© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON3-1 GOALS  Describe influences of culture on global business activities.  Explain the role of subcultures. CULTURE AROUND THE WORLD

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Why Culture Is Important To Know The story of Kent The story of Kent What are some of the cultural differences between where Kent comes from and NE US? What are some of the cultural differences between where Kent comes from and NE US? 2

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 3 Cultural Influences in International Business A culture is a system of learned, shared, unifying, and interrelated beliefs, values, and assumptions. A culture is a system of learned, shared, unifying, and interrelated beliefs, values, and assumptions.

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Values Objects, conditions or characteristics Objects, conditions or characteristics that members of the society consider that members of the society consider Important Important Valuable Valuable 4

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS What Does The US Value? Material comfort Material comfort Wealth Wealth Competition Competition Individualism Individualism Certain freedoms Certain freedoms LifePursuit of happiness LifePursuit of happiness Liberty Speech Liberty Speech ReligionPolitical ReligionPolitical 5

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Beliefs State of mind hold something to be true State of mind hold something to be true Commonly held norms or standards of a culture Commonly held norms or standards of a culture Examples of differing beliefs Examples of differing beliefs India - cows are sacred, reincarnation India - cows are sacred, reincarnation Much of Asia – Family as a collective unit Much of Asia – Family as a collective unit Spanish world – Family first above all else Spanish world – Family first above all else 6

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Assumptions Thinking or believing something is true Thinking or believing something is true If you enter international business with wrong assumptions, and you do not correct them, then you have little chance of success. If you enter international business with wrong assumptions, and you do not correct them, then you have little chance of success. 7

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS T/P/S What are assumptions and/or beliefs we have about other cultures? What are assumptions and/or beliefs we have about other cultures? What do other cultures assume/believe about the US? What do other cultures assume/believe about the US? ImperialistGangs ImperialistGangs RichRude RichRude Cowboy hatsIN Your Face country Cowboy hatsIN Your Face country 8

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 9 Warm Up Page 57 Page 57 Break into 7 groups of 4 Break into 7 groups of 4 Answer questions 1 & 2 Answer questions 1 & 2 Next page for 3 rd question Next page for 3 rd question

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Warm Up Answer In place of #3 In place of #3 What are some factors Disney had to consider when creating Disney Europe Vs. Disney US and Disney Japan? What are some factors Disney had to consider when creating Disney Europe Vs. Disney US and Disney Japan? Europe market is more diverse Europe market is more diverse People from different countries People from different countries Different cultures Different cultures Beliefs, values and assumptions Beliefs, values and assumptions I.e. beer is served in the Magic Kingdom I.e. beer is served in the Magic Kingdom 10

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 11 Culture Influences Culture Culture A System of learned, shared, unifying & interrelated A System of learned, shared, unifying & interrelated beliefs, beliefs, values and values and assumptions assumptions

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 12 Cultural Influences Impacts Beliefs, Values and Assumptions Impacts Beliefs, Values and Assumptions Political Political Economic Economic Education Education Family Family Art Art Religion Religion

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Cultural Differences Not all cultures are homogeneous Not all cultures are homogeneous Many cultures have subcultures Many cultures have subcultures 13

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 14 Subculture Subculture A subset of the larger culture A subset of the larger culture May have some May have some values, values, beliefs and beliefs and assumptions assumptions Different than larger culture Different than larger culture

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 15 Pair and Share What are examples of subcultures at What are examples of subcultures at Neshaminy? Neshaminy? In the business world? In the business world? EthnicityAge EthnicityAge Religious beliefs Religious beliefs College College Sports/Other Sports/Other Company Company Geographical area Geographical area

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 16 The Subcultures Within a Society Influences of cultures and subcultures Influences of cultures and subcultures Subculture of U.S. business Subculture of U.S. business Variations in business subcultures worldwide Variations in business subcultures worldwide

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS  Describe influences of culture on global business activities. business activities.  Explain the role of subcultures. CULTURE AROUND THE WORLD

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 18 Activity Break into groups Break into groups Come up with some guiding sayings based on US culture Come up with some guiding sayings based on US culture Explain what each means Explain what each means 1 person from your group moves clockwise to next group 1 person from your group moves clockwise to next group Give 1 of your sayings and explain what it means Give 1 of your sayings and explain what it means

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 19 Cultural Influences Cultural Baggage Cultural Baggage You carry You carry Beliefs Beliefs Values Values Assumptions Assumptions At all times, wherever you are Influences responses Influences responses Influences actions Influences actions

