Globalisation 17.3
Today….
• Influences on Global Business 3: Social and
Cultural Influences
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Sociocultural characteristics
Languages
Non-verbal language
Tastes
Religion
Varying business practices and ethics
Sociocultural Characteristics
• Almost every aspect of a businesses' international
dealings (contract negotiation, marketing decisions,
human resource management policies and
production and finance) may be affected by
differences in culture.
Sociocultural Characteristics
• Sociocultural characteristics definition:
The values, beliefs, rules, techniques and customs that
are shared among a society’s people.
Sociocultural Characteristic Examples:
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Attitudes
Child rearing practices
Cross cultural difference
Cultural deprivation
Cultural identity
Culture change
Discrimination
Ethnic identity
Ethnic values
Face (sociological concept)
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Family structure
Kinship structure
Power
Race
Racial and ethnic groups
Regional differences
Religious beliefs
Religious practices
Reputation
Rituals
Taboos
Languages
• Language differences can be a difficult barrier to
overcome.
• Lack of language may prevent a person from fully
understanding a country’s culture.
Languages
• English has become the language of international
business.
• Many people around the world learn English as a
second language.
Quiz Question!
In one minute, how many countries can you name that
have English as a national/primary/significant
language?
English Around the World:
Anguilla, Antigua and Barbuda, Australia, the Bahamas,
Barbados, Bermuda, Belize, the British Indian Ocean
Territory, the British Virgin Islands, Canada, the Cayman
Islands, the Falkland Islands, Gibraltar, Grenada, Guam,
Guernsey, Guyana, Ireland, Isle of Man, Jamaica, Jersey,
Montserrat, Nauru, New Zealand, Pitcairn Islands, Saint
Helena, Saint Kitts and Nevis, Saint Vincent and the
Grenadines, Singapore, South Georgia and the South
Sandwich Islands, Trinidad and Tobago, the Turks and
Caicos Islands, the United Kingdom, the U.S. Virgin
Islands, and the United States.
Languages
• Many people prefer to converse in their own
language, and being able to speak the local language
helps establish a better business relationship.
Languages
• Translators (both human and computerised) are a
way to get around language barriers. However,
mistakes can occur!
Famous Business Translation Blunders!
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http://www.businessinsider.com.au/worst-foreign-ad-translation-fails-2012-5?op=1
Non-Verbal Communication
• Non-verbal communication:
The messages we convey through body movements,
facial expressions and the physical distance between
individuals.
What does this symbol mean?
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In the US, this symbol means ‘OK’
In Brazil, Germany, and Russia it is a rude gesture
In Japan it means "money”
Commonly used to signify "zero" in France.
Tastes
• Tastes refer to a particular liking for something, such
as foods, clothes and music.
• Differences in tastes will have practical implications
for product marketing, especially product design,
packaging and advertising.
Quiz Question!
• What are some tastes (food, clothes, interests,
marking styles) you can think of that are particular to
Australia?
Quiz Question Extra …
• What about in the US?
Religion
• Awareness of a business colleague’s religious
traditions is essential for building a lasting
relationship.
• Those traditions may influence what a person can
and cannot eat, as well as particular holy days and
schedules that are very important to any devout
follower.
Varying Business Practices and Ethics
• Business practices vary the world over.
• International managers must research the acceptable
business practices and ethics of the countries with
which they wish to conduct business so as to avoid
awkward situations, embarrassments and insults.
Varying Business Practices and Ethics:
Gifts
• Business gift traditions vary widely around the world
• In some cultures a business gift would be viewed as
inappropriate, while in others it would be expected.
Varying Business Practices and Ethics:
Bribes
• Bribes are a sensitive ethical issue.
• In Australia bribery is viewed as corrupt, however, in
many countries payments to government officials are
a way of life.
Varying Business Practices and Ethics:
Bribes
• Would you be willing to pay a bribe to a government
official to gain market access, a favour, a large order
or protection?
Questions
Quiz Question time!
Write yourself five questions on today’s topic. 
Today we covered….
• Influences on Global Business 3: Social and
Cultural Influences
•
•
•
•
•
•
Sociocultural characteristics
Languages
Non-verbal language
Tastes
Religion
Varying business practices and ethics