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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