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 20 US Business Subculture Share a core of common Share a core of common Beliefs Beliefs Values Values Assumptions Assumptions

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 21 What are some common guiding principles? What are some common guiding principles? What do they mean? What do they mean?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 22 Guiding Principles Where there is a will, there is a way Where there is a will, there is a way Don’t count your chickens before they are hatched Don’t count your chickens before they are hatched Waste not, want not Waste not, want not Time is money Time is money If at first you don’t succeed, try, try again If at first you don’t succeed, try, try again

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 23 Why are these important? Why are these important?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 24 Think/Pair/Share Why is cultural knowledge of a country necessary for being successful in International Business? Why is cultural knowledge of a country necessary for being successful in International Business? What would you want to know about a culture before you go to that country? What would you want to know about a culture before you go to that country? What are three things that makes our culture different from other cultures? What are three things that makes our culture different from other cultures?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 25 A Question of Ethics Read A Q of Ethics on P 64 Read A Q of Ethics on P 64 Answer the 3 questions Answer the 3 questions Also, Was it good business practice for Lydia to ask Miguel to fire Javier? Also, Was it good business practice for Lydia to ask Miguel to fire Javier?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 26

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 27 A Question of Ethics Read A Q of Ethics on P 64 Read A Q of Ethics on P 64 Answer the 3 questions Answer the 3 questions Also, Was it good business practice for Lydia to ask Miguel to fire Javier? Also, Was it good business practice for Lydia to ask Miguel to fire Javier?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON3-2 GOALS CULTURE AND SOCIAL ORGANIZATIONS  Describe how family relationships can affect culture.  Explain the role of societal influences on culture.

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS What is a Class System? What is a Class System? 29

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 30 Answer Does the U. S. have a class system? Does the U. S. have a class system? Why or why not? Why or why not? What fundamental principle in the US requires: What fundamental principle in the US requires: The class system be flexible? (in theory) The class system be flexible? (in theory) Why are countries with well educated citizens more likely to be economically successful? Why are countries with well educated citizens more likely to be economically successful?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 31 Family Relationships Nuclear Relationships Nuclear Relationships Extended Family Extended Family Family – work relationships Family – work relationships

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 32 Family Relationships Family units Family units Nuclear family Nuclear family Consists of parents and unmarried children living together Consists of parents and unmarried children living together Extended family Extended family Consists of parents, children living and other relatives Consists of parents, children living and other relatives Family-work relationships Family-work relationships Weak in some cultures & strong in others Weak in some cultures & strong in others

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 33 Family units Nuclear family Nuclear family Extended family Extended family

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 34 Society’s Institutions Education Education Gender roles Gender roles Mobility Mobility Class system Class system

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 35 Societies Institutions Education Education Some cultures place a high value on education Some cultures place a high value on education Gender Roles Gender Roles Women VS Men Women VS Men Mobility Mobility Move or no move Move or no move Class System Class System

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 36 Societies Institutions What is a class system? What is a class system? Name some countries that have a class system Name some countries that have a class system Log onto intlbizxtra.swlearning.com Log onto intlbizxtra.swlearning.com Click on Chapter 3 Click on Chapter 3 Read article on Modern India’s caste system Read article on Modern India’s caste system

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 37 Answer Page 67 Page 67 Answer # 1, 2, 3, 4, 6, 9, 10 Answer # 1, 2, 3, 4, 6, 9, 10

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON3-3 GOALS COMMUNICATION ACROSS CULTURES  Understand the importance of knowing another language for global business success.  Compare direct and indirect communication.  Describe the influence of nonverbal communication.

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 39 Major World Languages Chinese, Mandarin874,000,000 Hindi366,000,000 English341,000,000 Spanish322,000,000 Bengali207,000,000 Portuguese176,000,000 Russian167,000,000 Japanese125,000,000 German100,000,000 Korean78,000,000 French77,000,000 Chinese, Wu77,000,000 LanguageNumber of Speakers

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 40 Learning a Second Language 10. Italian 9. Portuguese 8. Japanese 7. German 6. Russian 5. Arabic (MSA) 4. French 3. Mandarin Chinese 2. Spanish 1. English Business Languages Useful to Learn 2008

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 41 Here are the top 10 languages being used by Internet users in descending order as of 20 Sept English (about 30%) 1. English (about 30%) 2. Chinese (about 13%) 2. Chinese (about 13%) 3. Japanese 3. Japanese 4. Spanish 4. Spanish 5. German 5. German 6. French 6. French 7. Portuguese 7. Portuguese 8. Korean 8. Korean 9. Italian 9. Italian 10. Russian 10. Russian

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 42 Job Openings Requiring a Language

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 43

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 44

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 45 Direct and Indirect Communication Contexting refers to how direct or indirect communication is. Contexting refers to how direct or indirect communication is. A low-context culture is one that communicates very directly. A low-context culture is one that communicates very directly. A high-context culture is one that communicates indirectly. A high-context culture is one that communicates indirectly.

