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Culture and International Business: Dimensions of culture & analysis of one aspect of culture *UAE* Jelena Pahić
Resume 1. Culture and International Business 2. The impact of culture on business 3. Culture is the best way in which people solve problems 4. Feelings and relationships- affective vs neutral cultures  5. Intercultural communication 6. Reconciling neutral and affective cultures 7. Analysis of one aspect of culture- UNITED ARAB EMIRATES 8. Literature
1. Culture and International Business about cultural differences and how they effect the process of doing business and managing, and not about how to understand the people of different nationalities
2. The impact of culture on business 1/2 in every culture in the world such phenomena as authority, bureaucracy, creativity, good fellowship, verification and accountability are experienced in different ways
2. The impact of culture on business 2/2 there is a theory that internationalization will create, or at least lead to, a common culture worldwide- this would make the life of international managers much simpler
3. Culture is the best way in which people solve problems culture is the best way in which a group of people solve problems and reconciles dilemmas culture comes in layers, like an onion- to understand it you have to unpeel it layer by layer the layers of values are deeper within the “onion”, and are more difficult to identify
4. Feelings and relationships- affective vs neutral cultures  memebers of cultures which are affectively neutral do not show their feelings but keep them carefully controlled in cultures high in affectivity, people show their feelings by laughing, smiling and gesturing
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5. Intercultural communication communication is essentially the exchange of information, ideas or emotions; information is the carrier of meaning it is possible only between people who share a system of meaning Verbal communication Western society has a predominantly verbal culture, and Europeans communicate with paper, film and conversation Non-verbal communication rasearch has shown that at least 75% of all communication is non-verbal
6. Reconciling neutral and affective cultures overly neutral or affective (expressive) cultures have problems doing business with each other the neutral person is easily accused of being ice-cold with no heart; the affective person is seen as out of control when such cultures meet the first, essential is to recognize the differences
7. Analysis of one aspect of culture-UNITED ARAB EMIRATES
UNITED ARAB EMIRATES- OVERVIEW 1/2 a relativelyyoung federation of seven small Gulf states each with their own unique identity and history the discovery of oil in the mid 20th century drastically changed the UAE’s economy making it one of the wealthiest nations in the Muslim world with a large foreign expatriate population, it is the most      (socially) liberal country in the Middle East
UNITED ARAB EMIRATES- OVERVIEW 2/2 the president of the Emirates is His Highness Shaikh Zayed Bin Sultan Al Nahayan, who has ruled the country since its inception citizens now have a high standard of living and level of education, and the country is investing a great deal in transforming the desert into a green and pleasant land
GEOGRAPHY 1/2 Official name – United Arab Emirates    Population: 4.621.399 (July 2008)    Official Language – Arabic    Currency – Emirati Dirham (AED)    Capital city – Abu Dhabi    GDP- US$189.6 billion (2007 est.)    GDP per CAPITA- US$37,300 (2007 est.)
RELIGION Islam is the official religion 76% of the population are Muslims, with the remaining 15% Christians, and 9% Hindus and others as with all of the Arab states, Islam has a profound influence on most aspects of life in the UAE the Emirates are tolerant of other religions as well
ECONOMY the UAE’s strong economy is due to its oil and gas reserves, as well as its strategic location at the mouth of the Arabian Gulf the Government has used much of its wealth to improve the living conditions and quality of life within the country the Government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private-sector involvement
GENERAL ATTITUDES Arabs are generally known for their informal, relaxed behaviour, good manners and consideration of others the quality of sabur, which means both ‘patience’ and ‘steadfastness’ in adversity is much admired in business situations, it may take some time before the topic of conversation is directed to your main reason for meeting, but this process should not be hurried
BUSINESS ETIQUETTE the working week traditionally starts on Saturday and it ends on Wednesday people and relationships are more important than schedules and punctuality many traditional attitudes and business practices are evolving towards Western approach, but it is still important to be aware and respectfulof some differences that might exist
STRUCTURE IN EMIRATI COMPANIES there is a strong vertical hierarchy in most Emirati companies age, money and family connections are all key determining factors of a person’s status it is not uncommon to find many members of one family working for the same company
WORKING RELATIONSHIPS AND BUSINESS PRACTICE people in the UAE prefer to do business in person Emirati people prefer to do business with those they know in line with Muslim customs, avoid shaking hands with a woman unless they extend their hand first if you do intend to use business cards in the UAE, ensure that the information is printed in both English and Arabic
DRESS ETIQUETTE it is very common to wear traditional clothes-> codes of dress are determined by Islamic Law which requires modesty for both men and women long skirts and sleeves are commonly worn by women traditional clothing for men includes the white robe and a white head-cowering tied by a black headband women should dress conservatively ensuring that the shoulders and knees are covered
WOMEN Emirati women are permitted to drive, work, own property and businesses and attend school and university,  women are not permitted to live alone or co-habitate with a member of the opposite sex outside of marriage it is accepted that Western women may be involved in some official functions as part of a larger delegation Emirati women will not usually be present at official events or meetings
8. Literature Riding the Waves of Culture: Understanding Diversity in Global Business Second Edition, Fons Trompenaars, Charles Hampden-Turner Internet
UAE-aspect of culture

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UAE-aspect of culture

