1. Welcome to class of Sociocultural aspects of International Business by Dr. Satyendra Singh University of Winnipeg Canada

2. Learning Objectives Objectives:
Explain the significance of culture for international business
Identify the sociocultural components of culture
Discuss the importance of unspoken language in international business
Discuss Hofstede’s four cultural value dimensions

3. Rules of Thumb for Cross Culture Business
Be preparedknow the country
Slow downdo not watch time
Establish trust avoid American style
Understand the importance of language
Respect the culture  host is not a foreigner
Understand the components of culture
Surfacefood, style..
Latentattitude, values, beliefs…

4. What is Culture
The sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations
Learned
Interrelated
Shared
Defines the boundaries

5. Ethnocentricity Ethnocentricity
Belief in the superiority of one’s own ethnic group
Country of origin effect

6. Sociocultural Components
Culture is:
Aesthetics
Attitudes and beliefs
Religion
Material Culture
Language
Societal organization

7. Aesthetics Culture’s sense of beauty and good taste Music and Folklore
Art conveys meaning
Colors and numbers have different meanings
Architectural style differences
feng shui  Objects should be in harmony
Music and Folklore
Musical tastes vary
Folklore discloses way of life

8. Attitudes and Beliefs…
Attitudes Toward Time
Vary across cultures
Difficult area for some Americans
Directness and drive
Perceived to be rudeness (rather than being efficient)
Deadlines
Liability abroad

9. Attitudes and Beliefs Some put leisure first and work second
The demonstration effect
Result of having seen others with desirable goods
Job Prestige
The distinction between blue-collar workers and office employees
Upward mobility in society

10. Religion…
Responsible for many of the attitudes and beliefs affecting human behavior
Work ethics

11. Religion

12. Material Culture Material Culture All human-made objects
concerned with how people make things (technology) and
who makes what and why (economics)

13. Language… Most apparent cultural distinction
Spoken languages demarcate cultures
Many cultures avoid saying anything disagreeable
Technical words do not exist in all languages
Many languages can exist in a single country, but one usually serves as communication vehicle
Lingua franca or link language
English primary language of business?

14. Language Nonverbal communication
Gestures vary from one region to another
Closed doors convey different meanings
Office size has different meanings
Conversational distance small in East
Gift giving has specific etiquette in each culture
Gift or bribe?
Questionable Payments

15. Societal Organization
Associations
Age is important market segment criterion
Gender
As nations industrialize, more women enter the job market and assume greater importance in the economy
Free association
people joined together by a common bond: political, occupational, religious or recreational

16. Understanding National Cultures
Hofstede’s Dimensions of Culture
Individualism versus Collectivism
Large versus Small Power Distance
Strong versus Weak Uncertainty Avoidance
Masculinity versus Femininity

17. Individualism versus Collectivism
Collectivistic cultures
people belong to groups that are supposed to look after them in exchange for loyalty
Individualistic cultures
People look after only themselves and the immediate family

18. Large versus Small Power Distance
the extent to which members of a society accept the unequal distribution of power among individuals
In large-power-distance societies
employees believe their supervisors are right; employees do not take any initiative in making non-routine decisions

19. Strong versus Weak Uncertainty Avoidance
Degree to which members of a society feel threatened by ambiguity and are rule-oriented
Employees in high uncertainty-avoidance cultures tend to stay with their organizations
Japan, Greece, and Portugal
Those from low uncertainty-avoidance nations are more mobile
United States, Singapore, and Denmark

20. Masculinity versus Femininity
the degree to which the dominant values in a society emphasize assertiveness, acquisition of money and status
Masculinity
achievement of visible and symbolic organizational rewards
Femininity
emphasize relationships, concern for others, and the overall quality of life

21. Scores for Hofstede’s Value Dimensions

22. Plot of Nations: Power distance and Uncertainty Avoidance

23. Plot of Nations: Individualism and Power Distance