1. International Business Part Two Comparative Environmental Frameworks
Chapter Two
The Cultural Environments Facing Business

2. Chapter Objectives
To understand methods for learning about cultural environments
To analyze the major causes of cultural difference and change
To discuss behavioral factors influencing countries’ business practices
To understand cultural guidelines for companies that operate internationally

3. Cultural Factors affecting International Business Operations

4. The People Factor
Culture refers to learned norms based on the values, attitudes, and beliefs of a group of people
Cultural diversity
Cultural collision
Sensitivity and Adjustment

5. Cultural Awareness
There is no foolproof way to build your awareness of culture
Hard to isolate culture from economic and political conditions
Education about a culture helps
Studies of cultures have shortcomings

6. The Nation as a Point of Reference
National boundaries act as proxy for culture
Not everyone in a country shares the same culture
Certain cultural attributes may link groups from different nations more closely than certain groups within nations

7. How Cultures Form and Change
Cultural values set early in life
Changes occur from:
Choice
Imposition

8. Language as a Cultural Stabilizer
When people from different areas speak the same language, culture spreads more easily
Among nations that share a same language, commerce is easier
Isolation from other groups, especially because of language, tends to stabilize cultures.
Some countries see language as being so important that they regulate the inclusion of foreign words and/or mandate the use of the country’s official language for business purposes.

9. Major Language Groups: Population and Output

10. Religion as a Cultural Stabilizer
Centuries of profound religious influence continue to play a major role in shaping cultural values
Many religions influence specific beliefs that may affect business

11. Issues in Social Stratification
Ascribed group memberships are determined at birth
Acquired group memberships are based on one’s choice of affiliation
Performance orientation of the society
Open vs. Closed society
Attitude towards gender
Attitude towards age
Importance of family group
Prestige of occupation

12. Issues in Work Motivation
Materialism and Motivation
Expectation of Success and Reward
Assertiveness: The Masculinity–Femininity Index
Hierarchies of Needs

13. The Hierarchy of Needs vs. The Need Hierarchy

14. Factors Affecting Relationship Preferences
Power distance: general relationship between superiors and subordinates.
Individualism vs. collectivism: degree of dependence on organization

15. Factors Affecting Risk-taking Behavior
Uncertainty avoidance
Trust
Future orientation
Fatalism

16. Factors Affecting Information and Task Processing
Perception of cues
Obtaining Information: Low-Context versus High-Context Cultures
Information Processing

17. Factors Affecting the Communication Process
Spoken and Written language
Silent language:
color associations
conversational distance
perception of time and punctuality
body language and gestures
prestige

18. Dealing with Cultural Differences
Accommodation
Cultural distance
Culture shock
Company and Management orientations
polycentric
ethnocentric
geocentric

19. Factors Affecting Strategies for Instituting Cultural Change
Value systems
Cost/benefits of change
Resistance to too much change
Participation
Reward sharing
Opinion leadership
Timing
Learning abroad