Culture in international business

Culture as a system of values and norms that are shared among a group of people and that when taken together constitute a design for living.

By values we mean abstract ideas about what a group believes to be good, right and desirable. Values are shard assumptions about how things ought to be. By norms we mean the social rules and guidelines the prescribe appropriate behaviour in particular situations.

Values and norms

Knowledge and beliefs: refer to a peoples prevailing notions of reality. Ideals: refer to the societal norms which define what is expected customary, right or proper in a given situation. Folkways & Mores: folkways are the routine conventions of everyday life. Mores are norms that are seen as central to the functioning of a society and to its social life. Preferences: refer to societys definitions of those things in life which are attractive or unattractive as objects of desire.

Three elements of culture

Derived mostly from the climatic conditions of the geographical region and economic conditions of the country. A set of traditional beliefs and values which are transmitted and shared in a given society. A total way of life and thinking patterns that are passed from generation to generation. Norms, customs, art, values etc. Prescriptive: it prescribes the kinds of behaviour considered acceptable in the society. Socially shared: culture is based on social interaction and creation. In fact, it is out of necessity.

Characteristics of culture

Culture facilitates communication: culture brings common habits of thought and feeling among people. Learned: culture is acquired through learning but not inherited genetically. Socialisation or enculturation and acculturation. Subjective: people of different cultures have different ideas about the same object. Ex: dowry system. Enduring: culture is relatively stable as it is passed from generation to generation.

Cumulative: culture is based on the accumulated circumstances over the hunderds or even thousands of years. Dynamic: culture is not immune to change. It goes on changing.