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Transcript of Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2-1 International Business...
![Page 1: Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2-1 International Business Environments & Operations 14e Daniels ● Radebaugh ● Sullivan.](https://reader030.fdocuments.in/reader030/viewer/2022033018/56649d745503460f94a5365f/html5/thumbnails/1.jpg)
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
2-1
International Business
Environments & Operations
14e
Daniels ● Radebaugh ● Sullivan
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2-2
Chapter 2
The Cultural Environments
Facing Business
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Learning Objectives To understand methods for learning about
cultural environments To analyze the major causes of cultural
difference and change To discuss behavioral factors influencing
countries’ business practices To understand guidelines for cultural
adjustment
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IntroductionLearning Objective 1: To understand methods for learning about cultural environments
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Introduction Culture refers to the learned norms based
on values, attitudes, and beliefs of a group of people
Culture is an integral part of a nation’s operating environment every business function is subject to potential
cultural differences
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IntroductionCultural Factors Affecting International Business Operations
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Introduction Companies need to decide when to make
cultural adjustments Fostering cultural diversity can allow a
company to gain a global competitive advantage by bringing together people of diverse backgrounds and experience
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Introduction But, cultural collision can occur when a
company implements practices that are less effective or when employees encounter distress because of difficulty in accepting or adjusting to foreign behaviors
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Cultural Awareness Problem areas that can hinder managers’
cultural awareness… Subconscious reactions to circumstances The assumption that all societal subgroups are
similar Managers that educate themselves about
other cultures have a greater chance of succeeding abroad
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Culture and the Nation-State
The nation is a useful definition of society because similarity among people is a cause and an effect of national boundaries laws apply primarily along national lines language and values are shared within borders rites and symbols are shared along national
lines
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Culture and the Nation-State
Country-by-country analysis can be difficult because subcultures exist within nations similarities link groups from different countries
Need to focus on relevant groups
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How Cultures Form and Change
Learning Objective 2: To analyze the major causes of cultural difference and change
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How Cultures Form and Change
Cultural value systems are established early in life but may change through choice or imposition
cultural imperialism
contact with other cultures cultural diffusion creolization
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Language: Cultural Diffuser and
Stabilizer A common language within a country is a
unifying force A shared language between nations
facilitates international business Native English speaking countries account for a
third of the world’s production English is the international language of
business
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Language: Cultural Diffuser and
StabilizerDistribution Of The World’s Major Languages
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Language: Cultural Diffuser and
StabilizerMajor Language Groups: Population and Output
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Religion: Cultural Stabilizer
Religion impacts almost every business function
Centuries of profound religious influence continue to play a major role in shaping cultural values and behavior many strong values are the result of a
dominant religion
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Religion: Cultural Stabilizer
Distribution Of The World’s Major Religions
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Behavioral Practices Affecting Business
Learning Objective 3:To discuss behavioral factors influencing countries’ business practices
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Social Stratification Social ranking is determined by
an individual’s achievements and qualifications
an individual’s affiliation with, or membership in, certain groups
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Social Stratification Group affiliations can be
Ascribed group memberships based on gender, family, age, caste, and
ethnic, racial, or national origin Acquired group memberships
based on religion, political affiliation, professional association
Two other factors that are important education and social connections
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Work Motivation The motivation to work differs across
cultures Studies show
the desire for material wealth is a prime motivation to work
promotes economic development people are more eager to work when the
rewards for success are high masculinity-femininity index
high masculinity score prefers “to live to work” than “to work to live”
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Work Motivation Hierarchy of needs theory
fill lower-level needs before moving to higher level needs
The ranking of needs differs among cultures
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Work MotivationThe Hierarchy of Needs and Need-Hierarchy Comparisons
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Relationship Preferences Relationship preferences differ by culture Power distance
high power distance implies little superior-subordinate interaction
autocratic or paternalistic management style low power distance implies consultative style
Individualism versus collectivism high individualism – welcome challenges high collectivism – prefer safe work environment
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Risk Taking Behavior Risk taking behavior differs across cultures
Uncertainty avoidance handling uncertainty
Trust degree of trust among people
Future orientation delaying gratification
Fatalism attitudes of self-determination
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Information and Task Processing
Cultures handle information in different ways Perception of cues Obtaining information
low context versus high context cultures Information processing Monochronic versus polychronic cultures Idealism versus pragmatism
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Communications Cross border communications do not
always translate as intended Spoken and written language Silent language
Color Distance Time and punctuality Body language Prestige
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CommunicationsBody Language Is Not A Universal Language
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Dealing with Cultural Differences
Learning Objective 4:To understand guidelines for cultural adjustment
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Dealing with Cultural Differences
Do managers have to alter their customary practices to succeed in countries with different cultures?
Must consider Host society acceptance Degree of cultural differences
cultural distance Ability to adjust
culture shock and reverse culture shock Company and management orientation
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Dealing with Cultural Differences
Three company and management orientations Polycentrism
business units abroad should act like local companies
Ethnocentism home culture is superior to local culture overlook national differences
Geocentrism integrate home and host practices
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Strategies for Instituting Change
Value Systems Cost-Benefit Analysis of change Resistance to too much change Participation Reward Sharing Opinion Leadership Timing Learning Abroad
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The Future of National Cultures
Scenario 1: New hybrid cultures will develop and personal horizons
will broaden Scenario 2:
Outward expressions of national culture will continue to become homogeneous while distinct values will remain stable
Scenario 3: Nationalism will continue to reinforce cultural identity
Scenario 4: Existing national borders will shift to accommodate
ethnic differences
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.