international business

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LESSON
3-1
CULTURE
AROUND
THE
WORLD
INTERNATIONAL BUSINESS
GOALS
 Describe influences of
culture on global
business activities.
 Explain the role of
subcultures.
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Why Culture Is Important To
Know
The story of Kent
 What are some of the cultural differences
between where Kent comes from and NE US?
INTERNATIONAL BUSINESS
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Cultural Influences in
International Business
A culture is a system of learned, shared,
unifying, and interrelated beliefs, values,
and assumptions.
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Values
Objects, conditions or characteristics
 that members of the society consider
 Important
 Valuable
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What Does The US Value?
 Material comfort
 Wealth
 Competition
 Individualism
 Certain freedoms
 Life
 Liberty
 Religion
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Pursuit of happiness
Speech
Political
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Beliefs
 State of mind hold something to be true
 Commonly held norms or standards of a
culture
 Examples of differing beliefs
 India - cows are sacred, reincarnation
 Much of Asia – Family as a collective unit
 Spanish world – Family first above all else
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Assumptions
Thinking or believing something is true
If you enter international business with
wrong assumptions, and you do not
correct them, then you have little chance
of success.
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T/P/S
What are assumptions and/or beliefs we
have about other cultures?
What do other cultures assume/believe
about the US?
 Imperialist
 Rich
 Cowboy hats
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Gangs
Rude
IN Your Face country
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Warm Up
Page 57
Break into 7 groups of 4
Answer questions 1 & 2
Next page for 3rd question
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Warm Up Answer
In place of #3
 What are some factors Disney had to consider
when creating Disney Europe Vs. Disney US
and Disney Japan?
 Europe market is more diverse
 People from different countries
 Different cultures
 Beliefs, values and assumptions
 I.e. beer is served in the Magic Kingdom
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Culture Influences
 Culture
A System of learned, shared, unifying &
interrelated
beliefs,
values and
assumptions
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Cultural Influences
Impacts Beliefs, Values and Assumptions
 Political
 Economic
 Education
 Family
 Art
 Religion
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Cultural Differences
Not all cultures are homogeneous
 Many cultures have subcultures
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Subculture
A subset of the larger culture
May have some
values,
beliefs and
assumptions
Different than larger culture
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Pair and Share
What are examples of subcultures at
 Neshaminy?
 In the business world?






Ethnicity
Age
Religious beliefs
College
Sports/Other
Company
Geographical area
INTERNATIONAL BUSINESS
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The Subcultures Within a Society
Influences of cultures and subcultures
Subculture of U.S. business
Variations in business subcultures
worldwide
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CULTURE AROUND THE WORLD
Describe influences of culture on global
business activities.
Explain the role of subcultures.
INTERNATIONAL BUSINESS
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Activity
Break into groups
Come up with some guiding sayings
based on US culture
Explain what each means
1 person from your group moves
clockwise to next group
Give 1 of your sayings and explain what it
means
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Cultural Influences
Cultural Baggage
You carry
Beliefs
Values
Assumptions
At all times, wherever you are
Influences responses
Influences actions
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US Business Subculture
Share a core of common
Beliefs
Values
Assumptions
INTERNATIONAL BUSINESS
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What are some common guiding
principles?
What do they mean?
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Guiding Principles
Where there is a will, there is a way
Don’t count your chickens before they are
hatched
Waste not, want not
Time is money
If at first you don’t succeed, try, try again
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Why are these important?
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Think/Pair/Share
 Why is cultural knowledge of a country
necessary for being successful in International
Business?
 What would you want to know about a culture
before you go to that country?
 What are three things that makes our culture
different from other cultures?
INTERNATIONAL BUSINESS
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A Question of Ethics
Read A Q of Ethics on P 64
Answer the 3 questions
Also, Was it good business practice for
Lydia to ask Miguel to fire Javier?
INTERNATIONAL BUSINESS
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INTERNATIONAL BUSINESS
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A Question of Ethics
Read A Q of Ethics on P 64
Answer the 3 questions
Also, Was it good business practice for
Lydia to ask Miguel to fire Javier?
INTERNATIONAL BUSINESS
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LESSON
3-2
CULTURE AND
SOCIAL
ORGANIZATIONS
INTERNATIONAL BUSINESS
GOALS
 Describe how family
relationships can
affect culture.
 Explain the role of
societal influences on
culture.
