International Business: The Challenges of Globalization PDF

International Business: The Challenges of Globalization Tenth Edition Chapter 3 Cross-Cultural Business Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Lear...

International Business: The Challenges of Globalization Tenth Edition Chapter 3 Cross-Cultural Business Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Learning Objectives 3.1 Explain culture and the need for cultural knowledge. 3.2 Summarize the cultural importance of values, attitudes, and behavior. 3.3 Describe the roles of social structure and education in culture. 3.4 Outline how the major world religions can influence business. 3.5 Explain the importance of personal communication to international business. 3.6 Describe how firms and culture interact in the global workplace. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Vans: Off The Wall! Popular shoe and action sports apparel brand Focused on the values and attitudes of the global skateboarder subculture – Creative self-expression – Authenticity – Individuality Gained customer loyalty and Sergei Bachlakov/Shutterstock word-of-mouth support Benefitted from global spread of skater/surfer pop culture trend Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved What Is Culture? Set of values, beliefs, rules, and institutions held by a specific group of people Cultural convergence – Pop Idol – American Idol – Iraq Idol Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved What is Culture: Cross-Cultural Literacy Avoiding Ethnocentricity Belief that one’s own ethnic group or culture is superior to that of others Developing Cross-Cultural Literacy Detailed knowledge about a culture that enables a person to work happily and effectively within it Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Figure 3.1: Cross-Cultural Literacy Attributes and Skills Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved What is Culture: National Culture Nation-states support and promote the concept of national culture. – Building museums and monuments to preserve the legacies of important events and people Nation-states intervene in business to preserve treasures of national culture. – Regulate culturally sensitive sectors of the economy Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved What Is Culture: Subcultures A group of people who share a unique way of life within a larger, dominant culture – A subculture can differ from the dominant culture in language, race, lifestyle, values, attitudes, or other characteristics. – Subcultures sometimes exist across national borders. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Photo and Discussion Points (1 of 5) Simone Della Fornace/500px/Getty Images Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved What is Culture: Physical Environment Land features affect personal communication in a culture. Physical environment affects consumers’ product needs. Climate can play a role in determining work habits. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Figure 3.2: Components of Culture Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved What is Culture: Material Culture All the technology used in a culture to manufacture goods and provide services – Can display uneven development across a nation’s geography, markets, and industries ▪ Shanghai, home to 1% of China’s population, accounts for 5% of China’s total output Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Quick Study 3.1 1. What is the term for detailed knowledge about a culture that enables a person to work happily and effectively within it? 2. How might a subculture differ from the dominant culture? 3. What is the difference between physical environment and material culture? Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Values, Attitudes, and Behavior: Values Ideas, beliefs, and customs to which people are emotionally attached – Include concepts such as honesty, freedom, and responsibility Values are important to business because they affect a people’s work ethic and desire for material possessions. The influx of values from other cultures can be fiercely resisted. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Values, Attitudes, and Behavior: Attitudes Positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts. – Attitudes are learned from role models, including parents, teachers, and religious leaders – Differ from one country to another because they are formed within a cultural context Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Values, Attitudes, and Behavior: Aesthetics Comprise those aspects a culture considers “good taste” in the arts, the imagery evoked by certain expressions, and the symbolism of certain colors – Includes the art, images, symbols, colors, and so on Aesthetics are important when a company does business in another culture. – The importance of aesthetics is just as great when going international using the internet. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Photo and Discussion Points (2 of 5) Richard Komla Goh/Shutterstock Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Values, Attitudes, and Behavior: Behaviors Manners Appropriate ways of behaving, speaking, and dressing in a culture Customs Habits or ways of behaving in specific circumstances that are passed down through generations in a culture Folk Custom – Behavior, often dating back several generations, that is practiced by a homogeneous group of people Popular Custom – Behavior shared by a heterogeneous group or by several groups Gift Giving Customs Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Culture Insights: A Globetrotter’s Guide to Meetings Helpful tips for a manager meeting colleagues in or from another culture: – Familiarity – Personal space – Business cards – Comedy – Body language Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Quick Study 3.2 1. What are examples of values? 2. What type of custom might a conservative group oppose in a culture? 3. How might the practice of gift giving differ across countries? Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Religion: Christianity Christianity was born in Palestine around 2,000 years ago. Christianity boasts more than 300 denominations: – Most Christians belong to the Roman Catholic, Protestant, or Eastern Orthodox churches. With 2 billion followers, Christianity is the world’s single largest religion. Christian organizations sometimes get involved in social causes that affect business policy. – Walt Disney Company boycotts – Ryanair ad campaigns Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Religion: Islam With 1.3 billion adherents, Islam is the world’s second- largest religion. – The prophet Muhammad founded Islam around A.D. 600 in Mecca. – Islam thrives in North Africa, the Middle East, Central Asia, Pakistan, and some Southeast Asian nations, including Indonesia. – Muslim concentrations are also found in most European and U.S. cities. Islam revolves around the “five pillars” of faith. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Map 3.3: Most Numerous Religions by Region Source: Adapted from Figure 6-7: Most Numerous Religions by Region, in (Revel) James Rubenstein, Human Geography: The Cultural Landscape, 13e (2020), by Pearson Education. