THE ROLE OF CULTURE

CHAPTER 8: THE ROLE OF CULTURE LEARNING OBJECTIVES To discuss the primary characteristics of culture To describe the various elements of culture and provide examples of how they influence international business.

Definition, Importance and Characteristics of Culture Culture is the collection of values, beliefs, behaviors, customs and attitudes that distinguish a society. Family, Friends, Religion, Teachers A social learning interaction case, deep-rooted in ourselves. Success in international business depends heavily in understanding the cultures of other countries. Therefore.. Remember… that you are the foreigner and avoid… Ethnocentrism (belief that one´s way of doing things is the best)

Go under training Showing disrespect and a feeling of superiority Importance and characteristics continued… The challenge when we cross borders in to learn how to broaden our perspective. Not adopting a product to a market´s needs Bringing money back home without re- investment Filling positions with nationals only A MN manager should first attempt to understand a foreign culture (cross cultural Learn the language Receive information about the other country And then modify and adapt her behavior with the foreign culture. This is called acculturation.

Elements of Culture Studying the basic elements of culture in a country is the beginning in understanding how people in another country behave and why. Social Structure Language Communication Religion Values and Attitudes

Social Structure Society´s framework determines the roles of individuals and groups, stratification of society, and individuals mobility within the society Families and Groups – Definition of family differs from country to country. Attitude toward groups also differs Social Stratification – Societies categorize individuals according to their occupation, educational achievement, birth and other attributes. These are very important in highly stratified societies. Social mobility – the ability of society´s members to move from one stratum to another Is Nepotism´ questioned? Getting married to the boss´s daughter? Christening the boss´s baby? Individualism or collectivism? Morale at work might be affected if we hire or promote people from the wrong class, with the wrong education or profession. His church? Club? Can you really go higher or cooperate in a highly stratified society which it is “Us Vs them?

Language The most important tool members of a society use to communicate with each other The understanding of a message is different when written in a different language Language provides information about cultural values of a society In Greek, Spanish, German… there is a forma and an informal form of the word “you” Many languages and dialects show differences in income, education Therefore, in business practices (advertising, conversations, hiring) the appropriate words should be used (“aroma” in French, “deodorant” in USA). Ford used the word “Fiesta” in Spain (meaning ugly old woman) and “Caliente” in Mexico (street walker). In Arab countries they start writing from the left… How about idioms “A piece of cake”…. The window to culture

Language continued…. Language might indicate differences in income or educational achievement. It might even be an issue of political conflict. Language might be used as a competitive weapon when other countries share the same language. However, we have to be careful since they might not share the same culture. (Canada, Australia, New Zealand, USA, England….) (French companies have a competitive edge in French colonies) The Sirs´ class in England uses different terminology as compared to the “Commons”. French Vs English speaking in Canada, Dutch speaking Vs French in Belgium Infrastructure, technology, was developed in the same way. No additional costs in changing words in advertising, logos, brochures, labels. (Western countries use Hong Kong agents for entering China)

Communication Whether verbal or nonverbal, communication is an important skill the MN manager should possess… cross cultural literacy) In some countries we have low-context cultures (the message is understood simply by the words spoken) while in others we have a high-context culture (the environment – context – is also important). Face to face interactions are important for Japanese. Americans can negotiate through the internet on the other hand. Getting very close to an American businessman is not right. Arabs get closer for discussions. Nodding one´s head does not mean “yes” in all cultures “Silence” for Americans means inability and “thinking” for the Japanese. Joining thumb and forefinger means different things in different countries. How about space communication? How about the time of opening a gift? How about lawyers presence in negotiations?

Religion It affects how people relate to outsiders (friendly, unfriendly, silent, active….) It shapes the attitudes (work attitudes) and it influences lifestyles (Working hard is a means of glorifying God for the Protestants) (Spiritual accomplishment is more important than economic success for Hinduism – nirvana) Religion affects seasonal patterns and therefore sales How about the role of women at work? Work stops 5 times for preying in S. Arabian. People fast during Ramadan. It’s a business time 1 st of January for Russians and L. Americans 6 th of December for Dutch 25 th of December for Americans.

Values and Attitudes Time: Time is money in Anglo-Saxon cultures. Therefore, be on time at meeting work… friends and relatives should not interrupt during a meeting. Agenda should be followed Age: Youth are highly valued and sought for positions in some countries while the old (seniority) in others. Age and rank are highly correlated in Japan. Status: In some countries it might be given according to wealth or rank of one´s ancestors. In others, according to personal accomplishments. Authority exists for organizing, coordination and problem-solving in the USA and for orders in Italy and Greece What is right and what is wrong…the principles accepted by a society Behavior (actions) towards other and objects – the result from values