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THE CROSS- CULTURAL IMPACT ON INTERNATIONAL BUSINESS

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Page 1: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

THE CROSS-CULTURAL IMPACT

ON INTERNATIONAL

BUSINESS

Page 2: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and
Page 3: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

learned, shared, and enduring orientation patterns in a society.

People demonstrate their culture through values, ideas, attitudes, behaviors, and symbols.

transmitted through the process of learning and interacting with one’s environment, rather than through the genetic process.

Page 4: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

WHY CULTURE MATTERS IN INTERNATIONAL BUSINESS

Page 5: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Cross-cultural proficiency is paramount in many managerial tasks

Problems arise in areas such as- teamwork, pay-for-performance system, union-management relationships, attitude towards ambiguity

Page 6: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and
Page 7: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

All cultures of the world—despite many differences—face a number of common problems and share a number of common features

All societies, if they are to survive, are confronted with fundamental universal needs that must be satisfied.

Page 8: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

ECONOMIC SYSTEMS

the most obvious and immediate needs of a society is to meet the basic physiological requirements of its people.

Because commodities are always in finite supply, each society must develop systematic ways of producing, distributing, and consuming these essential resources.

Page 9: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

MARRIAGE AND FAMILY SYSTEMS

One should know about these systems, especially in those areas where one is running business

Important implication in labor contracts

Page 10: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

A society must have an organized way of passing on its cultural heritage from one generation to the next.

This universal societal need for cultural transmission gives rise to some form of educational system in every society.

Knowledge of these is helpful for businessperson engaged in marketing strategies abroad.

Page 11: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

SOCIO-CONTROL SYSTEMS

Every society has a system for coercing people to obey the social rules, and these are called social control systems.

In order to maintain order and good working relationships among employees, corporations operating abroad would be more successful by using local mechanisms of social control.

Page 12: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

RELIGIONS AND OTHER SUPERNATURAL BELIEF SYSTEMS

Societies develop supernatural belief systems for explaining these unexplainable occurrences.

Religions and other supernatural belief systems affect the conduct of business by shaping attitudes about work, savings, consumption, efficiency, and individual responsibility.

Page 13: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

NATIONAL, PROFESSIONAL AND CORPORATE CULTURE

Page 14: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Research suggests that employees are socialized into three cultures: national culture, professional culture, and corporate culture

Working effectively within these overlapping cultures is a major challenge.

Page 15: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

KEY DIMENSIONS

Page 16: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

There are numerous dimensions of national culture.

Can be grouped into two broad categories- subjective and objective

Page 17: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

SUBJECTIVE DIMENSIONS OF CULTURE

values and attitudes manners and customs deal versus relationship orientation perceptions of time perceptions of space religion

Page 18: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

OBJECTIVE DIMENSIONS OF CULTURE

symbolic and material productions, such as the tools, roads, and architecture unique to a society.

Page 19: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

LANGUAGE- A KEY DIMENSION OF CULTURE

Language is such an important dimension of culture that it requires extensive treatment.

Often described as the expression or mirror of culture, language is not only essential for communications, it provides insights into culture.

Page 20: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

LANGUAGE- A KEY DIMENSION OF CULTURE

Linguistic proficiency is a great asset in international business because it facilitates cross-cultural understanding.

The same word can convey different meanings in the two countries- thus advertising themes often lose their original meaning in translation or convey unfavorable interpretations.

Business jargon can also impede communication

Page 21: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

INTERPRETING CULTURE

Page 22: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

METAPHORS Spanish Bull Fight

Page 23: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Medieval Jousts

Page 24: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

French Coffeehouse

Page 25: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Japanese Garden

Page 26: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Swedish “Stuga”

Page 27: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Dragon

Page 28: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

STEREOTYPES

Page 29: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Homer Simpson

Page 30: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Arab= terrorist

Page 31: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

African Americans good at sports

Page 32: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

All Italians are the Mob

Page 33: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

IDIOMS

To roll out the red carpet Beating around the bush Barking up the wrong tree “no está el horno para bolos”

Page 34: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

HIGH- AND LOW-CONTEXT CULTURE

Low-context Culture Clear Logical Straightforward

High-context Culture Indirect Polite SensitiveNon-verbal Cues

Page 35: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

VS

East

West

Page 36: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

West East

Christianity concerned with absolute moral values

Buddhism and Confucianism focuses on virtue

legalistic contractual relationships

direct personal relationships

Weak hierarchical structure Strong hierarchical structure

Attribution groups are important

Frame groups are important

freedom and personal conscience

security and obedience

Individualistic orientation Group orientation

Need for self-assertion Need for coordination

Page 37: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

CULTURAL CHANGE

Page 38: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

CULTURAL DIFFUSION(1) it is seen to be superior to what

already exists(2) it is consistent with existing cultural

patterns(3) it is easily understood(4) it can be tested on an experimental

basis(5) its benefits are clearly visible to a

relatively large number of people

Page 39: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

IMPACT ON BUSINESS

Product design Advertisement Acceptability Strategic guidelines

Page 40: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

CHALLENGE OF CROSSING BOUNDARIES

Page 41: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Communication Analyze Ethnocentric orientation

Page 42: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

CROSS-CULTURAL BUSINESS

Page 43: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

MARKETING

Page 44: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

ADVERTISEMENTS

Page 45: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Pepsodent

Page 46: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and
Page 47: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

PRODUCT DESIGN

Page 48: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

WASHING MACHINES IN EUROPE AND ASIA

Page 49: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

SINKS IN CENTRAL AND WESTERN AMERICA

Page 50: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

PRICING

Page 51: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

BRANDING

Page 52: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and
Page 53: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and
Page 54: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

UMBRO- ZYKLON

Page 55: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

NEGOTIATIONS

Page 56: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

SOLUTIONS

Page 57: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Avoid cultural bias Language training Develop cross-cultural skills

TolerancePerceptivenessValuing personal relationshipsFlexibility and adaptability

Page 58: learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

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