CULTURE AND INTERNATIONAL BUSINESS ANG 6930 Section 7077 / GEB 6930 Section 4425 Dr. Roy Crum Office: 309 Stuzin Phone: 392-0115 Office Hours: T R 11:45-1:15 E-mail: rcrum@ufl.edu Dr. Anita Spring Office: 451 Grinter Phone: 392-7102 x:308 Office Hours: T 1-4 pm Email: aspring.ufl.edu or springanita@earthlink.net (for attachments) COURSE DESCRIPTION: Culture and International Business explores the opportunities and challenges of the global economy from both anthropological and business perspectives. Students will develop a more complete understanding of the complex cultural and economic issues that determine the success of multinational ventures, from NGO programs in developing countries to large corporate investments in foreign economies. Culture and International Business begins with a thorough conceptualization of “business” and “anthropological” notions of terms like culture, communication, social organization, value, wealth, trade, and labor. Next it explore the politics of the global market, the role of entrepreneurship across cultures, the evolution of multinational businesses, and how business, marketing, and advertising practices vary around the world. The course concludes by examining some of the more controversial issues in globalization (e.g., wages, the environment), and inquiring how these are shaped by different concepts of the roles and responsibilities of governments and corporations. Cross-cultural concepts of gender and how these can affect international business activities are discussed throughout the course. COURSE REQUIREMENTS: Students are expected to attend all classes and have read the readings in advance. The following are the course assignments: 1. A team project comparing and contrasting the anthropological and business aspects of international business. 2. Several short (3-4 page) papers on cases which address the unique business and cultural issues found in different regions of the world. 3. An individual case project that explores a relevant issue in a country or region of the student’s choosing. REQUIRED TEXTS: 1. Ferraro, Gary P. 2002. The Cultural Dimension of International Business. Upper Saddle River, New Jersey: Prentice Hall. (Available at Goering’s) 2. Ricks, David A. 1999. Blunders in International Business. 3rd edition. Malden, Massachusetts: Blackwell Publishers. (Available at Goering’s) 3. Jordan, Ann T. (editor) 1994. Practicing Anthropology in Corporate America: Consulting and Organizational Culture. Napa Bulletin 14, American Anthropological Association. (Available from the instructors) 4. Reader of Articles. (Available at Custom Copies) 1 TOPIC 1: Introduction to Basic Concepts I. Introduction: Why understanding culture is important in international business Goals of the course II. Culture: Anthropological vs. other definitions Basic anthropological concepts: Cultural relativity Business culture Real and ideal behavior Corporate culture Emic vs. etic Intercultural management READINGS: * Ferraro, Chapters 1 and 2. * Ricks, Chapter 1 pp. 3-9. * Burkhalter, S. Brian 1989 If Only They Would Listen: The Anthropology of Business and the Business of Anthropology. In Applying Anthropology: An Introductory Reader. Aaron Podolefsky and Peter J. Brown, eds. Pp. 165-170. Mountain View, California: Mayfield Publishing. * McCurdy, David 1998 Using Anthropology. In Applying Cultural Anthropology: Readings. Gary Ferraro, ed. Pp. 66-72. Belmont, California: Wadsworth Publishing. * Siwalop, Sana 1989 What’s an Anthropologist Doing in My Office. In Applying Anthropology: An Introductory Reader. Aaron Podolefsky and Peter J. Brown, eds. Pp. 171-172. Mountain View, California: Mayfield Publishing. III. Business: What is a “business”? Ownership issues in business Production The proper role of the state in the economy Distribution Public vs. private ownership of the means of Warehousing production Marketing Market equilibrium allocation of resources Controls on economic activities or on allocation of value created Examples of the spectrum: USA, Sweden, Cuba Recent Developments VIDEO: “Cultural Awareness in Business” READINGS: * Hayek, Frederich 1938 Freedom and the Economic System. Contemporary Review, April:434-442. * Niehans, Jurg 1990 Karl Marx. In A History of Economic Theory: Classic Contributions, 1720-1980. Baltimore: The Johns Hopkins University Press. PAGES 137-144 ONLY. 2 TOPIC 2: Communication I. Forms of Communication: Language Gender and language Language diversity Non-verbal behavior