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3. CHAPTER. Cultural Influences on Global Business. 3-1 Culture Around the World 3-2 Culture and Social Organizations 3-3 Communication Across Cultures 3-4 Values Around the World. LESSON 3-1 Culture Around the World. GOALS. - PowerPoint PPT Presentation
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Cultural Influences on Global Business3-1 Culture Around the World3-2 Culture and Social Organizations3-3 Communication Across Cultures3-4 Values Around the World
CHAPTER 3
3
LESSON 3-1
Culture Around the World
GOALS •Describe influences of culture on global business activities.
• Explain the role of subcultures.
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Cultural Influences in International Business
•A culture- Is a system of learned, shared, unifying, and interrelated beliefs, values, and assumptions. •Like an Iceberg.
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The Subcultures within a Society
•A SubCulture- Is a subset of a larger culture.
• Examples????
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The Subcultures within a Society**Influences of cultures and subcultures:Cultural Baggage- the idea that you carry your beliefs, values, and assumptions with you at all times • Subculture of U.S. business-Core of common beliefs- “don’t count your chickens before they hatch” or “if at first you don’t succeed,try, try again”
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The Subcultures within a Society**Variations in business subcultures worldwide.-U.S. trades with Canada and United Kingdom…one reason for this trade is that the business subcultures are similar.-U.S. won’t trade with Vietnamese or Kenyan businesses b/c business subculture are much different.
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LESSON 3-2
Culture and Social Organizations
GOALS • Describe how family relationships can affect culture.• Explain the role of societal influences
on culture.
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Family Relationships
• Family units• Nuclear family• Extended family
• Family-work relationships
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Society’s Institutions
• Education
• Gender roles
• Mobility
• Class system
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LESSON 3-3
Communication Across Cultures
GOALS • Understand the importance of knowing another language for global business success.• Compare direct and indirect
communication.• Describe the influence of nonverbal
communication.
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Language Differences
• English is widely considered the language of international business• More people use English to conduct business
than any other language
• Advantages of using English• Understood by many• Ideas can be expressed in many ways• Large number of business-related words• Concise and precise
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Learning a Second Language
• Consider learning language of dominant trading partners.
*Japanese, Chinese, French, German, or Spanish
• Learning a country’s language helps you understand the culture.
*You learn the beliefs, values, and assumptions of that society.
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Direct and Indirect Communication• Contexting- refers to how direct or indirect communication is.• A low-context culture- is one that communicates very directly. (Germany & United States)- Direct and Explicit.** Embarrassment not a concern• A high-context culture- is one that communicates indirectly. (Japan & Saudi Arabia)- Indirect and Implicit. **Embarrassment must be avoided at all costs.
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Nonverbal Communication• Body language – Crossing your legs
in Japan
• Appearance- Well groomed.
• Eye contact- U.S. eye to eye contact; South Korea look away from person speaking.
• Touching- Arab cultures hug and kiss, possibly hold hands as they discuss business matters. Latin Americans engage in more touching behaviors than U.S. & Canada.
• Personal space- Jordanians operate in close proximity, U.S. at least arms length.
• Color- U.S. white is associated with weddings, Japan it is associated with death.
• Numbers- UK, 1st floor is the floor above the ground floor, U.S. it is the ground floor.
• Emblems- Cross necklace in Canada, not appropriate in Islamic cultures.
• Smells- Natural body odors are socially unacceptable in the U.S., not the case in African & Middle Eastern countries…body odors are seen as natural and distinctive. No market for deodorants or Colognes.
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LESSON 3-4
Values Around the World
GOALS • Identify and explain five major types of values that vary from culture to culture.
• Describe the two major reactions to cultural differences.
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Values Vary Among Cultures
• Individualism-The belief in the individual and her or his ability to function relatively independently. **Self-Reliance, independence, and freedom are closely related to individualism in the U.S. (Negative aspects include self-centeredness & selfishness).• Collectivism-The belief that the group is more important than the individual. (Japanese Culture)
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Values Vary Among Cultures
• Technology-*Most developed countries have business subcultures that view improvements as positive for more material objects.*Less developed countries have business subcultures that view advances in tech as a negative and resist change due to cultural or religious reasons.France(Positive), India (Mixed), People’s Republic of China (some internet content banned by government).
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Values Vary Among Cultures
• Leadership, power, and authority-*Different cultures have different values relating to leadership, power, and authority.--In the U.S. the power is divided among the legislative, judicial, and executive branches so that 1 individual does not have to much power.--In authoritarian societies only a few have leadership, power, and authority. (People’s Republic of China…”wisdom of age” is a major cultural value).
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Values Vary Among Cultures
• Religion-
*Religious beliefs can regulate behaviors of business organizations. Some cultures are dominated by 1 religion (Iran and Islam); some have several religions (U.S.); for some religion is not a powerful social force (U.K.).
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Values Vary Among Cultures
• Time-*In developed countries time is a valuable resource that must be carefully spent…appointments, agendas, schedules, and deadlines. (U.S. & Canada)*In less developed countries time is viewed as unending cycles of day and night and seasons.**Businesses are generally more successful in cultures where time is viewed as a valuable resource.
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Adjusting to Cultural Differences• Ethnocentrism-The belief that one’s culture is better than other cultures.**This is a difficult obstacle in international business and must be overcome to be successful.• Reactions to cultural differences• Culture shock-A normal reaction to all the differences of another culture.• Reverse culture shock-Your reaction to becoming reacquainted with your own culture after having accepted another culture.
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