1 CHAPTER II CROSS- CULTURAL BUSINESS National Business Environment INTERNATIONAL BUSINESS

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CHAPTER II

CROSS- CULTURAL BUSINESS

National Business Environment

INTERNATIONAL BUSINESS

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Learning ObjectivesDescribe 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.

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WHAT IS CULTURE?

Culture

Set of values, beliefs, rules and

institutions held by a specific group of

people.

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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

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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.

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COMPONENTS OF CULTURE

Aesthetics

Values and Attitudes

Manners and Customs

Social Structure

Religion

Personal Communication

Body language

Education

Physical and Material Environments

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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.

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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.

COMPONENTS OF CULTURE

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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

COMPONENTS OF CULTURE

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Cultural trait : Anything that represents a

culture’s way of life ,including gestures,

material objects, traditions, and concepts.

COMPONENTS OF CULTURE

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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.

COMPONENTS OF CULTURE

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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

COMPONENTS OF CULTURE

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Religion

Christianity

Islam

Hinduism

Buddhism

Confucianism

Judaism

Shinto

COMPONENTS OF CULTURE

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Personal CommunicationSystem 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.

COMPONENTS OF CULTURE

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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.

COMPONENTS OF CULTURE

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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

COMPONENTS OF CULTURE

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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.

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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

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COMPONENTS OF CULTURE…

Religion : human values often originate from religious beliefs .different religions take different views of work,savings,and material goodsPersonal 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

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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.

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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.

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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.

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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.

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CLASSIFYING CULTURES

Hofstede Framework: Framework for studying cultural differences along four dimensions, such as individualism versus collectivism and equality versus inequality.

Individualism vs CollectivismPower distanceUncertainty avoidanceAchievement vs Nurturing

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