International Marketing Exam 2

Elements of Culture

Hofstede's Six dimensions

Individualism/Collectivism Index (IDV); focus on self-orientation

- Self-orientation - measures how personal needs and goals are prioritized vs the need and goals of the group, clan, or organization

- Individualism: everyone is expected to look after self and immediate family only

- Collectivism: individuals from birth onward are part of strong in-groups

Uncertainty Avoidance Index (UAI); focus on risk orientation

- Measures how much a people prefer known unchanging systems, or how comfortable hey are with changing the way they work or live

- Tendencies

- Avoidance of ambiguous or unknown situations

- Not to be confused with risk avoidance: take risks long as the risks are known and measurable

- Strong - precision and formulation with experts

- Weak - okay with chaos and minimum rules

Power Distance Index (PDI); focus on authority orientation

- The degree to which people defer to superiors, and how much they accept inequality in the distribution on power in business and society

- High - Centralization, supervision, status symbols

- Low - less supervision, same status

Indulgence vs. Restraint (IND)

- Measures allowance for basic drives related to enjoying life and having fun vs regulating it through strict social norms

- Indulgent - relatively free gratification of basic and natural human desires leading to enjoying life and having fun

- Restrained - suppress gratification of needs and regulate it by means of strict social norms

Masculinity/Femininity Index (MAS). focuses on assertiveness and achievement (change to Competition vs. Cooperation)

- The degree which a culture focuses on work competition vs cooperation and family

- Competitive - career advancement

- Cooperative - good relations

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Long term Orientation (LTO)

- Measures time perspective, such as planning for the future and perseverance vs focus on the past and present

- Long term - towards the future - adapting to changes

- Short term - past and present, national pride, social obligations

2/10/2025

Power Distance - The degree to which people defer to superiors, and how much they accept inequality in the distribution on power in business and society.

Individualism vs Collectivism - same as before

Same notes as before essentially -

Chapter 5

Management Style around the World

Authority and Decision Making

Prominence of Status and position (Power Distance Index) influences approach to authority.

- High PDI - subordinates less likely to contradict bosses

- Low PDI- subordinates likely often challenge bosses

Three typical authority patterns in decision making:

1. Top level management decisions

2. Decentralized decisions

3. Committee or group decisions

Communication involves much more than just words

- Time. Space, things, friendship, and agreements

Management Objectives and Aspirations

Personal security and job mobility

- Cultures high in individualism make riskier R and D investments

Personal Life

- To Japanese, personal life is company life

Affiliation and social acceptance

Power and achievement

Formality and Tempo

Common mistakes North Americans make in business.

- To relaxed in formality; addressing clients and co-workers by first name.

- Too hasty and impatient in "getting down to business"

Tempo impacted by cultural view of time

- Monochromatic: linear view, time is important, promptness

- Polychronic: multi-tasking, involvement with individuals

2/14/2025

Culture and Business Systems

Culture profoundly impacts business

- Management style

Business culture, management values, business methods and behavior.

Established criteria for day-to-day business behavior

Forms general patterns of values and motivations

- Important for marketers to analyze to be successful

Cultural analysis and understanding gives competitive edge

Business etiquette is a crucial component.

The Use of Space in Office Settings

Notice the individualism reflected in the American cubicles and the collectivism demonstrated by the Japanese office organization

The Impact of American Culture on Management Style

Impact Of US culture on management style

- Master of destiny viewpoint vs set destiny

A master destiny viewpoint signifies a belief that individuals have the power to control their own lives and shape their future through their choices and actions, essentially being the architect of their own destiny.

A set destiny viewpoint suggests that a person's life path is predetermined by fate or external factors, leaving little room for personal agency to change the course of their life

- For Americans. Self-awareness will help adapt to working with associates in other cultures

- Some Japanese people believe in blood type compatibility and Koreans MBTI

Degree of Adaptation

Know local customs and accommodate differences

Evaluate which foreign customs should be adhered to

- Be aware of self-reference criterion (SRC)

- Own cultural background impacts understanding of other cultures

- Important of customs by country

Go local

- Establish local web presence with localized digital content

- Create local content

- Use local public relations

- Cultivate local influences ( contracts, trade shows)

- Learn about local culture as much as possible

Cultural adaptations

Enculturation - the process of learning the values, beliefs, and behaviors in our own culture

Acculturation - the learning that occurs when we travel to a new culture and learn that culture's value system and ways of doing things.

