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Understanding cultural differences can help promote good global business.
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To explain how culture affects international business
To describe the elements of cultures
To describe the elements of subcultures
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Understanding culture and its effect on international business provides a foundation for working in the global community.
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culturethe set of beliefs, customs, and attitudes of a distinct group of people
valuesstrongly held concepts that are present in culture
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normssocial rules that affect behaviors and actions, and represent cultural values
folkways andmores
cultural customs that dictate how people act socially
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rolethe part a person plays in a social situation
subculturea smaller group or subset within a larger culture
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Culture in International Business
The cultures of two trading partners can affect a business relationship.
Understanding culture is the foundation, or basis, of understanding every other aspect of conducting international business.
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Understanding Culture
Each level of culture—national, regional, or local—has an impact on the lives of people who live on that level.
culture
the set of beliefs, customs, and attitudes of a distinct group of people
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Understanding Culture
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Understanding Culture
Succeeding in the world of international business requires three things.
UnderstandingCulture
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Preparing forand adjusting
to culture
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Participatingin culture
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Elements of Culture
Four Elementsof Culture
Values Norms
Folkways and Mores
Roles
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Elements of Culture
Values are connected to powerful emotions.
values
strongly held concepts that are present in a cultureFor example, in the
United States, many people value freedom.
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Elements of Culture
Norms may reflect values.
norms
social rules that affect behaviors and actions, and represent cultural values
In some cultures, the norm may be that women walk behind men in public.
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Elements of Culture
Some folkways and mores may be minor, while others have a major impact on people’s lives.
folkways and mores
cultural customs that dictate how people act socially
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Elements of Culture
Mores are customs that reflect moral standards in a culture.
Mores are strongly held by a group and can influence controversial political topics.
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Elements of Culture
The role you play is influenced by your community.
role
the part a person plays in a social situation
You play many roles each day.
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Elements of Culture
Examples of roles include:
Son or daughter
Friend
Employee
Student
Spectator
Citizen
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Factors that Create Roles
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Value Dimensions of Culture
Value Dimensions
PowerDistance
Individualism orCollectivism
GenderDifferentiation
UncertaintyAvoidance
Short-term orLong-termorientation
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Value Dimensions of Culture
In cultures with a large power distance among individuals, supervisors are “always right.”
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Value Dimensions of Culture
In individualistic countries, people tend to take care of themselves and immediate families first.
Examples include the United States and Australia.
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Value Dimensions of Culture
In cultures with a high degree of gender differentiation, men tend to dominate society and power structures.
Examples include Middle Eastern countries.
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Value Dimensions of Culture
In high risk-avoidance countries, managers are less willing to take risks.
Examples include Mexico, Portugal, and Japan.
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Value Dimensions of Culture
Relate In what ways might your personal values be influenced by living in an individualistic country?
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Value Dimensions of Culture
The United States is an example of a country with a short-term orientation.
Many Asian countries believe that placing importance on short-term results causes a company to ignore long-term results.
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Understanding Subcultures
People with varied behaviors within a culture make up a subculture.
subculture
a smaller group or subset within a larger culture
Subcultures can form around sports or other interests.
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Understanding Subcultures
A key to working in international business is to be aware that people within the same nation and/or business organization may be quite different.
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Understanding Subcultures
Recall What are subcultures and why is recognizing them important?
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Single Culture and Multicultural Countries
A homogeneous culture is one in which one group of people is dominant in the population.
A homogeneous culture exists in a single-culture nation or region.
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Single Culture and Multicultural Countries
The United States is heterogeneous in a multicultural country, where there are many different groups of people.
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Multinational Companies
Because a multinational company includes cultures from several nations, business decisions may be more inclusive and targeted to the variety of cultures.
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1. What cultural elements create individual roles in society?
values, norms, folkways and mores, customs, educational systems, religious organizations, gender roles, class systems, and degrees of mobility
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2.1
2. What are some examples of dimensions of culture?
power distance, individualism or collectivism, uncertainty avoidance, and short-term or long-term orientation
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2.1
3. What is the definition of the term subculture?
a smaller group or subset within a larger culture
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