II. Language and business communication: Different concepts of the verbalized, written, and body language. The importance of “face” VIDEO: “The Cultural Environment of International Business” READINGS: * Ferraro, Chapters 3 and 4. * Ricks, Chapter 1 (pp. 9-15) and Chapter 5 * Harris and Moran, Global Leaders and Communication (in reader) * Adler, Nancy J. and John L. Graham 1989 Cross-Cultural Interaction: The International Comparison Fallacy? Journal of International Business Studies (Fall):515-537. * Ferraro, Gary 1998 The Need for Linguistic Proficiency in Global Business. In Applying Cultural Anthropology: Readings. Gary Ferraro, ed. Pp. 98-105. Belmont, California: Wadsworth. * Chen, Ming-Jer 2001 Chapter 7: Never Say “No”: Communicating with the Chinese. In Inside Chinese Business: A Guide for Managers Worldwide. Boston: Harvard Business School Press. * Nakane, Chris 1974 The Social System Reflected in Interpersonal Communication. In Intercultural Encounters With Japan: Communication--Contact and Conflict. John C. Condon and Mitsuko Saito, eds. Pp. 124-131. Tokyo: The Simul Press. * Earley, P. Christopher 1997 Chapter 3, Pp. 42-55: Face and Social Context. In Face, Harmony, and Social Structure: An Analysis of Organizational Behavior Across Cultures. New York: Oxford University Press. 3 TOPIC 3: Concepts of “Value” and “Wealth” I. Value: Anthropological definitions of “Value” Temperaments cross-culturally and by gender Attitudes and ideals cross-culturally Attitudes toward time, work, wealth, consumption, achievement, change, and risk Considerations of gender and culture Role of the leader View of life and approach to the world: scientific method, karma, que sera sera, etc. Business definitions of “Value” Creating value, not maximizing “profits” is what counts The Risk/Return relationship Cash flows, not accounting net income Rate of return versus total dollar return Timing of cash flows Expected return versus required return READINGS: * Ricks, Chapter 6. * Ferraro, Chapter 5. * Condon, John C. 1974 The Values Approach to Cultural Patterns of Communication. In Intercultural Encounters With Japan: Communication--Contact and Conflict. John C. Condon and Mitsuko Saito, eds. Pp. 124-131. Tokyo: The Simul Press. * Epstein, Cynthia F. 1988 Chapter 4: It’s All in the Mind: Personality and Social Structure. In Deceptive Distinctions: Sex, Gender, and Social Order. New Haven: Yale University Press. * Jain, Uma 2001 Transcending Cultural Boundaries for Human and Organization Development: Experiences of International Exchanges Between India and the United States. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 737-756. New York: Marcel Dekker. II. Wealth: Wealth can mean different things to different people For whom do businesses create wealth? Stakeholders Shareholders Companies versus governments: are they fungible? Are government or corporations responsible for addressing social issues? Globalization debates, the living wage, the environment, etc. What are the implications of corporate altruism? 4 READINGS: * Dunning, John H. 1999 Some Paradoxes of the Emerging Global Economy: The Multinational Solution. In International Business Organization: Subsidiary Management, Entry Strategies, and Emerging Markets. Fred Burton, Malcolm Chapman, and Adam Cross, eds. Pp. 5-21. New York: St. Martin’s Press. * Miller, Janice S., Peter W. Horn, and Luis R. Gomez-Mejia 2001 The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover? Journal of International Business Studies 32(3):585-595. * Ralston, David A., Nguyen Van Thong, and Nancy K. Napier 1999 A Comparative Study of the Work Values of North and South Vietnamese Managers. Journal of International Business 30(4):655-673. 5 TOPIC 4: Social Organization of Societies and Businesses I. Anthropological Concepts of Social Organization and Related terms: Family and kinship Networks and Associations Roles, norms, and achieved versus ascribed status Gender considerations Societal social organization Corporate social organization, cross-culturally Patriarchy and Paternalism: role of company in family life Status of various occupations READINGS: * NAPA Bulletin 14: Organizational Culture: The Anthropological Approach, by Ann Jordan and Organizational Culture: The Management Approach, by Nancy Morey and Robert Morey. * Costa, Janeen Arnold 1995 The Social Organization of Consumer Behavior. