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Chapter 4:The Role of Culture
International Business, 4th Edition
Griffin & Pustay
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Chapter Objectives_1
Discuss the primary characteristics of culture
Describe the various elements of culture and provide examples of how they influence international business
Identify the means by which members of a culture communicate with each other
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Chapter Objectives_2
Discuss how religious and other values affect the domestic environments in which international businesses operate
Describe the major cultural clusters and their usefulness for international managers
Explain Hofstede’s primary findings about differences in cultural values
Explain how ethical conflicts may arise
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Culture
Values
Beliefs
Behaviors
CustomsAttitudes
Culture
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Characteristics of Culture
Learned behavior Interrelated elements Adaptive Shared
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Figure 4.1 Elements of Culture
Culture
Social Structure
Language
Values/ Attitudes
Communication
Religion
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Social Structure
Individuals, families, and groups– Importance of family– Definition of family– Importance of individual relative to the group
Social stratification – categorization based on birth, occupation, educational achievements
Social mobility – ability to move from one stratum of society to another
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Language
3000+ different languages worldwide 10,000+ different dialects Primary delineator of cultural groups Lingua Franca
– English is the common language of international business
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Map 4.1 World Languages
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Map 4.2 Africa’s Colonial Heritage
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Translation Disasters
KFC’s Finger Lickin’ Good– Eat your fingers off (China)
Pillsbury’s Jolly Green Giant– Intimidating green ogre (Saudia Arabia)
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Yes and No Across Cultures
Latin America– meaning of “manana”
Japan – meaning of “yes” versus “yes, I
understand”
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Caterpillar has developed its own
simplified language instruction program
–Caterpillar Fundamental
English
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Table 4.1 Forms of Nonverbal Communication_1
Hand gestures Facial expression Posture and stance Clothing/ hair style Walking behavior Interpersonal
distance
Touching Eye contact Architecture/
Interior design Artifacts and non-
verbal symbols Graphic symbols
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Table 4.1 Forms of Nonverbal Communication_2
Art and rhetorical forms
Smell Speech rate, pitch,
inflection, volume Color symbolism Synchronization of
speech and movement
Taste, symbolism of food, oral gratification
Cosmetics Sound signals Time symbolism Timing and pauses Silence
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Religion
Christianity– Catholicism– Protestant– Eastern Orthodox
Islam Hinduism Buddhism
72% of the world
adheres to one of these four
religions!
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Map 4.3 Major World Religions
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Two million Muslims annually
descend on the Grand Mosque in
Mecca, Saudia Arabia as part of
the Haij
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Values and Attitudes
Values: accepted principles and standards Attitudes: actions, feelings, and thoughts
that result from values– Time– Age– Education– Status
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Theories of Culture
Hall’s Low-Context, High-Context Approach
Cultural Cluster Approach Hofstede’s Five Dimensions
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Hall’s Low-Context, High-Context Approach
Low-context: words used by speaker explicitly convey speaker’s message
High-context: the context in which a conversation occurs is just as important as the words spoken; cultural clues are critical to communication
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Figure 4.2 High- and Low-Context Cultures
Ger
man
Sw
iss
Sca
ndin
avia
n
U.S
./ C
anad
ian
Bri
tain
Ital
ian
Spa
nish
Gre
ek
Ara
b
Vie
tnam
ese
Japa
nese
Kor
ean
Chi
nese
LowContext
HighContext
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Map 4.4 A Synthesis of Country Clusters
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Table 4.2 Cultural Differences in Negotiating Styles
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Hofstede’s Five Dimensions
Social Orientation Power Orientation Uncertainty Orientation Goal Orientation Time Orientation
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Social Orientation
Individualism Collectivism
Relative importance of theinterests o the individual versus
interests of the group
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Power Orientation
Power Respect Power Tolerance
Appropriateness of power/authority within
organizations
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Uncertainty Orientation
Uncertainty Acceptance Uncertainty Avoidance
An emotional responseto uncertainty and change
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Goal Orientation
Aggressive Goal Behavior Passive Goal Behavior
What motivates peopleto achieve different goals
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Time Orientation
Long-term Outlook Short-term Outlook
The extent to whichmembers of a culture
adopt a long-term or a short-termoutlook on work and life
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Figure 4.4 Social Orientation and Power Orientation
Patterns
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Understanding New Cultures
Self-reference criterion Cultural literacy Acculturation