Ch 04: Differences in Culture - IB

________ exist in these cultural systems that might affect __________

Numerous values and norms, international business

Values

Ideas about what a group believes to be good, right, and desirable

Norms

Social rules and guidelines that prescribe appropriate behavior in particular situations

Social rules that govern people's actions toward oneanother

Society

A group of people sharing a common set of values and norms.

Brazil's complex culture reflects its heritage as

a former empire of Portugal

Brazil's language is a form of _________, and many other Portuguese _______ are evident in the country including the dominant religion, ________.

Portuguese, influence, Catholicism

Brazil owes aspects of its culture to the Sub-Saharan _______ who were brought to the country as _______.

Africans, slaves

More than _____ of the country's population self-identify as being of _________

40%, mixed-race origin

Brazil's culture reflects the cultures of other nations such as

Italy, Germany, and Japan

Immigrants from these countries settled mainly in the _________ parts of the country, where ______________ are still spoken

southern, German and Italian

Cross-cultural literacy refers to

understanding how cultural differences across and within countries can affect how business is practiced

Culturally based value systems can also reside in ___________. Sometimes even _______ have distinct value systems

families, companies, and world regions, industries

a relationship may exist between ______ and the benefits, cost, and risks of doing ________ in a country or region

culture, business

Different cultures may be more or less supportive of ________, innovation, and the ________ mode of production

entrepreneurship, capitalist

Cultural differences create

a common bond among people.

Culture can and does ______.

evolve

_____________ can themselves be engines of cultural change

multinational enterprises

Culture

A system of values and norms shared among a group of people and that when taken together constitute a design for living

For example, the Scandinavian countries of Denmark, Finland, Iceland, Norway, and Sweden are often viewed as culturally being one ________. The general implication for business practice is that if one Scandinavian country's people like a product from a company, there is a very good chance customers from the other ___________ will as well.

society, Scandinavian countries

Values:

• Provide the context within which a society's norms are established and justified.

• They are invested with emotional significance.

• Reflected in the economic systems of a society.

Folkways are

routine conventions of everyday life

Although folkways define the way people are expected to behave, violations of them are not normally a ________ matter.

serious

The evolution of norms now demands that business partners at least try to behave

according to the folkways in the country in which they are doing business

example of folkways

• Examples: appropriate dress code, good social manners, attitude toward time.

• Include rituals and symbolic behavior

Folkways also include ............... behavior

rituals and symbolic

Rituals and symbols are the most visible ......... of a culture and constitute the outward expression of deeper .......

manifestations, values

_______ are norms seen as central to __________ of society.

Mores, functioning

Mores example

• Example: laws against theft. Drinking in Saudi Arabia (prison?)

• Have greater moral significance than other norms

Violating mores can bring ______ retribution, ill will, and the collapse of any ________ deal. Mores are often so important that they have been enacted into _____.

serious, business, law

The relationship between a ___________ and a ______ is not strictly

society, nation-state, one-to-one

Nation-states are

political creations.

A nation can have several ________, and a culture can embrace several _______

cultures, nations

Nation-states are ________- creations. While nation-states are often studied for their "_____________," "________ character," and even "competitive advantage of nations," in reality they may contain a single ______ or several _______

political, national identity, national, culture, subculture

Can be different levels of ________ within a country.

culture

many international business scholars make the culture argument as a way of saying that companies should not target countries in a ____________- strategic approach today, but instead focus on dividing up the world's 195 countries into ____________ and culturally __________ business regions.

multinational, like-minded , similar

Increased globalization has meant an increased number of _________ relationships across ________ and ________, but not necessarily an increased cultural ________ to go with it.

business, countries, culture, understanding

The US culture?

• African American Culture• Chinese American Culture• Irish American Culture• American Indian Culture

Determinants of Culture. The values and norms of a culture evolve over time:

• Religion.• Political philosophy.• Economic philosophy.• Education.• Language.• Social structure

Social Structure

Refers to the basic social organization of a society.

2 dimensions help explain differences amongcultures

1. The degree to which the basic unit of social organization is the individual, as opposed to the group.

2. The degree to which a society is stratified into classes or castes

Some societies are characterized by a relatively high degree of ______________- and relatively low _________ between strata (e.g., India). Other societies are characterized by a ____ degree of social stratification and _____ mobility between strata (e.g., the United States).

social stratification, mobility, low, higher

The individual in the social structure:

In many Western societies, the individual is the basic building block of social organization.