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 213-244. Thousand Oaks, California: Sage Publications. II. Corporate Social Organization: What is so special about the modern corporation? Forms of business organization What the modern corporation does How the modern corporation differs from the 19th century corporation READINGS: * Adler, Nancy J. and Dafna N. Izraeli 1994 Where in the World Are the Women Executives?. Business Quarterly 59(1):89-94. * Issac, Robert G. and Douglass C. Pitt 2001 Organization Culture: It’s Alive! It’s Alive! But There’s No Fixed Address!. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 113-144. New York: Marcel Dekker. *Kilduff, Martin 2001 Hegemonic Masculinity and Organizational Behavior. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 599-608. New York: Marcel Dekker. III. Religion and Society: Religion and Values Religion and economic development, business Islamic prohibitions on interest and Judeo-Christian concept of interest Asian Belief Systems READINGS: * Chen, Ming-Jer 2001 Chapter 4: Roles and Rules of the Social Fabric. In Inside Chinese Business: A Guide for Managers Worldwide. Boston: Harvard Business School Press. 6 TOPIC 5: Practical and Political Factors in a Global Market I. Why do people Trade? Acquire commodities, scarce goods, exotic goods, status goods Build and nurture alliances Maintain social relationships READINGS: * Brian, Robert 1990 Business Friends. In Conformity and Conflict: Readings in Cultural Anthropology. 7th edition. James Spradley and David W. McCurdy, eds. Pp. 293-298. New York: HarperCollins Publishers. II. Why do Countries Trade? For many of the same, basic reasons people have always engaged in exchange Mercantilism Absolute Advantage Comparative Advantage Assumptions of theories of specialization READINGS: * Porter, Michael E. 2000 The Competitive Advantage of Nations. In Transnational Management: Text, Cases, and Readings in Cross-Border Management. 3rd edition. Christopher A. Bartlett and Sumantra Ghoshal, eds. Pp. 216-239. Boston: McGraw-Hill Higher Education. III. Anthropological Considerations of Trans-Cultural Trade: Influence of policies on economic activities Legitimized versus non-legitimized power Policies: Business enablers and constraints READINGS: * NAPA Bulletin 14: Practical Implications of Organization Culture Where Americans and Japanese Work Together, by Jill Kleinberg * Eames, Elizabeth A. 2000 Navigating Nigerian Bureaucracies. In Conformity and Conflict: Readings in Cultural Anthropology. 10th edition. James Spradley and David W. McCurdy, eds. Pp. 294-302. Needham Heights, Massachusetts: Allyn & Bacon. * McCaffey, Janet 1998 Creatively Coping with Crisis: Entrepreneurs in the Second Economy of Zaire (the Democratic Republic of Congo). In African Entrepreneurship: Theory and Reality. Anita Spring and Barbara McDade, eds. Pp. 37-50. Gainesville: University Press of Florida. IV. Concepts of Labor and Capital: First and Third worlds Multinationals 7 READINGS: * Fuentes, Annette, and Barbara Ehrenreich 2000 Women in the Global Factory. In Conformity and Conflict: Readings in Cultural Anthropology. James Spradley and David W. McCurdy, eds. Pp. 164-171. Needham Heights, Massachusetts: Allyn & Bacon. * Robbins, Richard H. 2002 Chapter 2. In Global Problems and the Culture of Capitalism. Pp. 32-58. Boston: Allyn & Bacon. 8 TOPIC 6: Entrepreneurship and Business I. Entrepreneurship: Definition of Entrepreneurship Cross-cultural variation Formal and informal sector; scale and size, characteristics Local versus global Gender considerations in entrepreneurship across cultures READINGS: * Begley, Thomas M. and Wee-Liang Tan 2001 The Socio-Cultural Environment for Entrepreneurship: A Comparison Between East Asian and Anglo-Saxon Countries. Journal of International Business Studies 32(3):537-553. * Coulter, Mary 2000 Chapter 1. In Entrepreneurship in Action. Pp. 2-32. Upper Saddle River, New Jersey: Prentice Hall. * Gattiker, Urs E. and John Parm Ulhoi 2001 Entrepreneurial Phenomena in a Cross-National Context. