BADM 633 - Wk 4 International Business Culture Terry Ryan

2. BADM 633 - Wk 4 International Business Culture Terry Ryan

3. Muslims Press for School Holidays in New York City As Mayor Courts Ethnic Vote, Groups Seek Same Accommodation of Religious Observances That Christians and Jews Receive SEPTEMBER 15, 2009 By SUZANNE SATALINE WSJ NEW YORK -- Muslims groups here are pressing city officials to close public schools on two of the faith's holiest days, just as schools do for major Jewish and Christian holidays. But the groups have yet to persuade the man in charge of New York City schools, Mayor Michael Bloomberg. Muslim groups have asked the city to cancel classes on Eid Ul-Fitr, which marks the end of Ramadan, and Eid Ul-Adha, which marks the end of the annual pilgrimage to Mecca.

4. A Protectionist President Like Hoover, Obama is abdicating U.S. trade leadership. SEPTEMBER 15, 2009, 5:53 A.M. ET President Obama traveled to Wall Street yesterday to press his case for more financial regulation, but the bigger economic issue of the day concerned other White House policies. To wit, what does it mean for the world economy if America now has its first protectionist President since Herbert Hoover? The smell of trade war is suddenly in the air. Mr. Obama slapped a 35% tariff on Chinese tires Friday night, and China responded on the weekend by threatening to retaliate against U.S. chickens and auto parts. That followed French President Nicolas Sarkozy's demand on Thursday that Europe impose a carbon tariff on imports from countries that don't follow its cap-and-trade diktats. "We need to impose a carbon tax at [Europe's] border. I will lead that battle," he said. Mr. Sarkozy was following U.S. Energy Secretary Steven Chu, who has endorsed a carbon tax on imports, and the U.S. House of Representatives, which passed a carbon tariff as part of its cap-and-tax bill. This in turn followed the "Buy American" provisions of the stimulus, which has incensed much of Canada; Congress's bill to ban Mexican trucks from U.S. roads in direct violation of Nafta, prompting Mexico to retaliate against U.S. farm and kitchen goods; and the must-make-cars-in-America provisions of the auto bailouts. Meanwhile, U.S. trade pacts with Colombia, Panama and South Korea languish in Congress.

5. Protectionist President (Cont’d) Through all of this Mr. Obama has either said nothing or objected so feebly that Congress has assumed he doesn't mean it. Despite his pro-forma demurrals, Mr. Obama's actions and nonactions are telling the world that the U.S. is abandoning the global leadership on trade that Presidents of both parties have worked to maintain since the 1930s. His advisers whisper that their man is merely playing a little tactical domestic politics, but he is playing with fire, as the last 80 years of trade history should tell him.

6. Stereotypes • Value of Cultural Stereotypes • Developing a standardised vision of a group is a short cut to understanding. • Exceptions to the rule do exist. • Generalisations hold up for large groups or even a nation, but individuals may exhibit different characteristics. • Know Thyself! (from the Temple of Apollo at Delphi) • Recognise that you will be put into a pigeon hole, as well. • Accentuate the positive, eliminate the negative. • In a few weeks, we will discuss How not to be the "ugly American"

7. Implications For Managers DON’T BUY IN TO THE STEREOTYPES! DO: Show Empathy Be Flexible Manage Your Responses Avoid Going Native Respect Local Customs Be Aware of Non-verbal Communications Develop Trust Become Involved

8. NEXT WEEK FIRST JOURNALS DUE – please submit thru Winthrop TurnItIn Part I: TBD Part II: Tri-Term Exam 1 (you may leave when finished with your exam)

9. Globalisation Globalisation • Technology and communications restrained trade ninety years ago. • Post-WWII, Western powers encouraged global trade, but slow to grow. • Continual lowering of tariff and other non-tariff barriers has opened heretofore closed markets and facilitated trade. • Now, both trade and Foreign Direct Investment (FDI) are measured in trillions of dollars. • Quality is often an issue in developing countries; however, over time, companies make improvements or die, e.g., Hyundai.

10. Globalisation • Globalisation Paradox is (what)??? GLOCALISATION ! • The more global a company becomes, the more it must rely on local resources (and/or factors of production) : people, facilities, management, marketing, capital . . .

11. Globalisation Business Cultures Merge • Cultural Confluence, e.g., FCPA & OECD • EU – One Economy, Two Cultures • Anglo-Saxon Model: • Large, liquid capital markets • Institutional investors • Corporate takeovers

12. Globalisation • EU – One Economy, Two Cultures • Continental Model: • Less liquid capital markets • More shareholder involvement by banks, families, unions and governments.

13. Globalisation World Standards • World Cars • Accounting Standards (IASC) – now has over 100 compliant countries • Financial Markets • Global Accounting Rules adopted by fifty countries., except US (GAAP) • 100 largest US companies on IFERS

14. Globalisation World Standards • Accounting Standards FASB Codification: Through 8/31/2010: http://aaahq.org/ascLogin.cfm STUDENTS: User ID AAA51658 Password swin558

15. Globalisation Global Business and Local Cultures • Some companies are so entrenched in a nation’s collective psyche that people believe them to be local, e.g., (Royal Dutch) Shell • Cadbury’s • Swiffer • White Goods Manufacturers