CHAPTER 8BBB4M

8.1 CUSTOMS AN CULTURE

Culture – a reflection of the values and beliefs of a community or a nation. A nation’s laws, language, technology, art, music, and literature define its culture.

Customs – the ways in which cultural behaviors are performed. The social habits and traditional behaviors of people are the customs of people.

Three cultural determinants – Geography, History and Religion.

GEOGRAPHY

Climate

Arable land

Transportation

Location

Natural hazards

HISTORY

Cultural norms are cultural expectations, appearance, observances, and behavior that are normal (standard) in a region or country.

When a group or nation imposes its cultural values and customs on another practice is referred to as cultural imperialism.

RELIGION

Plays an enormous role in determining the cultural values of a nation.

Some societies have a single religion that shapes their laws and customs.

Other societies embrace a multitude of religious beliefs, often in conflict with each other.

Religious ceremonies are often accompanied by holidays

8.2 Culture and Consumer Needs and

WantsCultural Marketing – uses marketing resources to create effective international marketing campaigns that will appeal to consumers in specific countries.

Jaffa Citrus Fruit is an example of cultural marketing

Jaffa is the brand name of citrus fruit marketing board of Israel.

Jaffa sees the world as composed of individualized markets that are based on unique cultures and creates a marketing plan according to that county’s specific taste,

Adapting to cultural differences

Would consumers buy the product?

Are consumers familiar with its brand and logo?

Would it have to change some aspects of the product to meet the consumer’s taste?

Second cup example

Apple example

These questions help identify the cultural composition of the foreign target market and will help Canadian businesses avoid making costly cultural mistakes.

8.3 Culture and International Business

PracticesNEGOTIATION STYLES

LANGUAGE

BUSINESS PROTOCOL

EMPLOYEE MANAGEMENT

NEGOTIATION SYTLES

Negotiating style is the way in which people negotiate business relationships and is particularly important in international business.

Direct and factual negotiations may be preferred instead of making deals through offers and counteroffers.

Some cultures prefer personal contact, and their business people may ignore other forms of communication.

LANGUAGE

Clear business communications are easier to achieve when al countries involved speak the same language.

Silent LanguageNonverbal communication such as body language, personal distances between people, appearance, the ise of colors, and modes of greeting.

Forms of GreetingsAn inappropriate greeting can give serious offence to the recipient.

Style of DressIt is better to be dressed too formally than too casual

BUSINESS PROTOCOL

Protocol – rules if correct or appropriate behavior to follow when meeting with officials or business people in another nation.

Gift giving

Punctuality

Scheduling of meetings

Business entertaining

EMPLOYEE MANAGEMENT

An awareness of business practices is also necessary for the management of a foreign workforce.

Cultural values have been incorporated into the employment laws of each country, such as minimum wage rates, paid vacations, health care, and so on.

Lunch breaks, termination, labour laws, work ethics,

8.4 Disappearing Diversity

International business is creating a type of global culture.

There are cultural differences and similarities.

Successful business deals mean economic success, financial freedom, improved lifestyle, and economic benefits for entire communities.