Fundamentals of International Business - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CHAPTER 3: What Is Culture? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Key Terms culture subculture counterculture rationalization monochronic polychronic spatial perception cultural dimensions Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Chapter Objectives By the time you finish this chapter, you should be able to: Analyze the ways in which cultural factors influence international business methods and operations Analyze differences across cultures in perceptions, interpretations, and attitudes that might affect how individuals work in another country Compare management and negotiation strategies in other countries with those in Canada Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Culture Defined Culture The knowledge, experience, beliefs, values, attitudes, religion, symbols, and possessions acquired by a group of people who have lived in the same region or country for generations. Culture is transmitted from one generation to the next through education and by example. © iStockphoto.com Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business What is your Culture? What knowledge, experience, beliefs, values, attitudes, religion, symbols, and possessions do you (and your friends & family) have that define your local culture? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business What is your Culture? How does culture become regional? Provincial? National? i.e. School, street names Earth Calendar http://www.earthcalendar.net/index.php Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Upcoming Cultural Celebrations TASK: Using the Earth Calendar, in groups of 2 – 3, quickly research an upcoming cultural event which you are not familiar with. Your group will quickly present the following information to the class in 1 - 2 minutes. Describe the celebration What does it involve? Where does it take place and by whom? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business For example: Today is Feast of St. Maron!! In Lebanon National holiday, paying tribute to this religious leader. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Cultural Artifact For next class, please bring a cultural artifact. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Cultural Artifact An item that displays valuable information about the society that made or used it. What qualifies as a cultural artifact? Burial coins, painted pottery, telephones or anything else that evidences the social, political, economic or religious organization of the people whom they belonged to can be considered cultural artifacts. Source: http://study.com/academy/lesson/cultural-artifact-definition-examples-quiz.html Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Cultural Imperialism A culture or viewpoint imposed onto another country (civilization). Can you think of any examples? Read: Pardon my French by Michael Kimmelman Answer the associated question. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Culture Defined Subculture A cultural group within a larger or predominant culture, distinguished from it by factors such as class, ethnic background, and religion, and unified by shared beliefs and interests. Metallers Hip Hop Goth OTHERS!? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Culture Defined Counterculture A culture that has values or lifestyles that are in opposition to those of the current accepted culture. Members of a counterculture openly reject the established cultural values that surround them. Examples of countercultures include punk, emo, nu metal, and gangsta rap. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Endangered Cultures Things to ponder… Why are these cultures threatened? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Task Newsworthy: Understanding Other Cultures Mexico’s Emo-Bashing Problem (Pg. 69 – Qs 1-2) Fallout Boy Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Read as a class: Canadians Make: Mukluks on Pg. 71 Discussion Questions: What do clothing styles say about local culture? i.e. a suit and tie indicates business dress. What are some cultural differences in clothing styles in other nations? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Clothing styles from around the world Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Cultural Differences Cultural determinants The main factors that shape the culture of a specific group. These include religion, politics, topography, climate, and history. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Task: A closer look at cultural differences In groups of 2-3 choose a foreign country and fill out the Cultural Differences Chart provided. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Questions: Are different cultural beliefs welcome in Canada? Yes – Canada is a cultural mosaic with the charter of rights and freedoms that provides legal recognition of everyone’s beliefs No – Certain cultural beliefs, such as the subjugation of women, go against what Canada stands for and are not welcome in this nation. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Cultural Differences - The Culture of Saudi Arabia Revolves around the religion of Islam Activity stops five times a day for prayer Friday is the holiest day for Muslims; weekend begins on Thursday and ends on Saturday Clothing is loose and flowing as climate is extremely hot Women must wear clothing that leaves only the hands, feet, and face bare Criminal cases are tried under sharia courts, which enforce a strict, conservative version of Sunni Islam for everyone even visitors Prescribed severe punishments include: death, or amputation of hands or feet for crimes such as murder, robbery, rape, drug smuggling, homosexual activity and adultery Used under license from Shutterstock, Inc. Canadians doing business in Saudi Arabia must study the cultural differences between the two nations to avoid major marketing mistakes or offending any Saudi business people during talks, meetings and negotiations Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Cultural Differences - The Culture of Japan Predominant religious beliefs are Shintoism and Buddhism Belief in the “natural order of things” has translated into hierarchical relationships among people, particularly in business i.e. an older person is higher in status than a younger one Western culture is embraced, but traditional Japanese culture is still dominant in terms of food choices, sports, and entertainment Definite sense of etiquette and rules of behaviour A Cdn. business person who fails to respect these traditions will be at a big disadvantage in any business transaction Used under license from Shutterstock, Inc. Chapter 3: WHAT IS CULTURE?

