The Culture Challenge in International Business

What is Culture?

Refers to the finer things in life, fine arts, literature and philosophy

Guiding Conceptual principle

Culture is everything that people have, think, and do as members of their society.

Have, Think and Do

Cultural Universals: refers to the idea that all cultures of the world—despite their many differences—not only face a number of common issues, but also share a number of common characteristics.

Different Cultural Patterns

Economic System

Forms of distribution of resources

Capitalist vs. Socialist

Social Control system: Preserving Social Order

Formal Mechanisms, constitutions, system of courts

Controlling behavior of the society members

Supernatural Belief Systems: Basic anthropological principle of cultural universals can be an important tool for helping those working in international business better understand and appreciate culturally different business environments.

Culture gives people a sense of who they are, of belonging, of how they should behave, and of what they should be doing

Culture impacts behavior, morale, and productivity at work as well, and it includes values and patterns that influence company attitudes and actions.

Culture as a driving force

Culture and its Elements:

Dress and appearance: Outward garments and adornments, as well as body decorations that tend to be distinctive by culture

Communication and Language:The communication system, verbal and non- verbal, distinguishes one group from another

Linguistically different segments of a population are often culturally, socially, and politically distinct

Sense of Self and Space:The comfort one has with oneself can be expressed differently according to each culture.

Food and Feeding Habits. The manner in which food is selected, prepared, presented, and eaten often differs by culture.

Time and Time Consciousness. Sense of time differs by culture; some are exact and others are relative.

Cultures fix human and organizational relationships by age, gender, sta- tus, and degree of kindred, as well as by wealth, power, and wisdom.

The study of Cultural Differences

Culture in the Workplace

An international manager, as a first step in cultural sensitivity, should understand his/her own culture.

Cross- Cultural Management and Training

International managers play a powerful role in determining the relative competitiveness of various countries in the global arena