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Cultural
Differences In
International
Business
Group 5:
Algerlines Bello
Shaday Perkins
Destinee Marshall
Sannecie Nicolas
Leon Clarke Jr.
What Is Culture?
 Culture has been defined in a number of ways.
One’s define culture as the customary ways in which
humans live. For example; diet, family forms and
processes, social organizations, and religions
 Culture is consisting of learned norms based on
attitudes, values and beliefs which are existed in
all societies. Culture is transmitted in different
patterns, from parent to child, from teacher to
students, from social leader to people etc.
Why Is Culture Important In
International Business?
 Many people make mistakes when they travel to a foreign country
and are not aware of cultural differences such as attitude, gestures,
actions, ethics, and communication. It is difficult for people to
become accustomed to a different culture that they are likely to
disagree or are not raised the same morals as others, but have to
follow basic regulations and life-style in order to show respect of
others perspectives in life. People sometimes fail to negotiate in
global business since they do not research the other countries and
need to learn basic information of importance to their culture.
 Doing business on a global basis requires a good understanding of
different cultures. What works in your country might not work well in
another, and could even be interpreted as an insult! And in your
role as an international human resources professional, it’s important
to raise the awareness of cultural issues within your organization to
ensure effectiveness
There Are Different Types Of
types of a Culture
These Types May Include;
Economic Political Social Cultures
Economic, Political, & Social
types of a Cultures
 Economic Culture Can Be Defined As A
Social Science That Contributes To The
Production Of An Economy
 Political Culture Is The Culture That Deals
With The Art Or Science Of The Gov’t
 Social Culture Is Described As The Science
That Includes The Society & Companion
Relationships
Examples Of Different Cultures
 American Culture  Chinese Culture
Hofstede’s Five Dimensions Of
type of a I Culture
 Power distance: This dimension explains that a culture with a low power distance have
more equality in their society. However, people who live in a culture with a high power
distance tend to appreciate inequality and hierarchies.
 Uncertainty Avoidance: This describes people who have a high degree of uncertainty
avoidance who do not like taking risk ; therefore, they try to avoid unpredictable situations.
However, people who have a low degree of uncertainty avoidance favor risk taking
because they love unpredictable environments.
 Masculinity v. Femininity: This dimension describes the roles that are consider to be male and
female. For example, men are the ones that earn the money, earn titles, advancement,
etc. Where as women take of household chores, raise children, cook, etc.
 Individual v. Collectivism: This dimension describes individuals who seek to achieve their own
needs and goals. Moreover, in a collective culture the group do activities that will benefit
each other. The individuals in the group put aside their own goals and needs for the group
can prosper.
 Long v. Short-term Orientation: In a long-term orientation the success of a business takes a
while, and short-term orientation deals with achieving quick results in a less amount of
time.
Examples of Cultural
Differences
Fons Trompenaars’ 7
dimensions of culture
 Universalism vs. Particularism: What is most
important - rules or relationships? Ex:
Americans value in a contract and Chinese
valuing relationships in people.
 Individualism vs. Collectivism: Do we function
in a group or as individuals? Ex: Americans
focusing on advancing in their own lives and
Chinese people sacrificing their own needs
and goals to help out each other.
 Neutral vs. Emotional :Do we display our
emotions, or do we hide them? Ex:
Americans getting upset because they do
not agree with the other parties demands
and the Chinese staying calm and
collective.
 Achievement vs. Ascription: Do we have to
prove ourselves to receive status, or is status
given to us? Ex: A person who just graduated
from college and is now an account, and
one who inherits money from their rich aunt.
 Internal vs. External control :Do we believe
that we can control our environment, or do
we believe that the environment controls us?
Ex: People predicting the weather and a
unpredictable earthquake .
 Specific vs. Diffuse: Do we handle our
relationships in specific and predetermined
ways, or do we see our relationships as
changing and related to contextual
settings? Ex: Americans laying out their
demands and the Chinese understanding
the other parties cultural styles.
 Sequential vs. Synchronic : Do we do things
one at a time or several things at once? Ex: A
Chinese negotiator getting to know the other
team before starting business and
Americans who rushes into the deal.
Brief History On America
 Population of the United States is 300 million people of
mixed races and heritage. It is predominantly of European
descent. English is the predominant language, although
languages from many foreign countries are spoken within
cultures throughout the U.S. The United States consist of 50
states governed on a federal level, as well as state level
and when doing business in the United States, one must
make sure to meet the requirements mandated by these
laws. The country is very litigious so legal resources are
available and specialists can be found to assist with any
transaction. The culture and geographic location of an
area will influence how business is done. Traditionally, the
East Coast is more conservative and formal in their dress
and manners than the West Coast. The climate and lifestyle
are just more relaxed, which is reflected in the pace and
informality.
