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Understanding cultural differences can help promote good global business.

To explain how culture affects international business To describe the elements of cultures To describe the elements of subcultures

Understanding culture and its effect on international business provides a foundation for working in the global community.

the set of beliefs, customs, and attitudes of a distinct group of people culture strongly held concepts that are present in culture values

social rules that affect behaviors and actions, and represent cultural values norms folkways and mores cultural customs that dictate how people act socially

the part a person plays in a social situation role a smaller group or subset within a larger culture subculture

Culture in International Business The cultures of two trading partners can affect a business relationship. Understanding culture is the foundation, or basis, of understanding every other aspect of conducting international business.

Understanding Culture Each level of culture—national, regional, or local—has an impact on the lives of people who live on that level. culture the set of beliefs, customs, and attitudes of a distinct group of people

Understanding Culture

Understanding Culture Succeeding in the world of international business requires three things. Understanding Culture 1 Preparing for and adjusting to culture 2 Participating in culture 3

Four Elements of Culture Values Norms Four Elements of Culture Folkways and Mores Roles

Values are connected to powerful emotions. Elements of Culture Values are connected to powerful emotions. values strongly held concepts that are present in a culture For example, in the United States, many people value freedom.

Norms may reflect values. Elements of Culture Norms may reflect values. norms social rules that affect behaviors and actions, and represent cultural values In some cultures, the norm may be that women walk behind men in public.

Elements of Culture Some folkways and mores may be minor, while others have a major impact on people’s lives. folkways and mores cultural customs that dictate how people act socially

Mores are customs that reflect moral standards in a culture. Elements of Culture Mores are customs that reflect moral standards in a culture. Mores are strongly held by a group and can influence controversial political topics.

The role you play is influenced by your community. Elements of Culture The role you play is influenced by your community. role the part a person plays in a social situation You play many roles each day.

Examples of roles include: Son or daughter Friend Employee Student Elements of Culture Examples of roles include: Son or daughter Friend Employee Student Spectator Citizen

Factors that Create Roles

Value Dimensions of Culture Power Distance Short-term or Long-term orientation Individualism or Collectivism Value Dimensions Uncertainty Avoidance Gender Differentiation

Value Dimensions of Culture In cultures with a large power distance among individuals, supervisors are “always right.”

Value Dimensions of Culture In individualistic countries, people tend to take care of themselves and immediate families first. Examples include the United States and Australia.

Value Dimensions of Culture In cultures with a high degree of gender differentiation, men tend to dominate society and power structures. Examples include Middle Eastern countries.

Value Dimensions of Culture In high risk-avoidance countries, managers are less willing to take risks. Examples include Mexico, Portugal, and Japan.

Value Dimensions of Culture Relate In what ways might your personal values be influenced by living in an individualistic country?

Value Dimensions of Culture The United States is an example of a country with a short-term orientation. Many Asian countries believe that placing importance on short-term results causes a company to ignore long-term results.

Understanding Subcultures People with varied behaviors within a culture make up a subculture. subculture a smaller group or subset within a larger culture Subcultures can form around sports or other interests.

Understanding Subcultures A key to working in international business is to be aware that people within the same nation and/or business organization may be quite different.

Understanding Subcultures Recall What are subcultures and why is recognizing them important?

Single Culture and Multicultural Countries A homogeneous culture is one in which one group of people is dominant in the population. A homogeneous culture exists in a single-culture nation or region.

Single Culture and Multicultural Countries The United States is heterogeneous in a multicultural country, where there are many different groups of people.

Multinational Companies Because a multinational company includes cultures from several nations, business decisions may be more inclusive and targeted to the variety of cultures.

What cultural elements create individual roles in society? 2.1 What cultural elements create individual roles in society? values, norms, folkways and mores, customs, educational systems, religious organizations, gender roles, class systems, and degrees of mobility

What are some examples of dimensions of culture? 2.1 What are some examples of dimensions of culture? power distance, individualism or collectivism, uncertainty avoidance, and short-term or long-term orientation

What is the definition of the term subculture? 2.1 What is the definition of the term subculture? a smaller group or subset within a larger culture

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