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Family Relationships
Nuclear Relationships
Extended Family
Family – work relationships
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Family Relationships
Family units
 Nuclear family
 Consists of parents and unmarried children living
together
 Extended family
 Consists of parents, children living and other
relatives
Family-work relationships
 Weak in some cultures & strong in others
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Family units
Nuclear family
Extended family
INTERNATIONAL BUSINESS
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Society’s Institutions
Education
Gender roles
Mobility
Class system
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Societies Institutions
Education
Some cultures place a high value on
education
Gender Roles
Women VS Men
Mobility
Move or no move
Class System
INTERNATIONAL BUSINESS
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Societies Institutions
 What is a class system?
 Name some countries that have a class system
 Log onto intlbizxtra.swlearning.com
 Click on Chapter 3
 Read article on Modern India’s caste system
INTERNATIONAL BUSINESS
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Answer
Page 67
Answer # 1, 2, 3, 4, 6, 9, 10
INTERNATIONAL BUSINESS
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LESSON
3-3
COMMUNICATION
ACROSS
CULTURES
GOALS
 Understand the
importance of knowing
another language for
global business
success.
 Compare direct and
indirect communication.
 Describe the influence
of nonverbal
communication.
INTERNATIONAL BUSINESS
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Major World Languages
Language
Chinese, Mandarin
Hindi
English
Spanish
Bengali
Portuguese
Russian
Japanese
German
Korean
French
Chinese, Wu
INTERNATIONAL BUSINESS
Number of Speakers
874,000,000
366,000,000
341,000,000
322,000,000
207,000,000
176,000,000
167,000,000
125,000,000
100,000,000
78,000,000
77,000,000
77,000,000
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Learning a Second Language
Business Languages Useful to Learn 2008
10. Italian
9. Portuguese
8. Japanese
7. German
6. Russian
5. Arabic (MSA)
4. French
3. Mandarin Chinese
2. Spanish
1. English
INTERNATIONAL BUSINESS
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Here are the top 10 languages being used by
Internet users in descending order as of 20 Sept
2006.
 1. English (about 30%)
 2. Chinese (about 13%)
 3. Japanese
 4. Spanish
 5. German
 6. French
 7. Portuguese
 8. Korean
 9. Italian
 10. Russian
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42
Job Openings Requiring a Language
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Direct and Indirect Communication
Contexting refers to how direct or indirect
communication is.
A low-context culture is one that
communicates very directly.
A high-context culture is one that
communicates indirectly.
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High Context Cultures
High context cultures have a strong sense
of
 tradition
 History
 change little over time
 High context cultures = high number of words
 Japan, China, Iraq, New Zealand, Native
Americans
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Low context culture
Much more is explained through words
Very direct
 Germany, US
 Low context = low number of words
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The Word No
How many ways can no be said without
saying the word “NO?”
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Face Saving
To minimize personal embarrassment
Directly related to contexting
In high context cultures
 Must be avoided at all costs
 Wars have started over face saving
 See page 71- last 3 paragraphs
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Body Language
In the high stakes of international
business, body language often
speaks for itself
INTERNATIONAL BUSINESS
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Non Verbal Communication
7% of messages are verbally
communicated
93% is non verbal
 38% vocal tones
 55% facial expressions/body language
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What’s My Gesture?
You each have to come up with a
GESTURE of another culture
 On line or out of books
What is the country/culture/
What is the gesture?
What does it mean?
INTERNATIONAL BUSINESS
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Nonverbal Communication
Body language
Color
Appearance
Numbers
Eye contact
Emblems
Touching
Smells
Personal space
INTERNATIONAL BUSINESS
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Body Language
In the high stakes of international
business, body language often
speaks for itself
INTERNATIONAL BUSINESS
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Body Language
Experts say to trust non verbal message
Words can be manipulated
Gestures harder to control
INTERNATIONAL BUSINESS
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Caution - The OK sign
 US = Good
 France = zero
 Germany, Iraq, Brazil = vulgar
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Body Language
 Superiority is displayed by
 Sitting while others stand
 Lean back in chairs
 And hands behind head
 Interrupt others
 Shake hands
 Hand on top
 Put your hand on their arm
INTERNATIONAL BUSINESS
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Body Language
 Defensive
 Folded arms
 Crossed legs
 Body turned away from speaker
INTERNATIONAL BUSINESS
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Appearance
What’ s my line?
What's My Line? was a weekly panel game show,
which originally ran in the United States from
1950 to 1967 with several international versions
and subsequent U.S. revivals. The game tasked
celebrity panelists with questioning contestants
in order to determine their occupations. It was
the longest-running game show in the history of
US prime time network television
INTERNATIONAL BUSINESS
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Appearance
Look at the next 5 slides and answer the
following questions
 What type of “dress” is this?
