1. BUS 470 INTERNATIONAL BUSINESS ISG BBA PROGRAM Spring semester Guillaume Sarrat de Tramezaigues www.gstblog.com Lecture 2 Chapter 2 Culture differences Tuesday, January 24th 2007

2. What is Culture?  Culture  The sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations.  Consists of learned patterns of behavior common to the members of a given society.  The unique lifestyle of a particular group of people.  Ethnocentricity  Considering your culture superior to all others

3. Sociocultural Components  Components of Culture  Aesthetics  Attitudes and beliefs  Religion  Material Culture  Education Language Societal organization Legal characteristics Political structures

4. Religion  Responsible for many of the attitudes and beliefs affecting human behavior.  Work Ethic  Protestant work ethic  Europeans and Americans generally view work as a moral virtue and look unfavorably on the idle.  Confucian work ethic  In Asian countries, this is the same as Protestant ethic.

5. Asian Religions Hinduism Caste system is basis of the social division of labor. Buddhism Jainism Sikhism (Indian) Confucianism Inseparable from Chinese culture Taoism Shintoism (Japan)

6. Islam  About 1.3 billion followers  This youngest faith is the second largest after Christianity (2 billion adherents).  Founder of Islam is Muhammad  Muhammad was not only the prophet of God but also the head of state.  In Muslim nations, there is no separation of church and state. Holy Book Koran Five Pillars of Faith Confession of faith Five daily prayers Giving charity Ramadan fast Pilgrimage to Mecca Jihad – holy war Two divisions Sunni and Shiites Conflict gives rise to violent clashes

7. Material Culture  Refers to all human-made objects  Concerned with how people make things and who makes what and why. Technology Mix of usable knowledge that society applies and directs toward attainment of cultural and economic objectives

8. Education Equips a person to take his or her place in adult society Yardsticks Literacy rate Must verify definition used Kinds, quality and enrollment of schools Amount per capita spent on education Vocationally trained groups Study trends

9. Education Brain Drain The emigration of highly educated professionals to industrialized nations Reverse Brain Drain The return of highly educated professionals to their home countries. Korea and Taiwan are luring home engineers and scientists Women’s Education Fall in illiteracy rate Most governments now provide education for both genders Educated women have fewer, healthier, and better educated children Educated women achieve higher labor force participation and wages

10. Spoken Language Language is the key to culture, and without it, people find themselves locked out of all but a culture’s perimeter Spoken languages demarcate cultures Switzerland four separate cultures Many languages can exist in a single country, but one usually serves as communication vehicle Lingua franca or link language English primary language of business

11. Unspoken Language Nonverbal communication, such as gestures and body language. Gestures vary tremendously from one region to another Closed doors convey different meanings Office size different in various cultures Conversational distance small in East Gift giving has specific etiquette in each culture Gift or bribe?

12. Societal Organization  Kinship  Extended family  Includes blood relatives and relatives by marriage.  This is a source of employees and business connections.  Member’s responsibility  Although the extended family is large, each member’s feeling of responsibility to it is strong.  Associations  Social units based on age, gender, or common interest, not on kinship.  Age  Manufacturers of consumer goods are well aware of the importance of segmenting a market by age groups.  This segmentation often cuts across cultures.

13. Understanding National Culture  Hofstede’s Dimensions of Culture  Individualism versus Collectivism  Large versus Small Power Distance  Strong versus Weak Uncertainty Avoidance  Masculinity versus Femininity