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Understanding cultural differences can help promote good global business.

To explain how culture affects international business

To describe the elements of cultures

To describe the elements of subcultures

Understanding culture and its effect on international business provides a foundation for working in the global community.

culture

the set of beliefs, customs, and attitudes of a distinct group of people

values

strongly held concepts that are present in culture

norms

social rules that affect behaviors and actions, and represent cultural values

folkways and cultural customs that dictate how mores people act socially

role

the part a person plays in a social situation

subculture

a smaller group or subset within a larger culture

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.

Understanding Culture

Each level of culture national, regional, or localhas 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

Understanding Culture

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Understanding Culture

Succeeding in the world of international business requires three things.

1 Understanding Culture 2 Preparing for and adjusting to culture 3 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 peoples 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. You play many roles each day.

role the part a person plays in a social situation

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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 Individualism or Collectivism

Value Dimensions

Uncertainty Avoidance

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. Subcultures can form around sports or other interests.

subculture a smaller group or subset within a larger culture

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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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End of