level.

culture the set of beliefs, customs, and
attitudes of a distinct group of people
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Understanding Culture
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Understanding Culture

• Succeeding in the world of international business
  requires three things.

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Elements of Culture
Values
Norms
Four Elementsof Culture
Folkways and Mores
Roles
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Elements of Culture

• Values are connected to powerful emotions.

values strongly held concepts that are present in
a culture
For example, in the United States, many people
value freedom.
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Elements of Culture

• Norms may reflect values.

norms social rules that affect behaviors and
actions, and represent cultural values
In some cultures, the norm may be that women walk
behind men in public.
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Elements of Culture

• Some folkways and mores may be minor, while
  others have a major impact on peoples lives.

folkways and mores cultural customs that dictate
how people act socially
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Elements of Culture

• Mores are customs that reflect moral standards in
  a culture.
• Mores are strongly held by a group and can
  influence controversial political topics.

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Elements of Culture

• The role you play is influenced by your community.

role the part a person plays in a social situation
You play many roles each day.
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Elements of Culture

• Examples of roles include
• Son or daughter
• Friend
• Employee
• Student
• Spectator
• Citizen

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Factors that Create Roles
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Value Dimensions of Culture
PowerDistance
Short-term orLong-termorientation
Individualism orCollectivism
Value Dimensions
GenderDifferentiation
UncertaintyAvoidance
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Value Dimensions of Culture

• In cultures with a large power distance among
  individuals, supervisors are always right.

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Value Dimensions of Culture

• In individualistic countries, people tend to take
  care of themselves and immediate families first.
• Examples include the United States and Australia.

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Value Dimensions of Culture

• In cultures with a high degree of gender
  differentiation, men tend to dominate society and
  power structures.
• Examples include Middle Eastern countries.

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Value Dimensions of Culture

• In high risk-avoidance countries, managers are
  less willing to take risks.
• Examples include Mexico, Portugal, and Japan.

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Value Dimensions of Culture
Relate In what ways might your personal values
be influenced by living in an individualistic
country?
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Value Dimensions of Culture

• The United States is an example of a country with
  a short-term orientation.
• Many Asian countries believe that placing
  importance on short-term results causes a company
  to ignore long-term results.

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Understanding Subcultures

• People with varied behaviors within a culture
  make up a subculture.

subculture a smaller group or subset within a
larger culture
Subcultures can form around sports or other
interests.
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Understanding Subcultures

• A key to working in international business is to
  be aware that people within the same nation
  and/or business organization may be quite
  different.

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Understanding Subcultures
Recall What are subcultures and why is
recognizing them important?
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Single Culture and Multicultural Countries

• A homogeneous culture is one in which one group
  of people is dominant in the population.
• A homogeneous culture exists in a single-culture
  nation or region.

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Single Culture and Multicultural Countries

• The United States is heterogeneous in a
  multicultural country, where there are many
  different groups of people.

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Multinational Companies

• Because a multinational company includes cultures
  from several nations, business decisions may be
  more inclusive and targeted to the variety of
  cultures.

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2.1

1. What cultural elements create individual roles in
   society?

values, norms, folkways and mores, customs,
educational systems, religious organizations,
gender roles, class systems, and degrees of
mobility
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2.1

1. What are some examples of dimensions of culture?

power distance, individualism or collectivism,
uncertainty avoidance, and short-term or
long-term orientation
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2.1

1. What is the definition of the term subculture?

a smaller group or subset within a larger culture
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