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Fourth Edition

International Business. Fourth Edition. CHAPTER 3. Differences in Culture. Chapter Focus. We need to learn: Business success in different countries requires cross cultural literacy. People are ain’t what you see. Chapter Focus. We need to learn:

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Fourth Edition

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  1. International Business Fourth Edition

  2. CHAPTER 3 Differences in Culture

  3. Chapter Focus We need to learn: • Business success in different countries requires cross cultural literacy. People are ain’t what you see..

  4. Chapter Focus We need to learn: • Business success in different countries requires cross cultural literacy. People are ain’t what you see. Values are different.

  5. Chapter Focus We need to learn: • Business success in different countries requires cross cultural literacy. People are ain’t what you see. • Can we follow the adage “when in Rome do as the Romans do”

  6. Chapter Focus We need to learn: • Business success in different countries requires cross cultural literacy. People are ain’t what you see. • Can we follow the adage “when in Rome do as the Romans do” • Some Cultural attributes cause cost of doing business to increase. What are they in the US?

  7. Chapter Focus We need to learn: • Business success in different countries requires cross cultural literacy. People are ain’t what you see. • Can we follow the adage “when in Rome do as the Romans do” • Some Cultural attributes cause cost of doing business to increase. What are they in the US? • Cultures change.

  8. What is Culture? A system of norms and values shared among a group of people and, when taken together, constitute a design for living.

  9. Norms: Social rules and guidelines that prescribe appropriate behavior in particular situations. They stem from: Norms

  10. Norms: Social rules and guidelines that prescribe appropriate behavior in particular situations. They stem from Folkways:Routine conventions of everyday life. Norms

  11. Norms: Social rules and guidelines that prescribe appropriate behavior in particular situations. They stem from Folkways:Routine conventions of everyday life. Violations of folkways does not constitute villainy or a character flaw. Norms

  12. Norms: Social rules and guidelines that prescribe appropriate behavior in particular situations. They stem from Folkways:Routine conventions of everyday life. Mores (Essential accepted traditional customs that often become a part of the legal code): They are central to functioning of a society and its social life. Norms

  13. Values are: The bedrocks of culture. Values

  14. Values are: The bedrocks of culture. Have emotional significance to individuals and the society Values

  15. Values are: The bedrocks of culture. Have emotional significance to individuals and the society These are abstract ideas about what a group believes to be good, right, and desirable. Values

  16. Economic Philosophy Culture: Norms and Value Systems Determinants of Culture

  17. Economic Philosophy Political Philosophy Culture: Norms and Value Systems Determinants of Culture

  18. Economic Philosophy Political Philosophy Culture: Norms and Value Systems Social Structure Determinants of Culture

  19. Economic Philosophy Political Philosophy Culture: Norms and Value Systems Social Structure Religion Determinants of Culture

  20. Economic Philosophy Political Philosophy Culture: Norms and Value Systems Language Social Structure Religion Determinants of Culture

  21. Economic Philosophy Education Political Philosophy Culture: Norms and Value Systems Language Social Structure Religion Determinants of Culture

  22. Western Structure Is based on: Social Structure

  23. Individualism and Western Structure Is based on: Social Structure

  24. Individualism and Western Structure Is based on: Entrepreneurship Social Structure

  25. Hard to Build Teams Individualism and Western Structure Is based on: Entrepreneurship Social Structure

  26. Hard to Build Teams Individualism and Western Structure Is based on: Mobile Managers Entrepreneurship Social Structure

  27. Hard to Build Teams Individualism and Western Structure Is based on: Mobile Managers Entrepreneurship Lack of Loyalty Social Structure

  28. Group is defined as two or more individuals with a shared sense of identity Social Structure

  29. Group is defined as two or more individuals with a shared sense of identity Group is Social Structure

  30. Group is defined as two or more individuals with a shared sense of identity Group An Eastern Approach to Social Structure

  31. Group is defined as two or more individuals with a shared sense of identity Group is An Eastern Approach to Identity. It leads to Social Structure

  32. Group is defined as two or more individuals with a shared sense of identity Group Nonmobile Managers Eastern Identity. It leads to Social Structure

  33. Group is defined as two or more individuals with a shared sense of identity Group Nonmobile Managers Eastern Lifetime Employment Identity Social Structure

  34. Hard to Build Teams Individual Western Mobile Managers Entrepreneurship Group two or more individuals with a shared sense of identity Lack of Loyalty Group Nonmobile Managers And therefore, lack of Entrepreneurship Eastern Lifetime Employment Identity Social Structure

  35. Social Stratification Typically is defined by family background, occupation, and income.

  36. Social Stratification Caste: Virtually no mobility

  37. Class Consciousness: May play a role in a firm’s operations Social Stratification Class: some social mobility

  38. Religion • Shared beliefs and rituals concerned with the realm of the sacred. • Ethical Systems: • Moral principles or values used to guide and shape behavior. • Shapes attitudes toward work and entrepreneurship and can affect the cost of doing business.

  39. World’s Religions

  40. Religion and Economic Implications • Christianity • “”Protestant Work Ethic” and “The Spirit of Capitalism””. • Islam • Favors market-based systems. “The Spirit of Capitalism””. • No payment or receipt of interest. • Hinduism • Asceticism may have an impact. • Caste system plays a role. • Buddhism • Little emphasis on entrepreneurial behavior. • Confucianism • Loyalty, reciprocal obligations, and honesty in dealings.

  41. Language • Allows people to communicate.

  42. Language • Allows people to communicate. • Structures the way the world is perceived.

  43. Language • Allows people to communicate. • Structures the way the world is perceived. • Directs attention to certain features of the world rather than others.

  44. Language • Allows people to communicate. • Structures the way the world is perceived. • Directs attention to certain features of the world rather than others. • Helps define culture.

  45. Language • Allows people to communicate. • Structures the way the world is perceived. • Directs attention to certain features of the world rather than others. • Helps define culture. • Creates separatist tendencies?

  46. Spoken Language

  47. Nonspoken Language • Nonverbal cues: • eyebrows • fingers/thumbs • hand gestures • feet • personal space • body gestures

  48. Formal education supplements family role in teaching values and norms Education

  49. Formal education supplements family role in teaching values and norms Cultural norms such as respect, obedience, honesty Education

  50. Formal education supplements family role in teaching values and norms Cultural norms such as respect, obedience, honesty Value of personal achievement and competition Education

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