Chapter 3 Cultural Influence on Global Business

Culture

System of learned, shared, unifying, and interrelated beliefs, values, and assumptions.

It is a mind-set, or way of thinking, acquired over time. The sum of a group’s way of life

All aspects are not taught.

We cannot learn all about a culture by watching them.

Beliefs

ideas about the nature of a person, thing or concept

Values

positive and negative ideals, customs, and institutions of a group

Assumptions

ideas that are taken for granted as fact

Beliefs & Values & Assumptions are aquired over…

a lifetime

Subcultures

Subset of a larger culture.

May have some different values, beliefs, and assumptions.

Most people are members of many different subcultures.

Subcultures around the world have similar values, beliefs , and assumptions.

More similar subcultures in the same country

Cultural Baggage

You carry your beliefs, values and assumptions with you at all times.

Influences what you say and do as you conduct business.

Judge others by your standards.

Ethnocentrism

Major Obstacle in Successful International Business

Belief that one’s culture is better than other cultures.

U.S. Subculture

Business people share common beliefs, values, and assumptions.

Demonstrated in common sayings:

“Don’t count your chickens before they hatch”

“The early bird gets the worm”

“If at first you don’t succeed, try, try again”

“The grass is always greener on the other side”

No other business subculture is exactly like the US.

Nuclear Family

Parent/parents and unmarried children living together.

Common in developed countries.

Extended Family

Parents, children, and relatives living together.

Common in undeveloped countries.

Family-Work Relationships

Weak in US, Canada, Northern Europe.

Other Countries | family-work relationships are strong.

Individualism

Belief in the individual and her/his ability to function relatively independently.

Not accepted in some cultures - appears selfish/self-centered.

Collectivism

Belief that the group is more important than the individual.

All cultures have a mixture of … and …, but usually lean towards one or the other

individualism and collectivism

US Values…

Individualism - Entrepreneurial Spirit

Institutions of Society

Education

Gender Roles

Mobility

Class System - dividing a cultural group into various levels

Lineage

Education

Income

Inherited- nobility

Occupation

Stronger the class system, harder to change class level

Education

Provided first by family.

Later is schools, religious groups and businesses.

Major Languages of International Business

English

German

Spanish

French

Japanese - recommended for US since it is a dominant trading nation of the world.

Business people prefer business transactions in their native language.

English

It is used in almost every other country around the world.

A large number of business-related words.

It can be concise and precise.

Contexting

How direct or indirect communication is.

Low Context Culture

Communicates very directly. Value Words and Interpret literally.

U.S./Germany

High Context Culture

Communicates indirectly - don’t interpret literally - interpret figuratively.

Japan/Saudi Arabia

Face-Saving

Minimizing personal embarrassment.

Very important for high context.

Not important for low context.

Never embarrass others!

Non-Verbal Communcation

Does not involve the use of words

“Actions speak louder than words”

Body Language

Appearance

Eye Contact

Touching

Personal Space

Color

Numbers

Emblems

Smells - not acceptable in U.S.

Body language is not universal!

Values Among Cultures

Individualism and Collectivism

Technology

Leadership, Power and Authority

Religion

Time

Education

If a culture values any or all of these, they have an advantage over those that do not.

Culture Shock

When you enter another culture or subculture.

Normal Reactions to Cultural Differences

Happiness

Frustration

Adaptation

Acceptance

Reverse Culture Shock

Return to native culture. Become reacquainted with your own culture.

Gender Role Beliefs Affect Business

Some roles are assigned based on gender.

Some societies women are primary workers outside of the household.

Some societies men are primary workers outside of the household.

Views of gender roles vary by culture.

Some cultures do not allow women to have a role in international business.