The Social Cultural ,Political, Legal, Regulatory Environment

Culture’s Pervasive Impact Culture affects every part of our lives, every day, from birth to death, and everything in between. 2 It affects how we spend money and how we consume in general. It even affects how we sleep.

The point is that culture matters The point is that culture matters. 7 It is imperative for foreign marketers to learn to appreciate the intricacies of cultures different from their own if they are to be effective in foreign markets.

Definitions and Origins of Culture Most traditional defi nitions of culture center around the notion that culture is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation.

Geography Geographical influences manifest themselves in our deepest cultural values developed through the millennia, and as geography changes, humans can adapt almost immediately.

History The impact of specific events in history can be seen reflected in technology, social institutions, cultural values, and even consumer behavior

The Political Economy For most of the 20th century, four approaches to governance competed for world dominance: colonialism, fascism, communism, and democracy/free enterprise. Fascism fell in 1945. Colonialism was also a casualty of World War II, though its death throes lasted well into the second half of the century. Communism crumbled in the 1990s.

Technology

Social Institutions Social institutions including family, religion, school, the media, government , and corporations all affect the ways in which people relate to one another, organize their activities to live in harmony with one another, teach acceptable behavior to succeeding generations, and govern themselves.

Elements of Culture culture was defi ned by listing its fi ve elements: values, rituals, symbols, The elements of culture beliefs, and thought processes. International marketers must design products, distribution systems, and promotional programs with due consideration of each of the five.

Cultural Values Underlying the cultural diversity that exists among countries are fundamental differences in cultural values , that is, the importance of things and ideas

Rituals rituals , that is, patterns of behavior and interaction that are learned and repeated. The most obvious ones are associated with major events in life. Marriage ceremonies and funerals are good examples.

Symbols Language Aesthetics as Symbols arts, folklore, music, drama, dance, dress, and cosmetics

Beliefs Much of what we learn to believe comes from religious training. The relationship between superstition and religion is not at all clear.

The Political Environment The Sovereignty of Nations Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members. Stability of Government Policies The ideal political climate for a multinational firm is a stable,Unfortunately, governments are not always stable and friendly, nor do stable, friendly governments always remain

Forms of Government The common terms for these forms in use today are monarchy (or dictatorship), aristocracy (or oligarchy), and democracy

The International Legal Environment Bases for Legal Systems Four heritages form the bases for the majority of the legal systems of the world: (1) common law, derived from English law and found in England, the United States, Canada, and other countries once under English influence; (2) civil or code law, derived from Roman law and found in Germany, Japan, France, and non-Islamic and non-Marxist countries; (3) Islamic law, derived from the interpretation of the Koran and found in Pakistan, Iran, Saudi Arabia, and other Islamic states; and (4) a commercial legal system in the Marxist–socialist economies of Russia and the republics of the former Soviet Union, Eastern Europe, China, and other Marxist– socialist states whose legal system centered on the economic, political, and social policies of the state.