1. Cultural Dynamics

2. National Differences in Culture F What is CULTURE? –shared system of values and norms that offer a design for living u Values: abstract ideas about what is good, right and desirable u Norms: social rules and guidelines that prescribe appropriate behavior in particular situations

3. Determinants of Culture Norms/ Values Social Structure Group and individual Social classes and mobility Language Spoken and silent Religion Political Philosophy Economic Philosophy Education

4. Cultural Issues ¶ Technological and Material Culture · Communication and Language ¸ Aesthetics ¹ Education º Religion » Attitudes and Values ¼ Social Organization

5. Values and Attitudes J Marketing Activities J Wealth, Material Gain, and Acquisition J Work Ethic J Change J Risk Taking J Competitiveness J Status Symbols J Nationalism

6. Categorization of Cultures J Low Context vs. High Context J Hofstede’s Dimensions of Culture Masculine/ Feminine Risk Avoidance Power Distance Individualism/ Collectivism

7. I. High and Low Context Cultures F High Context Cultures (Japan, Saudi Arabia) –Meaning of individual behavior and speed changes depending on the situation –Nonverbal messages full of important and intended meanings, subtle –Important to “read between the lines”

8. I. High and Low Context Cultures F Low Context Cultures (USA) –Intentions are expressed verbally, directly –Situation is not allowed to change the meaning of words and behavior –Straight talk

11. Silent Languages F Five different silent languages –Time –Space –Material possessions –Friendship patterns (reciprocity) –Agreements (emphasis on legal contracts) F All have important economic implications

12. II. Hofstede’s Model F Power Distance: tolerance of inequalities of intellectual and physical capabilities F Individualism versus collectivism: relationship between individual and his or her fellows

13. II. Hofstede’s Model F Uncertainty avoidance: acceptance of ambiguous situations and tolerance of uncertainty. F Masculinity versus femininity: identification of gender and work roles (Japan - HI; Sweden - LO) F Confucian Dynamics: long term vs short term orientation

14. Individualism and Power Distance Figure 3-5 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89. 12 18 24 30 36 42 48 54 60 66 72 79 85 91 11 28 44 61 77 94 111 Small power distance Low individualism COS PAK TAL COL PER KOR THA CHL PHL EAF HOK MEX YUG WAF SIN EQA VEN IDO POR GUA PAN PHI MAL JAM URU GRE TUR BRA ARA IND JPN ARG SPA SAF FRA BEL ITA FIN GER SWI SWE IRE NOR AUT ISR DEN NZL CAN NET GBR USA AUL Small power distance High individualism Large power distance Low individualism Large power distance High individualism Power Distance Index (PDI) SAL ira

15. Uncertainty Avoidance and Masculinity Figure 3-6 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89. DEN NOR SWE NET FIN SIN HOK MAL JAM IRE GBR IND PHI SAF AUL USA NZL CAN IDO EAF WAF IRA THA ARA PAK TAI SWI GER AUT MEX VEN BEL ARG COL ITA JPN GRE CHL COS YUG ISR BRA POR GUA URU SAL PER PAN TUR SPA FRA KOR Weak uncertainty avoidance Feminine Weak uncertainty avoidance Masculine Strong uncertainty avoidance Feminine Strong uncertainty avoidance Masculine 8 16 24 32 40 48 56 64 72 80 88 96 104 110 5 23 41 59 77 95 Masculinity Index (MAS)

16. Hofstede’s Classification of Triad Countries