Kdqt eng chap003

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  • 1. InternationalBusiness 7e by Charles W.L. HillMcGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Chapter 3 Differences in Culture
  • 3. IntroductionSuccessful international managers need cross-culturalliteracy - an understanding of how cultural differencesacross and within nations can affect the way in whichbusiness is practicedA relationship may exist between culture and the costs ofdoing business in a country or region 3-3
  • 4. What Is Culture?Culture is a system of values and norms that are sharedamong a group of people and that when taken togetherconstitute a design for livingwhere-values are abstract ideas about what a group believes tobe good, right, and desirable-norms are the social rules and guidelines that prescribeappropriate behavior in particular situationsSociety refers to a group of people who share a commonset of values and norms 3-4
  • 5. Values And NormsValues provide the context within which a societys normsare established and justified and form the bedrock of acultureNorms include folkways (the routine conventions ofeveryday life) and mores (norms that are seen as central tothe functioning of a society and to its social life) 3-5
  • 6. Classroom Performance SystemAbstract ideas about what a group believes to be good,right, and desirable are calleda) normsb) valuesc) folkwaysd) mores 3-6
  • 7. Culture, Society, And The Nation-stateThere is not a strict one-to-one relationship between asociety and a nation stateNation-states are political creations that can contain oneor more culturesSimilarly, a culture can embrace several nations 3-7
  • 8. The Determinants Of CultureThe values and norms of a culture are the evolutionaryproduct of a number of factors at work in a society includingreligion, political and economic philosophies, education,language, and social structure 3-8
  • 9. Social StructureSocial structure refers to a societys basic socialorganizationTwo dimensions to consider:the degree to which the basic unit of social organizationis the individual, as opposed to the groupthe degree to which a society is stratified into classes orcastes 3-9
  • 10. Classroom Performance SystemThe basic social organization of a society is itsa) cultureb) social stratac) social structured) caste system 3-10
  • 11. Individuals And GroupsA group is an association of two or more people whohave a shared sense of identity and who interact with eachother in structured ways on the basis of a common set ofexpectations about each others behaviorSocieties differ in terms of the degree to which the groupis viewed as the primary means of social organization 3-11
  • 12. Individuals And GroupsIn many Western societies, there is a focus on theindividual, and individual achievement is commonThis contributes to the dynamism of the US economy,and high level of entrepreneurshipBut, leads to a lack of company loyalty and failure to gaincompany specific knowledge, competition betweenindividuals in a company instead of than team building, andless ability to develop a strong network of contacts within afirm 3-12
  • 13. Individuals And GroupsIn many Asian societies, the group is the primary unit ofsocial organization This may discourage job switching between firms,encourage lifetime employment systems, and lead tocooperation in solving business problemsBut, might also suppress individual creativity and initiative 3-13
  • 14. Classroom Performance SystemThe group is the primary unit of social organization ina) Japanb) the United Statesc) Switzerlandd) Mexico 3-14
  • 15. Classroom Performance SystemWhich of the following is not characteristic of individualism?a) individual achievementb) low managerial mobilityc) low company loyaltyd) entrepreneurial behavior 3-15
  • 16. Social StratificationAll societies are stratified on a hierarchical basis intosocial categories, or social strataWhile all societies are stratified to some extent, they differby:the degree of mobility between social stratathe significance attached to social strata in businesscontacts 3-16
  • 17. Social StratificationSocial mobility is the extent to which individuals canmove out of the strata into which they are bornA caste system is a closed system of stratification inwhich social position is determined by the family into whicha person is born, and change in that position is usually notpossible during an individuals lifetimeA class system is a form of open social stratification inwhich the position a person has by birth can be changedthrough his or her achievement or luck 3-17
  • 18. Social StratificationThe social stratification of a society is significant if itaffects the operation of business organizationsClass consciousness is a condition where people tend toperceive themselves in terms of their class background,and this shapes their relationships with othersIn cultures where class consciousness is high, the wayindividuals from different classes work together may bevery prescribed and strained 3-18
  • 19. Religious And Ethical SystemsReligion is a system of shared beliefs and rituals that areconcerned with the realm of the sacredEthical systems are a set of moral principles, or values,that are used to guide and shape behaviorReligion and ethics are often closely intertwinedFour religions dominate society -Christianity, Islam,Hinduism, and BuddhismConfucianism is also important in influencing behaviorand culture in many parts of Asia 3-19
  • 20. Religious And Ethical Systems Map 3.1 World Religions 3-20
  • 21. ChristianityChristianity is the worlds largest religion and is foundthroughout Europe, the Americas, and other countriessettled by EuropeansPerhaps the most important economic implication ofChristianity is the Protestant work ethicIn 1804, Max Weber suggested that it was this ethic andits focus on hard work, wealth creation, and frugality, thatwas the driving force of capitalism