CHAPTER 8

1. CHAPTER 8 BBB4M

2. 8.1 CUSTOMS AN CULTURE • Culture – a reflection of the values and beliefs of a community or a nation. A nation’s laws, language, technology, art, music, and literature define its culture. • Customs – the ways in which cultural behaviors are performed. The social habits and traditional behaviors of people are the customs of people. • Three cultural determinants – Geography, History and Religion.

3. GEOGRAPHY • Climate • Arable land • Transportation • Location • Natural hazards

4. HISTORY • Cultural norms are cultural expectations, appearance, observances, and behavior that are normal (standard) in a region or country. • When a group or nation imposes its cultural values and customs on another practice is referred to as cultural imperialism.

5. RELIGION • Plays an enormous role in determining the cultural values of a nation. • Some societies have a single religion that shapes their laws and customs. • Other societies embrace a multitude of religious beliefs, often in conflict with each other. • Religious ceremonies are often accompanied by holidays

6. 8.2 Culture and Consumer Needs and Wants • Cultural Marketing – uses marketing resources to create effective international marketing campaigns that will appeal to consumers in specific countries. • Jaffa Citrus Fruit is an example of cultural marketing • Jaffa is the brand name of citrus fruit marketing board of Israel. • Jaffa sees the world as composed of individualized markets that are based on unique cultures and creates a marketing plan according to that county’s specific taste,

7. Adapting to cultural differences • Would consumers buy the product? • Are consumers familiar with its brand and logo? • Would it have to change some aspects of the product to meet the consumer’s taste? • Second cup example • Apple example • These questions help identify the cultural composition of the foreign target market and will help Canadian businesses avoid making costly cultural mistakes.

8. 8.3 Culture and International Business Practices • NEGOTIATION STYLES • LANGUAGE • BUSINESS PROTOCOL • EMPLOYEE MANAGEMENT

9. NEGOTIATION SYTLES • Negotiating style is the way in which people negotiate business relationships and is particularly important in international business. • Direct and factual negotiations may be preferred instead of making deals through offers and counteroffers. • Some cultures prefer personal contact, and their business people may ignore other forms of communication.

10. LANGUAGE • Clear business communications are easier to achieve when al countries involved speak the same language. • Silent Language • Nonverbal communication such as body language, personal distances between people, appearance, the ise of colors, and modes of greeting. • Forms of Greetings • An inappropriate greeting can give serious offence to the recipient. • Style of Dress • It is better to be dressed too formally than too casual

11. BUSINESS PROTOCOL • Protocol – rules if correct or appropriate behavior to follow when meeting with officials or business people in another nation. • Gift giving • Punctuality • Scheduling of meetings • Business entertaining

12. EMPLOYEE MANAGEMENT • An awareness of business practices is also necessary for the management of a foreign workforce. • Cultural values have been incorporated into the employment laws of each country, such as minimum wage rates, paid vacations, health care, and so on. • Lunch breaks, termination, labour laws, work ethics,

13. 8.4 Disappearing Diversity • International business is creating a type of global culture. • There are cultural differences and similarities. • Successful business deals mean economic success, financial freedom, improved lifestyle, and economic benefits for entire communities.