Premium Essay

Culture and International Business

In: Business and Management

Submitted By tayjem
Words 1082
Pages 5
Dealing with national cultural differences therefore requires not only knowledge about adequate behaviors but, more importantly, an understanding of deeper-level assumptions and values that explain why certain behaviors are more appropriate than others. A number of cultural frameworks exist that characterize and describe cultures along different value dimensions. The most widely used framework for categorizing national cultures is the one developed by Geert
Hofstede. I am limiting myself to this framework as far as this assignment is concerned.
According to Hofstede, everyone, from wherever in the world, has his or her unique personality, history, and interest. Yet all people share a common human nature. Our shared human nature is intensely social: we are group animals. We use language and empathy, and practice collaboration and intergroup competition. But the unwritten rules of how we do these things differ from one human group to another. "'Culture" is how we call these unwritten rules about how to be a good member of the group. Culture provides:
• moral standards about how to be an upstanding group member; and
• defines the group as a 'moral circle". It inspires symbols, heroes, rituals, laws, religions, taboos, and all kinds of practices - but its core is hidden in unconscious values.
We tend to classify groups other than our own as inferior or (rarely) superior. In our globalized world most of us can belong to many groups at the same time. But to get things done, we still need to cooperate with members of other groups carrying other cultures. Skills in cooperation across cultures are vital for our common survival.
Hofstede’s Five Dimensions of Culture
Cultural Dimension #1: Individualism (IDV)
This refers to the strength of the ties people have to others within the community. A high IDV score indicates a loose connection with people. In countries…...

Similar Documents

Premium Essay

Culture and Its Impact on International Business

...Culture and its Impact on International Business Introduction As businesses have grown and expanded to the international level; certain aspects of business have become abundantly clear. One thing that has become the norm when doing business on the international level is dealing with different cultures. Culture, as defined by Geert Hofstede is “the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” The concept of a culture has been around for a very long time; in-fact, when people exist in the same place together they end up following a set of rules. These rules can be called a “social norm” or culture and can be made up of simple things like how to act in certain situations all the way to a very devout set of beliefs or values. This paper will focus on the role that culture plays on multinational businesses around the globe and the differences that culture plays from one area of the globe to the next. An in-depth look will be taken on the obstacles that may arise due to culture, adjustments that need to be made, and any ethical conundrums that may arise due to different cultures. Literature Review D. Elenkov and d. Kirova, state that “MNCs should not underestimate the importance of the cultural specificity of the host countries because different staffing, selecting, training, motivating and compensating practices should be applied in......

Words: 4997 - Pages: 20

Premium Essay

The Importance of Understanding Culture in International Business

...The Importance of Understanding Culture in International Business | Business Management in an International Context | | The increasing number of interactions between independent countries, companies and people has highlighted the importance of an understanding of global cultures, both national and organisational. Culture plays a large role in the way individuals behave and interact with one another and therefore plays an important role in business interactions across cultures. Many definitions of culture are offered, but one more relevant to culture in international business is : “Culture is the way in which a group of people solves problems and reconciles dilemmas.” (E.Schein 1985) The first way in which countries can be broadly categorized is into either a high context or a low context culture. High context cultures place more emphasis on the importance of group identity. They have a high sensory involvement and participate more readily in bodily contact. Low context cultures prioritise individualistic properties. They use body language less frequently and are monochronic thus placing a high importance on timing and scheduling. Most Northern European countries and other western societies are low context cultures. It has been suggested by the acclaimed social scientist, Norbert Elias (1978) that the development of society and the basis of its’ cultural contexts are closely associated with the prominent historical groups of the region leading to an......

Words: 1912 - Pages: 8

Free Essay

International Management Japanese Business Culture

...Yeo Kian Seng SCSJ-0012635 International Management (BA 317) Spring 2014 Individual Assignment (20%) Ms. Kristen Segi College Subang Jaya Case Questions 1. What specific errors did Warren and Carol Oats make during their first week in Japan? Before getting started, Oats should have done some research in Japanese ways of doing business. Particularly on their meeting etiquette and social interaction; they are well-known for their politeness and it is probably the defining factor whether Oats is able to secure the business. First off, Oats should have presented his name card upon the first meeting even before he started to present his proposal. To Japanese, name cards represent an individual, Oats should have a cardholder specially cater to that. Introduction of himself and the company is also important, possibly this should be the only of the objective of the first meeting instead on going straight to the point. Secondly, Oats should have brought an assistant or more peers along with him on the first meeting. Seeing the Japanese attend the meeting in group means they are prepared to ask specific question per their expertise. Silence did occur during the meeting, it simply means that reflection is taking place; Oats should not have break the silence. As for Carol Oats, her approach in job search is wrong. She should have informed the executives prior before approaching them. A cover letter and updated resume is the basic, else there are nothing for the......

