1. University Of Finance & Administration Pavla Břečková [Ing., Ph.D.]
INTERNATIONAL BUSINESS RELATIONS
[BA_IBR]
Pavla Břečková [Ing., Ph.D.]

2. INTERNATIONAL BUSINESS RELATIONS – main areas
Full-time course = 12 lectures per 90 mins.
INTERNATIONAL BUSINESS [IB], characteristics, indicators.
WORLD BUSINESS TERRITORIES, challenges, integration, main trading blocks [TRIAD, BRIC]
GLOBAL BUSINESS ENVIRONMENT.
EMERGING MARKETS, characteristics, features, selected markets in detail
BRICS
Doing business in ASIA
Foreign market analysis
PREDISPOSITIONS for working in IB, expatriation and HR in IB

3. 12 lectures (per 90 mins) - Finished by: exam
EXAM terms BA_IBR
12 lectures (per 90 mins) - Finished by: exam
Completion CONDITIONS = min. 12 points out of 30
Active participation in the lectures
[active listening, discussing, reading, analyzing & interpreting of economic articles or case study results, presence at lectures – 50%]
Case study elaboration & it’s active professional prezentation
Knowledge test
ALL BASED ON POINTS AS FOLLOW
5 points = 3/5 presence (if less = 0 points)
up to 10 points = success at CASE study
& its prezentation
up to 15 points = TEST
TOTAL max 30
12 – 14 points = E
15 – 17 = D
18 – 20 = C
= B
24 – 30 = A

4. CASE study / team project
CASE study on one of these topics:
1. BUSINESS RELATIONS
… worldwide. The world economy structuring nowadays, may be compared with the past / possible prospects for future. Examples of certain (political) decisions => concrete influence on business or business relations.
2. SMEs (Small & Medium Enterprises) and their role in a globalizing world
Companies up to 250 employees (acc.to European definition), their specifics, positives x negatives, could contain some statistics or comparison in various countries. Their major role in society, comparison of views on them in various countries or contexts.
3. FAMILY BUSINESS
…and their role in global business, positives x negatives, examples, specifics, problem of handing over to next generations, comparisons in various countries etc.
4. PRODUCT PLACEMENT – market study
Placing of a product into a foreign market, including product description + argument why it is suitable for export, analyses of the preferential market (why this market, structure and potential of the target group), mapping competition, potentials + risks, argument why you think your product will succeed.
5. NOT WIDELY KNOWN (UNUSUAL INFORMATION) about BRICS / EU / ASEAN or another international trade grouping

5. CASE study - elaboration
CASE study on one of these topics:
1. Business Relations
2. SMEs and their role in a globalizing world
3. Family Business
4. PRODUCT placement – market study
5. Not widely known information about an international grouping
ELABORATION:
Elaboration in teams per up to 8 people
Presentation of the results
- ppt possible, cca 10 min., structured way, clear outcomes (solutions, results)
PREZENTATION:
- up to 10 min. / all the team members should be involved 5

6. Team projects presentation - schedule
6/10/2014 introductory lesson, setting the teams, choosing topics
20/10/2014 guest lecture - Ananta Giri: Rethinking Economics: With and Beyond Globalization and Towards Planetary Realizations / consulting on the team projects
3/11/2014 lecture / consulting on the team projects
17/11/2014 Czech bank holidays
1/12/2014 presentation of teams 1 + 2
15/12/2014 presentation of teams 3 + 4, concluding the course

7. LITERATURE SOURCES Povinná literatura / Mandatory reading:
Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition, 2011
Doporučená literatura / Recommended reading:
Allan Sitkin, Nick Bowen: International Business, January 2010.
Stuart Wall, Dr. Bronwen Rees: International Business: A First Course, September 2009.
Wild, J., Wild, K., Han, J.: International business: the challenges of globalization. 4th ed. – Pearson, Upper Saddle River, ISBN:
Woods, M.: International business. Basingstoke, Palgrave, ISBN:
Griffin, R.W., Pustay, M.W.: International business: a managerial perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, ISBN:

8. -> this impact is much > than differences coming out from: RACE
CULTURE DIFFERENCES
= impact of culture on relationship, employees approach to work, business management and negotiations
-> this impact is much > than differences coming out from:
RACE
SEX
specialization [PROFESSION]
POSITION 8. 8

9. CULTURE and it’s elements
= characteristic way of living
= based on ACQUIRED models of behaviour (i.e. learnt, not inborn)
Culture ELEMENTS
ABSTRACT (values, approaches, opinions, religion – from generation to generation)
MATERIAL (stage of development and types of: technology, structure of consumption in a country / society ) 9. 9

10. CULTURE – abstract elements - impact
AESTETICS
Opinion on what is „nice“ (symbols of countries, black-white perception, ideal of woman’s beauty etc.)
RELIGION
Hinduismus – way of living: cast system, common households, worshipping/cult of animals…
Islam
Christianity
Way of DOING BUSINESS
length of meeting, outcomes
business card handling
10. 10

11. CULTURE – abstract elements - impact
EDUCATION
characteristics and way of thinking of the consumers/ customers in a territory (illiteracy – promotion, packaging, marking…)
LANGUAGE
impossibility to pronounce
undesirable meaning
11. 11

12. Basic elements of Culture
Language
Communi-cation
Religion
Values & Attitudes
Social structure
12. 12

13. Individuals, Families, Groups
SOCIAL structure
= determines the roles of individuals within the society, indiv.mobility within society, stratification of the society
Individuals, Families, Groups
Social attitudes influence / Business:
US descourage nepotism
Arab countries: family ties crucial
Importance of INDIVIDUAL to the group:
Europe culture promotes individualism (PAY = merit based)
group focused societies (collectivism) = the IND role is to SERVE the group (PAY = seniority-oriented, group success)
Social STRATIFICATION
Social MOBILITY
ability of IND to MOVE within stratums of society
13. 13

