1. CHAPTER II INTERNATIONAL BUSINESS CROSS- CULTURAL BUSINESSNational Business Environment

2. Learning Objectives • Describe culture and explain the significance of both national culture and subculture. • Identify the components of culture and describe their impact on business activities around the world. • Describe cultural change and explain how companies and culture affect one another. • Explain how the physical environment and technology influence culture. • Describe the two main frameworks use to classify cultures and explain their practical use.

3. WHAT IS CULTURE? • Culture Set of values, beliefs, rules and institutions held by a specific group of people.

4. WHAT IS CULTURE? • Accommodating Culture- Avoiding Ethnocentricity Ethnocentricity: Belief that one’s own ethnic group or culture is superior to that of others. • Understanding Cultural - Developing Cultural Literacy • Cultural Literacy: Detailed knowledge about a • culture that enables a person to function effectively • within it

5. NATIONAL CULTURE & SUBCULTURE? • National Culture: Nations- states support and promote the concept of a national culture by building museums and monuments to preserve the legacies of important events and people. • Subculture: A group of people who share a unique way of life within a larger, dominant culture.

6. COMPONENTS OF CULTURE • Aesthetics • Values and Attitudes • Manners and Customs • Social Structure • Religion • Personal Communication • Body language • Education • Physical and Material Environments

7. COMPONENTS OF CULTURE • Aesthetics: What a culture considers to be in ”good taste” in the arts, the imagery evoked by certain expressions and the symbolism of certain colors.

8. COMPONENTS OF CULTURE • Values and Attitude • Value: Ideas, beliefs and customs to which people are emotionally attached. • Attitude: Positive or negative evaluations, feeling and tendencies that individuals harbor toward objects or concepts.

9. COMPONENTS OF CULTURE • Cultural diffusion: Process whereby cultural traits spread from one culture to another • Cultural Imperialism: Replacement of one culture’s traditions, folk heroes, and artifacts with substitutes from another

10. COMPONENTS OF CULTURE • Cultural trait : Anything that represents a culture’s way of life ,including gestures, material objects, traditions, and concepts.

11. COMPONENTS OF CULTURE • Manners and Customs • Manners : Appropriate ways of behaving, speaking, and dressing in a culture. • Customs: Habits or ways of behaving in specific circumstances that are passed down through generations in a culture. • Folk Custom: Behavior, often dating back several generations, that is practiced by a homogeneous group of people • Popular Custom: Behavior shared by a heterogeneous group or by several groups.

12. COMPONENTS OF CULTURE • Social Structure A culture’s fundamental organizations, its system of social positions and their relationships, and the process by which its resources are distributed. • Social Group Associations • Social Status • Social Mobility

13. COMPONENTS OF CULTURE • Religion • Christianity • Islam • Hinduism • Buddhism • Confucianism • Judaism • Shinto

14. COMPONENTS OF CULTURE • Personal Communication System of conveying thoughts, feelings, knowledge, and information through speech, actions, and writing. • Social structure : A culture’s fundamental organizations, its system of social positions and their relationships, and the process by which its resources are distributed. • Social Group: Collection of two or more people who identify and interact with one another.

15. COMPONENTS OF CULTURE • Social Structure • Social structure : A culture’s fundamental organizations, its system of social positions and their relationships, and the process by which its resources are distributed. • Social Group: Collection of two or more people who identify and interact with one another.

16. COMPONENTS OF CULTURE • Cultural diffusion: Process whereby cultural traits spread from one culture to another • Cultural Imperialism: Replacement of one culture’s traditions, folk heroes, and artifacts with substitutes from another

17. COMPONENTS OF CULTURE… • Social Structure • Social structure : A culture’s fundamental organizations, its system of social positions and their relationships, and the process by which its resources are distributed. • Social Group: Collection of two or more people who identify and interact with one another.

18. COMPONENTS OF CULTURE… • Social stratification : Process of ranking people into social layers or classes . • Social mobility : Ease with which individuals can move up or down a culture’s “social ladder” . • Caste system: system of social stratification in which people are born into a social ranking, or caste, with no opportunity for social mobility • Class system: System of social stratification in which personal ability and actions determine social status and mobility

19. COMPONENTS OF CULTURE… • Religion : human values often originate from religious beliefs .different religions take different views of work,savings,and material goods • Personal communication • Communication: System of conveying thoughts, feelings, knowledge, and information through speech, actions, and writing. • Lingua franca: third of “link” language that is understood by two parties who speak different native languages

20. COMPONENTS OF CULTURE… • Body language: Language communicated through unspoken cues, including hand gestures, facial expressions, physical greetings, eyes contact, and the manipulation of personal space.

21. COMPONENTS OF CULTURE… • Education: Education is crucial for passing on traditions, customs, and values. Each culture educates its young people through schooling, parenting, religious teachings, and group memberships. • Brain drain : Departure of highly educated people from one profession, geographic region, or nation to another.

22. COMPONENTS OF CULTURE… • Physical and Material Environments • Topography: All the physical features that characterize the surface of a geographic region. • Climate: Weather conditions of a geographic region. • Material Culture: All the technology used in a culture to manufacture goods and provide services.

23. CLASSIFYING CULTURES • Kluckhohn- Strodtbeck Framework: Framework for studying cultural differences six dimensions, such as focus on past or future events and belief in individual or group responsibility for personal well-being.

24. CLASSIFYING CULTURES • Hofstede Framework: Framework for studying cultural differences along four dimensions, such as individualism versus collectivism and equality versus inequality. • Individualism vs Collectivism • Power distance • Uncertainty avoidance • Achievement vs Nurturing

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