• Emphasis on individual achievement

More and more, individuals are regarded as "__________" even though they belong to and work for a company.

independent contractors

These individuals build their _______ brands by utilizing the knowledge, skills, and experience they have, which often translates to increased ________ and ______ or another company seeking their employment, if they believe the company can benefit from that person's capabilities

personal, salaries, promotions

In the United States, the emphasis on individual performance finds expression in an admiration of rugged ....

individualism, entrepreneurship, and innovation.

Highly individualistic societies are often synonymous with those capable of constantly ________ by having a flowing stream of ________ ideas for new products and services.

innovating, creative

The group in the social structure

• A group is an association of two or more individuals who have a shared sense of identity and interact in structured ways based on common expectations

.• The primary unit of social organization in many non-Western societies.

• Importance of group membership/identification

in _____, the social status of individuals has traditionally been determined as much by the standing of the _______ to which they belong as by their ___________ performance.

Japan, group, individual

Just as U.S. society is characterized by a great deal of ___________, reflecting the primacy of values associated with______________, some argue that Japanese society is characterized by a corresponding lack of ____________.

entrepreneurship, individualism, entrepreneurship

multiple paths to being innovative exist in both __________ and _________ cultures, drawing from the _________ of the particular culture and what core competencies are reflected in the culture

individualistic, group-oriented, uniqueness

Some argue that individualistic societies are great at __________ innovative ideas while collectivist, or group-oriented, societies are better at the ___________ of those ideas (taking the idea to the market)

creating, implementation

Social Stratification

Social strata are hierarchical social categories often based on family background, occupation, and income.

Individuals born into a stratum toward the top of the social hierarchy tend to have better

life chances than those born into a stratum toward the bottom of the hierarchy. They are likely to have better education, health, standard of living, and work opportunities

Social Structure

Four basic principles:

• Is a trait of society.• Carries over into next generation.• Is generally universal but variable.• Involves not just inequality but also beliefs

Social Stratification

Social mobility:

• Extent to which individuals can move out of the strata into which they are born.• Varies among societies

Social Stratification

Caste System

• Caste system is a closed system where social position is determined by family and change is usually not possible

.• India has four main castes

A class system

is a less rigid form of social stratification in which social mobility is possible

A class system is a form of __________ in which the position a person has by birth can be changed through that person's________

open stratification, own achievements or luck

Individuals born into a class at the bottom of the hierarchy can work their way _____. Conversely, individuals born into a class at the top of the hierarchy can slip ______.

up, down

Like the United Kingdom, the ________ has its own upper, middle, and working classes. However, class membership is determined to a much greater degree by _________ economic achievements, as opposed to __________ and ____________. Thus, individuals can, by their own ________ achievement, move smoothly from the working class to the upper class in a lifetime

United States, individual, background, schooling, economic

In American society, the high degree of __________ and the extreme emphasis on _____________ limit the impact of class background on __________ operations.

social mobility, individualism, business

Class system is less _______, and position can be changed through _________ and _____

rigid, achievement, luck

UK has a more _____ class structure than U.S

rigid

Social Stratification

Significance:

• Can affect business operations.

• Class consciousness is a tendency for individuals to perceive themselves in terms of their class background.

• Makes it difficult to establish a competitive advantage in a global economy.

Class consciousness

refers to a condition by which people tend to perceive themselves in terms of their class background, and this shapes their relationships with members of other classes.

an _______ relationship between management and labor classes, and the resulting lack of __________ and high level of industrial disruption, tends to raise the costs of production in countries characterized by significant class divisions. This can make it more __________ for companies based in such countries to establish a _______ in the global economy.

antagonistic, cooperation, difficult, competitive advantage

Impacts of Class Clashes

- Mutual Antagonism, Lack ofRespect

- Difficult to Cooperate

- Workplace Disputes

- Increase in operations' cost

Religion•

A system of shared beliefs and rituals concerned with the realm of the sacred

Ethical System

• A set of moral principles, or values, that are used to guide and shape behavior

Most ethical systems are the product of religions.

• Christian ethics• Islamic ethics

Four dominant religions today:

• Christianity.• Islam.• Hinduism.• Buddhism

Christianity

Most widely practiced religion; monotheistic. Found throughout Europe, the Americas, and other countries settled by Europeans

Economic implications of Christianity:

• Sociologists argue that Protestant branch has the most important economic implications.

• Max Weber, Protestant ethics, and the spirit of capitalism

Protestant Ethics and the Sprit of Capitalism

Max Weber, German Sociologist, argued for a relationship between Protestantism and emergence of capitalism.

