INTERNATIONALBUSINESS

Ch.3DifferenceinCulturesWhatisCulture?EdwardTylor(1870s)–thatcomplexwholewhichincludesknowledge,belief,art,morals,law,custom,andothercapabilitiesacquiredbymanasamemberofsociety.Geert

Hofestede–thecollectiveprogrammingofthemindwhichdistinguishesthemembersofonehumangroupfromanother…Culture,inthissense,includessystemsofvalues;andvaluesareamongthebuildingblocksofculture.Zvi

NamenwirthandRobertWeber–asystemofideasandtheseideasconstituteadesignforlivingValuesandNormsValues–abstractideasaboutwhatagroupbelievestobegood,right,anddesirable.TheyaresharedassumptionsabouthowthingsoughttobeNorms–thesocialrulesandguidelinesthatprescribeappropriatebehaviourinparticularsituationsFolkways:routineconventionsofeverydaylife.Actionsoflittlemoralsignificance,(e.g.dresscode;goodsocialmanners,neighbourbehaviour).Eccentricorill-manneredifviolateitbutnotbadorevil.(Culturaldifference:timeconflictbetweenUS,N.EuropeanandLatin,Arab,Mediterraneanculture)Mores:centraltothefunctioningofasocietiesandtoitssociallife.Indictmentsagainsttheft,adultery,incest,andcannibalism.Theyareassociatedwithlaw.(Culturaldifference:NoalcoholdrinkingisallowedinSaudiArabiawhileitisacceptedinmanyotherplaces)Culture,SocietyandtheNation-StateSociety–agroupofpeoplethatshareacommonsetofvaluesandnorms;peoplewhoareboundtogetherbyacommoncultureNation-state–politicalcreation,maycontainsingleorseveralculturesDeterminantsaffectingculture:economicandpoliticalphilosophiesdiscussedinCh2.Socialstructure;religion;educationandlanguage.SocialStructureSocialStructure–basicsocialorganizationDegreetowhichthebasicunitofsocialorganizationistheindividual,asopposedtothegroupDegreetowhichasocietyisstratifiedintoclassesorcastesIndividualsandgroupsSocialstratification:allsocietiesonahierarchicalbasisintosocialcategories(socialstrata)SocialMobility:castesystemandclasssystemSignificanceReligiousandEthicalSystemReligion–asystemofsharedbeliefsandritualsthatareconcernedwiththerealmofthesacred.Ethicalsystems–asetofmoralprincipalsorvaluesthatareusedtoguideandshapebehaviorChristianityIslamHinduismBuddhismConfucianismChristianityChristianity(1.7billionadherents)–20%ofworld’spopulationareChristiansAdherentscanbefoundinEurope,America,AfricaTheRomanCatholicChurch(furtherspiltProtestantism)–inSouthernEuropeandLatinAmericaTheOrthodoxchurch–inGreeceandRussiaProtestant–themostimportanteconomicimplications(capitalism).Emphasizehardworkandwealthcreation(forthegloryofGod)andfrugality(abstinencefromworldlypleasures)IslamIslam(1billionadherents)–622ADMuhammadleftMeccaandsettledinMadina.MuslimsusedtorefertheadherentsofIslamcanbefoundinmorethan35countries(NorthwestcoastofAfrica,MiddleEast,ChinaandMalaysia,Indonesiaandsoon).ViewJesusasprophetbutnotGodMuslimsrequireunconditionalacceptanceoftheuniqueness,power,andauthorityofGodandtheunderstandingthattheobjectiveoflifeistofulfillthedictatesofhiswillinthehopeofadmissiontoparadiseBelieveinAllah(theGod)Itiscircumscribedbyreligiousprinciples–byacodeofconduct(moralconduct)forinterpersonalrelation–insocialandeconomicactivities.TheKoranestablishessomeeconomicprinciples.Onecan’tmakeunjustprofitthroughtheexploitationofothersHinduismHinduism(750billionadherents)–Indiansubcontinent.Nofounders.Hindusbelievethatamoralforceinsocietyrequirestheacceptanceofcertainresponsibilitiescalleddharma.Believeinreincarnation(rebirthintodifferentbodyafterdeath)andkarma(thespiritualprogressionofeachperson’ssoulReverenceforthecow(agiftofGod)–Mcdonald’sDonotencourageentrepreneurialactivitylikeProtestantBelievethepursuitofmaterialwell-beingasmakingtheattainmentofnirvanamoredifficultHistoricallythecastesystemstoppingpeoplefrommovingthehigherlevelsoftheorganizationhashinderedthedevelopmentoftheentrepreneurs.Thoughabolished,stillhavesomeinfluencesBuddhism

Buddhism(350millionadherents)–6thCenturyBC,SiddharthaGautama(knownasBuddha),anIndianprincegaveuphiswealthtopursueasceticlifestyleandspiritualperfection.(China,JapanandKorea)Sufferingoriginatesinpeople’sdesireandpleasure.Cessationofsufferingcanbeachievedbytransformation–rightseeing,thinking,speech,action,living,effort,mindfulnessandmeditation.BuddhadoesnotsupportthecastesystembutstresstheafterlifeandspiritualachievementratherthaninvolveintheworldBuddhistsocietymayrepresentamorefertilegroundforentrepreneurialactivitythanaHinduculturesinceitdoesnotadvocatecastesystemConfucianismConfucianism(200millionfollowersuntil1949)–5thcenturyBCKungFuTzu(Confucius).China,Taiwan,Korea,Japan.Notareligion,Confucianideology–theimportanceofattainingpersonalsalvationthroughrightactionAcomprehensiveethicalcodethatsetsdownguidelinesforrelationshipswithother.EmphasizehighmoralandethicalconductandloyaltytoothersLoyalty,reciprocalobligationsandhonestyindealingwithothershelptoshapetheeconomicsuccessintheabovecountriesLanguageSpokenLanguage:tocommunicatewithotherandstructuresthewayweperceivetheworldMorelanguages,moreculture,e.g.CanadahasanEnglishspeakingcultureandaFrenchspeakingculture.Chinamanydifferentkindsoflanguages,Cantonese;Mandarin;Min-NamYu,ShanghaiHuaetc.UnspokenLanguage–nonverbalcommunication,V-shape,weknowitisvictory,someoftheEuropeancountriesacknowledgeitashappiness.Distancebetweenpeople,US5-8feet;LatinAmericalessthan5feetEducationCultureisseriouslyaffectedbyeducationFormaleducationsupplementsthefamily’sroleinsocializingtheyoungintothevaluesandnormsofasocietySchoolsteachbasicfactsaboutthesocialandpoliticalnatureofasociety.FocusonfundamentalobligationsofcitizenshipFromaninternationalbusinessperspective:Educationisadeterminantofnationalcompetitiveadvantage–MichaelPorterCultureandtheWorkplaceSociety’scultureaffectsthevaluesandnormsfoundintheworkplaceandhencehaveaveryimportantinfluencesoninternationalbusinessGeertHofstedemadecomparisonacross40countries,4dimensionswereclaimedpowerdistanceuncertaintyavoidanceindividualismvs.collectivismmasculinityvs.femininityCultureandtheWorkplace(con.)powerdistance:howasocietydealswiththefactthatpeopleareunequalinphysicalandintellectualcapabilities.Highpowerdistancecultureletinequalitiesgrowovertimeintoinequalitiesofpowerandwealth(castesystem).Lowpowerdistanceculturelowerthegapofinequalitiesuncertaintyavoidance:measuretheextenttowhichdif