1. Fundamentals of International Business

CHAPTER 3:
What Is Culture?
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

2. Fundamentals of International Business
Key Terms
culture
subculture
counterculture
rationalization
monochronic
polychronic
spatial perception
cultural dimensions
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

3. Fundamentals of International Business
Chapter Objectives
By the time you finish this chapter, you should be able to:
Analyze the ways in which cultural factors influence international business methods and operations
Analyze differences across cultures in perceptions, interpretations, and attitudes that might affect how individuals work in another country
Compare management and negotiation strategies in other countries with those in Canada
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

4. Fundamentals of International Business
Culture Defined
Culture
The knowledge, experience, beliefs, values, attitudes, religion, symbols, and possessions acquired by a group of people who have lived in the same region or country for generations.
Culture is transmitted from one generation to the next through education and by example.
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Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

5. Fundamentals of International Business
Culture Defined
Subculture
A cultural group within a larger or predominant culture, distinguished from it by factors such as class, ethnic background, and religion, and unified by shared beliefs and interests.
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

6. Fundamentals of International Business
Culture Defined
Counterculture
A culture that has values or lifestyles that are in opposition to those of the current accepted culture. Members of a counterculture openly reject the established cultural values that surround them.
Examples of countercultures include punk, emo, nu metal, and gangsta rap.
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

7. Fundamentals of International Business
Chapter 3 – Day 1
Classwork:
Read pages 66-73
Answer questions 3.1 – 3.5 on pg. 68
Homework:
Study for Chapter 2 TEST
Work on Culminating Activity
Work on International Trade PRESENTATIONS
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

8. Cultural Awareness and Business
Canadian firms that want to “go global” must determine the extent and importance of cultural differences between Canada and their target nations.
They must decide whether and to what extent products and processes can be adapted to a foreign environment.
Some cultural traits can be studied and learned; others can only be understood by living in a country and experiencing the culture first-hand.
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

9. Fundamentals of International Business
Chapter 3 - Day 2
Classwork:
Read pg
Homework:
Case Study (Collecting) on pg.69
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

10. Cultural Awareness and Business
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

11. The Impact of Culture on International Business
Culture has a direct impact on products.
It is important to consider factors such as climate and religious beliefs when considering entering a foreign market. For example, there is no market for Canadian pork in Israel, as Jewish culture forbids eating this product.
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

12. Fundamentals of International Business
Chapter 3 – Day 3
Read pg. 73 – 87
Classwork:
Answer Questions 3.10 and 3.11
Answer Questions 3.12 – 3.14 on pg.92
Homework:
Communication Question #11 on pg. 92
Stage 2 Culminating
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

13. The Impact of Culture on the Labour Market
Rationalization
Any attempt to increase a company’s effectiveness or efficiency, including downsizing, cutbacks, layoffs, and relocating corporate functions and activities to countries that have cheaper labour and few or no union problems.
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

14. The Impact of Culture on the Labour Market
Not all countries share Canada’s values in terms of labour and the workplace. Canadian business people may encounter differences in the following areas:
Child labour
Discrimination
Wages
Standards and practices
Indigenous cultures
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

15. The Impact of Culture on the Labour Market
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

16. Fundamentals of International Business
Chapter 3 – Day 4
Classwork:
Read Pages 84-91
Answer questions on pg. 83
Homework:
Answer Questions#1-3 on pg.92
Create a Movember Online Account and get Donations
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

17. Business Meetings and Negotiations
Every country has a meeting culture that is
based on the following factors:
Time perception—monochronic or polychronic
Spatial perception—individual comfort levels with personal space and physical contact
Non-verbal communication—eye contact and body language
Business etiquette—appropriate topics of conversation, whether or not you should present a gift, etc.
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

18. Business Meetings and Negotiations
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

19. Culture’s Influence on the Workplace
Cultural dimensions (identified by Geert Hofstede)
Power Distance (PDI)—how the difference in power between people is perceived
Uncertainty Avoidance (UAI)—how do various cultures adapt to change
Masculinity vs Femininity (MAS)—the degree to which a culture values assertiveness, competitiveness, ambition, and the accumulation of material goods
Individualism vs Collectivism (IDV)—the extent to which people are expected to make their own decisions regarding their choice of education, job, etc.
Orientation (LTO)—the degree to which cultures value short- or long-term goals
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.

20. Fundamentals of International Business
Chapter 3 – Day 5
Class Work:
Answer Questions 6 – 10 on pg 92
Homework:
Answer questions 11, 13, and 15 on pg. 92
Collect Donations of MOVEMBER
Study for QUIZ on Thursday
Culminating – STAGE 2
Chapter 3:
WHAT IS CULTURE?
Fundamentals of International Business
Copyright © 2010 Thompson Educational Publishing, Inc.