International Business

Part Two
Comparative Environmental
Frameworks
Chapter Two
The Cultural Environments Facing
Business
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives
To understand methods for learning about
cultural environments
To analyze the major causes of cultural
difference and change
To discuss behavioral factors influencing
countries business practices
To understand cultural guidelines for
companies that operate internationally
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
The People Factor
Culture refers to learned norms based on
the values, attitudes, and beliefs of a
group of people
Cultural diversity
Cultural collision
Sensitivity and Adjustment
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Cultural Awareness
There is no foolproof way to build your
awareness of culture
Hard to isolate culture from economic and
political conditions
Education about a culture helps
Studies of cultures have shortcomings
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
The Nation as a Point of Reference
National boundaries act as proxy for
culture
Not everyone in a country shares the
same culture
Certain cultural attributes may link groups
from different nations more closely than
certain groups within nations

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How Cultures Form and Change
Cultural values set early in life
Changes occur from:
Choice
Imposition

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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Language as a Cultural Stabilizer
When people from different areas speak the
same language, culture spreads more easily
Among nations that share a same language,
commerce is easier
Isolation from other groups, especially because
of language, tends to stabilize cultures.
Some countries see language as being so
important that they regulate the inclusion of
foreign words and/or mandate the use of the
countrys official language for business
purposes.
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Religion as a Cultural Stabilizer
Centuries of profound religious influence
continue to play a major role in shaping
cultural values
Many religions influence specific beliefs
that may affect business
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Issues in Social Stratification
Ascribed group memberships are determined at
birth
Acquired group memberships are based on
ones choice of affiliation
Performance orientation of the society
Open vs. Closed society
Attitude towards gender
Attitude towards age
Importance of family group
Prestige of occupation
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Issues in Work Motivation
Materialism and Motivation
Expectation of Success and Reward
Assertiveness: The MasculinityFemininity
Index
Hierarchies of Needs

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Factors Affecting Relationship
Preferences
Power distance: general relationship
between superiors and subordinates.
Individualism vs. collectivism: degree of
dependence on organization
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Factors Affecting Risk-taking
Behavior
Uncertainty avoidance
Trust
Future orientation
Fatalism
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Factors Affecting Information and
Task Processing
Perception of cues
Obtaining Information: Low-Context versus
High-Context Cultures
Information Processing

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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Factors Affecting the
Communication Process
Spoken and Written language
Silent language:
color associations
conversational distance
perception of time and punctuality
body language and gestures
prestige
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Dealing with Cultural Differences
Accommodation
Cultural distance
Culture shock
Company and Management orientations
polycentric
ethnocentric
geocentric
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Factors Affecting Strategies for
Instituting Cultural Change
Value systems
Cost/benefits of change
Resistance to too much change
Participation
Reward sharing
Opinion leadership
Timing
Learning abroad