International Business The New Realities Chapter 3

Culture

Integrated system of learned behavior patterns that characteristic of the members of a group or society. The learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Cross-Cultureal Risk

A situation or event in which a cultural misunderstanding puts some human value at stake.

Four Risk in international business

Cross-Cultural Risk, Country Risk, Commercial Risk, and currency risks (financial).

Ethnocentric orientation

Using our own cultures as the standard for judging other cultures.

Polycentric orientation

A host-country mindset in which the manager develops a strong affinity with the country which she or he conducts business.

Geocentric Orientation

a global mindset in which the manager is able to understand a business or market without regard to country boundaries.

Socialization

The process of learning the rules and behavioral patterns appropriate to one;s given society.

Acculturation

the process of adjusting and adapting to a culture other than one's own.

Cultural Makeup that is visible (HIGH CULTURE)

Fine arts, drama, literature, classical music

Cultural Makeup we are aware of (Folk Culture)

Humor, religion, etiquette, folk dancing, popular music, cooking, rites of passage, diet, courtship practice, dress.

Cultural Makeup we are unaware of (Deep Culture)

gender roles, greeting rituals, superior- subordinate relationships, family relationships, conversational patterns, nonverbal communications, beliefs on Right vs. Wrong, concepts of beauty, attitudes on Cooperation vs. Competition, Decision-making pattern

National Culture

Nationality, ethnicity, gender, religion, social institutions, social class , education system.

Professional Culture (Corporate Culture)

Academe, business, banking, engineering, computer programming, legal ,medical, military.

Low Context Culture

A culture that relies on elaborate verbal explanations, putting much emphasis on spoken words.

High Context Culture

A culture that emphasizes nonverbal messages and views communication as a means to promote smooth, harmonious relationships.

High Context Culture Countries

Chinese, Korean , Japanese, Vietnamese

Low Context Cultures

German, Swiss, Scandinavian, North American

Individualism versus collectivism

Describes whether a person functions primarily as an individual or as part of a group.

Power distance

Describes how a society deals with the inequalities in power that exist among people.

Uncertainty avoidance

The extent to which people can tolerate risk and uncertainty in their lives

Masculinity Vs. Femininity

Refers to the society's orientation based on traditional male and female values. masculine cultures tend to value competitiveness, assertiveness, ambition, and the accumulation of wealth. Feminine cultures emphasize nurturing roles, interdependence among

Long term Vs. Short term orientation

refers to the degree to which people and organizations defer gratification to achieve long-term success.

Cultural Metaphor

A distinctive tradition or institution strongly associated with a particular society.

Idiom

An Expression whose symbolic meaning is different from its literal meaning.

Polychronic

A flexible, non-linear, orientation of time, whereby the individual takes a long-term perspective and emphasizes human relationships.

monochronic

a rigid orientation to time, in which individuals are focused on schedules, punctuality, and time as a resource

basic characteristics of Culture

learned, shared, intra-generational (same Generation), inter-generational (parent->child), multidimensional, adaptive/changing, conservative

Edward Hall: types of Culture

High Context v low Context (communication), Monochromic v Polychronic (time)

Cultural Dimensions proposed by Geert Hofstede

Individualism v Collectivism
Power distance
Uncertainty Avoidance
Masculine v Feminine
Time Orientation

Cultural Elements

beliefs, values, attitudes, customs, language, material production, symbolic production, social structure, Relationship v Deal, Perception of time and space

Layers of Culture

National culture, Professional Culture, Corporate Culture

Cultural orientations

ethnocentric, polycentric, geocentric

cross-cultural proficiency is characterized by four key personality traits:

tolerance for ambiguity
perceptiveness
valuing personal relationships
flexibility and adaptability

cultural intelligence

is a person's capacity to function effectively in situations characterized by cultural diversity

self-reference criterion

the tendency to view other cultures through the lens of our culture

critical incident analysis

useful technology that managers use to analyze awkward situations in cross-cultural encounters

Culture

Integrated system of learned behavior patterns that characteristic of the members of a group or society. The learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviors, and

Cross-Cultureal Risk

A situation or event in which a cultural misunderstanding puts some human value at stake.