  • 1. Culture and International Business: Dimensions of culture & analysis of one aspect of culture *UAE* Jelena Pahić
  • 2. Resume 1. Culture and International Business 2. The impact of culture on business 3. Culture is the best way in which people solve problems 4. Feelings and relationships- affective vs neutral cultures 5. Intercultural communication 6. Reconciling neutral and affective cultures 7. Analysis of one aspect of culture- UNITED ARAB EMIRATES 8. Literature
  • 3. 1. Culture and International Business about cultural differences and how they effect the process of doing business and managing, and not about how to understand the people of different nationalities
  • 4. 2. The impact of culture on business 1/2 in every culture in the world such phenomena as authority, bureaucracy, creativity, good fellowship, verification and accountability are experienced in different ways
  • 5. 2. The impact of culture on business 2/2 there is a theory that internationalization will create, or at least lead to, a common culture worldwide- this would make the life of international managers much simpler
  • 6. 3. Culture is the best way in which people solve problems culture is the best way in which a group of people solve problems and reconciles dilemmas culture comes in layers, like an onion- to understand it you have to unpeel it layer by layer the layers of values are deeper within the “onion”, and are more difficult to identify
  • 7. 4. Feelings and relationships- affective vs neutral cultures memebers of cultures which are affectively neutral do not show their feelings but keep them carefully controlled in cultures high in affectivity, people show their feelings by laughing, smiling and gesturing
  • 8. %
  • 9. 5. Intercultural communication communication is essentially the exchange of information, ideas or emotions; information is the carrier of meaning it is possible only between people who share a system of meaning Verbal communication Western society has a predominantly verbal culture, and Europeans communicate with paper, film and conversation Non-verbal communication rasearch has shown that at least 75% of all communication is non-verbal
  • 10. 6. Reconciling neutral and affective cultures overly neutral or affective (expressive) cultures have problems doing business with each other the neutral person is easily accused of being ice-cold with no heart; the affective person is seen as out of control when such cultures meet the first, essential is to recognize the differences
  • 11. 7. Analysis of one aspect of culture-UNITED ARAB EMIRATES
  • 12. UNITED ARAB EMIRATES- OVERVIEW 1/2 a relativelyyoung federation of seven small Gulf states each with their own unique identity and history the discovery of oil in the mid 20th century drastically changed the UAE’s economy making it one of the wealthiest nations in the Muslim world with a large foreign expatriate population, it is the most (socially) liberal country in the Middle East
  • 13. UNITED ARAB EMIRATES- OVERVIEW 2/2 the president of the Emirates is His Highness Shaikh Zayed Bin Sultan Al Nahayan, who has ruled the country since its inception citizens now have a high standard of living and level of education, and the country is investing a great deal in transforming the desert into a green and pleasant land
  • 14. GEOGRAPHY 1/2 Official name – United Arab Emirates Population: 4.621.399 (July 2008) Official Language – Arabic Currency – Emirati Dirham (AED) Capital city – Abu Dhabi GDP- US$189.6 billion (2007 est.) GDP per CAPITA- US$37,300 (2007 est.)
  • 15. RELIGION Islam is the official religion 76% of the population are Muslims, with the remaining 15% Christians, and 9% Hindus and others as with all of the Arab states, Islam has a profound influence on most aspects of life in the UAE the Emirates are tolerant of other religions as well
  • 16. ECONOMY the UAE’s strong economy is due to its oil and gas reserves, as well as its strategic location at the mouth of the Arabian Gulf the Government has used much of its wealth to improve the living conditions and quality of life within the country the Government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private-sector involvement
  • 17. GENERAL ATTITUDES Arabs are generally known for their informal, relaxed behaviour, good manners and consideration of others the quality of sabur, which means both ‘patience’ and ‘steadfastness’ in adversity is much admired in business situations, it may take some time before the topic of conversation is directed to your main reason for meeting, but this process should not be hurried
  • 18. BUSINESS ETIQUETTE the working week traditionally starts on Saturday and it ends on Wednesday people and relationships are more important than schedules and punctuality many traditional attitudes and business practices are evolving towards Western approach, but it is still important to be aware and respectfulof some differences that might exist
  • 19. STRUCTURE IN EMIRATI COMPANIES there is a strong vertical hierarchy in most Emirati companies age, money and family connections are all key determining factors of a person’s status it is not uncommon to find many members of one family working for the same company
  • 20. WORKING RELATIONSHIPS AND BUSINESS PRACTICE people in the UAE prefer to do business in person Emirati people prefer to do business with those they know in line with Muslim customs, avoid shaking hands with a woman unless they extend their hand first if you do intend to use business cards in the UAE, ensure that the information is printed in both English and Arabic
  • 21. DRESS ETIQUETTE it is very common to wear traditional clothes-> codes of dress are determined by Islamic Law which requires modesty for both men and women long skirts and sleeves are commonly worn by women traditional clothing for men includes the white robe and a white head-cowering tied by a black headband women should dress conservatively ensuring that the shoulders and knees are covered
  • 22. WOMEN Emirati women are permitted to drive, work, own property and businesses and attend school and university, women are not permitted to live alone or co-habitate with a member of the opposite sex outside of marriage it is accepted that Western women may be involved in some official functions as part of a larger delegation Emirati women will not usually be present at official events or meetings
  • 23. 8. Literature Riding the Waves of Culture: Understanding Diversity in Global Business Second Edition, Fons Trompenaars, Charles Hampden-Turner Internet