Cross-Cultural Business Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2

What is Culture? What is Culture? Set of values, beliefs, rules, and institutions held by a specific group of people Cultural literacy Detailed knowledge of a culture that enables a person to function effectively within it √ Ethnocentricity Belief that one’s own ethnic group or culture is superior to that of others X 2 - 2

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Culture Matters: Creating a Global Mindset CulturalAdaptabilityBridging the Gap Flexibility Is Key Building Global Mentality 2 - 3

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall National Culture Nation states build museums and monuments to preserve the legacies of important events and people FilmmakingandBroadcastingGuggenheimand Hong Kong Disney 2 - 4

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Subculture People who share a unique way of life within a larger culture (language, race, lifestyle, attitudes, etc.) EXAMPLES Goth, Punk, Emo China’s Dialects Groups in U.S. Arabs Globally 2 - 5

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Components of Culture Physical environments Education Personal communication Religion Social structure Manners & customs Values & attitudes Aesthetics Culture 2 - 6

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Aesthetics Music Painting Dance Drama Architecture 2 - 7

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Values and Attitudes ValuesValuesAttitudesAttitudes Positive or negative evaluations, feelings, and tendencies people hold toward objects or concepts Ideas, beliefs, and customs to which people are emotionally attached Freedom Freedom Responsibility Responsibility Honesty Honesty Time Time Work Work Cultural change Cultural change 2 - 8

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Manners and Customs Manners Appropriate behavior, speech, and dressing in general Customs Traditional ways or behavior in specific circumstances 2 - 9

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Customs Gift Giving Folk Popular

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Social Structure Social group Two or more people who identify and interact with each other Social stratification Process of ranking people into social layers Social mobility Ease of moving up or down a culture's "social ladder"

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall World Religions Christianity Islam Hinduism Buddhism Confucianism Judaism Shinto Origin of Human Values Origin of Human Values

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Language Blunders  Japanese knife manufacturer labeled its exports to the United States with “Caution: Blade extremely sharp! Keep out of children.”  English sign in a Moscow hotel read, “You are welcome to visit the cemetery where famous Russians are buried daily, except Thursday.”  Sign for non-Japanese-speaking guests in a Tokyo hotel read, “You are respectfully requested to take advantage of the chambermaids.”  Sign in English at Copenhagen ticket office read, “We take your bags and send them in all directions.”  Braniff Airlines’ English-language slogan “Fly in Leather” was translated into “Fly Naked” in Spanish

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Lingua Franca ¿Hola? Guten Tag? Hello?? Ni Hao? Bonjour? Hello!!!

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Mixed Signals

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Education Cultures pass on traditions, customs, and values through schooling, parenting, group memberships, etc. Education level Well-educated attract high-paying jobs, while poorly educated attract low-paying manufacturing jobs Brain drain Departure of highly educated people from one profession, geographic region or nation to another

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Problem of Illiteracy Source: Based on World Development Indicators, World Bank Web site (

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Physical and Material Culture These influence a culture’s development and pace of change Topography Physical features characterizing the surface of a geographic region Climate Weather conditions of a geographic region Material Culture Technology used to manufacture goods and provide services

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Hofstede Framework Individualism vs. collectivism PowerdistancePowerdistance Achievement vs. nurturing UncertaintyavoidanceUncertaintyavoidance Long-termorientationLong-termorientation

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Power Distance & Individualism vs. Collectivism Source: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Power Distance & Uncertainty Avoidance Source: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p