1. Cultural Issues in International Business
Opening case on EuroDisney
Wine at the parks
Peak days
Length of stay
Lunch and Breakfast
Work policy..especially lunch hours

2. Why Culture is Important!
United Airlines in Asia
US Japan Differences
Other cultural Differences
A house should be dusted and polished three times a week
Everyone should use a deodorant
There is too much emphasis on sex nowadays
I attend church regularly

3. Cultural Issues in International Marketing
Access
Income distribution and affordability
Physical access- trade barriers, distribution and infrastructure
Buying Decision
Perceptions - Country of Origin
Brand equity
Price-Quality
Consumption Characteristics
Product Disposal

4. What is Culture
Culture is learned, shared, compelling, interrelated set of symbols whose meaning provide a set of orientation for members of a society.
Key words: learned, shared and interrelated.

5. The Determinants of Culture
Religion
Political
philosophy
Social
Structure
Culture
Norms
and value
systems
Economic
philosophy
Language
Education 22 22

6. Values Values are the bedrock of a cultture
Includes society’s attitudes towards:
individual freedom
democracy
truth
honesty
role of women
Love, sex, and marriage
weather
death
Time (mono and Polychronic)

7. Norms Folkways: routine everyday conventions time for a date at 8PM
time for dinner at 8 PM
Mores
More serious crimes
theft and adultery
most countries have laws against breaking Mores
drinking in Saudi Arabia and drugs in Singapore

8. Social Stratification
Social Mobility refers to the extent by which individuals can move out of the stratum into which they are born
A Caste System: a closed system of stratification
mobility is limited to your birth
occupation decided at birth
Class System: A more open system
upper, upper-middle, lower-middle, lower
Mobility still depends on the country (e.g., low mobility in the U.K., Italy; higher in the U.S.)
Implications for relationships between management and labor.
Implications for extended, nuclear families, and reference groups

9. World’s Major Religions (Millions of Adherents)
Figure 3.2 23 23

10. Language
Although English is the business language some local language can be quite critical
Hotel signs in world hotels
Chinese Brand Names
An Electrolux Ad.
Unspoken Language
Thumb and finger
talking distance

11. Material Life and Education
Infrastructure
Technology and large vs. small
Education
public vs private
scientists and engineers vs non
Math and science vs well rounded
High school and Higher Ed. (homework)

12. Cross-Cultural Comparison
High- versus Low- Context Cultures
High context
Word is important
relationship between the sender and the receiver
trust before business
Low Context
legal and written word
more mono-chronic
bids are important

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

14. Uncertainty Avoidance and Masculinity
Masculinity Index (MAS)
Weak uncertainty
avoidance
Feminine
Weak uncertainty
avoidance
Masculine 8 16 24 32 40 48 56 64 72 80 88 96
104
110
SIN
JAM
DEN
SWE
HOK
GBR
IRE
MAL
IND
CAN
USA
PHI
NOR
IDO
SAF
NET
NZL
EAF
AUL
WAF
FIN
IRA
SWI
THA
ARA
GER
TAI
PAK
AUT
BRA
ITA
VEN
COS
CHL
FRA
ISR
COL
SPA
TUR
PAN
MEX
KOR
ARG
YUG
PER
SAL
BEL
URU
JPN
POR
GUA
Strong uncertainty
avoidance
Feminine
Strong uncertainty
avoidance
Masculine
GRE
Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of
International Business Studies 14 (Fall 1983), pp 31 31