© 2002 Thomson Learning, Inc. CHAPTER 2 CULTURE AND INTERNATIONAL BUSINESS Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans

© 2002 Thomson Learning, Inc. To define and demonstrate the effect of culture’s various dimensions on international business To define and demonstrate the effect of culture’s various dimensions on international business To examine ways in which cultural knowledge can be acquired and individuals and organizations prepared for cross-cultural interaction To examine ways in which cultural knowledge can be acquired and individuals and organizations prepared for cross-cultural interaction To illustrate ways in which cultural risk poses a challenge to the effective conduct of business communications and transactions To illustrate ways in which cultural risk poses a challenge to the effective conduct of business communications and transactions To suggest ways in which international businesses act as change agents in the diverse cultural environments in which they operate To suggest ways in which international businesses act as change agents in the diverse cultural environments in which they operate LEARNING OBJECTIVES

© 2002 Thomson Learning, Inc. U.S. and Them: Perceptions of American Managers Different cultures share basic concepts... But view them from different angles and perspectives They thus behave in ways that may seem irrational or even inappropriate Cultural Risk © PhotoDisc

© 2002 Thomson Learning, Inc. Culture Defined Acculturation Acculturation High-Context Cultures High-Context Cultures Low-Context Cultures Low-Context Cultures Change Agent Change Agent © PhotoDisc

© 2002 Thomson Learning, Inc. The Elements of Culture Cultural Universals Cultural Universals © PhotoDisc

© 2002 Thomson Learning, Inc.

The Elements of Culture Language Language © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 2.1a – Example of Ads That Transferred Poorly

© 2002 Thomson Learning, Inc. The Elements of Culture Backtranslation Backtranslation Nonverbal Language Nonverbal Language Religion Religion Christianity Christianity Islam Islam Hinduism Hinduism Buddhism Buddhism Confucianism Confucianism Values and Attitudes Values and Attitudes © PhotoDisc

© 2002 Thomson Learning, Inc.

The Elements of Culture Manners and Customs Manners and Customs © PhotoDisc

© 2002 Thomson Learning, Inc.

The Elements of Culture Focus Groups Focus Groups Material Elements Material Elements Economic Infrastructure Economic Infrastructure Social Infrastructure Social Infrastructure Financial Infrastructure Financial Infrastructure Marketing Infrastructure Marketing Infrastructure Cultural Convergence Cultural Convergence © PhotoDisc

© 2002 Thomson Learning, Inc. The Elements of Culture Aesthetics Aesthetics Education Education Social Institutions Social Institutions Social Stratification Social Stratification Reference Groups Reference Groups © PhotoDisc

© 2002 Thomson Learning, Inc. Sources of Cultural Knowledge Experiential Knowledge Experiential Knowledge © PhotoDisc

© 2002 Thomson Learning, Inc.

Sources of Cultural Knowledge Interpretive Knowledge Interpretive Knowledge © PhotoDisc

© 2002 Thomson Learning, Inc. Cultural Analysis Checklists and Models Showing Pertinent Variables and Their Interaction Checklists and Models Showing Pertinent Variables and Their Interaction © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 2.2 A Model of Cross-Cultural Behavior

© 2002 Thomson Learning, Inc. Figure 2.3 Culture Dimension Scores for Twelve Countries (0 = low; 100 = high)

© 2002 Thomson Learning, Inc.

Cultural Analysis Self-Reference Criterion Self-Reference Criterion Ethnocentrism Ethnocentrism © PhotoDisc

© 2002 Thomson Learning, Inc. The Training Challenge Objective of formal training programs is to foster four critical characteristics: Objective of formal training programs is to foster four critical characteristics: Preparedness Preparedness Sensitivity Sensitivity Patience Patience Flexibility Flexibility Summary of the programs is provided on the next slide Summary of the programs is provided on the next slide © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 2.4 Cross – Cultural Training Methods

© 2002 Thomson Learning, Inc. The Training Challenge Area Studies Area Studies Cultural Assimilator Cultural Assimilator Sensitivity Training Sensitivity Training Field Experience Field Experience © PhotoDisc