Required Adaptation

Cultural Imperatives - Business customs and expectations that must be met and conformed to or avoided

Cultural Electives - behavior or customs that cultural aliens may wish to conform to or participate in, but not required

Cultural Exclusives - customs or behaviors that foreigners are barred from and must not participate in

2/19/2025

Chapter 10

Multinational market Regions

Group of countries that

- Seek mutual economic benefits and associated peace

- Reduce interregional trade and tariff barriers

- Economic cooperative agreements

- If goods don't cross borders, soldiers will - Frederic Bastiat

- In 1940 the US told Japan to get out of China, and the ensuing of an embargo of gasoline and scrap metal, leading to directly to the Pearl Harbor attack

Free Trade is the ultimate goal

- Alliances concern some

- Fear of being excluded

- EU, NAFTA, formerly known as USMCA, ASEAN, APEC

Economic Factors

Every union shares development and enlargement of market opportunities as a basic orientation

- Preferential tariff treatment for participants

- Common tariff barriers against outsiders

- Stimulates internal economic development for all

Strong Unions can settle economic disputes

- Agreements and mechanisms must be in place

- Benefits must outweigh the cost of individual differences

Nations must give up party sovereignty

- Advantages of union must be clear-cut and significant

- Benefits must greatly outweigh the disadvantages

Political Factors

Equally important as economic factors

- Although economic factors are the basic catalyst for formation of union

Participating countries must be generally compatible

- Similar aspirations important

- Countries won't surrender part national sovereignty if not

Union typically formed in response to external threats

- Members must demonstrate "amenability" in ways that others can be conceived.

Patterns f Multinational Cooperation

Political Union

Most fully integrated form of regional cooperation

Complete economic and political integration

- Either voluntary or enforced

- If voluntary, the union is referred to as a commonwealth.

Commonwealth of Independent States CIS made up of former Soviet republics

European Union EU

- British exit in 2020 caused immediate delays, complications, and reductions in UK-EU trade

- Long-term economic consequences of "Brexit" unknown

Geographic and Temporal Proximity

Not imperative, but facilities functioning of market

- Transportation networks more developed n close countries

- European bullet trains

- Cheap labor

- Terrorism

Distance across time zones most important

- Trade tends to travel more easily in north-south directions than it did in ancient times

Issues of egal and illegal immigration important

- Promotes economic integration among closer countries

Cultural Factors

Cultural similarity eases shock of economic cooperation

- Members understand outlook and views of colleagues

- Agreements between similar countries most likely to succeed

Current agreements extend beyond cultural boundaries

- European Union very culturally diverse.

- Language not as much of a barrier as expected

- Religion still seems to be an issue

3/03/2025

Chapter 11 - The Asian Pacific Region

Dynamic Growth in the Asia Pacific Region

Asia has been the fastest growing region in the world for the past 3 decades

- 1996 financial crisis in leading Asian economies

- Tight monetary policy, appreciating dollar, deceleration of exports all contributed to downturn

- Followed by period of recovery and growth

Prospects for continued growth are excellent

- Source of new products, technologies, vast consumer markets

- 2020 Asian GDP at PPP, purchasing power parity, was higher than the rest of the world for the first time in 2 centuries.

- Hong Kong, South Korea, Singapore, and Taiwan

The People's Republic of China

China fast emerging as competitor in global markets

Must overcome issues to reach full potential

- Human rights and legal systems major issues in China

- Environmental decline associated with fast growth

- Demographic disaster associated with one-child policy

○ Policy ended in 2013, increased to 3 children in 2021

○ Reversal of policy has led to gender discrimination in the workplace

- Discrimination against those moving from rural to urban areas

Future potentials depend on-

- China's ability to deregulate industry, import modern technology, privatize overstaffed and inefficient State-owned enterprises, and attract foreign investments