Ch. 4 The Cultural Environment of International Business Flashcards
Key concepts of culture
propably wont have to memorize the list but will have to know about each one
1 cross cultural risk 6 cultural change
2 characteristics of culture 7 international business context
3 models and explanations 8 managerial implications
4 religion
5 language
What are the four risks of International Business?
1Cross-Cultural Risk
2 Country Risk
3 Currency (Financial Risk)
4 Commercial Risk
culture
the learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and symbols.
cross cultural risk
a situation or event where a cultural miscommunication puts some human value a stake. It arises in environments characterized by unfamiliar languages and unique value system beliefs, and behaviors
Ethnocentric orientation
using our own culture as the standard for judging others
polycentric orientation
a mindset in which the manager develops a greater affinity for the country in which he or she works than for the home country
geocentric orientation
a global mindset in which the manager is able to understand a business or market without regard to national boundaries
Culture is not…not…not…
not right or wrong, not about individual behavior, and not inherited
Socialization
the process of learning the rules and behavioral patterns appropriate to one’s society
acculturation
the process of adjusting and adapting to a culture other than ones own
explain why culture is like an iceberg
above the surface certain characteristics are visible, below he surface is a massive base of assumptions, attitudes, and values that strongly influence decision-making relationships, and other dimensions of business.
culture is linked by various factors
1 geography
2 ethnicity
3 gender-perceptions unique to men and women
4 age-seniors, baby boomers, teens children
5 language-both reflects, and is reflected by cultural differences
6 occupation-perspectives differ among blue/white collar, artists
National Culture
nationality ethnicity gender religion social institutions social class educational systems
Professional Culture
academe business banking engineering computer programming legal medical military
cultural metaphors
refer to a distinctive tradition or institution strongly associated with a society; a guide to deciphering attitudes, values, and behaviors
stereotypes
generalizations that may or may not be factual and often overlook real, deeper differences
Idiom
an expression whose symbolic meaning differs from its literal meaning; you cant understand it simply by knowing what the individual words mean
low context cultures
rely on explicit explanations with an emphasis on spoken words. such cultures emphasize clear, efficient logical delivery of verbal messages. communication is direct. agreements are concluded with specific, legal contacts
high context cultures
emphasize nonverbal or indirect language. communication aims to promote smooth, harmonious relationships. such cultures prefer a polite, “face saving” style that emphasizes a mutual sense of care and respect for others. care is taken not to embarrass or offend others.
individualism versus collectivism
refers to whether a person primarily functions as an individual or within a group
power distance
describes how society deals with inequalities in power that exist among people
(high power exhibit big gaps between weak and powerful. MGMT autocratic, give little autonomy. LOW power distance have small gaps, firms flat org. structure, relatively equal relations )
Uncertainty Avoidance
refers to the extent to which people can tolerate risk and uncertainty in their lives
masculinity versus femininity
refers to a society’s orientation based on traditional values
(masculine-competitiveness ambition assertiveness wealth)
(Feminine-nurturing, interdependence, caring for less fortunate)
Long term vs short term orientation
degree to which people and organizations defer gratification to achieve long term success
values
represent a persons judgements about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal.
Attitudes
preferences are developed based on values and are similar to opinions, except that attitudes are often unconsciously held and may not have a rational basis.
deal oriented vs relationship oriented cultures
REL- managers value affiliations, rapport, knowing other party in business interactions; relationships >individual deals; trust valued
DEAL- managers focus on the task at hand, are impersonal, typically use contracts, and want to get down to business
Perceptions of Time
Mono-chronic-a rigid orientation to time in which the individual is focused on schedules, punctuality, time as a resource, time is linear(money)POLYCHRONIC-a flexible linear orientation to time in which the individual takes a long term perspective; time is elastic, long delays are tolerated before taking action. Punctuality<
close interaction between service providers and consumers effect consumers as well as culture because
substantial cultural difference will effect services mi
How does technology relate to culture
differences influence culture. internet, multimedia and communications encourage convergence in global culture. ‘death of distance’ culture is becoming homogenous. internet promotes local culture by increasing the availability of high culture and folk culture.
What are Critics arguing about America’s influence on culture?
globalization critics argue that replacement of indigenous cultures with homogenous ‘americanized’ culture ie clothing food drinks cars hotels websites movies tv and OTHERS argue encourages the worldwide flow of ideas, beliefs, values, and products. today people exposed to diversity of beliefs, values approaches products
Culture converging or diversifying
homogeneity and heterogeneity occur together. cultural flows are diverse. globalization will eclipse some past way but the process can liberate people by providing new ideas and challenging conformity and nationalism.
Managerial guidelines for cross cultural success
- acquire factual and interpretive knowledge CRITICAL INCIDENT
- avoid cultural bias ANALYSIS
- develop cross cultural skills 1. Id situations need to be C.aware
- self reference criterion 2 dont judge awkward behavior
3. develop best interpretation of behavior 4continously improve/lrn