 Offer a firm handshake, lasting 3-5
seconds, upon greeting and leaving.
Maintain good eye contact during your
handshake. If you are meeting several
people at once, maintain eye contact with
the person you are shaking hands with,
until you are moving on the next person.
Handshaking, introductions Good eye
contact during business and social
conversations shows interest, sincerity
and confidence.
Introductions include one's title if
appropriate, or Mr., Ms., Mrs. and the full
name.
Business cards are generally exchanged
during introductions. However, they may
be exchanged when one party is leaving.
A smile is a sign of friendliness, and in
rural areas you may be greeted with a
"hello" rather than a handshake.
Ask permission to smoke before lighting a
cigarette or cigar. Due to health concerns,
you may or may not be given permission.
BUSINESS
COMMUNICATIONS
 Greetings are in
the form of a bow
in signs of respect.
 The eldest are
greeted first as
common courtesy.
 People take their
seats according to
rank.
 Higher ranked
personnel sit
together while
remainder seats
are for guests.
Greetings In
China
Chinese Cultural
Do’s And Don’ts
Do’s
 Remove your shoes when entering a
Chinese home or temple.
 Greet the eldest person in a Chinese
family first, as a sign of respect.
 Beckon someone by waving them over to
you with your palm down.
 Present things to people with both hands,
to show that what you’re offering is the
fullest extent of yourself.
 Keep calm when dealing with officials,
especially if tense situations arise. Getting
angry or raising your voice will create only
an ugly, face-losing situation for all.
 Eat what your host offers and orders,
including alcohol; it’s rude to refuse.
 Eat all of the rice in your bowl – some
Chinese believe it’s bad luck to leave
even a single grain behind.
Don’ts
 Write anything in red ink unless you’re
correcting an exam. Red ink is used for letters
of protest.
 Leave your chopsticks upright in your bowl or
tap your bowl with them
 point the bottom of your shoes/feet at
someone
 Shake your feet, lest you shake away all of
your luck.
 Touch someone’s head (it’s sacred)
 Give clocks or books as gifts. The phrase ‘to
give a clock’ in Mandarin sounds too much
like ‘attend a funeral’ and ‘giving a book’
sounds like ‘delivering defeat.’
 Give too much attention to an object
someone else has; they may feel obligated to
give it to you
 Use those pretty gold/silver papers for western
décor. It’s for spiritual/cultural Chinese rituals.
 Don’t point or use your finger (this gesture is
used for dogs).
Video on Cultural Differences
Cultural Differences In International Business Group 5 Final Presentation(Bus 301

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Cultural Differences In International Business Group 5 Final Presentation(Bus 301

  • 1. Cultural Differences In International Business Group 5: Algerlines Bello Shaday Perkins Destinee Marshall Sannecie Nicolas Leon Clarke Jr.
  • 2. What Is Culture?  Culture has been defined in a number of ways. One’s define culture as the customary ways in which humans live. For example; diet, family forms and processes, social organizations, and religions  Culture is consisting of learned norms based on attitudes, values and beliefs which are existed in all societies. Culture is transmitted in different patterns, from parent to child, from teacher to students, from social leader to people etc.
  • 3. Why Is Culture Important In International Business?  Many people make mistakes when they travel to a foreign country and are not aware of cultural differences such as attitude, gestures, actions, ethics, and communication. It is difficult for people to become accustomed to a different culture that they are likely to disagree or are not raised the same morals as others, but have to follow basic regulations and life-style in order to show respect of others perspectives in life. People sometimes fail to negotiate in global business since they do not research the other countries and need to learn basic information of importance to their culture.  Doing business on a global basis requires a good understanding of different cultures. What works in your country might not work well in another, and could even be interpreted as an insult! And in your role as an international human resources professional, it’s important to raise the awareness of cultural issues within your organization to ensure effectiveness
  • 4. There Are Different Types Of types of a Culture These Types May Include; Economic Political Social Cultures
  • 5. Economic, Political, & Social types of a Cultures  Economic Culture Can Be Defined As A Social Science That Contributes To The Production Of An Economy  Political Culture Is The Culture That Deals With The Art Or Science Of The Gov’t  Social Culture Is Described As The Science That Includes The Society & Companion Relationships
  • 6. Examples Of Different Cultures  American Culture  Chinese Culture
  • 7. Hofstede’s Five Dimensions Of type of a I Culture  Power distance: This dimension explains that a culture with a low power distance have more equality in their society. However, people who live in a culture with a high power distance tend to appreciate inequality and hierarchies.  Uncertainty Avoidance: This describes people who have a high degree of uncertainty avoidance who do not like taking risk ; therefore, they try to avoid unpredictable situations. However, people who have a low degree of uncertainty avoidance favor risk taking because they love unpredictable environments.  Masculinity v. Femininity: This dimension describes the roles that are consider to be male and female. For example, men are the ones that earn the money, earn titles, advancement, etc. Where as women take of household chores, raise children, cook, etc.  Individual v. Collectivism: This dimension describes individuals who seek to achieve their own needs and goals. Moreover, in a collective culture the group do activities that will benefit each other. The individuals in the group put aside their own goals and needs for the group can prosper.  Long v. Short-term Orientation: In a long-term orientation the success of a business takes a while, and short-term orientation deals with achieving quick results in a less amount of time.
