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Chapter 4: The Role of Culture

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1 Chapter 4: The Role of Culture
International Business, 4th Edition Griffin & Pustay ©2004 Prentice Hall

2 Chapter Objectives_1 Discuss the primary characteristics of culture
Describe the various elements of culture and provide examples of how they influence international business Identify the means by which members of a culture communicate with each other ©2004 Prentice Hall

3 Chapter Objectives_2 Discuss how religious and other values affect the domestic environments in which international businesses operate Describe the major cultural clusters and their usefulness for international managers Explain Hofstede’s primary findings about differences in cultural values Explain how ethical conflicts may arise ©2004 Prentice Hall

4 Culture Behaviors Values Culture Beliefs Attitudes Customs
©2004 Prentice Hall

5 Characteristics of Culture
Learned behavior Interrelated elements Adaptive Shared ©2004 Prentice Hall

6 Figure 4.1 Elements of Culture
Language Communication Social Structure Culture Values/ Attitudes Religion ©2004 Prentice Hall

7 Social Structure Individuals, families, and groups
Importance of family Definition of family Importance of individual relative to the group Social stratification – categorization based on birth, occupation, educational achievements Social mobility – ability to move from one stratum of society to another ©2004 Prentice Hall

8 Language 3000+ different languages worldwide
10,000+ different dialects Primary delineator of cultural groups Lingua Franca English is the common language of international business ©2004 Prentice Hall

9 Map 4.1 World Languages ©2004 Prentice Hall

10 Map 4.2 Africa’s Colonial Heritage
©2004 Prentice Hall

11 Translation Disasters
KFC’s Finger Lickin’ Good Eat your fingers off (China) Pillsbury’s Jolly Green Giant Intimidating green ogre (Saudia Arabia) ©2004 Prentice Hall

12 Yes and No Across Cultures
Latin America meaning of “manana” Japan meaning of “yes” versus “yes, I understand” ©2004 Prentice Hall

13 Caterpillar has developed its own simplified language instruction program –Caterpillar Fundamental English ©2004 Prentice Hall

14 Table 4.1 Forms of Nonverbal Communication_1
Hand gestures Facial expression Posture and stance Clothing/ hair style Walking behavior Interpersonal distance Touching Eye contact Architecture/ Interior design Artifacts and non-verbal symbols Graphic symbols ©2004 Prentice Hall

15 Table 4.1 Forms of Nonverbal Communication_2
Art and rhetorical forms Smell Speech rate, pitch, inflection, volume Color symbolism Synchronization of speech and movement Taste, symbolism of food, oral gratification Cosmetics Sound signals Time symbolism Timing and pauses Silence ©2004 Prentice Hall

16 adheres to one of these four religions!
Christianity Catholicism Protestant Eastern Orthodox Islam Hinduism Buddhism 72% of the world adheres to one of these four religions! ©2004 Prentice Hall

17 Map 4.3 Major World Religions
©2004 Prentice Hall

18 Two million Muslims annually descend on the Grand Mosque in Mecca, Saudia Arabia as part of the Haij
©2004 Prentice Hall

19 Values and Attitudes Values: accepted principles and standards
Attitudes: actions, feelings, and thoughts that result from values Time Age Education Status ©2004 Prentice Hall

20 Theories of Culture Hall’s Low-Context, High-Context Approach
Cultural Cluster Approach Hofstede’s Five Dimensions ©2004 Prentice Hall

21 Hall’s Low-Context, High-Context Approach
Low-context: words used by speaker explicitly convey speaker’s message High-context: the context in which a conversation occurs is just as important as the words spoken; cultural clues are critical to communication ©2004 Prentice Hall

22 Figure 4.2 High- and Low-Context Cultures
U.S./ Canadian Scandinavian Vietnamese Japanese German Spanish Chinese Britain Korean Italian Swiss Greek Arab ©2004 Prentice Hall

23 Map 4.4 A Synthesis of Country Clusters
©2004 Prentice Hall

24 Table 4.2 Cultural Differences in Negotiating Styles
©2004 Prentice Hall

25 Hofstede’s Five Dimensions
Social Orientation Power Orientation Uncertainty Orientation Goal Orientation Time Orientation ©2004 Prentice Hall

26 Social Orientation Individualism Collectivism
Relative importance of the interests o the individual versus interests of the group ©2004 Prentice Hall

27 power/authority within
Power Orientation Power Respect Power Tolerance Appropriateness of power/authority within organizations ©2004 Prentice Hall

28 Uncertainty Orientation
Uncertainty Acceptance Uncertainty Avoidance An emotional response to uncertainty and change ©2004 Prentice Hall

29 to achieve different goals
Goal Orientation Aggressive Goal Behavior Passive Goal Behavior What motivates people to achieve different goals ©2004 Prentice Hall

30 Time Orientation Long-term Outlook Short-term Outlook
The extent to which members of a culture adopt a long-term or a short-term outlook on work and life ©2004 Prentice Hall

31 Figure 4.4 Social Orientation and Power Orientation Patterns
©2004 Prentice Hall

32 Understanding New Cultures
Self-reference criterion Cultural literacy Acculturation ©2004 Prentice Hall

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