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 389-414. New York: Marcel Dekker. * Spring, Anita and Barbara McDade 1998 Entrepreneurship in Africa: Traditional and Contemporary Paradigms. In African Entrepreneurship: Theory and Reality. Anita Spring and Barbara McDade, eds. Pp. 1-36. Gainesville: University Press of Florida. * Spring, 2002: Gender and the Range of African Entrepreneurial Strategies: The “Typical” and the “New” women Entrepreneurs. In African and African American Business: Historical and Contemporary Perspectives. Alucine Jalloh and Toyin Falola, eds. Rochester: University of Rochester Press. (In Press) 9 TOPIC 7: The Evolution of Multinational Businesses I. Traditional and Modern Corporations: Evolution of Western Corporations What a modern corporation does Forms of business organization Non-western corporations, past and present READINGS: * Hofsteade, Geert 1980 Motivation, Leadership, and Organization: Do American Theories Apply Abroad?. Organizational Dynamics (Summer):42-63. * Perlmutter, Howard V. 2000 The Tortuous Evolution of the Multinational Corporation. In Transnational Management: Text, Cases, and Readings in Cross-Border Management. 3rd edition. Christopher A. Bartlett and Sumantra Ghoshal, eds. Pp. 73-82. Boston: McGraw-Hill Higher Education. II. Why the rise of multinational enterprises? Product life cycle Internalization Value chain management READINGS: * Ricks, Chapters 7 and 8. * ADDITIONAL READINGS ON MULTINATIONALISM (Tourism, Baby Formula) TO BE ADDED SOON. 10 TOPIC 8: How Business Practices, Marketing, and Advertising Vary Across Cultures I. Business Practices: Structure of corporations in other cultures Decision-making in other cultures Management practices in other cultures Performance evaluations in other cultures READINGS: * Ricks, Chapter 2. * Fadiman, Jeffery A. 2000 Chapters 4, 5, and 9. In South Africa’s ‘Black’ Market: How to Do Business with Africans. Yarmouth, Maine: Intercultural Press. * Reeves-Ellington, Richard H. 1995 Anthropology and Total Quality Management: Improving Sales Force Performance in Overseas Markets. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 169-208. Thousand Oaks, California: Sage Publications. II. Marketing and Advertising Considerations of culture and gender Marketing to urban and rural/peasant markets READINGS: * Ricks, Chapters 3 and 4. * Arnould, Eric J. 1995 West African Marketing Channels: Environmental Duress, Relationship Management, and Implications for Western Marketing. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 109-161. Thousand Oaks, California: Sage Publications. * Van Rij, Jeanne 1998 Trends, Symbols, and Brand Power in Global Markets: The Business Anthropology Approach. In Applying Cultural Anthropology: Readings. Gary Ferraro, ed. Pp. 110-115. Belmont, California: Wadsworth Publishing. * Gladwell, Malcolm 2000 Listening to Khakis: What America’s Most Popular Pants Tell Us about the Way Guys Think. In The Gender and Consumer Culture Reader. Jennifer Scanlon, ed. Pp. 179-191. New York: New York University Press. * Robbins, Richard H. 2002 Chapter 1. In Global Problems and the Culture of Capitalism. Pp. 1-31. Boston: Allyn & Bacon. * Sherry Jr., John F. 1995 Marketing and Consumer Behavior: Into the Field. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 3-44. Thousand Oaks, California: Sage Publications. * Weems, Robert E. 2000 Consumerism and the Construction of the Black Female Identity. In The Gender and Consumer Culture Reader. Jennifer Scanlon, ed. Pp. 179-191. New York: New York University Press. 11 TOPIC 9: Issues in Globalization: Global level, country level, and multinational corporations The development cycle: Can countries skip stages of economic development? Economic power Political power Sovereignty Dependency Comparative Advantage READINGS: * NAPA Bulletin 14: The Bridges Process: Enhancing Organizational Cultures to Support Diversity, by S. Kanu Kogod. * Christmann, Petra and Glen Taylor 2001 Globalization and the Environment: Determinants of Firm Self-Regulation in China. Journal of International Business Studies 32(3): 439-458. * Giovannini, Maureen J. and Lynne M. H. Rosansky 1990 Anthropology and Management Consulting: Forging a New Alliance (pages 1-31). NAPA Bulletin 9, American Anthropological Association. * Harris, Marvin 1987 Chapter 6. In The Sacred Cow and the Abominable Pig. New York: Touchstone. * McPhail, Kathryn and Aidan Davy 1998 Chapters 1-3. In Integrating Social Concerns Into Private Sector Decision Making: A Review of Corporate Practices in the Mining, Oil, and Gas Sectors. World Bank Discussion Paper, 384. Washington, D.C.: World Bank. * Reeves-Ellington, Richard H. 1994 Corporation Anthropologists at Work in the Third World. In What Can Multinationals Do for Peasants?. V. Sutlive and T. Hamada, eds. Pp. 219-255. Studies in Third World Societies Publication Number 49. Williamsburg: College of William and Mary. * Robbins, Richard H. 2002 Chapter 7. In Global Problems and the Culture of Capitalism. Pp. 194-220. Boston: Allyn & Bacon. 