International Cultural Environment Chapters 3, 4 and 5

1
International Cultural EnvironmentChapters 3, 4
and 5
2
History and Geography (Ch. 3)

• Historical perspectives in global business
• Africa, Asia, Europe, Latin America
• Climate, topography and economic growth
• Social responsibility and the environment how
  should we counter the depletion of global
  resources and sustain development
• Dynamics in Global Population Trends
• Population growth in different parts of the world
• Rural vs. urban growth
• Age pyramid
• Worker shortage and immigration
• Breaking of large families

3
Cultural Dynamics (Ch. 4)

• Culture definition, origin, and scope
• Culture and consumption (e.g., flower, food,
  habitats) modernization influence
• Culture is shaped and influenced by
• Geography, history and politics
• Technology
• Social Institutions family, religion, school,
  media, and government
• Elements of culture
• Cultural values- Hofstedes five cultural values
• Language verbal, nonverbal, silent language of
  time, space and friendship
• Aesthetics arts, folklore, and music, drama,
  dance etc.
• Cultural change planned and unplanned,
  resistance to change

4
Hofstedes Cultural Value

• Individualism/collective index (IDV) Refers to
  preference of behavior that promotes ones self
  interest. Higher score (e.g., USA) means high on
  individualism.
• Power distance index (PDI) Measures the
  tolerance of social inequality, that is, power
  inequality between superiors and subordinates
  within a social system. Higher score (e.g., Arab
  countries) means more hierarchical.
• Uncertainty avoidance index (UAI) Refers to the
  intolerance of ambiguity and uncertainty among
  members of a society. Higher score (e.g., Greece)
  means less tolerance for uncertainty.
• Masculinity/feminity (MAS) Refers to ones
  desire for achievement and entrepreneurial
  tendencies. Higher score (e.g., Latin culture)
  means more assertiveness and masculinity.
• Future orientation Refers to the long-term
  orientation of the society.

5
Culture and Business (Ch. 5)

• Role of adaptation
• Cultural imperatives must conform (e.g., trust,
  relationship)
• Cultural electives may or may not conform (e.g.,
  kissing, hugging, wine in business meetings)
• Cultural exclusives exclusively for the locals,
  do not have to conform (e.g., local dress, local
  food, religious practices)
• Critical features of American Management Style
• Management Styles in the World
• Authority and decision making
• Management objectives and aspirations
• Role of individual in a company- social dimension
• Communication styles (High context vs. Low
  context)
• Formality
• P-time (polychronic) vs. M-time (monochronic)
• Negotiation style

6
Culture and Business (Ch. 5)..contd.

• Gender bias in international business
• Business Ethics and Corruption
• Transparency Internationals CPI or Bribery Index
• Bribery definition and variations
• Gifts vs. Bribery
• Extortion
• Lubrication
• Long term vs. short term orientation in decision
  making
• Relationship-oriented vs. Information-oriented
  culture

7
Ch. 3, 4 and 5Discusion Questions

• Why do we need to study history or geography in
  international marketing? Explain.
• Explain how global population trends affect
  international marketing.
• What is culture? How culture affects
  international marketing? Explain.
• Explain Hofstedes five cultural values.
• Explain the variation in management style in
  different parts of the world.
• Discuss how corruption affects business and what
  business and world community doing about it.

8
High Context vs. Low Context Cultures
High Context Implicit
Japanese
Arabian
Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian
German
Low Context Explicit
Swiss