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CHAPTER

Cultural Influences on
Global Business
3-1
3-2
3-3
3-4

Culture Around the World


Culture and Social Organizations
Communication Across Cultures
Values Around the World

2011 South-Western | Cengage Learning

CHAPTER

INTERNATIONAL BUSINESS, 4e

3
LESSON 3-1

Culture Around the World

GOALS

Describe influences of culture on

global business activities.


Explain the role of subcultures.

2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Cultural Influences in
International Business
A culture is a system of learned, shared,

unifying, and interrelated beliefs, values,


and assumptions.
A mind set, ideals, customs
A way of thinking that is acquired over time
Logical and reasonable
To outsiders, things seem strange or weird

2011 South-Western | Cengage Learning

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INTERNATIONAL BUSINESS, 4e

The Subcultures within a Society

A subculture is a subset of a larger culture


United High School is a culture
Subcultures: Boys and girls
Clubs
Teachers & Students
Classes
Sports

Cultural Baggage is the idea that you carry your beliefs,

values, and assumptions with you all the time.


Cultures and subcultures are important because they influence

the actions of the memberspeople behave they way they are


expected to in their culture. Members of your culture will correct
you if you behave in unacceptable ways.
2011 South-Western | Cengage Learning

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INTERNATIONAL BUSINESS, 4e

Business Subculture
The U.S. business subculture is composed

of the business-related part of the general


U.S. culture.
Business subcultures have certain beliefs, values,

and assumptions that differentiate it from the general


U.S. culture.
Common behaviors allow U.S. business to be
conducted in predictable ways.
NO two business subcultures are the identical;
however, two general cultures are similar. Example:
U.S. and Canada
2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

3
LESSON 3-2

Culture and Social Organizations

GOALS

Describe how family relationships

can affect culture.


Explain the role of societal
influences on culture.

2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Family Relationships
Social organizations includes the relationship
between both the family unit and society.
Family units
Nuclear family: parent(s) and unmarried children that live

together
Extended family: parents, children, grandma, grandpa, tio, tia,
etc. (this is common in developing countries)

Family-work relationships: often employees of a

business consist of family members. This makes it hard


to separate family from business.
U.S., Canada, and northern European countries are weak
South America, southern Europe, Asia, Africa are strong
2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Societys Institutions
Education: provided by parents, church, work, etc.

Gender roles: family members assigned different roles to

fulfill
Men are primary works and women stay at home

Mobility: graphic attachment or willing to relocate for

better employment opportunities.


Class system: dividing members of a cultural group into
various levels.
Aristocracy
Bloodline
Education
Income
2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

3
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.

2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Language Differences
English is widely considered the language

of international business
More people use English to conduct business

than any other language


More people speak Mandarin Chinese than
any other language.

Advantages of using English


Understood by many
Ideas can be expressed in many ways
Large number of business-related words
Concise and precise
2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Learning a Second Language


Consider learning language of dominant

trading partners.
Learning a countrys language helps you
understand the culture.
Languages you should consider learning:
Japanese, French, Spanish, German,

Chinese, Russian, Arabic, Portuguese, Italian,


and Korean
U.S.s trading partners: Japanese, Chinese,
French, German, or Spanish
2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Direct and Indirect Communication


Contexting refers to how direct or indirect

communication is.
A low-context culture is one that
communicates very directly and explicitly.
Example: U.S. and Germany
A high-context culture is one that
communicates indirectly and implicitly.
Example: Japan and Saudi Arabia
2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Nonverbal Communication
Body language

Color

Appearance

Numbers

Eye contact

Emblems

Touching

Smells

Personal space

2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

3
LESSON 3-4

Values Around the World

GOALS

Identify and explain five major

types of values that vary from


culture to culture.
Describe the two major reactions to
cultural differences.

2011 South-Western | Cengage Learning

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CHAPTER

INTERNATIONAL BUSINESS, 4e

Values Vary Among Cultures


Individualism: the belief in the individual and ability to

function relatively independentlyself-reliance,


independent, freedom, such as in the U.S.
Collectivism: the belief that the group is more important
than the individual, such as in Japan.
Technology: Is technology important in our nation? Not
for all countries!
Leadership, power, and authority: Who is in authority?
Religion: Some cultures are dominated by one religion.
Time: In some countries time is often viewed as
unending cycleno need to rush.
2011 South-Western | Cengage Learning

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INTERNATIONAL BUSINESS, 4e

Adjusting to Cultural Differences


Ethnocentrism: the belief that YOUR

culture is better than other cultures.


Reactions to cultural differences
Culture shock: a normal reaction to a different

culture.
Reverse culture shock: a reaction to
becoming reacquainted with your own culture
after experiencing another culture.
Example: when you spend the summer in Mexico.
2011 South-Western | Cengage Learning

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