International Business, 8th Edition Griffin & Pustay Copyright © 2015 Pearson Education, Inc.

Copyright © 2015 Pearson Education, Inc. Learning Objectives Discuss the primary characteristics of culture Describe the various elements of culture and provide examples of how they influence international business Identify the means by which members of a culture communicate with each other Discuss how religious and other values affect the domestic environments in which international businesses operate Describe the major cultural clusters and their usefulness for international managers Explain Hofstede’s primary findings about differences in cultural values Explain how cultural conflicts may arise in international business Copyright © 2015 Pearson Education, Inc.

Characteristics of Culture Culture is the collection of values, beliefs, behaviors, customs, and attitudes that distinguish one society from another Characteristics Of Culture Learned behavior Interrelated Adaptive Shared Copyright © 2015 Pearson Education, Inc.

Copyright © 2015 Pearson Education, Inc. Elements of Culture Copyright © 2015 Pearson Education, Inc.

Elements of Culture: Social Structure Individuals, Families, and Groups Defining family Individual’s role within groups Importance of the individual relative to the group Social Stratification Attributes Highly stratified societies Less stratified societies Social mobility Low social mobility Socially mobile societies Copyright © 2015 Pearson Education, Inc.

Elements of Culture: Language Delineates cultural groups Shapes one’s perceptions of the world Filters observations and perceptions Provides important clues about the cultural values of the society Offers indications about the diversity of a country’s population Copyright © 2015 Pearson Education, Inc.

Elements of Culture: Communication Nonverbal Communication Facial Expressions Hand Gestures Intonation Eye Contact Body Positioning Body Posture Copyright © 2015 Pearson Education, Inc.

Elements of Culture: Communication Gift-Giving and Hospitality Important means of communication Different gift giving etiquettes Hospitality customs also differ Communicating bad news Copyright © 2015 Pearson Education, Inc.

Elements of Culture: Religion Copyright © 2015 Pearson Education, Inc.

Elements of Culture: Religion Shapes attitudes of adherents Constraints the roles of individuals in society Affects consumer buying behavior Affects seasonal patterns of consumption Impact on international businesses Legal system Homogeneity of religious beliefs Tolerance Copyright © 2015 Pearson Education, Inc.

Elements of Culture: Values and Attitudes Time Age Education Status Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: The Cultural Cluster Approach Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: The Cultural Cluster Approach Internationalization strategies Foreign Market Entry Methods Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: Hofstede’s Five Dimensions Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: Social Orientation Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: Power Orientation Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: Uncertainty Orientation Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: Goal Orientation Copyright © 2015 Pearson Education, Inc.

Seeing the Forest, Not the Trees: Time Orientation Short-Term Long-Term Copyright © 2015 Pearson Education, Inc.