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International Business Presentation

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Next Culture in International Business The cultures of two trading partners can affect a business relationship. Understanding culture is the foundation, or basis ... – PowerPoint PPT presentation

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Title: International Business Presentation


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Next gtgt
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Understanding cultural differences can help
promote good global business.
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  • To explain how culture affects international
    business
  • To describe the elements of cultures
  • To describe the elements of subcultures

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Understanding culture and its effect on
international business provides a foundation for
working in the global community.
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the set of beliefs, customs, and attitudes of a
distinct group of people
culture
strongly held concepts that are present in culture
values
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social rules that affect behaviors and actions,
and represent cultural values
norms
folkways and mores
cultural customs that dictate how people act
socially
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the part a person plays in a social situation
role
a smaller group or subset within a larger culture
subculture
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Culture in International Business
  • The cultures of two trading partners can affect a
    business relationship.
  • Understanding culture is the foundation, or
    basis, of understanding every other aspect of
    conducting international business.

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Understanding Culture
  • Each level of culturenational, regional, or
    localhas an impact on the lives of people who
    live on that level.

culture the set of beliefs, customs, and
attitudes of a distinct group of people
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Understanding Culture
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Understanding Culture
  • Succeeding in the world of international business
    requires three things.

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Elements of Culture
Values
Norms
Four Elements of Culture
Folkways and Mores
Roles
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Elements of Culture
  • Values are connected to powerful emotions.

values strongly held concepts that are present in
a culture
For example, in the United States, many people
value freedom.
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Elements of Culture
  • Norms may reflect values.

norms social rules that affect behaviors and
actions, and represent cultural values
In some cultures, the norm may be that women walk
behind men in public.
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Elements of Culture
  • Some folkways and mores may be minor, while
    others have a major impact on peoples lives.

folkways and mores cultural customs that dictate
how people act socially
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Elements of Culture
  • Mores are customs that reflect moral standards in
    a culture.
  • Mores are strongly held by a group and can
    influence controversial political topics.

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Elements of Culture
  • The role you play is influenced by your community.

role the part a person plays in a social situation
You play many roles each day.
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Elements of Culture
  • Examples of roles include
  • Son or daughter
  • Friend
  • Employee
  • Student
  • Spectator
  • Citizen

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Factors that Create Roles
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Value Dimensions of Culture
Power Distance
Short-term or Long-term orientation
Individualism or Collectivism
Value Dimensions
Gender Differentiation
Uncertainty Avoidance
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Value Dimensions of Culture
  • In cultures with a large power distance among
    individuals, supervisors are always right.

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Value Dimensions of Culture
  • In individualistic countries, people tend to take
    care of themselves and immediate families first.
  • Examples include the United States and Australia.

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Value Dimensions of Culture
  • In cultures with a high degree of gender
    differentiation, men tend to dominate society and
    power structures.
  • Examples include Middle Eastern countries.

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Value Dimensions of Culture
  • In high risk-avoidance countries, managers are
    less willing to take risks.
  • Examples include Mexico, Portugal, and Japan.

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Value Dimensions of Culture
Relate In what ways might your personal values
be influenced by living in an individualistic
country?
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Value Dimensions of Culture
  • The United States is an example of a country with
    a short-term orientation.
  • Many Asian countries believe that placing
    importance on short-term results causes a company
    to ignore long-term results.

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Understanding Subcultures
  • People with varied behaviors within a culture
    make up a subculture.

subculture a smaller group or subset within a
larger culture
Subcultures can form around sports or other
interests.
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Understanding Subcultures
  • A key to working in international business is to
    be aware that people within the same nation
    and/or business organization may be quite
    different.

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Understanding Subcultures
Recall What are subcultures and why is
recognizing them important?
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Single Culture and Multicultural Countries
  • A homogeneous culture is one in which one group
    of people is dominant in the population.
  • A homogeneous culture exists in a single-culture
    nation or region.

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Single Culture and Multicultural Countries
  • The United States is heterogeneous in a
    multicultural country, where there are many
    different groups of people.

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Multinational Companies
  • Because a multinational company includes cultures
    from several nations, business decisions may be
    more inclusive and targeted to the variety of
    cultures.

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2.1
  1. What cultural elements create individual roles in
    society?

values, norms, folkways and mores, customs,
educational systems, religious organizations,
gender roles, class systems, and degrees of
mobility
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2.1
  1. What are some examples of dimensions of culture?

power distance, individualism or collectivism,
uncertainty avoidance, and short-term or
long-term orientation
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2.1
  1. What is the definition of the term subculture?

a smaller group or subset within a larger culture
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End of
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