International Business II Instructor: Evrim Tören MGMT. 416 International Business II Instructor: Evrim Tören

Chapter 5 Sociocultural Forces

Six rules for doing business across cultures: Be prepared Slow down Establish trust Understand the importance of language Respect the host culture Understand the components of culture

Components of culture Surface culture: Styles, food, etc. Deep culture: Attitudes, beliefs, values, etc.

What is culture? It is the sum total of beliefs, rules, techniques, institutions, and artifacts that characterize a human population. Culture consists of the learned patterns of behaviour common to the members of a given society; the unique lifestyle of a particular group of people.

Cultures change Culture is learned, not innate. The various aspects of culture is interrelated. Culture is shared. Culture defines the boundaries of different groups

Ethnocentricity is considering one’s culture as superior to others To learn different cultures; One should spend a long time living in that country One should undergo an extensive, sophisticated training program including learning the language

China - Yunnan The Moso people of Lake Lugu, in Northern Yunnan, are matriarchal, with extended families living together under a female head of the house, property descending through the female line, and informal marriages in which the husband is seldom invited to live in his wife’s home. They speak their own language, wear their own colorful clothes, and practise their own religion.

Components of Culture Aesthetics Attitudes and beliefs Religion Material culture Education Language Societal organization Legal characteristics Political structures

Drama is expressed in plays, movies, shows, TV programs. 1. Aesthetics is a culture’s sense of beauty and good taste and is expressed in its art, drama, music, folklore, and dances. Art is reflected in paintings, colors, form, sculptures, design, architecture. Drama is expressed in plays, movies, shows, TV programs. Music, folklore, and dances reveal a culture’s sentiments.

Attitudes and beliefs Importand attitudes for business people: Attitude toward time Attitude toward achievement Attitude toward change

Attitude toward time Panctuality (Agreed or proper time) Siesta Directness and drive Deadlines

Attitude toward achievement and work Germans work 37 hours/week, and they have 6 weeks annual vacation. Americans work 44 hours/week, and they have 1 week annual vacation. Demonstration effect occurs as a result of seeing others with desirable goods. It pushes people to work more. Job prestige is where some kinds of employment appear to have more prestige in different cultures. Japanese attitude for work : "If one can do it, I can do it. If no one can do it, I must do it.“ Middle Eastern attitude for work : "Wallahi if one can do it, let him do it. If no one can do it, ya-habibi how can I do it ? ☺

Attitudes toward change Some cultures resist to change more than the others

Religion

Asian religions In India; Hinduism, Buddhisim, Jainism, Sikhism In China; Confucianism, Taoism Japan; Shintoism

Hinduism 80 % of India are Hindu. They believe in death and rebirth (samsura). State of eternal bliss (nirvana) can be achieved through; Yoga (purification of mind and body) Devout worship of gods Good works and obedience to laws and customs (dharmas) of one’s caste.

Caste system The soceity is divided between classes: Brahmins (priests) Warriors, politicians, landowners Merchants Peasants Dalits (downtrodded, oppressed, untouchables)

Caste system in Japan In the 17th Century, Tokugawa regime imposed caste system in Japan. Samurai were at the top. Then followed farmers, artisans, and merchants. At the very bottom, there were people with occupations considered dirty and distasteful, like slaughterers, butchers, and tanners (burakumin – ghetto people).

Buddhism Founded by Prince Gautama. Buddhist monks are also leaders in the society and they participate in politics. It teaches people to clean themselves from desire and material wealth.

Jainism Founded by Mahavira. They believe in nonviolence doctrine. They are against animal slaughter, wars, and any type of violence.

Sikhism Founded by Nanak 600 years ago. It relies on the brotherhood of human beings. It is a bridge between Hinduism and Islam. They believe in one god, but they also believe in samsura, karma, and nirvana. They mostly live in Punjab.

Confucianism It is widespread in China. It teaches how to live in peace and harmony in a society. Jen is unselfish love for others. Li emphasizes politeness, respect for elders, ritual courtesies, like bowing.

Taoism Founded by Lao-tzu. His philosophy was praising the voyage of life. He said that each of us mirrors the male and female energies (yin and yang) that govern the cosmos. Rituals are to connect the cosmic energy.

Shintoism It is the religion of Japan. Emperor is considered as divine. As a part of the World War II settlement, the emperor was forced to renounce this claim. Japanese have shrines and they have a corner in their houses for shinto shrine.

