week two - influence of culture in international business Flashcards
define global leadership
the ability to operate effectively in a global environment while respecting cultural diversity, the manager is willing to approach others
what is cross-cultural communication
this involves learning other languages and also being aware of verbal and non-verbal references in communication with people from another culture
what is cultural sensitivity
understanding the cultural influences on behaviour and translating cultural awareness into effective relationships with those who are different
what is acculturation
adjusting and adapting effectively to a specific culture, avoiding ethnocentrism
what is communication
- a process of circular interaction involving a sender, receiver and a message
- non-verbal and verbal
- people selectively perceive data and determine what is relevant
- the message is interpreted according to the experience and values of the receiver
how can one improve their live verbal communication
- pay attention to the person and the message
- empathise and create rapport
- share meaning of the message
what are the communication styles
- explicit vs implicit communication
- direct vs indirect communication
- silence vs verbal overkill
- use of praise
- slag, euphemisms, idioms
how can one improve their non-verbal communication
- tone of voice
- proxemics (distance between two people)
- body language
- facial expressions
what is a virtual team
a group of individuals who predominantly use technology to communicate, collaborate, share information to achieve common work goals
what is a global virtual team
a virtual team with members internationally dispersed
characteristics of effective virtual teams
- shared team objectives
- knowledge of what to do
- the equipment to do it
- the ability to do it
- the desire to do it
organisational opportunities of global virtual teams
- leverage talent
- enable organisations to adapt more quickly to the global economy
- increase the diversity of perspectives
- improve work-life balance and job satisfaction
- decrease travel and mandatory relocation
what are the frustrations in GVT mainly due to
- lack of participation
- lack of engagement
- lack of ownership
what are the three traps of global virtual teams
1) isolation: reduced contact, reduced sense of team
2) fragmentation: unclear purpose, unclear roles and responsibilities
3) confusion: too much/too little communication, imprecise communication
the 6 C’s of global collaboration
- cooperation
- convergence
- cultural intelligence
- capability
- communication
- coordination
suggestions for leading and working in a GVT
- devote time to developing relationships
- handle language difficulties
- create an agenda
- create summary notes after meetings
- encourage participation
define negotiation
a process by which two or more parties try to come to a mutually agreeable decision
variables influencing international negotiation
- basic conception of the negotiation process (strategy)
- protocol
- complexity of language (low or high context)
- nature of the persuasive argument (emotional or logical)
- bases of trust
- risk propensity
- value of time
- form of satisfactory agreement
how to use interpreters during negotiations
- brief the interpreter about the subject
- speak clearly and slowly
- avoid talking for a long time
- do not interrupt the interpreter
- avoid little-known words
- try to be expressive with gestures to aid
- confirm in writing what has been agreed
tips for international negotiations
- listen more than you speak
- have the details ready
- develop personal relationships
- use simple language
- follow protocol
- understand national sensitivities
- be patient
- periodically summarise the negotiations
things to avoid in international negotiations
- being manipulated
- be emotional
- violate national sensitivities
- stake out extreme positions
- skip authority levels
- demand a decision
what is a local plus
a local plus agreement transfers an individual abroad with the intent of having them establish permanent residence in their new country (with significant support)
what is a global nomad
people who move from one international assignment to another with no expectation to move back to their original country
define culture shock
strain and anxiety resulting from contact with a new culture, causing psychological and physiological reactions
causes of culture shock
- stress reactions
- cognitive fatigue
- role shock (identity crisis)
- personal shock (loss of personal intimacy)
culture shock diagram
topic 3, slide 21
what are the stages of culture shock
1) pre-departure up and downs
2) honeymoon
3) culture shock
4) adjustment
5) pre-return up and downs
6) euphoria
7) loss of host culture
8) adaptation
what are the five pillars of islam
the five obligations that every muslim must satisfy in order to live a good and responsible life according to Islam:
1) shahadah: reciting the Muslim profession of faith
2) salat: performing ritual prayers in the proper way five times a day
3) zakat: paying an alms (or charity) tax to benefit the poor
4) sawm: fasting during the month of Ramadan
5) hajj: a pilgrimage to mecca
what are the activities that are forbidden by the koran
- alcohol
- pork
- gambling
- tobacco
- porn
- weapons
financial interests are influenced by interest (riba) and uncertainty/chance (gharar) - both regarded as usury and therefore illegal
what are some products and concepts in Islamic finance
- mudharabah: the idea that borrowing is replaced by joint operation, any losses/profits will be shared
- takaful
- tubarru
- charging any interest (riba) is forbidden
- al gharar (uncertainty) is regarded similar to al maisir (gambling)
what are the islam beliefs around insurance activities
they are regarded with suspicion in islam because of the diverging interests of the insurer and the insured
what does takaful mean
‘guaranteeing each or or ‘joint guarantee’, these activities are allowed as they do not allow individuals to benefit from the misfortune of others
what is tubarru
mutual insurance funds are based on the idea of tubarru, which means ‘gift’
