chapter

National Differences in
Culture

Learning objectives

Explain what is meant by the culture of a society

Identify the forces that lead to differences in social culture
Identify the business and economic implications of differences
in culture
Recognize how differences in social culture influence values in
the workplace
Demonstrate an appreciation for the economic and business
implications of cultural change

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Topics

What Is Culture?
Religious and Ethical Systems
Language
Education
Culture and the Workplace
Implications for managers

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Introduction
Business success in a variety of countries requires cross-cultural
literacy.
Cross cultural literacy - is an understanding of how cultural
differences across and within nations can affect the way business
is practiced.
A relationship may exist between culture and the cost of doing
business in a country or region.

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What is Culture? Cont.

Culture is a system of values and norms that are shared
among a group of people and that when taken together constitute
a design for living.
Values are abstract ideas about what a group believes to be
good, right and desirable.
Norms are the social rules and guidelines that prescribe
appropriate behavior in particular situations.
Society refers to a group of people who share a common set
of values and norms.

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The Determinants of Culture

of the nation

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Social Structure
The Determinants of Culture: Social structure, religious
systems, ethical systems, education, etc.
A societys social structure can be described from 2 aspects
(dimensions):
1) Individual Group dimension
2) Social Stratification: a) Social Mobility (high vs. Low); b)
Degree of stratification (high degree vs. low degree)

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Religious and Ethical

Systems
Religion - may be defined as a system of shared beliefs and rituals
that are concerned with the realm of the sacred.
Ethical Systems - refer to a set of moral principles, or values, that
are used to guide and shape behavior. (what is right or wrong)
Christianity: Economic Implications of Christianity: The Protestant
Work Ethic high emphasize on wealth creation, entrepreneurship
and competition (hard working). Avoids frugality
Islam:
Economic Implications of Islam Islamic Banking (mudarabah,
murababa)
Earning profit through fair trade, not being squanderer
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Religions and Ethical

Systems
Hinduism dharma (moral force requires the acceptance of
certain responsibility); karma (spiritual progression),
nirvana (final stage of spiritual progression). Economic
Implications of Hinduism Individuals should be judged not by
their material achievements, but by their spiritual achievements .
Buddhism was founded by Siddhartha Gautama became
known as budda. According to Buddism, suffering originates in
peoples desires for pleasure: economic Implications of Buddhism.
Thus, people should renounce their wealth in order to pursue an
ascetic lifestyle. More business friendly than Hinduism.

Confucianism - teaches the imporrtance of attaining

salvation through right action: economic Implications of
Confucianism loyalty, reciprocal obligations (guanxi network) and
honesty
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Language, Education and

Cultural Change
Language: Spoken vs. Unspoken language
Education

Culture and the Workplace:

Power distance dimension of Hofstede
Individualism vs. Collectivism
Uncertinity avoidance
Masculinity vs. Femininity

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Implications for managers

Cross cultural literacy: Ethnocentrism vs. Polycentrism

The connection between culture and competitive advantage has

important implications for the choice of countries in which to
locate production facilities and do business.

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