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

c. 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.

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

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 ABSTRACT ELEMENTS

•Language •Religion
Verbal
•Values and attitudes
Nonverbal
•Manners and customs
•Infrastructure
•Aesthetics
•Education
•Social Institutions

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

Top Ten World Languages

Convey messages through spoken
Population word and nonverbal gestures,
Language (in millions) body position and eye contact.
1. Chinese, Mandarin 885
2. Spanish 332
3. English 322
4. Bengali 189 • Aides information gathering and
5. Hindi 182 evaluation.
6. Portuguese 170
• Provides local society access.
7. Russian 170
8. Japanese 125 • Reduces risk of errors.
9. German, Standard 98
10. Chinese, W u 77 • Extends beyond the mechanics of
SOURCE: Adapted from Barbara F. Grimes, Ethnologue, 13th
communication in accurate
ed. (Summer Institute of Linguistics, Inc.:1996), accessed from
http://www.infoplease.com, downloaded January 2, 2003
interpretation of cultural contexts.
Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Infrastructure

Economic

Social

Financial
and
Marketing

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.

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

“…affect the way people relate to each other”

 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.

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.

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

Attitudes
Evaluations of
alternatives based on
values

Values
Shared beliefs or group
norms internalized by
individuals

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

Manners and
Customs

Attitudes
Religion

Values

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.

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

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

GMAC Global

Cultural knowledge is:

•factual
•experiential

Increased cultural
sensitivity training and
formal training programs
help to avert culture
shock.

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