2. Differences in Culture3
chapter
Differences
in Culture
McGraw-Hill/Irwin
Global Business Today, 5e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

3. Chapter 3: Differences in Culture
INTRODUCTION
Operating a successful international business requires cross-cultural literacy (an understanding of how cultural differences across and within nations can affect the way in which business is practiced).
A relationship may exist between culture and the costs of doing business in a country or region.

4. Chapter 3: Differences in Culture
WHAT IS CULTURE?
The fundamental building blocks of culture are values (abstract ideas about what a group believes to be good, right, and desirable) and norms (the social rules and guidelines that prescribe appropriate behavior in particular situations).
Society refers to a group of people who share a common set of values and norms.

5. Chapter 3: Differences in Culture
Values and Norms
Culture, Society, and the Nation-State
The Determinants of Culture

6. Chapter 3: Differences in Culture
SOCIAL STRUCTURE
A society's social structure is its basic social organization.
Two dimensions to consider:
the degree to which the basic unit of social organization is the individual, as opposed to the group
the degree to which a society is stratified into classes or castes

7. Chapter 3: Differences in Culture
Individuals and Groups
Social Stratification

8. Chapter 3: Differences in Culture
RELIGIOUS AND ETHICAL SYSTEMS
Religion can be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred.
Ethical systems refer to a set of moral principles, or values, that are used to guide and shape behavior.

9. Chapter 3: Differences in Culture
Christianity
Islam
Hinduism
Buddhism
Confucianism

10. Chapter 3: Differences in Culture
LANGUAGE
Language, both spoken and unspoken, is one of the defining characteristics of culture.
Spoken Language
Unspoken Language

11. Chapter 3: Differences in Culture
EDUCATION
Formal education is the medium through which individuals learn many of the language, conceptual, and mathematical skills that are indispensable in a modern society.
The knowledge base, training, and educational opportunities available to a country's citizens can also give it a competitive advantage in the market and make it a more or less attractive place for expanding business.

12. Chapter 3: Differences in Culture
CULTURE AND THE WORKPLACE
How does a society's culture impact on the values found in the workplace?

13. Chapter 3: Differences in Culture
Hofstede’s four dimensions of culture:
Power Distance
Individualism Versus Collectivism
Uncertainty Avoidance
Masculinity Versus Femininity

14. Chapter 3: Differences in Culture
CULTURAL CHANGE
Culture evolves over time, although changes in value systems can be slow and painful for a society. Social turmoil is an inevitable outcome of cultural change.
As countries become economically stronger, cultural change is particularly common.

15. Chapter 3: Differences in Culture
IMPLICATIONS FOR MANAGERS
What do cultural differences mean for managers?
Cross-Cultural Literacy
Culture and Competitive Advantage