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DIFFERENCE IN CULTURE
SALMIWATI MOHAMAD JAMILI (2011248904)
INTRODUCTION
Operating a successful international business requires cross-cultural literacy (an understanding of how cultural differences across and within nations can affect the way in which business is practiced). A relationship may exist between culture and the costs of doing business in a country or region.
WHAT IS CULTURE?
A system of values and norms that are shared among a group of people and that when taken together constitute a design for living. Hofstede, Namenwirth and Weber
Norms
social rules and guidelines that prescribe appropriate behavior in particular situations
FOLKWAYS VS MORES
FOLKWAYS Routine everyday life Little moral significance Generally, social conventions such as dress codes, social manners, and neighborly behavior MORES Norms central to the functioning of society and its social life Greater significance than folkways Violation can bring serious retribution (alcohol & theft)
DETERMINANTS OF CULTURE
Political Philosophy
Language
Economy Philosophy
Culture
Education
Social Structure
Religion
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SOCIAL STRUCTURE
individual or the group
3Dimension
classes or castes
INDIVIDUAL VS GROUP
INDIVIDUAL GROUP Loyalty and commitment to company In-depth knowledge of company Specialist skills Easy to build teams, collaboration Emotional identification with group or company e.g., Japanese companies Managerial mobility between companies Economic dynamism, innovation Good general skills Team work difficult, non-collaborative Exposure to different ways of doing business e.g., U.S. companies
Christianity- 1.7 billion Islam- 1 billion Hinduism-750 million Buddhism -350 million
Source: Requejo H.H (2012).Global Business Today.New York. Mc Graw Hill 9
Islam
-Receptive to International Business as long as those business behave in a manner consistent with Islam ethics
-Unwelcomed business that are perceived as making profit through exploitation of others. Hinduism -Focus on Spiritual Growth-do not encourage the kind of entrepreneurial activity.
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Confucianism
3 values- loyalty, reciprocal obligations and honesty The loyalty binds employees to organizationreduce conflict
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LANGUANGE
Language is one defining characteristic of culture- spoken & unspoken language. Countries with more than one spoken language, we tend to find more than one culture. Learning local language can build rapport.
Failure to understand local language can lead to wrong interpretation and decrease the business success.
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EDUCATION
Availability of a pool of skilled and educated workers- major determinants of economic success of country
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CULTURAL CHANGE
Culture is not a constant; it evolves over time Since 1960s American values toward the role of women are changing. Japan moves toward greater individualism in the workplace Effects of globalization
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DISCUSSION QUESTION
1. Outline why the culture of a country influences the costs of doing business in that country. Illustrate your answer with examples.
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DISCUSSION QUESTION
costs of doing business normally rise as people grapple with unfamiliar ways of doing business a country's education system - important implications for the costs of business
DISCUSSION QUESTION
2. Do you think business practices in an Islamic country are likely to differ from business practices in the United States? If so, how?
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Appropriate etiquette Wining & dining Use resource carefully Relationship man- woman Prohibition on interest Fairness to all parties
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