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©2004 Prentice Hall3-1 Joint venture between Volkswagen and the Shanghai Automotive Industry Group
©2004 Prentice Hall3-2 Intellectual Property Patents Copyrights Trademarks Brandnames Intellectual property often forms the basis of a firm’s competitive advantage!
©2004 Prentice Hall3-3 International Treaties Protecting Intellectual Property Rights International Convention for the Protection of Industrial Property Rights (i.e., the Paris Convention) Berne Convention for the Protection of Literary and Artistic Works Universal Copyright Convention Trade-Related Intellectual Property Rights agreement
©2004 Prentice Hall3-4 Figure 3.2 Software Revenue Lost to Piracy
©2004 Prentice Hall3-5 Political Risk Ownership risk Operating risk Transfer risk
©2004 Prentice Hall3-6 Table 3.1 Examples of Political Risks Expropriation Confiscation Campaigns against foreign goods Mandatory labor benefits legislation Civil wars Inflation Kidnappings, terrorist threats, and other forms of violence Repatriation Currency devaluations Increased taxation
©2004 Prentice Hall3-7 Basic Country Knowledge Is the country a democracy or dictatorship? Does country rely on free market or government controls? Does government view foreign firms as positive influence? Are firm’s customers private or public? Does government act arbitrarily? Is existing government stable?
©2004 Prentice Hall3-8 Insurance against Political Risks Overseas Private Investment Corporation (OPIC) Multilateral Investment Guarantee Agency (MIGA)
©2004 Prentice Hall3-9 Map 3.2 Countries’ Relative Political Riskiness, 2002
©2004 Prentice Hall3-10 Translation Disasters KFC’s Finger Lickin’ Good –Eat your fingers off (China) Pillsbury’s Jolly Green Giant –Intimidating green ogre (Saudia Arabia) Google Translation Tool Google –“The quick fox jumped over the picket fence.”
©2004 Prentice Hall3-11 Yes and No Across Cultures Latin America –meaning of “manana” Japan –meaning of “yes” versus “yes, I understand”
©2004 Prentice Hall3-12 Caterpillar has developed its own simplified language instruction program –Caterpillar Fundamental English
©2004 Prentice Hall3-13 Table 4.1 Forms of Nonverbal Communication_1Nonverbal 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 Hall3-14 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 Hall3-15 Religion Christianity –Catholicism –Protestant –Eastern Orthodox Islam Hinduism Buddhism 72% of the world adheres to one of these four religions!
©2004 Prentice Hall3-16 Map 4.3 Major World Religions
©2004 Prentice Hall3-17 Two million Muslims annually descend on the Grand Mosque in Mecca, Saudia Arabia as part of the Haij
©2004 Prentice Hall3-18 Values and Attitudes Values: accepted principles and standards Attitudes: actions, feelings, and thoughts that result from values –Time –Age –Education –Status
©2004 Prentice Hall3-19 Theories of Culture Hall’s Low-Context, High-Context Approach Cultural Cluster Approach Hofstede’s Five Dimensions
©2004 Prentice Hall3-20 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 Hall3-21 Figure 4.2 High- and Low-Context Cultures GermanSwissScandinavianU.S./ CanadianBritainItalianSpanishGreekArabVietnameseJapaneseKoreanChinese Low Context High Context
©2004 Prentice Hall3-22 Map 4.4 A Synthesis of Country Clusters
©2004 Prentice Hall3-23 Table 4.2 Cultural Differences in Negotiating Styles
©2004 Prentice Hall3-24 Hofstede’s Five Dimensions Social Orientation Power Orientation Uncertainty Orientation Goal Orientation Time Orientation
©2004 Prentice Hall3-25 Social Orientation IndividualismCollectivism Relative importance of the interests of the individual versus interests of the group
©2004 Prentice Hall3-26 Power Orientation Power Respect Power Tolerance Appropriateness of power/authority within organizations
©2004 Prentice Hall3-27 Uncertainty Orientation Uncertainty Acceptance Uncertainty Avoidance An emotional response to uncertainty and change
©2004 Prentice Hall3-28 Goal Orientation Aggressive Goal Behavior Passive Goal Behavior What motivates people to achieve different goals
©2004 Prentice Hall3-29 Time Orientation Long-term OutlookShort-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 Hall3-30 Figure 4.4 Social Orientation and Power Orientation Patterns
©2004 Prentice Hall3-31 Understanding New Cultures Self-reference criterion – when we act ignorantly in other cultures. Cultural literacy – is learned. Acculturation – is cultural literacy in practice.
1 Forms of International Business Trade International licensing of technology and intellectual property (trademarks, patents and copyrights) Foreign direct.
legal, technological, and political forces
Intercultural Management Effective Communication in a Global Environment.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Welcome to class of Sociocultural aspects of International Business by Dr. Satyendra Singh University of Winnipeg Canada.
What is International Business? Business transactions between parties from more than one country –Buying & selling raw materials, finished goods, or.
Managing in a Global Environment
Copyright Atomic Dog Publishing, 2002 Cultural Influences on International Marketing Dana-Nicoleta Lascu Chapter 5.
Chapter 3- Communicating Interculturally
Chapter 4: The Role of Culture
Chapter 3: Legal, Technological, and Political Forces
© 2013 Cengage Learning. All rights reserved. CHAPTER 3 GLOBAL2 PENG © David Lomax/Robert Harding/Glowimages.com 1.
1 Professional Communications Communication Process: Nonverbal Strategies & The Listening Process Copyright © Texas Education Agency, All rights.
Cultural Dynamics What is culture? Cultural values - Hofstede
Communicating in a World of Diversity
PART TWO COMPARATIVE ENVIRONMENTAL FRAMEWORKS International Business Chapter Two The Cultural Environments Facing Business.
What does your body say?. all messages that are not expressed as words.
International Business, 8th Edition
1 PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University.
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