Words: 876 - Pages: 4

Premium Essay

International Management Japanese Business Culture

...Chapter 3 Managing Global and Workforce Diversity Culture Shock Warren Oats was a highly successful executive for American Auto Suppliers, a Chicago-based company that makes original-equipment specialty parts for Ford, GM, and Chrysler. Rather than retreat before the onslaught of Japanese automakers, AAS decided to counterattack and use its reputation for quality and dependability to win over customers in Japan. Oats had started in the company as an engineer and worked his way up to become one of a handful of senior managers who had a shot at the next open vice-presidential position. He knew he needed to distinguish himself somehow, so when he was given a chance to lead the AAS attack on the Japanese market, he jumped at it. Oats knew he did not have time to learn Japanese, but he had heard that many Japanese executives speak English, and the company would hire a translator anyway. The toughest part about leaving the United States was persuading his wife, Carol, to take an eighteen-month leave from her career as an attorney with a prestigious Chicago law firm. Carol finally persuaded herself that she did not want to miss an opportunity to learn a new culture. So, armed with all the information they could gather about Japan from their local library, the Oats headed for Tokyo. Known as an energetic, aggressive salesperson back home, Warren Oats wasted little time getting started. As soon as his office had a telephone—and well before all his files had arrived......

Words: 721 - Pages: 3

Premium Essay

Business Culture in International Business: from Collision to an Understanding

...Book review: “Business culture in international business: from collision to an understanding” written by Richard D. Lewis Prepared by Kamalov Artem In the present time Internalization of business and economics has become a global problem. Entrepreneurship goes far beyond national boundaries, drawing into its orbit increasing number of people with different cultural views. As a result cultural differences are starting to play an increasing role of business organizations and stronger influence on the marginal efficiency of business. This book “Business culture in international business: from collision to an understanding” created as study materials for practitioners, business mans, who want to avoid some conflicts and misunderstanding because of their own ignorance. I chose this stuff, because logic and the main idea of writer are easy. At the beginning he talk about the basic concepts and ideas of language in culture and about the culture of which he defines as "the collective programming of behavior." The second biggest part represents analysis of aspects common for all types of business culture and specifically for each other: use of time, space, structure of decision making, rituals, humor and so on. Finally, at the third part, he characterizes business culture of separate counties, regions including Russia. The main idea of this book is help to understand a local culture from different countries. In theoretical plan R. Lewis suggested a highly original approach to......

Words: 688 - Pages: 3

Premium Essay

Business Culture

...IV. Corporate Culture What is this powerful force called “organizational culture” that can determine success or failure in an acquisition and merger. It has been defined in various ways that to work with the culture of an organization is to work with all aspects of a company. “It is the traditions, shared beliefs, and expectations about how individuals behave and accomplish tasks in organizations (Cartwright & Cooper, 1993).” All organizations have a culture, and consistent set of beliefs, shared by most of the members of the organization about how people should behave at work and what tasks and goals are important. The culture also includes and is shaped by the pattern of successful internal responses to adapt to external threats and issues. Since, the culture is results of past successes it will resist change even though a change in the environment, specifically a merger or acquisition, might impose a change in the culture. Economic globalization is viewed by some as the best hope for world stability, by others as the greatest threat. But almost everyone accepts that businesses of all types must embrace it. Organizational culture is a big aspect to globalizations. For recent years more and more international companies has merged. There are very successful acquisitions and mergers, but on the other hand, there are also unsuccessful mergers due to the differences of corporate culture. Some factors of the difference of corporate culture that firms......

Words: 2475 - Pages: 10

Premium Essay

International Culture

...Final Paper Throughout this semester we have learned about numerous dimensions that put cultures into comparable categories. We have learned about the different values, beliefs, and attitudes a culture has and how that affects their behavior. We have learned about the different properties of roles and how they affect communication. We learned about the communication process that shows how a message is encoded and decoded through the communication channel. We learned about the two cognitive systems, automatic and controlled processing, and how it affects our decisions. We learned about the importance of nonverbal communication and the different codes and conventions that exist within cultures. We learned about the negatives of stereotyping a culture or group of people and about how this leads to discrimination. We have learned about in-groups and out-groups and how they affect a culture’s processes. We learned about the differences in direct versus indirect communication and how that affects high and low context cultures. We learned about the attribution theory and how we treat external and internal factors. We learned about managing multicultural teams and the best ways to approach them so we can best utilize everyone’s talents. As you can see, we have learned a lot over this semester but anyone can just list a bunch of different topics we have learned. The real question is; what did I really take away from this class? In this paper I will try to convey the true value......

