AOF Business in a Global Economy Unit 2, Lesson 3 The Elements of Culture Copyright © 2009–2012 National Academy Foundation. All rights reserved.

There are three elements to culture 1.Linguistic: spoken and unspoken language 2.Organizational: the structures of society 3.Social: institutions, values, and attitudes What are the potential costs to a global business that ignores cultural differences?

Fluent speakers are essential to global businesses Fluency in the local business language(s) facilitates: Information gathering Access to local economies Correct interpretations/translations Good business relationships When and why should companies pay for their employees to learn another language?

Nonverbal communication has power Gestures Proximity Eye contact Which gestures in American business are considered polite?

Culture affects technology and finance Transportation Communication Energy Banks Research and development How can a country’s access to energy resources impact its global business dealings?

Social institutions are defined by culture Religion Family Education How did an educated work force change Japan’s economic destiny after World War II?

Attitudes are strongly influenced by culture Time perception Aesthetics Gender roles Should American companies send their female employees to countries that don’t consider women the equals of men?

Values reflect cultural beliefs Social stratification Manners Customs What American customs should foreign businesspeople be aware of?

Cultural awareness is essential in global business Each culture’s language, organizational, and social structures make it unique! Success in business is about making relationships. Learning about business partners’ cultures shows respect.