14. = identified > 3.000 languages worldwide
Business language
Form of language
Competitive weapon
Translations
Meaning YES / NO
14. 14

15. Gestures & their impact on business Role of silence Role of eyes
COMMUNICATION
= VERBAL x NON-VERBAL
Contact zone
Gestures & their impact on business
Role of silence
Role of eyes
Gift giving & hospitality
Business practice
Role of education in a society
15. 15

16. Ad COMMUNICATION - other culture aspects
Time perception
Contact zone
Role of eyes
Timing accuracy
Politeness
cca 80 cm in Europe
cca 30 cm in e.g. Arabic countries
Importance in Europe X could be perceived as a sign of agression in other parts of world (Asia, Japan)
16. 16

17. men preference in business
RELIGION
Christianity
European traditions
Hinduismus
way of living (life style): castes (privileged groups of society), common household of a few families, worship (cult) of cow
Islam
men preference in business
17. 17

18. Characteristics of Culture [relevant to IB]
Culture = collection of values, beliefs, behaviors, customs and attitudes that distinguish one society from another
society culture determines how firms operates in the society
Transmission from one member of society to another
Culture reflects LEARNED behavior
e.g.: hierarchical society => stress on loyalty & harmony => results in life-time employment & minimal job switching (Japan)
Elements of culture are INTERRELATED
Because cultural is LEARNED behavior, it’s ADAPTIVE
i.e. culture change in response to external forces that affects society
Behavior is ADAPTIVE
Defines the membership of the society
i.e. who shares the culture ‘proves’ to be a member / who does not => outside of boundaries of society
Culture is SHARED
18. 18

19. Hofstede’s 5 dimensions of cult.differencies
Person’s beliefs about the relative importance of the individual & groups to which that person belongs
INDIVIDUALISM x COLLECTIVISM
SOCIAL orientation
Power RESPECT x TOLERANCE
POWER orientation
Uncertainty ACCEPTANCE x AVOIDANCE
UNCERTAINTY orientation
AGGRESSIVE x PASSIVE goal behavior
GOAL orientation (Masculinity x Femininity)
LONG-TERM x SHORT-TERM outlook
TIME orientation
19. 19

20. Hofstede’s 5 dimensions
SOCIAL ORIENTATION
= person’s beliefs about the relative importance of the individual & groups to which that person belongs
INDIVIDUALISM
Cultural belief that the person comes first
Key values: high degree of self-respect & independence
COLLECTIVISM
Belief that group comes first
Typically: well-defined social networks, extended families, tribes, co-workers
20. 20

21. Hofstede’s 5 dimensions
POWER ORIENTATION
= refers to beliefs that people in a culture hold about the appropriateness of power and authority dif. in hierarchies
RESPECT
People tend to accept the power & authority of superiors
People at all levels in firm accept decisions of superiors
TOLERANCE
People are more willing to question / refuse a decision or mandate from sb at a higher position
21. 21

22. Hofstede’s 5 dimensions UNCERTAINTY ORIENTATION
= is the feeling people have regarding uncertain an ambiguous situations
ACCEPTANCE
Stimulated by change and thrive on new opportunities
Ambiguity is seen as a context one can grow, develop, carve out new opp.
Positive response to change
AVOIDANCE
People dislike ambiguity and will avid it whenever possible
Amb. & change seen as undesirable
Preference of routine, structured & consistent ways of doing
22. 22

23. Hofstede’s 5 dimensions GOAL ORIENTATION / Masculine x Feminine
= is manner in which people are motivated to work toward different kinds of goals
AGGRESSIVE g.behavior (Masculinity)
People tend to place a high premium on material possessions, money & assertiveness
PASSIVE g. behavior (Femininity)
People place a higher value on social relationships, quality of life and concern for others
23. 23

24. Masculinity x Femininity (VALUES & ATTITUDES)
Ad GOAL ORIENTATION
Masculinity x Femininity (VALUES & ATTITUDES)
MASCULINITY x FEMININITY (Hofstede’s 1 of 5 dimensions):
= is manner in which people are motivated to work toward different kinds of goals
Masculinity
People tend to place a high premium on material possessions, money & assertiveness
The cultures that are more masculine, such as Japan, value competitiveness, assertiveness, ambition, and the accumulation of wealth.
Femininity
People place a higher value on social relationships, quality of life and concern for others
On the other hand, feminine cultures, such as Sweden, place more emphasis on relationships, compassion, and the general quality of life.
24. 24

25. Hofstede’s 5 dimensions
TIME ORIENTATION
= is extent to which members of a culture adopt a long-term vs. short-term outlook on work, life etc.
LONG-term outlook
Value: dedication, hard work, and thrift
SHORT-term outlook
Value: traditions, social obligations
25. 25

26. Basic elements of Culture
Language
Communi-cation
Religion
Values & Attitudes
Social structure
26. 26

27. Social stratification
KEY terms
Culture and its impact on International Business and Relations
Characteristics of culture
Five dimensions of culture differences
Social orientation (individualism x collectivism)
Power orientation
Uncertainty orientation
Goal orientation (masculine x feminine)
Time orientation
Social stratification
Communication: verbal x non-verbal
Other culture aspects [time perception, contact zone, role of eyes, gift-giving, hospitality]

28. Thank you for your attention
INTERNATIONAL BUSINESS RELATIONS
Thank you for your attention
Ing. Pavla Břečková, Ph.D.