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 46 High Context Cultures High context cultures have a strong sense of High context cultures have a strong sense of tradition tradition History History change little over time change little over time High context cultures = high number of words High context cultures = high number of words Japan, China, Iraq, New Zealand, Native Americans Japan, China, Iraq, New Zealand, Native Americans

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 47 Low context culture Much more is explained through words Much more is explained through words Very direct Very direct Germany, US Germany, US Low context = low number of words Low context = low number of words

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS The Word No How many ways can no be said without saying the word “NO?”

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 49 Face Saving To minimize personal embarrassment To minimize personal embarrassment Directly related to contexting Directly related to contexting In high context cultures In high context cultures Must be avoided at all costs Must be avoided at all costs Wars have started over face saving Wars have started over face saving See page 71- last 3 paragraphs See page 71- last 3 paragraphs

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 50 Body Language In the high stakes of international business, body language often speaks for itself

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 51 Non Verbal Communication 7% of messages are verbally communicated 7% of messages are verbally communicated 93% is non verbal 93% is non verbal 38% vocal tones 38% vocal tones 55% facial expressions/body language 55% facial expressions/body language

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 52 What’s My Gesture? You each have to come up with a GESTURE of another culture You each have to come up with a GESTURE of another culture On line or out of books On line or out of books What is the country/culture/ What is the country/culture/ What is the gesture? What is the gesture? What does it mean? What does it mean?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 53 Nonverbal Communication Body language Body language Appearance Appearance Eye contact Eye contact Touching Touching Personal space Personal space Color Color Numbers Numbers Emblems Emblems Smells Smells

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 54 Body Language In the high stakes of international business, body language often speaks for itself

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 55 Body Language Experts say to trust non verbal message Experts say to trust non verbal message Words can be manipulated Words can be manipulated Gestures harder to control Gestures harder to control

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 56 Caution - The OK sign US = Good US = Good France = zero France = zero Germany, Iraq, Brazil = vulgar Germany, Iraq, Brazil = vulgar

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 57 Body Language Superiority is displayed by Superiority is displayed by Sitting while others stand Sitting while others stand Lean back in chairs Lean back in chairs And hands behind head And hands behind head Interrupt others Interrupt others Shake hands Shake hands Hand on top Hand on top Put your hand on their arm Put your hand on their arm

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 58 Body Language Defensive Defensive Folded arms Folded arms Crossed legs Crossed legs Body turned away from speaker Body turned away from speaker

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 59 Appearance What’ s my line? What’ s my line? What's My Line? was a weekly panel game show, which originally ran in the United States from 1950 to 1967 with several international versions and subsequent U.S. revivals. The game tasked celebrity panelists with questioning contestants in order to determine their occupations. It was the longest-running game show in the history of US prime time network television

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Appearance Look at the next 5 slides and answer the following questions Look at the next 5 slides and answer the following questions What type of “dress” is this? What type of “dress” is this? What do you believe each person does for a living? Why? What do you believe each person does for a living? Why? Would you do business with this person? Would you do business with this person? Why? Why? 60

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS What Are They Communicating? 61

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS What Are They Communicating? 62

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS What Are They Communicating? 63

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS What Are They Communicating? 64

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS What Are They Communicating? 65

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 66 Appearance In US In US Casual dress = casual attitude Casual dress = casual attitude Sloppiness may cause a question of credentials and reliability Sloppiness may cause a question of credentials and reliability In International Business In International Business The words conservative, traditional, formal The words conservative, traditional, formal very much apply

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Research IB Business Attire 67

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 68 Job Openings Requiring a Language

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Effective International Communications Use short simple sentences Use short simple sentences Avoid idioms or slang Avoid idioms or slang Shy away from sarcasm or innuendoes Shy away from sarcasm or innuendoes Be polite Be polite Be light hearted. The written word does not smile Be light hearted. The written word does not smile Repeat important or complex items in several ways Repeat important or complex items in several ways

