Beruflich Dokumente
Kultur Dokumente
• Religion, values and attitudes, customs and manners, and education all
are parts and parcel of culture.
Characteristics of culture
• Culture is learned. Has its own history, ideology, traditions, values, lifestyles
and languages. These in turn determine how individuals interact with one
another.
• Culture is structured
• Culture is dynamic
• Cultural beliefs vary – family dynamics, gender role
• Culture allows to express creativity
• Culture is shaped by biological, environmental, physiological and historical
components of human existence
• Provides individuals with implicit and explicit guidelines on how to behave in
relation to others and the environment
Classification of Culture
• Culture of a country and its work place are influenced by the following
dimensions – (1) Power distance, (2) gender & work role, (3) uncertainty
avoidance, (4) individualism Vs. collectivism and long-term orientation.
In Japan, women are seen as helpers of men and not considered capable of
doing more demanding work. The majority of Japanese firms put women in
routine office assistance work despite the Equal Opportunity law
(1986).Therefore one might consider Japan as high masculinity culture.
The Netherlands on the other hand feminine values are given more
importance. People are very interested in quality of life. Flexible work
options are allowed depending upon requirement.
Avoidance of Uncertainty
• This refers to the extent to which a society tolerates ambiguity and
uncertainty. In high uncertainty avoidance societies like Japan, people do
not like taking risk. Employees are given job security and high retirement
benefits. Managers encourage strict supervision of work, give clear
instructions to employees and all employees adhere to rules and
regulations.
• Japanese tend to pay close attention to minute details and discuss them at
length which slows down the decision making process. On the other hand
cultures with low degree of uncertainty avoidance such as the US, people
are ready to take risk and offer low emotional resistance thereby making
speedy decisions possible.
Individualism vs. Collectivism
• In individualistic societies, individual interests are given importance rather
than the group. In collective societies, the group achievements and efforts
are highly valued.
• Countries such as the US, Canada and Britain supposedly are low on the on
collectivism and power distance scale. Latin American and Asian countries
on the other hand are high on both scales.
Long term orientation
• This refers to a society’s devotion to long-term traditional and forward
thinking values. High long-term orientation indicates support for strong work
ethics and expectation of long-term rewards. In low long-term orientation
societies changes can occur rapidly because society does not reinforce
long-term traditional orientation and commitments do not become
impediments to change.
Maruti Advertisement
• Maruti Versa advertisement shows how a family consisting of parents, grand
parents and travel comfortably in a Versa and thus tries to drive home the
message that Versa helps in bonding a family together – a traditional value
most Indian families try to adhere to.
• Not being aware of the host country’s culture can result in mistakes that may confuse
or even offend the people with whom the organization intend to communicate.
Religion and its philosophies
• Religion and its philosophies may have a bearing on the work
habit of the population and therefore affect business.
• Attitude of the population of the host country has significant impact on the
conduct of international business.
• Example: Ford Motor’s Fiera truck did not sell well in Spain
because, it meant “Ugly old woman” in Spanish.
Education
• Education, quality of education in host country plays a key role in
determining the prospect of international business.
• However, most home country government (including those with free market
economy), impose some restrictions on the outward FDI
Economic Environment
• Host country governments offer tax incentives, attractive financing
and good infrastructure to attract FDI. Host countries also place
restrictions in the share holding pattern in the domestic subsidiary to
ensure that resource transfer benefits are maximized for the host
country.
• GDP = the value of the total final output of all goods and services produced
in a single year within a country’s boundary.
• Income distribution = The number of poor people in the country and the
average quality of life depends upon how well the income is distributed. In
early 1990’s, Brazil and Hungary had similar per capita incomes. However,
In Hungary, the richest 20% accounted for 36.6% and the poorest 20% for
9.5% of national income in 1993. In Brazil, the richest 20% accounted for
67.5% and the poorest 20% for 2.1%. in 1989.
Economic Indicator
• Inflation Index = inflation is the average rate of increase in price. Persistent
increase in general price over a period of time does reduce the currency’s
purchasing power.
• Under feudalism, the nobility and the royalty are richer compared to other
classes.
• Every country in the world follows its own system of law. A foreign company
operating in a particular country must abide by those laws while operating in
that country.
• Host countries enact laws to enable them to monitor and control the
behavior of foreign businesses. Laws may be :
.
Political Environment
• Labor: A major force which used to influences major economic and
political decisions. However, the gradual shift in employment from
manufacturing to non-organized service sector, increased used of
automated systems in manufacturing units has reduced employment
and consequently membership of unions. Labor’s influence has
diminished. Strikes do occur and affects businesses. The unions
have shifted their movement from wage issues to import
competition.
Economic Environment
• StatisticsGDP (PPP)$12.98 trillion (2006 est.)
• GDP growth3.4% (2006 est.)
• GDP per capita$43,500 (2006 est.)
• GDP by sectoragriculture (0.9%), industry
(20.4%), services (78.6%)
• Inflation (CPI)CPI 3.7% (2006 est.)
• Pop below poverty line11.4% (2006 est.)
• Labour force151.8 million (includes
unemployed) (
Economic Environment
• Labour force by occupation - managerial and professional
(31.1%), technical, sales and administrative support (28.6%),
services (14.1%), manufacturing, mining, transportation, and crafts
(23.7%), farming, forestry, and fishing (2.5%) (excludes
unemployed) (2002)
• Unemployment - 4.5%(2006)