• Working hard attitude

• Frugality vs. indulging in worldly pleasures

• Wealth creation

- Emphasis on individual religious

Weber

He argued that Protestant ethics emphasizes the importance of hard work and wealth creation (for the glory of God) and frugality (abstinence from worldly pleasures). According to Weber, this kind of value system was needed to facilitate the development of capitalism. Protestants worked hard and systematically to accumulate wealth. In contrast, Weber argued that the Catholic promise of salvation in the next world, rather than this world, did not foster the same kind of work ethic.

Islam

• Second largest religion

.• Monotheistic, one true omnipotent God (Allah).

• Pro-free enterprise

• Earning profit through trade

• Profit cannot be made through exploitation

• Islam, capitalism and globalization can coexist

Islamic fundamentalism:

• Associated in the West with militants, terrorists.

• A response to social pressures to move toward modernization and the influence of Western societies

Fundamentalists demand a commitment to ________ religious beliefs and rituals. The result has been a marked ________, in some countries, of the use of symbolic gestures that confirm Islamic values

strict, increase

Hinduism - Beliefs

• A moral force in society requires the acceptance of certain responsibilities,called dharma.

• Rebirth into a different body, called reincarnation.

• The spiritual progression of each person's soul, called karma.

• Achieving a complete spiritual perfection, called nirvana

Karma

The force generated by a person's actions held in Hinduism and Buddhism to perpetuate transmigration and in its ethical consequences to determine the nature of the person's next existence

- The universal causal law by which good or bad actions determine the future modes of an individual's existence

Economic implications of Hinduism:

• Max Weber: Hindus are valued by their spiritual rather than material achievements.

• Material and physical self-denial do not go hand in hand with capitalism

Weber and Hinduism

Max Weber, famous for expounding on the Protestant work ethic, also argued that the ascetic principles embedded in Hinduism do not encourage the kind of entrepreneurial activity in pursuit of wealth creation that we find in Protestantism. According to Weber, traditional Hindu values emphasize that individuals should be judged not by their material achievements but by their spiritual achievements. Given the emphasis on an ascetic lifestyle, Weber thought that devout Hindus would be less likely to engage in entre- preneurial activity than devout Protestants

Buddhism

Stresses spiritual growth and the afterlife, rather than involvement in this world

Economic implications of Buddhism:

• Does not emphasize wealth creation

.• Economies in the Buddhist regions were dominantly localized.

• Does not support the caste system—individuals have some mobility and can work with individuals from different classes.

• Recent trends bring the "Zen" orientation from Buddhism into business in the Western world.

- But unlike Hinduism, the lack of support for the caste system and extreme ascetic behavior suggests that a Buddhist society may represent a more fertile ground for entrepreneurial activity than a Hindu culture

Confucianism

•Practiced mainly in China, Korea, and Japan.

•Teaches the importance of attaining personal salvation through right action

- High morals, ethical conduct, and loyalty to others

Economic implications of Confucianism:

3 values of Confucianism—loyalty, reciprocal obligations, and honesty—may all lead to lowering the cost of doing business in Confucian societies.

• Guanxi are relationship networks supported by reciprocal obligations

- Guanxi means relationships, although in business settings it can be better understood as connections. Today, Chinese people will often cultivate a guanxiwang, or "relationship network," for help. Reciprocal obligations are the glue that holds such networks together reciprocated—the reputation of the transgressor is tarnished, and the person will be less able to draw on their guanxiwang for help in the future

- A third concept found in Confucian ethics is the importance attached to honesty.

•Language structures the way we ____ the world

see

Countries with more than one language often have more than one ______

culture

___________ is mother tongue of the largest number of people

Mandarin (Chinese)

The most widely spoken language in the world is __________

English is becoming the language of __________

English, international business

Nonverbal communication refers to

the use of nonverbal cues to communicate meaning

unspoken is often ___________ bound

culturally

Personal space is

the comfortable distance between a speaker and the listener

personal space varies among ________, which makes it important to know in ______

cultures, business

Formal Education

Medium through which individuals learn languages and other skills

formal education is the Medium through which

individuals learn languages and other skills

The "hidden curriculum" in schools teaches

respect for others, obedience to authority, honesty, neatness, timeliness

formal education provides a national competitive advantage:

• Creates a pool of skilled and knowledgeable workers.

• Represents a good index of what products might sell in a country

Hofstede's Cultural Dimensions

Individualism-Collectivism, Power Distance, Uncertainty Avoidance, Masculinity-Femininity, and Long-Term--Short-Term Orientation.

Culture and values in the workplace was studied by

Geert Hofstede