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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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culture
the set of beliefs, customs, and
attitudes of a distinct group of people
values
strongly held concepts that are present
in culture
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norms
social rules that affect behaviors
and actions, and represent cultural
values
folkways and cultural customs that dictate how
mores
people act socially
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role
the part a person plays in a social
situation
subculture
a 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.
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2
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Understanding
Culture
Preparing for
and adjusting
to culture
Participating
in culture
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Elements of Culture
Values
Norms
Four Elements
of Culture
Roles
Folkways
and Mores
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Elements of Culture
Values are connected
to powerful emotions.
For example, in the
United States, many
people value freedom.
values
strongly held concepts
that are present in a
culture
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Elements of Culture
Norms may reflect
values.
In some cultures, the
norm may be that
women walk behind
men in public.
norms
social rules that affect
behaviors and actions,
and represent cultural
values
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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
Power
Distance
Short-term or
Long-term
orientation
Value
Dimensions
Uncertainty
Avoidance
Individualism or
Collectivism
Gender
Differentiation
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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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2.1
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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