 What do you believe each person does for a
living? Why?
 Would you do business with this person?
 Why?
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What Are They Communicating?
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What Are They Communicating?
INTERNATIONAL BUSINESS
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What Are They Communicating?
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What Are They Communicating?
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What Are They Communicating?
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Appearance
In US
 Casual dress = casual attitude
 Sloppiness may cause a question of
credentials and reliability
 In International Business
 The words conservative, traditional, formal
very much apply
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Research IB Business Attire
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Job Openings Requiring a Language
INTERNATIONAL BUSINESS
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Effective International
Communications
 Use short simple sentences
 Avoid idioms or slang
 Shy away from sarcasm or innuendoes
 Be polite
 Be light hearted. The written word does not
smile
 Repeat important or complex items in several
ways
INTERNATIONAL BUSINESS
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NO – An activity
How many ways can you communicate
“No” without using the word?
What about other cultures?
Research how in Japan they say “no”
In Japan signing a contract BEGINS
negotiations
INTERNATIONAL
BUSINESS
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Greetings with Japan
The bow as a greeting
How many mistakes do we make with this
simple gesture?
 Hands at side?
 No eye contact?
 Lower level bows down further
 Who bowed first?
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Eye Eye - What Eyes
Communicate
Research what the eyes communicate
INTERNATIONAL BUSINESS
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Effective International
Communications
 Use short simple sentences
 Avoid idioms or slang
 Shy away from sarcasm or innuendoes
 Be polite
 Be light hearted. The written word does not
smile
 Repeat important or complex items in several
ways
INTERNATIONAL BUSINESS
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LESSON
3-4
VALUES
AROUND
THE
WORLD
INTERNATIONAL BUSINESS
GOALS
 Identify and explain five
major types of values
that vary from culture to
culture.
 Describe the two major
reactions to cultural
differences.
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Values Vary Among Cultures
Individualism and collectivism
Technology
Leadership, power, and authority
Religion
Time
INTERNATIONAL BUSINESS
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Individualism vs. Collectivism
Individualism – ability to function
independently
Collectivism – Group is more important
than the individual
INTERNATIONAL BUSINESS
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Values Vary Among Cultures
Technology
 Acceptance varies from culture to culture
 China and technology
Leadership, power, and authority
 Democratic
 Authoritarian
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Values Vary Among Cultures
 Religion
 Some cultural groups dominated by one religion
 Often business is influenced or regulated by religion
 Time
 Some cultures see it as valuable
 Others, relaxed - more cycle of the day
INTERNATIONAL BUSINESS
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Activity – Planning A Meeting
 This is your customer. You have four Japanese guests
from the Ynos Company traveling to your headquarters.
You are setting up a business meeting. You can have
your administrative assistant and other subordinates
assist in setting up the meetings but YOU are ultimately
responsible.
 Any type of mistake or cultural fax pas could cost your
company millions of dollars and you a future promotion.
Gather the team and plan the meeting
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Activity – Planning A Meeting
 Use the internet to your advantage
 You get minimal assistance from the “boss”
 You get paid to do a job
 You are expected to do it
 You are planning the meeting and running it
 Let your “boss” know what you expect from
him/her
 Plan all aspects of the meeting
INTERNATIONAL BUSINESS
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Activity – Just a few of many Q’s





First- What do you need to do to set up a meeting?
Where will it be held?
Who from your company will attend?
What are the other details needed?
What are some of the differences you expect to
encounter?
 What are their typical work week? Hours? Holidays?
 What do you need to learn about their culture?
 About their culture concerning business?
INTERNATIONAL BUSINESS
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A Simulation – Planning a meeting
Grading = 25 points
 Successful business meeting = A
 A couple faux pas & a do over = B/C
 A major Faux Pas costing you business = D/F
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84
Culture Shock
What is Culture Shock?
Do research on subject
See research paper on my web site
INTERNATIONAL BUSINESS
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Adjusting to
Cultural Differences
Ethnocentrism
Ones culture is better than another
Reactions to cultural differences
Culture shock
Reverse culture shock
INTERNATIONAL BUSINESS
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Effective International
Communications
Use short simple sentences
Avoid idioms or slang
Shy away from sarcasm or innuendoes
Be polite
Be light hearted. The written word does
not smile
Repeat important or complex items in
severalBUSINESS
ways
INTERNATIONAL
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87
In 1 paragraph, summarize 3 key concepts
learned about culture
List 3 ways culture influences International
business.
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