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS NO – An activity How many ways can you communicate “No” without using the word? What about other cultures? Research how in Japan they say “no” In Japan signing a contract BEGINS negotiations

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Greetings with Japan The bow as a greeting The bow as a greeting How many mistakes do we make with this simple gesture? How many mistakes do we make with this simple gesture? Hands at side? Hands at side? No eye contact? No eye contact? Lower level bows down further Lower level bows down further Who bowed first? Who bowed first? 71

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 72 Eye Eye - What Eyes Communicate Research what the eyes communicate Research what the eyes communicate

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Effective International Communications Use short simple sentences Use short simple sentences Avoid idioms or slang Avoid idioms or slang Shy away from sarcasm or innuendoes Shy away from sarcasm or innuendoes Be polite Be polite Be light hearted. The written word does not smile Be light hearted. The written word does not smile Repeat important or complex items in several ways Repeat important or complex items in several ways

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON3-4 GOALS  Identify and explain five major types of values that vary from culture to culture.  Describe the two major reactions to cultural differences. VALUES AROUND THE WORLD

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 75 Values Vary Among Cultures Individualism and collectivism Individualism and collectivism Technology Technology Leadership, power, and authority Leadership, power, and authority Religion Religion Time Time

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 76 Individualism vs. Collectivism Individualism – ability to function independently Individualism – ability to function independently Collectivism – Group is more important than the individual Collectivism – Group is more important than the individual

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 77 Values Vary Among Cultures Technology Technology Acceptance varies from culture to culture Acceptance varies from culture to culture China and technology China and technology Leadership, power, and authority Leadership, power, and authority Democratic Democratic Authoritarian Authoritarian

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 78 Look It Up What are the Chinese values on technology? What are the Chinese values on technology? Are they the same as the US? Are they the same as the US? Why do you think this is? Why do you think this is? How does the Chinese government view the internet? How does the Chinese government view the internet? What type of internet searches are blocked? What type of internet searches are blocked?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 79 Values Vary Among Cultures Religion Religion Some cultural groups dominated by one religion Some cultural groups dominated by one religion Often business is influenced or regulated by religion Often business is influenced or regulated by religion Time Time Some cultures see it as valuable Some cultures see it as valuable Others, relaxed - more cycle of the day Others, relaxed - more cycle of the day

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Activity – Planning A Meeting This is your customer. You have four Japanese guests from the Ynos Company traveling to your headquarters. You are setting up a business meeting. You can have your administrative assistant and other subordinates assist in setting up the meetings but YOU are ultimately responsible. Any type of mistake or cultural fax pas could cost your company millions of dollars and you a future promotion. Gather the team and plan the meeting

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Activity – Planning A Meeting Use the internet to your advantage You get minimal assistance from the “boss” You get paid to do a job You are expected to do it You are planning the meeting and running it Let your “boss” know what you expect from him/her Plan all aspects of the meeting

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Activity – Just a few of many Q’s First- What do you need to do to set up a meeting? Where will it be held? Who from your company will attend? What are the other details needed? What are some of the differences you expect to encounter? What are their typical work week? Hours? Holidays? What do you need to learn about their culture? About their culture concerning business?

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS A Simulation – Planning a meeting Grading = 25 points Successful business meeting = A A couple faux pas & a do over = B/C A major Faux Pas costing you business = D/F

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Culture Shock What is Culture Shock? What is Culture Shock? Do research on subject Do research on subject See research paper on my web site See research paper on my web site 84

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 85 Adjusting to Cultural Differences Ethnocentrism Ethnocentrism Ones culture is better than another Ones culture is better than another Reactions to cultural differences Reactions to cultural differences Culture shock Culture shock Reverse culture shock Reverse culture shock

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS Effective International Communications Use short simple sentences Use short simple sentences Avoid idioms or slang Avoid idioms or slang Shy away from sarcasm or innuendoes Shy away from sarcasm or innuendoes Be polite Be polite Be light hearted. The written word does not smile Be light hearted. The written word does not smile Repeat important or complex items in several ways Repeat important or complex items in several ways

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 87 In 1 paragraph, summarize 3 key concepts learned about culture In 1 paragraph, summarize 3 key concepts learned about culture List 3 ways culture influences International business. List 3 ways culture influences International business.