  • 9. Fons Trompenaars’ 7 dimensions of culture  Universalism vs. Particularism: What is most important - rules or relationships? Ex: Americans value in a contract and Chinese valuing relationships in people.  Individualism vs. Collectivism: Do we function in a group or as individuals? Ex: Americans focusing on advancing in their own lives and Chinese people sacrificing their own needs and goals to help out each other.  Neutral vs. Emotional :Do we display our emotions, or do we hide them? Ex: Americans getting upset because they do not agree with the other parties demands and the Chinese staying calm and collective.  Achievement vs. Ascription: Do we have to prove ourselves to receive status, or is status given to us? Ex: A person who just graduated from college and is now an account, and one who inherits money from their rich aunt.  Internal vs. External control :Do we believe that we can control our environment, or do we believe that the environment controls us? Ex: People predicting the weather and a unpredictable earthquake .  Specific vs. Diffuse: Do we handle our relationships in specific and predetermined ways, or do we see our relationships as changing and related to contextual settings? Ex: Americans laying out their demands and the Chinese understanding the other parties cultural styles.  Sequential vs. Synchronic : Do we do things one at a time or several things at once? Ex: A Chinese negotiator getting to know the other team before starting business and Americans who rushes into the deal.
  • 10. Brief History On America  Population of the United States is 300 million people of mixed races and heritage. It is predominantly of European descent. English is the predominant language, although languages from many foreign countries are spoken within cultures throughout the U.S. The United States consist of 50 states governed on a federal level, as well as state level and when doing business in the United States, one must make sure to meet the requirements mandated by these laws. The country is very litigious so legal resources are available and specialists can be found to assist with any transaction. The culture and geographic location of an area will influence how business is done. Traditionally, the East Coast is more conservative and formal in their dress and manners than the West Coast. The climate and lifestyle are just more relaxed, which is reflected in the pace and informality.
  • 11.  Offer a firm handshake, lasting 3-5 seconds, upon greeting and leaving. Maintain good eye contact during your handshake. If you are meeting several people at once, maintain eye contact with the person you are shaking hands with, until you are moving on the next person. Handshaking, introductions Good eye contact during business and social conversations shows interest, sincerity and confidence. Introductions include one's title if appropriate, or Mr., Ms., Mrs. and the full name. Business cards are generally exchanged during introductions. However, they may be exchanged when one party is leaving. A smile is a sign of friendliness, and in rural areas you may be greeted with a "hello" rather than a handshake. Ask permission to smoke before lighting a cigarette or cigar. Due to health concerns, you may or may not be given permission. BUSINESS COMMUNICATIONS
  • 12.  Greetings are in the form of a bow in signs of respect.  The eldest are greeted first as common courtesy.  People take their seats according to rank.  Higher ranked personnel sit together while remainder seats are for guests. Greetings In China
  • 13. Chinese Cultural Do’s And Don’ts Do’s  Remove your shoes when entering a Chinese home or temple.  Greet the eldest person in a Chinese family first, as a sign of respect.  Beckon someone by waving them over to you with your palm down.  Present things to people with both hands, to show that what you’re offering is the fullest extent of yourself.  Keep calm when dealing with officials, especially if tense situations arise. Getting angry or raising your voice will create only an ugly, face-losing situation for all.  Eat what your host offers and orders, including alcohol; it’s rude to refuse.  Eat all of the rice in your bowl – some Chinese believe it’s bad luck to leave even a single grain behind. Don’ts  Write anything in red ink unless you’re correcting an exam. Red ink is used for letters of protest.  Leave your chopsticks upright in your bowl or tap your bowl with them  point the bottom of your shoes/feet at someone  Shake your feet, lest you shake away all of your luck.  Touch someone’s head (it’s sacred)  Give clocks or books as gifts. The phrase ‘to give a clock’ in Mandarin sounds too much like ‘attend a funeral’ and ‘giving a book’ sounds like ‘delivering defeat.’  Give too much attention to an object someone else has; they may feel obligated to give it to you  Use those pretty gold/silver papers for western décor. It’s for spiritual/cultural Chinese rituals.  Don’t point or use your finger (this gesture is used for dogs).
  • 14. Video on Cultural Differences