2. Economic development, global business and cross cultural competence.
Flinders Business School
Max Smith | Associate Dean
(International & Community)

3. Globalisation Comparative Advantage Emergence of global institutions
Decrease in trade barriers
Technology makes trade easier
EOI development model works
Therefore economic development depends on trade
However, technological ladder an issue

4. What does all this mean?
You MUST become educated and skilled (to go up the technological ladder)
Nations must engage in global business in order to prosper
Therefore businesspeople need to understand differences in business culture around the world
Need to be able to operate globally

5. The determinants of culture
The values and norms of a culture do not emerge fully formed. They are the evolutionary product of a number of factors, including the prevailing political and economic philosophies, the social structure of a society and the dominant religion, language and education as shown in this figure. Another example comes from the discussion of political and economic philosophies in Chapter 2. Such philosophies clearly influence the value systems of a society.
Figure 3.1 – The Determinants of Culture, p. 93

6. Individuals and groups
Western societies, focus on the individual and individual achievement is common
high level of entrepreneurship, but…
lack of company loyalty and competition between individuals in a company
Asian societies, the group is the primary unit of social organisation
cooperation in solving business problems, but…
suppresses individual creativity and initiative

7. High-context Vs Low context cultures
high-context cultures
implicit communication
attention is paid to the surrounding circumstances for interpretation
This information is understood within the culture.
words cannot be taken literally
Reluctance to say “no” directly
low-context cultures
the information is conveyed in the message itself
Good communication is one that is direct and doesn’t leave much room for interpretation
depend much on written communication, all contingencies are clearly anticipated and written out (preference for contracts)

8. Dimensions of cultural values
Culture and the workplace:
Power distance focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities (Face)
Individualism versus collectivism focuses on the relationship between the individual and his or her fellows.
Uncertainty avoidance measures the extent to which different cultures socialise their members into accepting ambiguous situations and tolerating ambiguity.
Masculinity versus femininity looks at the relationship between gender and work roles.

9. Hofstede’s cultural dimension scores

10. Other Cultural Differences
Body language
Personal space
Shame Vs “Face” based Culture
Strong Vs Weak Cultures
Status
Buyer is king

11. How to learn about foreign cultures?
Read about it
Watch documentaries
Study at university
Live in foreign country
Study and live in foreign country (ie do both)

12. Flinders Business School

13. Flinders Business School Examples
Qi Jun: Accounting student from Shanghai Currently working for KPMG in Adelaide. Undertook two work placements while studying at Flinders Business School. 2

14. Flinders Business School Examples
Jia Shi: Master of Accounting student
She undertook a placement with ANZ while studying and was offered a part-time job there.
Now working full-time for ANZ since graduating

15. Flinders Business School Examples
Andre Yu: Now working for Oceania Impex Australia Pty Ltd. (an Import/Export company). 
Andre undertook a work placement with NAB during his studies at FBS.

16. Work Placements at FBS
All the previous students undertook industry placements
All students who have applied have been given an industry placement
No fee charge to arrange industry placements
Duration： 150 hours
Industry placement = 1 topic

17. Work Placements at FBS Strong Industry Links:
Work with top 100 companies
Investments, Superannuation and Insurance

18. FBS Successful ALUMNI Junling Liu YiHaodian CEO & Co-founder
Was CEO Dell China & Hongkong
Austrade Australia China Alumni Award for Entrepreneurship

19. FBS Successful ALUMNI Jody Burton Managing Partner, Deloitte Adelaide
Lead audit partner for a number of SA energy and resource companies

20. Good Luck!
The future belongs to the skilled and the globally competent
I wish you well in your endeavours
Any questions?