cultural environ
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The Cultural EnvironmentsFacing Business
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Culture DefinedCulture: the specific learned norms of a
societythat reflect attitudes, values, andbeliefs
Major problems of cultural collision are likely tooccur if:
-a firm implements practices that do notreflect local customs and values and/or
-employees are unable to accept or adjustto foreign customs.
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Fig. 2.1: Cultural Influences
on International Business
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Cultural Dynamics
Culturesconsist of societies, i.e., relativelyhomogeneous groups of people, who shareattitudes, values, beliefs, and customs.
Cultures are dynamic; they evolve over time. Cultural value systems are set early in life,
but may change because of:
-choice or imposition
-contact with other cultures.
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The Nation as a Point of Reference
The basic similarity amongst people within
countries is both a cause and an effect ofnational boundaries.
National identity is perpetuated throughthe rites and symbols of a country and a
common perception of history.
Subcultures may link groups from different nationsmore closely than certain groups within nations.
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Cultural Formation and Change
Societal values and customs constantlyevolve in response to changing realities.
Cultural imperialismis brought about by
the imposition of one culture upon that ofanother.
Certain elements introduced from outside
a culture may be known as creolization,indigenization, or cultural diffusion.
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Language as a Cultural Stabilizer
Isolation from other groups, especially
because of language, tends to stabilizecultures.
Some countries see language as being soimportant that they regulate the inclusion
of foreign words and/or mandate the use
of the countrys official language forbusiness purposes.
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Map 2.2: Major Languages
of the World
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Fig. 2.2: Importance of Major
Language Groups: Two Views
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Religion as a Cultural Stabilizer Religion is a major source of both cultural
imperatives and cultural taboos. Major religions include:
-Buddhism
-Christianity
-Hinduism
-Islam-Judaism
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Map 2.3: Major Religions
of the World
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Social Stratification Systems Ascribed group membershipsare defined
at birth; they may include gender, family,age, caste, and ethnic or national origin.
Acquired group membershipsare based
on ones choice of affiliation, such aspolitical party, religion, and social andprofessional organizations.
Social stratification affects both business strategyand operational practices.
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Factors Affecting Work Ethics The desire for material wealth vs. the
desire for leisure (Protestant Ethic) The expectation of success and reward
Assertiveness (Hofstedesmasculinity vs.femininity index)
Needs satisfaction (Maslows Hierarchy)
Motivated employees are normally more productive,and higher productivity leads to lower costs.
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Fig. 2.4: The Hierarchy of Needs
and Need-Hierarchy Comparisons
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Factors Affecting Relationship
Preferences
Power distance, i.e., the psychological andsocial distance between superiors andsubordinates
Individualism vs. collectivismIndividualismrepresents a desire for personal
freedom, time, and challenge.
Collectivismrepresents a dependence on theorganization as well as a need for a safeenvironment.
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Factors Affecting Risk-taking
Behavior
Uncertainty avoidance, i.e., ones tolerance
of risk
Trust, i.e., ones belief in the reliability and
honesty of another Future orientation, i.e., the need for
immediate vs. delayed gratification
Fatalism, i.e., the belief that life is pre-destined, that events are the will of God
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Factors Affecting Information and
Task Processing
Selective perception of cues
Communication context
-low-context cultures[explicit]
-high-context cultures[implicit] Information processing
-monochronic[work sequentially]
-polychronic[multi-task]Whereas idealistic cultures are principle driven,pragmatic cultures are detail driven.
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Factors Affecting the
Communication Process
Spoken language Written language Silent language
-color associations-conversational distance
-perception of time-kinesics [body language and gestures]
Problems in communication may arise, evenwhen nations share the same basic language(e.g., British, Canadian, and American English).
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Managerial Issues Associated with
Cultural Differences
Accommodation of foreigners
Cultural distance[degree of similarity]
Culture shockand reverse culture shock Managerial orientations
polycentric
ethnocentric
geocentric
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Map 2.4: A Synthesis of
Country Clusters
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Factors Affecting Strategies forInstituting Cultural Change
Value systems Cost/benefits of change
Resistance to change
Participation in decision-making
Reward sharing
Role of opinion leaders Timing
Opportunities to learn from abroad
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Implications/Conclusions
Culture is dynamic and evolves over time.
Economic development and globalization
are two engines of cultural change.
In addition to being part of a nationalculture, people are simultaneously part of
other cultures, such as social and
professional associations and businessand government organizations. [continued]
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Host cultures do not always expect firms
and individuals to conform to their norms;in some instances they may choose toaccommodate differences in traditions.
International firms should make aconcerted effort to identify ideas andbehaviors in host countries and foreign
cultures that can be usefully appliedacross the whole of their organizations.
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Determinants of Culture
Culture:
Norms andValue
Systems
Education
EconomicPhilosophy
Political
Philosophy
Religion
Language Social
Structure
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Worlds Religions
10%
43%
18%
20%
5%4%
Christian
Islam
HinduBuddhist
Confucian
Other/Nonreligious
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Spoken Language
20%
6%5% 4%
3%
62%
Other
Chinese
EnglishHindi
Russian
Spanish
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