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Title: International business chapter 2


1
ISG BBA PROGRAM Spring semester
BUS 470 INTERNATIONAL BUSINESS
Lecture 2 Chapter 2 Culture differences
Tuesday, January 24th 2007
Guillaume Sarrat de Tramezaigues
www.gstblog.com
2
What is Culture?
  • Culture
  • The sum total of beliefs, rules, techniques,
    institutions, and artifacts that characterize
    human populations.
  • Consists of learned patterns of behavior common
    to the members of a given society.
  • The unique lifestyle of a particular group of
    people.
  • Ethnocentricity
  • Considering your culture superior to all others

3
Sociocultural Components
  • Components of Culture
  • Aesthetics
  • Attitudes and beliefs
  • Religion
  • Material Culture
  • Education
  • Language
  • Societal organization
  • Legal characteristics
  • Political structures

4
Religion
  • Responsible for many of the attitudes and beliefs
    affecting human behavior.
  • Work Ethic
  • Protestant work ethic
  • Europeans and Americans generally view work as a
    moral virtue and look unfavorably on the idle.
  • Confucian work ethic
  • In Asian countries, this is the same as
    Protestant ethic.

5
Asian Religions
  • Hinduism
  • Caste system is basis of the social division of
    labor.
  • Buddhism
  • Jainism
  • Sikhism (Indian)
  • Confucianism
  • Inseparable from Chinese culture
  • Taoism
  • Shintoism (Japan)

6
Islam
  • About 1.3 billion followers
  • This youngest faith is the second largest after
    Christianity (2 billion adherents).
  • Founder of Islam is Muhammad
  • Muhammad was not only the prophet of God but also
    the head of state.
  • In Muslim nations, there is no separation of
    church and state.
  • Holy Book Koran
  • Five Pillars of Faith
  • Confession of faith
  • Five daily prayers
  • Giving charity
  • Ramadan fast
  • Pilgrimage to Mecca
  • Jihad holy war
  • Two divisions
  • Sunni and Shiites
  • Conflict gives rise to violent clashes

7
Material Culture
  • Refers to all human-made objects
  • Concerned with how people make things and who
    makes what and why.
  • Technology
  • Mix of usable knowledge that society applies and
    directs toward attainment of cultural and
    economic objectives

8
Education
  • Equips a person to take his or her place in adult
    society
  • Yardsticks
  • Literacy rate
  • Must verify definition used
  • Kinds, quality and enrollment of schools
  • Amount per capita spent on education
  • Vocationally trained groups
  • Study trends

9
Education
  • Brain Drain
  • The emigration of highly educated professionals
    to industrialized nations
  • Reverse Brain Drain
  • The return of highly educated professionals to
    their home countries.
  • Korea and Taiwan are luring home engineers and
    scientists
  • Womens Education
  • Fall in illiteracy rate
  • Most governments now provide education for both
    genders
  • Educated women have fewer, healthier, and better
    educated children
  • Educated women achieve higher labor force
    participation and wages

10
Spoken Language
  • Language is the key to culture, and without it,
    people find themselves locked out of all but a
    cultures perimeter
  • Spoken languages demarcate cultures
  • Switzerland four separate cultures
  • Many languages can exist in a single country, but
    one usually serves as communication vehicle
  • Lingua franca or link language
  • English primary language of business

11
Unspoken Language
  • Nonverbal communication, such as gestures and
    body language.
  • Gestures vary tremendously from one region to
    another
  • Closed doors convey different meanings
  • Office size different in various cultures
  • Conversational distance small in East
  • Gift giving has specific etiquette in each
    culture
  • Gift or bribe?

12
Societal Organization
  • Kinship
  • Extended family
  • Includes blood relatives and relatives by
    marriage.
  • This is a source of employees and business
    connections.
  • Members responsibility
  • Although the extended family is large, each
    members feeling of responsibility to it is
    strong.
  • Associations
  • Social units based on age, gender, or common
    interest, not on kinship.
  • Age
  • Manufacturers of consumer goods are well aware of
    the importance of segmenting a market by age
    groups.
  • This segmentation often cuts across cultures.

13
Understanding National Culture
  • Hofstedes Dimensions of Culture
  • Individualism versus Collectivism
  • Large versus Small Power Distance
  • Strong versus Weak Uncertainty Avoidance
  • Masculinity versus Femininity
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