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Religion: Hinduism Hinduism formed around 4,000 years ago in present-day India. – More than 90 percent of Hinduism’s 900 million adherents live in India. – It is also the majority religion of Nepal and a secondary religion in Bangladesh, Bhutan, and Sri Lanka. Considered by some to be a way of life rather than a religion Hindus tend to disdain materialism. – Strict Hindus do not eat or willfully harm any living creature because it may be a reincarnated human soul. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Photo and Discussion Points (3 of 5) Vivek BR/Shutterstock Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Religion: Buddhism Buddhism was founded about 2,600 years ago in India. – Buddhism has around 380 million followers, mostly in China, Tibet, Korea, Japan, Vietnam, and Thailand. Unlike Hinduism, Buddhism rejects the caste system of Indian society. Like Hinduism, Buddhism promotes a life centered on spiritual rather than worldly matters. In a formal ceremony, Buddhists take refuge in the “three jewels”: – Buddha, Dharma, and Sangha Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Religion: Judaism More than 3,000 years old, Judaism was the first religion to preach belief in a single God. Judaism has roughly 18 million followers worldwide. Important days in the Jewish faith: – Sabbath, Rosh Ha-Shanah, Yom Kippur, Passover, and Hanukkah Marketers must take into account foods that are banned among strict Jews. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Religion: Confucianism Confucius began teaching his ideas in China nearly 2,500 years ago. Today, millions of people across Asia say they follow Confucian ethical principles in their daily lives. Confucian thought is also ingrained in the cultures of Japan, South Korea, and nations with large numbers of ethnic Chinese. South Korean business practice reflects Confucian thought in its organizational structure. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Quick Study 3.4 1. Which denomination of Christianity has a “work ethic” named after it? 2. How might practicing Islam affect a person’s consumption choices? 3. India is home to more than 90 percent of the adherents of which religion? Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Personal Communication Communication System of conveying thoughts, feelings, knowledge, and information through speech, writing, and actions – Spoken language – Body language Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Personal Communication: Spoken and Written Language Spoken and Written Language – Implications for managers – Language blunders – Lingua franca ▪ Third or “link” language understood by two parties who speak different native languages Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Personal Communication: Body Language Language communicated through unspoken cues, including hand gestures, facial expressions, physical greetings, eye contact, and the manipulation of personal space – Can be subtle and take time to interpret Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Photo and Discussion Points (4 of 5) Sorapop Udomsri/123R F; khosrork/123RF; Gratsias Adhi Hermawan/123R F Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Quick Study 3.5 1. Every culture has a communication system that it uses to convey what? 2. What is the name for a special language understood by two parties who speak different native languages? 3. What are some interesting facts about body language? Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Culture in the Global Workplace: Perception of Time People in different cultures often perceive time differently. – People in polychronic time (P-time) cultures tend to engage less in advance planning and to do things according to their own schedule. – People in monochromic time (M-time) cultures tend to prefer well-defined, advance schedules for deadlines, meetings, and so forth. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Culture in the Global Workplace: View of Work Some cultures display a strong work ethic, while others achieve more balance in juggling work and leisure. – In France, some people claim to work to live. – In the United States, some people claim to live to work. Culturally literate managers understand the complexity of workplace attitudes and adjust reward systems accordingly. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Culture in the Global Workplace: Cultural Change (1 of 2) Cultural trait Anything that represents a culture’s way of life, including gestures, material objects, traditions, and concepts Cultural diffusion Process whereby cultural traits spread from one culture to another – Cultural change Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Culture in the Global Workplace: Cultural Change (2 of 2) Cultural imperialism Replacement of one culture’s traditions, folk heroes, and artifacts with substitutes from another – When companies change cultures ▪ Walt Disney Company ▪ McDonald’s – When cultures change companies ▪ Situational management Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Photo and Discussion Points (5 of 5) Carlo Falk/Shutterstock Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Culture in the Global Workplace: Kluckholn-Strodtbeck Framework Kluckholn-Strodtbeck framework Framework for studying cultural differences along six dimensions, such as focus on past or future events and belief in individual or group responsibility for personal well-being Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Case: Japanese Culture Applying the Kluckholn-Strodtbeck framework: 1. Japanese believe in a delicate balance between people and environment that must be maintained. 2. Japanese culture emphasizes the future. 3. Japanese culture treats people as quite trustworthy. 4. Japanese are accomplishment-oriented—not necessarily for themselves, but for their employers and work units. 5. Japanese culture emphasizes individual responsibility to the group and group responsibility to the individual. 6. The culture of Japan tends to be public. Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Culture in the Global Workplace: Hofstede Framework Hofstede Framework Framework for studying cultural differences along six dimensions: – Individualism versus collectivism – Power distance – Uncertainty avoidance – Masculinity v s. femininity ersu – Long-term orientation – Indulgence versus restraint Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Some National Scores on the Hofstede Dimensions Countries ranking high on: – Individualism: United States, Australia, and Great Britain – Power Distance: Russia, Mexico, and China – Uncertainty Avoidance: Russia, Japan, and France – Masculinity: Japan, Mexico, and Germany – Long-Term Orientation: South Korea, Japan, and China – Indulgence: Mexico, Africa West, and Chile Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Quick Study 3.6 1. What is the difference between P-time and M-time cultures? 2. What is an example of cultural imperialism? 3. The Kluckhohn-Strodtbeck framework studies culture along what dimensions? 4. What are the six main cultural dimensions analyzed in the Hofstede framework? Copyright © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved Copyright This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. 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