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Chapter Objectives

To understand methods for learning about

cultural environments

To analyze the major causes of cultural

difference and change

To discuss behavioral factors influencing

countries business practices

To understand cultural guidelines for

companies that operate internationally

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The People Factor

Culture refers to learned norms based on

the values, attitudes, and beliefs of a

group of people

Cultural diversity

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How Cultures Form and Change

Cultural values set early in life

Changes occur from:

Choice Imposition

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Language as a Cultural Stabilizer

When people from different areas speak the samelanguage, culture spreads more easily

Among nations that share a same language, commerceis easier

Isolation from other groups, especially because oflanguage, tends to stabilize cultures.

Some countries see language as being so important thatthey regulate the inclusion of foreign words and/ormandate the use of the countrys official language forbusiness purposes.

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Religion as a Cultural Stabilizer

Centuries of profound religious influence

continue to play a major role in shaping

cultural values

Many religions influence specific beliefs

that may affect business

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Issues in Social Stratification

Performance orientation of the society

Open vs. Closed society

Attitude towards gender

Attitude towards age

Importance of family group

Prestige of occupation

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Issues in Work Motivation

Materialism and Motivation

Expectation of Success and Reward

Assertiveness: The MasculinityFemininityIndex

Hierarchies of Needs

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Factors Affecting Information andTask Processing

Perception of cues

Obtaining Information: Low-Context versus

High-Context Cultures

Information Processing

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Factors Affecting Risk-takingBehavior

Uncertainty avoidance

Trust

Future orientation Fatalism

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Factors Affecting theCommunication Process

Spoken and Written language

Silent language:

color associations

conversational distance

perception of time and punctuality

body language and gestures

prestige

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Dealing with Cultural Differences

Accommodation

Cultural distance

Culture shock

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Factors Affecting Strategies forInstituting Cultural Change

Value systems

Cost/benefits of change

Resistance to too much change Participation

Reward sharing

Opinion leadership Timing

Learning abroad

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