Words: 1721 - Pages: 7

Free Essay

Ethic Analysis of Cultures on International Business

...Ethic Analysis According to all the effects and changes that have been taken during the interaction between cultures, it is very difficult to agree with other people who are from another country and have different way of thinking. It is important to be informed about the culture that we are interacting and everything that involves it since at the time of making decisions, it is necessary to take into account the effect that may have these differences. In this analysis I´m going to compare and discuss the differences between the ethics from one country with another, which are the United States and Mexico, and how they can affect the way they make their business. Starting with the United States, the government had decide to established corporations who engage the audits in each of the companies in the country to have more control in their regulations and to be sure that they are fulfilling all the laws and regulations that were previously set. With these regulations it has been a reduction of frauds that has being done, and also illegal operations between companies from another countries. These had been set also because corruptions has becoming more and more strongly to the country, so the government wants to have a total control. On the other hand it is Mexico, in several of their companies and general business, there have been problems because of the high levels of corruption, but the difference from US is that in Mexico the government is the one that is involve......

Words: 282 - Pages: 2

Premium Essay

Culture and International Outsourcing

...Culture and International Outsourcing Nettie Richard Cleary University International Business MGT420 Professor Martin Anumba January 5, 2015 CULTURE AND INTERNATIONAL OUTSOURCING Hofstede's Cultural Dimensions We know that we are living in a global age. Technology has brought everyone much closer together, even though we may be thousand miles apart. Today’s technology allow people of different cultures to work together and communicating in each other’s language with software that allows each to understand what is written through translation. With such achievements in today’s technology, it can also be frustrating and apprehensive with uncertainty about communicating with others that are not of the same culture. Building connections with people from around the world is just one dimension of cultural diversity. How can we understand cultural differences? Are we relegated to learning from our mistakes, or are there generalized guidelines to follow? To our learning, psychologist Dr. Geert Hofstede asked himself this question in the 70’s. What emerged after a decade of research and many interviews is a model of cultural dimensions that has become an internationally recognized standard. Dr. Hofstede initially identified four distinct cultural dimensions that served to distinguish one culture from another. Later on he added a fifth dimension which is used today in gathering information about cultures and countries. Dr. Hofstadter’s Five Dimensions of Culture *......

Words: 1305 - Pages: 6

Premium Essay

Understanding Culture for International Projects

...With the initiation of global economy comes an increased interaction between people of different countries and an increase in the need to deal with cultural differences. Thus, there must be an understanding of how the international project will affect people and how people will affect the project. This requires an understanding of economic, demographic, educational, ethical, ethnic, religious, and other characteristic of the people for whom the project affects or who have an interest in the project (Egeland, 2011). Today’s projects have dramatically increased in complexity, which requires a culturally and functionally diverse mix of individuals who must be assimilated into an effective unit – a project team. In order for the project to succeed it will be predicated upon the effectiveness of teamwork during all phases of the project life cycle (Knutson, J, 2001). Therefore, it is critical that organizations involved in international projects take into consideration “cultural risk”, which, if not consciously recognized may lead to ineffectiveness and in some cases prove to be very costly (Sennara & Hartman, 2002). Therefore, it must be understood that the most crucial element in international projects is “culture” (PM Hut, 2012). What is Culture? “Culture” refers to a way of life for a group or community that practices and shares values and common experiences that shapes the way in which the group or community understands the world. These values and practices are......

Words: 3224 - Pages: 13

Premium Essay

International Business

...A) The name of the company is Apple. The reasons of choosing this company to explore its experience using the concepts of International Business are as follow: Global pattern of trade * Apple is the global company in the retail industry. 43,000 of Apple employees in the United States to work in the 30,000 Apple stores. Apple retail store employees to do more than the average wage of employees, and provides money for universities, as well as a gym membership, 401K plans, health care plans, product discounts and lower prices for the purchase of shares. * Apple has 453 retail stores (such as in March 2015) in 16 countries and 39 countries in the online store. Each store is designed to meet the requirements of the position and the regulatory authorities. Apple has received numerous architectural awards for its store design, especially its location on Fifth Avenue in midtown Manhattan on. Competitive advantage * Before the company advertised its products are being made, the late 90s of the last century the United States; however, as a result of the outsourcing plan in 2000, almost all of the manufacturing process is now abroad. According to a report the New York Times, Apple insiders "that huge overseas factories, as well as flexible, diligent and industrial skills of foreign workers have to make more than their American counterparts that" Made in USA "is no longer a viable Alternatively, for most Apple products. " * The company's production, procurement and......