Islam Islam is one of the largest religions in the world. Its rules also apply to everyday lives of the Moslems. It is founded by Hz. Mohammad in 640 AD. The basic duties of Moslems are; Accepting the confession of faith Praying five times a day Giving charities Fasting during Ramazan Making pilgrimage to Mekka

Animism It is spirit worship, and combines Catholisizm to a mixture of mysticism, taboos, and fatalism. It is wide spread in Latin America, Africa, and some regions of Asia. It is a belief tahat many things in nature; like trees, plants, rivers, have their own spirit.

Christianity One of the largest religion in the world. It has three sects; Catholic, Orthodox, and Protestant. Protestant Ethic emphasizes hard work and practice of thrift. Luther and Calvin started Protestant practices. Weber argued that Protestant Ethic is behind the economic success and wealth accumulation of the Protestant countries. And Hinduism is behind the economic backwardness of India.

Material culture It refers to all man-made objects and concerns with how (technology) people produce and who makes what (economics).

Technology It is the mix of the usable knowledge that the soceity applies and directs toward the attainment of cultural and economic objectives. Technological superiority is the key to development.

It is a characteristic of underdevelopment. Appropriate technology is the technolgy (advanced, intermediate, or primitive) that must closely fits the society using it. Technological dualism is the side-by side presence of technologically advanced and technologically primitive production systems. It is a characteristic of underdevelopment. Boomerang effect occurs when technology sold to companies in other nations is used to produce goods to compete with those of the seller of technology.

Education The educational level of a country can be understood from (educational yardsticks); literacy rate, kinds of schools, quantity of schools and their enrollment, amount of per capita income spent on education.

Who is literate? One who can read and write a short sentence on his/her everyday life is called a literate person. However, this definition underestimated apprenticeship.

Literacy rate is the percentage of population who can read and write. Literacy rate is important for marketing people, because according to that they decide; what media to employ, advertisements, labels, point-of purchase displays, owner’s manuals.

Brain drain is the emigration of highly educated professionals to other countries. Reverse brain drain is the return of highly educated professionals back to their home countries.

Gross Enrolment Ratio (%) - Tertiary Education   1980 1997 2004 Sub-Saharan Africa  1.7 3.9 5 Latin America and the Caribbean  13.7 19.4 28.6 East Asia and Oceania  3.8 10.8 19.6 South Asia  4.3 7.2 9.7 Source:  World Bank EduStats

Education of women Women’s educational level globally is increasing. There is no developed country in the world where women are uneducated.

Language Spoken languages demarcate cultures just as physical barriers do. Lingua Franca is a foreign language used to communicate among a nation’s diverse cultures that have diverse languages. Examples are English in Africa and India, Portugese in Angola, French and Belgian in Africa.

World language map                                                                                                                              

Unspoken languages They are nonverbal communication, such as gestures and body language: Gestures, Gift giving, Gifts or bribes? Bribes are gifts or payments to induce the receiver to do something illegal for the giver. Extortion is payments to kepp the receiver from causing harm to the payer.

Societal organization It is the patterned arrangement of relationships defining and regulating the manner by which its members interface with eachother. There are two kinds of societal organization: Kinship Free association of individuals

Kinship cultures The family is the basic unit in these societies. Extended family includes relatives by blood and by marriage. Member’s resposibility – In kinship societies, each member feels responsible for the familiy.

Associations They are social units based on age, gender, or common interest, not on kinship. The common bond could be political, occupational, recreational, or religious.

Understanding national cultures Geert Hofstede, a Dutch social pychologist, establihed four value dimensions to distinguish different cultures: Individualism versus collectivism Large versus small power distance Strong versus weak uncertainty avoidance Masculinity versus femininty

Individualism versus collectivisim In collectivist cultures, individuals are supposed to look after each other. In individualist cultures, people look after themselves.

Large versus small distance societies It is the extend to which members of a society accept unequal distribution of power among individuals. In large power distance societies, individuals believe superiors are right and employees do not have too much initiative.

Strong versus weak uncertainty avoidance It is the degree to which members of a society feel threatened by ambiguity. Some societies are more rule-oriented than others. It is more difficult to introduce change in strong uncertainty avoidance societies.

Masculinity versus femininity This is the degree to which the dominant values in a society emphsizes assertiveness, aquisition of money and status, and organizational rewards. In the soceities where femininity is stronger, dominant values emphasize relationships, concern for others, and the overall quality of life.