Four Risk in international business

Cross-Cultural Risk, Country Risk, Commercial Risk, and currency risks (financial).

Ethnocentric orientation

Using our own cultures as the standard for judging other cultures.

Polycentric orientation

A host-country mindset in which the manager develops a strong affinity with the country which she or he conducts business.

Geocentric Orientation

a global mindset in which the manager is able to understand a business or market without regard to country boundaries.

Socialization

The process of learning the rules and behavioral patterns appropriate to one;s given society.

Acculturation

the process of adjusting and adapting to a culture other than one's own.

Cultural Makeup that is visible (HIGH CULTURE)

Fine arts, drama, literature, classical music

Cultural Makeup we are aware of (Folk Culture)

Humor, religion, etiquette, folk dancing, popular music, cooking, rites of passage, diet, courtship practice, dress.

Cultural Makeup we are unaware of (Deep Culture)

gender roles, greeting rituals, superior- subordinate relationships, family relationships, conversational patterns, nonverbal communications, beliefs on Right vs. Wrong, concepts of beauty, attitudes on Cooperation vs. Competition, Decision-making pattern

National Culture

Nationality, ethnicity, gender, religion, social institutions, social class , education system.

Professional Culture (Corporate Culture)

Academe, business, banking, engineering, computer programming, legal ,medical, military.

Low Context Culture

A culture that relies on elaborate verbal explanations, putting much emphasis on spoken words.

High Context Culture

A culture that emphasizes nonverbal messages and views communication as a means to promote smooth, harmonious relationships.

High Context Culture Countries

Chinese, Korean , Japanese, Vietnamese

Low Context Cultures

German, Swiss, Scandinavian, North American

Individualism versus collectivism

Describes whether a person functions primarily as an individual or as part of a group.

Power distance

Describes how a society deals with the inequalities in power that exist among people.

Uncertainty avoidance

The extent to which people can tolerate risk and uncertainty in their lives

Masculinity Vs. Femininity

Refers to the society's orientation based on traditional male and female values. masculine cultures tend to value competitiveness, assertiveness, ambition, and the accumulation of wealth. Feminine cultures emphasize nurturing roles, interdependence among

Long term Vs. Short term orientation

refers to the degree to which people and organizations defer gratification to achieve long-term success.

Cultural Metaphor

A distinctive tradition or institution strongly associated with a particular society.

Idiom

An Expression whose symbolic meaning is different from its literal meaning.

Polychronic

A flexible, non-linear, orientation of time, whereby the individual takes a long-term perspective and emphasizes human relationships.

monochronic

a rigid orientation to time, in which individuals are focused on schedules, punctuality, and time as a resource

basic characteristics of Culture

learned, shared, intra-generational (same Generation), inter-generational (parent->child), multidimensional, adaptive/changing, conservative

Edward Hall: types of Culture

High Context v low Context (communication), Monochromic v Polychronic (time)

Cultural Dimensions proposed by Geert Hofstede

Individualism v Collectivism
Power distance
Uncertainty Avoidance
Masculine v Feminine
Time Orientation

Cultural Elements

beliefs, values, attitudes, customs, language, material production, symbolic production, social structure, Relationship v Deal, Perception of time and space

Layers of Culture

National culture, Professional Culture, Corporate Culture

Cultural orientations

ethnocentric, polycentric, geocentric

cross-cultural proficiency is characterized by four key personality traits:

tolerance for ambiguity
perceptiveness
valuing personal relationships
flexibility and adaptability

cultural intelligence

is a person's capacity to function effectively in situations characterized by cultural diversity

self-reference criterion

the tendency to view other cultures through the lens of our culture

critical incident analysis

useful technology that managers use to analyze awkward situations in cross-cultural encounters