Words: 1506 - Pages: 7

Premium Essay

Difference Culture in International Business

...Difference Culture In International Business Report between Saudi Arabia & U.S.A Culture in International Business Culture Culture refers to the cumulative deposit of knowledge, experiences, beliefs, values, attitudes, meanings, hierarchies, religions, nation of time, roles, spatial relations, concepts of the universe, material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Culture is a fuzzy set of basic assumption and value, orientations to life, beliefs, policies, procedures and behavior and his/her interpretations of the ‘meaning’ of other people’s behavior. (Spencer- Oatey 2008:3) ‘Culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may. On the other hand, be considered as products of action, on the other. As conditional elements of future action.’ (Kroeber and Kluckhohn 1952: 181; cited by Adler 1997: 14) Culture differences in International Business Doing business with others countries, the difference culture is a point that a business man should aware of. A key to being successful in business internationally is to understand the role of culture in......

Words: 3529 - Pages: 15

Premium Essay

Culture and Business

...Culture and its implication on the international business management. Introduction Today, problems associated with global business management have been identified as factors that negatively impact the performance and productivity of multinational corporations and in turn, adversely affect regional and national economic growth The goal of this paper is to analyze the influence of culture in international business. The globalization of the world economy has intensified international relationships, increasing the importance of cultural dimension. The world is being affected by the globalization of the economy. This phenomenon is bringing movement of companies, assets, services, capital and people. Analyzing globalization this process is taking the world to major changes in the economic, technologic and social areas, which are having consequences in all organizations and societies that participate in this globalized market. It is a process that does not bring equal benefits to all participants. The globalization concentrates more of its actions in some sectors of economic activity and some regions and countries, rather than acting everywhere. With the world getting flatter doing business anywhere in the world is easier today, because of major changes in technology, global politics and expanded educational opportunities. But it is not only businesses that are affected. Governments, NGOs and society itself is changing at a fast pace. Nevertheless going forward can only......

Words: 4150 - Pages: 17

Premium Essay

Communication in International Business- to – Business Marketing Channels Does Culture Matter?

...Article 2: Communication in international business- to- business marketing channels Does culture matter? This article deals with the question if and how cultural variations influence channel communication . Finding show that there is a relationship between culture and channel communications in international channels. The autor , Bert Rosenbloom, described Hall’s (1976) proposed high-contex versus low- contex dichotomy to explain the different cultural orientations. It is a simple two category basis for grouping the cultures of many different countries to help understand the hidden codes in communication, stemming from „cultural distance“. The expressions "high context" and "low context" are labels which shows the cultural differences between societies. High-context and low-context communication refers to how much speakers rely on things other than words to convey meaning. First, Hofstede's cultural model and the model approaches Hall presented, where the main cultural differences are described. The cultural model of Hofstede with its five dimensions and the corresponding index values provides information about cultural differences and their possible impact in intercultural cooperation. The five dimensions in Hofstede's cultural model, "power distance", "collectivism versus individualism," "femininity versus masculinity," "uncertainty avoidance" and "long-term versus short-term orientation". Together, the five dimensions of a cultural model in which differences can be......

Words: 635 - Pages: 3

Premium Essay

Business and Culture

...Unit 1 Discussion Board American business holds up certain ethical standards as good business. When doing business with a variety of cultures, it is important to understand their perceptions will be affected by their culture. So what is culture? "Culture has been defined in a number of ways, but most simply, as the learned and shared behavior of a community of interacting human beings" (Useem & Useem, p. 169). A person’s culture can include their education, religion, experiences, communication, and language. Each one of these factors can play an influential rule on a person’s conception of ethical practices. Bribery is a way of life in some countries and business would not be conducted without it. In America, bribery is not accepted as a normal business practice. So bribery is an example of an ethical standard that is acceptable in some cultures and not others. Culture can also affect rules of conduct, laws, commercial society, and one’s right to choice. (Armstrong & Sweeney, 1994) A person’s business behavior can definitely be swayed by ethical standards established by the culture. Businesses hours of operation would be an ethical standard shaped by culture. The business may only be able to operate during certain times or days of the week. Another example is positions that are stereotyped, in other words only a male or female may be able to hold a certain job title. (Armstrong & Sweeney, 1994) In today’s society the rules related to corruption are......

Words: 364 - Pages: 2

The Wrong Patient | Incredibles 2 2018 Hindi Dubbed 300MB Movie HDRip 480p | A-Team Serie TV Streaming Download