How Differences in Culture Can Affect International Business
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Transcript of How Differences in Culture Can Affect International Business
7/18/2019 How Differences in Culture Can Affect International Business
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HOW DIFFERENCES INCULTURE CAN AFFECT
INTERNATIONAL BUSINESS?Frida Chagoya Hernández
8!"#8$
7/18/2019 How Differences in Culture Can Affect International Business
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Wha% i& '()%(re?
• C()%(re is defined by Geert Hofstede
as “the collective programming of the
mind which distinguishes the
members of one human group from
another. Culture includes systems ofvalues”
• *a)(e&+ abstract ideas about what a
group believes to be good or right.
• Nor,&+ Social rules and guidelines.
• So'ie%y+ A group of people who
share a common set of values and
norms.
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The i,-or%an'e o. /a)(e&
• alues provide the conte!t within which society"s norms
are established and #ustified.
•alues include society$s attitudes toward concepts as%individual freedom& truth& #ustice& etc. And such attitudes
have a great emotional singificance.
•
'orms are the social rules that govern people"s actions&they are divided in fol(ways and mores.
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The de%er,ina%& o. '()%(re
)he values and norms of a culture are the evolutionary
product of a number of factors including%
•0o)i%i'a) and e'ono,i' -hi)o&o-hy
• The &o'ia) &%r('%(re o. &o'ie%y
• Re)igion
• Lang(ag(e
• Ed('a%ion
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I,-or%a% 'on'e-%& re)a%ed %o '()%(re
• *ndividuals vs groups
*ndividual is the way people percieve themselfs and relate
to each other in social and business in contrast to a group
that is the primary unit of social organi+ation and is the
importance attached to group membership or identification.
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• Social stratification
)he way how societies are
stratified on hierarchical basis
into social categories ,family
bac(ground& occupation andincome-.
• Social mobility the e!tent to
which individuals can move out
of the strata into they are born
Ca&%e &y&%e, /& ')a&& &y&%e,
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Re)igion
• )here are dominate
religions in the world%
Christianity& *slam&
Hinduism and /uddhism
0eligions shape attitudes
toward wor( and
entreprenurship and they
can affect the costs of doing
business.
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Chri&%iani%y
• )he most widely practiced
religion in the world.
• 1onotheistic
• )wo ma#or organi+ations%)he0oman Catholic Church and
2rtodo! Church
• 3conomic implications%
Conection between protestant
ethics and capitalism.alues% Hard wor( and wealth
creation& religious freedom&
individualism as an economic
and political philosophy.
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I&)a,
• )he 45 largest religion of the
world.
• 1a#ority in more than 67
countries. ,coast of Africa&
middle 3ast& China& 1alaysia-.• alues% no distinction between
church and state& islam is a
lifestyle.
• 3conomic implications% pro8
free enterprise& earninglegitimate profit through trade
and commerce& protection of
the right of free property&
interest are forbbiden.
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Hind(i&,
• 9racticed on the *ndian
subcontinet.
• )here is not an official sacred
boo(.
• alues% acceptance ofresponsabilities called dharma&
reicarnation& (arma& spiritual
progression& scetic lifestyle of
material and physical self8denial&
caste system.
• 3conomic implications% Hindus
believe that the pursuit of material
affects their spititual needs
despite of that *ndia$s economy is
growing rapidly.
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B(ddi&,
• :ounded in *ndia.
• 47; followers
• alues% life is comprised
of suffering& /uddismlac( of support of caste
system & afterlife&
e!treme ascetic behavior.
• *mpact in business% fertileground of
entrepreneurship activity.
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Lang(age
• 3nable people to comunicate each other and helps define
culture.
• Although english the language of international business it
is important to leatn the local language to avoid blunders
thruoght improper translation.
• =nspo(en language is important.
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Ed('a%ion
• :ormal education is the medium thought which individuals
learn many of the languague& conceptual and
mathematical s(ills that are indispensable in a modern
society.
• )he availability of pool of s(illed and educated wor(ers
seems to be a ma#or determinant of the economic
success in a country.
•
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C()%(re+ i,-)i'a%ion& .or 1(&ine&&
• Cross8cultural literacy% the danger of being ill8informed.
Adaptations of all aspects of an international$s firms
operations in a foreing country.
• )he conection between culture and competitive
advantage.
• Culture and business ethic% customs vary from country to
country. 1anagers are re>uired to use their own moral
#udgment to solve ethical dilemmas.
•