LESSON 3-1 CULTURE AROUND THE WORLD INTERNATIONAL BUSINESS GOALS Describe influences of culture on global business activities. Explain the role of subcultures. © SOUTH-WESTERN THOMSON 2 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 © SOUTH-WESTERN THOMSON 3 Cultural Influences in International Business A culture is a system of learned, shared, unifying, and interrelated beliefs, values, and assumptions. INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 4 Values Objects, conditions or characteristics that members of the society consider Important Valuable INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 5 What Does The US Value? Material comfort Wealth Competition Individualism Certain freedoms Life Liberty Religion INTERNATIONAL BUSINESS Pursuit of happiness Speech Political © SOUTH-WESTERN THOMSON 6 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 7 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. INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 8 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 INTERNATIONAL BUSINESS Gangs Rude IN Your Face country © SOUTH-WESTERN THOMSON 9 Warm Up Page 57 Break into 7 groups of 4 Answer questions 1 & 2 Next page for 3rd question INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 10 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 11 Culture Influences Culture A System of learned, shared, unifying & interrelated beliefs, values and assumptions INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 12 Cultural Influences Impacts Beliefs, Values and Assumptions Political Economic Education Family Art Religion INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 13 Cultural Differences Not all cultures are homogeneous Many cultures have subcultures INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 14 Subculture A subset of the larger culture May have some values, beliefs and assumptions Different than larger culture INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 15 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 © SOUTH-WESTERN THOMSON 16 The Subcultures Within a Society Influences of cultures and subcultures Subculture of U.S. business Variations in business subcultures worldwide INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON CULTURE AROUND THE WORLD Describe influences of culture on global business activities. Explain the role of subcultures. INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 18 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 19 Cultural Influences Cultural Baggage You carry Beliefs Values Assumptions At all times, wherever you are Influences responses Influences actions INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 20 US Business Subculture Share a core of common Beliefs Values Assumptions INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 21 What are some common guiding principles? What do they mean? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 22 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 23 Why are these important? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 24 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 © SOUTH-WESTERN THOMSON 25 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 © SOUTH-WESTERN THOMSON 26 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 27 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 © SOUTH-WESTERN THOMSON 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. © SOUTH-WESTERN THOMSON 31 Family Relationships Nuclear Relationships Extended Family Family – work relationships INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 32 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 33 Family units Nuclear family Extended family INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 34 Society’s Institutions Education Gender roles Mobility Class system INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 35 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 © SOUTH-WESTERN THOMSON 36 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 © SOUTH-WESTERN THOMSON 37 Answer Page 67 Answer # 1, 2, 3, 4, 6, 9, 10 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 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 © SOUTH-WESTERN THOMSON 39 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 © SOUTH-WESTERN THOMSON 40 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 © SOUTH-WESTERN THOMSON 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 41 42 Job Openings Requiring a Language INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 43 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 44 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 45 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. INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 46 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 47 Low context culture Much more is explained through words Very direct Germany, US Low context = low number of words INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON The Word No How many ways can no be said without saying the word “NO?” INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 49 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 50 Body Language In the high stakes of international business, body language often speaks for itself INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 51 Non Verbal Communication 7% of messages are verbally communicated 93% is non verbal 38% vocal tones 55% facial expressions/body language INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 52 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 © SOUTH-WESTERN THOMSON 53 Nonverbal Communication Body language Color Appearance Numbers Eye contact Emblems Touching Smells Personal space INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 54 Body Language In the high stakes of international business, body language often speaks for itself INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 55 Body Language Experts say to trust non verbal message Words can be manipulated Gestures harder to control INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 56 Caution - The OK sign US = Good France = zero Germany, Iraq, Brazil = vulgar INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 57 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 © SOUTH-WESTERN THOMSON 58 Body Language Defensive Folded arms Crossed legs Body turned away from speaker INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 59 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 © SOUTH-WESTERN THOMSON 60 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? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 61 What Are They Communicating? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 62 What Are They Communicating? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 63 What Are They Communicating? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 64 What Are They Communicating? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 65 What Are They Communicating? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 66 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 67 Research IB Business Attire INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 68 Job Openings Requiring a Language INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 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 © SOUTH-WESTERN THOMSON 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 © SOUTH-WESTERN THOMSON 71 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? INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 72 Eye Eye - What Eyes Communicate Research what the eyes communicate INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 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 © SOUTH-WESTERN THOMSON 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. © SOUTH-WESTERN THOMSON 75 Values Vary Among Cultures Individualism and collectivism Technology Leadership, power, and authority Religion Time INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 76 Individualism vs. Collectivism Individualism – ability to function independently Collectivism – Group is more important than the individual INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 77 Values Vary Among Cultures Technology Acceptance varies from culture to culture China and technology Leadership, power, and authority Democratic Authoritarian INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 79 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 © SOUTH-WESTERN THOMSON 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 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 © SOUTH-WESTERN THOMSON 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 © SOUTH-WESTERN THOMSON 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 INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 84 Culture Shock What is Culture Shock? Do research on subject See research paper on my web site INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 85 Adjusting to Cultural Differences Ethnocentrism Ones culture is better than another Reactions to cultural differences Culture shock Reverse culture shock INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON 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 © SOUTH-WESTERN THOMSON 87 In 1 paragraph, summarize 3 key concepts learned about culture List 3 ways culture influences International business. INTERNATIONAL BUSINESS © SOUTH-WESTERN THOMSON