Fundamentals of International Business Gift Giving in Japan Expectations involving the tradition of gift giving in Japan are taken very seriously: Gifts should be informal when visiting someone’s house, but formal when meeting someone for the first time or when starting a business relationship The wrapping and presentation of the gift is more important than the gift itself Extravagant gifts are not appreciated (cause inequalities) Gifts should only be opened when invited to do so When entering a house, you must belittle your informal gift (“oh it is just a little something…”) and can only be presented when asked into the living room DO NOT belittle your gift to a business person, this is disrespectful Informal gifts may be brought in the bag it came in, but must be removed and presented with both hands to the person receiving the gift with the bag underneath Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Is gift giving wrong for a business? Yes – Can be viewed as a bribe or “kickback” for a company winning a contract No – Gift giving is an acceptable way for a company to thank a client for their business Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Cultural Awareness and Business Canadian firms that want to “go global” must determine the extent and importance of cultural differences between Canada and their target nations. They must decide whether and to what extent products and processes can be adapted to a foreign environment. Some cultural traits can be studied and learned; others can only be understood by living in a country and experiencing the culture first-hand. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Businesses Requiring Little Cultural Awareness Can you think of companies that do not need to spend a lot of time studying foreign culture? Apple E-bay sellers Exporters that sell online i.e. alibaba Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Businesses Requiring Significant Cultural Awareness Can you think of companies that need to spend a lot of time studying foreign culture? Thomson Reuters Bombardier Honda, Toyota, GM etc. (Car manufacturers) Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Task: Read pages 70-73 Answer questions 3.6 - 3.9 on page 73 Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

A. Lassonde Inc. – Case Study Manufactures Fairlee’s Cranberry Cocktail Would this be a suitable product to export? How much cultural awareness would be necessary to sell this product abroad? A. Lassonde is a good example of a multidomestic company. Thus, they require a high degree of cultural awareness to export successfully. A closer look Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business A. Lassonde Inc. Which of these ‘Actively Pursuing’ markets might like Farilee’s Cranberry Cocktail? What would you have to learn to truly understand that culture? Would this information be easy to find? If A. Lassonde had distribution agents in each of these countries that could report on beverage preferences of the culture there, how much easier would it be for the company to export successfully? What about their apple juice? What countries that you studied would require a significant amount of cultural awareness for Canadian Businesses? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Cultural Awareness and Business Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Our Tastes How have our tastes (food) changed in Canada as a result of being so multicultural? Is this a good thing? Why? Italy bans Kababs What about our seal hunt? Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Canada’s Seal Hunt http://www.dfo-mpo.gc.ca/fm-gp/seal-phoque/index-eng.htm Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Reading: The Frugal Republic China makes, the world takes http://www.newyorker.com/magazine/2009/12/07/the-frugal-republic Questions How are China’s spending habits different from the U.S.? Provide three example from the reading to support you answer. ( / 4 Marks) From your own personal experience how are China’s spending habits different from Canadians? ( / 4 Marks) Provide one example of how Canadian consumers are different than U.S. consumers. Provide an example of how they are similar. You can refer to the reading our draw on your personal experience. ( / 2 Marks) Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Activity 1 In groups of 2-3, research a Canadian-owned business in the service industry (other than financial services) that are having success abroad. i.e. biotech industries, construction companies, engineering firms, helicopter pilots, etc.) Prepare a brief report on the business Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Activity 2 Look into the cost of Mardi Gras costumes in New Orleans, Or costumes for Carnival festivals in Latin American nations (notably Rio de Janeiro) These are good examples of financial goals that the participants save for. Chapter 3: WHAT IS CULTURE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.