12 CASE STUDIES Additional cases may be added depending on student interest COURSE READINGS RELATED TO AFRICA: * Arnould, Eric J. 1995 West African Marketing Channels: Environmental Duress, Relationship Management, and Implications for Western Marketing. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 109-161. Thousand Oaks, California: Sage Publications. * Eames, Elizabeth A. 2000 Navigating Nigerian Bureaucracies. In Conformity and Conflict: Readings in Cultural Anthropology. 10th edition. James Spradley and David W. McCurdy, eds. Pp. 294-302. Needham Heights, Massachusetts: Allyn & Bacon. * Fadiman, Jeffery A. 2000 Chapters 4, 5, and 9. In South Africa’s ‘Black’ Market: how to Do Business with Africans. Yarmouth, Maine: Intercultural Press. * Kuada, John, and Olav Jull Sorensen 2000 Chapter 7. In Internationalization of Companies from Developing Countries. New York: International Business Press. * McCaffey, Janet 1998 Creatively Coping with Crisis: Entrepreneurs in the Second Economy of Zaire (the Democratic Republic of Congo). In African Entrepreneurship: Theory and Reality. Anita Spring and Barbara McDade, eds. Pp. 37-50. Gainesville: University Press of Florida. * Spring, Anita 1998 Entrepreneurship in Africa: Traditional and Contemporary Paradigms. In African Entrepreneurship: Theory and Reality. Anita Spring and Barbara McDade, eds. Pp. 1-36. Gainesville: University Press of Florida. * Spring 2002: Gender and the Range of African Entrepreneurial Strategies: The “Typical” and the “New” women Entrepreneurs. In African and African American Business: Historical and Contemporary Perspectives. Alucine Jalloh and Toyin Falola, eds. Rochester: University of Rochester Press. (In Press) COURSE READINGS RELATED TO ASIA * Begley, Thomas M. and Wee-Liang Tan 2001 The Socio-Cultural Environment for Entrepreneurship: A Comparison Between East Asian and Anglo-Saxon Countries. Journal of International Business Studies 32(3):537-553. * Chen, Ming-Jer 2001 Chapter 4: Roles and Rules of the Social Fabric. In Inside Chinese Business: A Guide for Managers Worldwide. Boston: Harvard Business School Press. * Chen Chapter 7: Never Say “No”: Communicating with the Chinese. In Inside Chinese Business: A Guide for Managers Worldwide. Boston: Harvard Business School Press. * Christmann, Petra and Glen Taylor 2001 Globalization and the Environment: Determinants of Firm Self-Regulation in China. Journal of International Business Studies 32(3): 439-458. * Condon, John C. 13 1974 The Values Approach to Cultural Patterns of Communication. In Intercultural Encounters With Japan: Communication--Contact and Conflict. John C. Condon and Mitsuko Saito, eds. Pp. 124-131. Tokyo: The Simul Press. * Earley, P. Christopher 1997 Chapter 3, Pp. 42-55: Face and Social Context. In Face, Harmony, and Social Structure: An Analysis of Organizational Behavior Across Cultures. New York: Oxford University Press. * Jain, Uma 2001 Transcending Cultural Boundaries for Human and Organization Development: Experiences of International Exchanges Between India and the United States. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 737-756. New York: Marcel Dekker. * Nakane, Chris 1974 The Social System Reflected in Interpersonal Communication. In Intercultural Encounters With Japan: Communication--Contact and Conflict. John C. Condon and Mitsuko Saito, eds. Pp. 124-131. Tokyo: The Simul Press. * NAPA Bulletin 14: Practical Implications of Organization Culture Where Americans and Japanese Work Together, by Jill Kleinberg * Ralston, David A., Nguyen Van Thong, and Nancy K. Napier 1999 A Comparative Study of the Work Values of North and South Vietnamese Managers. Journal of International Business 30(4):655-673. * Reeves-Ellington, Richard H. 1995 Anthropology and Total Quality Management: Improving Sales Force Performance in Overseas Markets. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 169-208. Thousand Oaks, California: Sage Publications. COURSE READINGS RELATED TO LATIN AMERICA * Miller, Janice S., Peter W. Horn, and Luis R. Gomez-Mejia 2001 The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover? Journal of International Business Studies 32(3): 585-595. COURSE READINGS RELATED TO EUROPE * Begley, Thomas M. and Wee-Liang Tan 2001 The Socio-Cultural Environment for Entrepreneurship: A Comparison Between East Asian and Anglo-Saxon Countries. Journal of International Business Studies 32(3):537-553. 14