1. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

2. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. What We Are Striving To Accomplish? 1.To understand the effects of cultural differences on international business. 2.To illustrate the risks involved in cross-cultural business communications and transactions. 3.To suggest ways in which international businesses act as change agents in the diverse cultural environments in which they operate. 4.To examine how cultural knowledge is acquired and how individuals and organizations prepare for cross-cultural interaction.

3. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. What is Culture? Integrated system of learned behavior patterns that are characteristic of the members of any given society. Context Orientation in Major Cultures

4. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Elements of Culture CONCRETE ELEMENTS Language Verbal Nonverbal Infrastructure Education Social Institutions ABSTRACT ELEMENTS Religion Values and attitudes Manners and customs Aesthetics

5. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Languages Language Population (in millions) SOURCE: Adapted from Barbara F. Grimes, Ethnologue, 13th ed. (Summer Institute of Linguistics, Inc.:1996), accessed from http://www.infoplease.com, downloaded January 2, 2003 Top Ten World Languages Aides information gathering and evaluation. Provides local society access. Reduces risk of errors. Extends beyond the mechanics of communication in accurate interpretation of cultural contexts. Convey messages through spoken word and nonverbal gestures, body position and eye contact.

6. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Infrastructure Economic Financial and Marketing Social

7. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Education Education is a means of passing on and the sharing of culture. Education levels will have an impact on the different business functions.

8. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.  Social Stratification - division of a particular population into classes  Reference Group - a group, such as the family, coworkers, and professional and trade associations, that provides the values and attitudes that influence and shape behavior, including consumer behavior. Social Institutions “…affect the way people relate to each other”

9. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Religion Has an impact on international marketing that is seen in a culture’s values and attitudes toward entrepreneurship, consumption, and social organization.

10. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Values and Attitudes Values Shared beliefs or group norms internalized by individuals Attitudes Evaluations of alternatives based on values

11. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Manners and Customs Religion Values Attitudes Manners and Customs

12. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Aesthetics Colors, forms, music and symbolism may have to be changed according to culture.

13. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Understanding Cultural Differences Four Dimensions of Culture Individualism Power distance Uncertainty avoidance Masculinity

14. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Gaining Cultural Knowledge Cultural knowledge is: factual experiential Increased cultural sensitivity training and formal training programs help to avert culture shock. GMAC Global