International Cultural Environment Chapters 3, 4 and 5

1. International Cultural EnvironmentChapters 3, 4 and 5

2. History and Geography (Ch. 3) • Historical perspectives in global business • Africa, Asia, Europe, Latin America • U.S. Intervention in Latin America • Climate, topography and economic growth • Social responsibility and the environment: how should we counter the depletion of global resources and sustain development • Dynamics in Global Population Trends • Population growth in different parts of the world • Rural vs. urban growth • Age pyramid • Worker shortage and immigration • Breaking of large families

3. Cultural Dynamics (Ch. 4) • Culture: definition, origin, and scope • Culture and consumption (e.g., flower, food, habitats): modernization influence • Culture is shaped and influenced by • Geography, history and politics • Technology • Social Institutions: family, religion, school, media, and government • Elements of culture • Cultural values- Hofstede’s five cultural values • Beliefs, rituals, thought process • Language: verbal, nonverbal, silent language of time, space and friendship • Aesthetics: arts, folklore, and music, drama, dance etc. • Cultural change: planned and unplanned, resistance to change

4. Hofstede’s Cultural Value • Individualism/collective index (IDV): Refers to preference of behavior that promotes one’s self interest. Higher score (e.g., USA) means high on individualism. • Power distance index (PDI): Measures the tolerance of social inequality, that is, power inequality between superiors and subordinates within a social system. Higher score (e.g., Arab countries) means more hierarchical. • Uncertainty avoidance index (UAI): Refers to the intolerance of ambiguity and uncertainty among members of a society. Higher score (e.g., Greece) means less tolerance for uncertainty. • Masculinity/feminity (MAS): Refers to one’s desire for achievement and entrepreneurial tendencies. Higher score (e.g., Latin culture) means more assertiveness and masculinity. • Future orientation: Refers to the long-term orientation of the society.

5. Culture and Business (Ch. 5) • Role of adaptation • Cultural imperatives: must conform (e.g., trust, relationship) • Cultural electives: may or may not conform (e.g., kissing, hugging, wine in business meetings) • Cultural exclusives: exclusively for the locals, do not have to conform (e.g., local dress, local food, religious practices) • Critical features of American Management Style • Management Styles in the World • Authority and decision making • Management objectives and aspirations • Role of individual in a company- social dimension • Communication styles (High context vs. Low context) • Formality • P-time (polychronic) vs. M-time (monochronic) • Negotiation style

6. Culture and Business (Ch. 5)..contd. • Gender biasin international business • Business Ethics and Corruption • Transparency International’s CPI or Bribery Index • Bribery: definition and variations • Gifts vs. Bribery • Extortion • Lubrication • Long term vs. short term orientation in decision making • Relationship-oriented vs. Information-oriented culture

7. Ch. 3, 4 and 5Discusion Questions • Why do we need to study history or geography in international marketing? Explain. • Explain how global population trends affect international marketing. • What is culture? How culture affects international marketing? Explain. • Explain Hofstede’s five cultural values and its influence in marketing. • Explain the variation in management style in different parts of the world. • Discuss how corruption affects business and what the world community is doing about it.

8. High Context vs. Low Context Cultures High Context Implicit Japanese Arabian Latin American Spanish Italian English (UK) French North American (US) Scandinavian German Low Context Explicit Swiss