1.

Define culture and identify the four characteristics of culture

which companies doing business abroad need to recognize.

Culture: learned behavior; a way of life for one group of people

living in a single, related and independent community.

identify the four characteristics of culture

1- Cultural is not inherited, it’s learned through one’s parents,
friends and school.
2- It’s impossible to change an entire country’s culture. (Static
not easily modified especially by external forces)
3- It’s responsibility of the global firm to ascertain the level of
importance of various aspects of cultural in in the foreign

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market it serves and recognize these aspects when doing

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business overseas.

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4- Companies operations, chiefly marketing and management,

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need to recognize and adjust to culture environment existing

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in the countries the global company serves (Acculturation:
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ability of a firm to adjust to cultural different from its own).

2. Name several elements of culture.

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1) Language Verbal: what the message says Non-verbal: tone of

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voice, gestures, eye contact, body positions, facial grimaces, etc

vi y re

2) Religion
3) Value : Basic beliefs or philosophies pervasive in a society
4) Beliefs that define what is Right or Wrong (Good vs. Bad)
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attitudes Feelings or opinions

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5) Manners and customs: how people do things

6) Material elements: direct result of technology economic,
social and market infrastructural
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7) Aesthetics perceived as taste and beauty by a society Color,

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music, form
8) Education
9) Social institutions the way people are related to one another in a
sh

group setting References groups: groups that are important to

people (e.g., family, friends). Social stratification: the extent to
which groups at the top of the social pyramid exert control over
others at the lower end of the pyramid.

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 3. Name and distinguish among the cultural dimensions
proposed by Hofstede and Trompenaars.
• Hofstede’s Cultural Value Dimensions
1. Power distance: reflects the level of egalitarianism (equality) in
the society
• High power distance countries:
(e.g., Spain, Italy, Kuwait, Qatar)
– superiors and elders are treated with deference
and respect
– centralized, tall organizational structures
– wide salary gaps
• Low power distance countries:
(e.g., New Zealand, Australia)

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– flatter, decentralized structures,

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– smaller ratio of supervisor to employee

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– narrow salary gaps

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2. Uncertainty avoidance: The extent to which societies tolerate
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risk or are risk averse.
• High uncertainty avoidance countries
(e.g., Germany, Switzerland)
o

– less risk taking

aC s

– more written rules

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– structure organizational activities

• Low uncertainty avoidance countries
(e.g., Greece, Russia, Poland)
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– more risk-taking
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– fewer written rules

– less structured organizational activities
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3. Individualism – Collectivism: the worth of an individual versus

Th

the worth of a group

– Individualism: The extent to which people look after
themselves and immediate family only (e.g., US, Australia,
sh

Canada)
• Individual performance is more important than team
performance
• Tasks prevail over relationships

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 – Collectivism: the tendency of people to belong to groups or
collectives and to look after each other in exchange for
loyalty.
• Team performance is more important than individual
• Relationships prevail over tasks

4. Masculinity – Femininity: the extent to which a society

minimizes gender inequality
– Masculinity: society values traditionally masculine
attributes (e.g., Japan, Greece, Mexico)
• Assertiveness, competition, dominance
– Femininity: society traditionally values feminine attributes
(e.g., Denmark, Sweden, Norway).

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• Modesty, caring for others, cooperation

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5. Time Orientation: extent to which a society minimizes short-run

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or long-run time orientation

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– Long-term orientation: people are oriented towards the
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future (e.g., China, Hong Kong, Japan).
• strong propensity to save and invest, thriftiness
• perseverance in achieving results
o

• 10 - 15 year strategic plans

aC s

– Short-term orientation: people are oriented towards the

vi y re

recent past and the present (e.g., US, Philippines)

• small propensity to save for the future
• focus on achieving quick results
ed d

• 3 - 5 years strategic plans

ar stu

Trompenaars
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1) Universalism vs. particularism= rules V.S relationships

Th

2) Neutral vs. emotional: society expresses themselves

emotionally.
3) Specific vs. diffuse: society compartmentalizes roles
sh

(woman Vs. men)

4) Achievement vs. ascription: how rewards in society
handed out performance vs. place in society.

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 4. Identify the primary and secondary sources that can be used
to learn about foreign countries’ cultures. Dimensions of
Cultural Intelligence
1. Cognitive (HEAD): Knowledge of cultures, cultural
environments, norms, practices, customs
2. Metacognitive (HEAD): Individual conscious cultural
awareness during cross-cultural interactions (e.g.,
awareness, self-reflection)
3. Motivational (HEART): Drive and energy toward learning
about cultural differences and cross-cultural interaction
4. Behavioral (BODY): Capability to display appropriate verbal
and nonverbal actions when interacting with people from

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different cultures.

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5. Describe the cultural aspects of doing business in various

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countries, including East Asian countries, Arab countries, and

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Latin America.
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Arab Country:
• Avoid sitting so that the sole of one’s shoe is shown.
• The left hand is viewed as “unclean.”
o

• Good posture is imperative.

aC s

• Foreign business representatives should not inquire about the

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wives of Arab business representatives.

• Do not be overly praise the possessions of Arab hosts, as this
could create a perception that you expect your hosts to give them
ed d

to you.
ar stu

• Arab business representatives will probably be reluctant to do

business with women.
• If a woman is accepted, modest dress is appropriate.
is

• Arab business representatives may frequently divert from the

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topic initially discussed, then return to it.

Latin America
sh

• Potential customers will want to develop a personal relationship

before doing business with foreign executives.
• Latin Americans are more flexible about time than are North
Americans.

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 • Latin Americans are not as immersed in their work as the
business people in the United States.

Japan
• Upon meeting a Japanese executive, a slight bow and handshake
are appropriate.
• Business card etiquette is important. On one side, the information
should be in English; the other side should have the same
information in Japanese.
• It is not appropriate to look directly into the eyes of your Japanese
hosts.
• It is important for your Japanese hosts to know your title and
rank. They prefer to do business with high-ranking individuals.

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• Japanese business has a group orientation, rather than an

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individualistic one. “The peg that stands out gets hammered

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down” is a Japanese saying.

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• Japanese executives expect foreign business representatives to

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arrive prepared and to have decision-making authority.
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• New potential business partners must have been referred to
Japanese business representatives through a third party.
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Korea
aC s

• Elders are respected for their knowledge and wisdom.

vi y re

• “Yangban” refers to the noble class’s culture of honor, reputation,

and dignity (similar to the concept of gravitas in Western cultures)
• “Inwa” involves harmony among unequals: loyalty is owed to
ed d

parents and authority figures, yet superiors are responsible for

ar stu

the well-being of their subordinates.

• A personal relationship needs to occur before business matters
can be discussed with foreigners
is
Th

China
GUANXI: friendship among unequal
sh

6. Explain why culture is important in global management and

marketing.

The Importance of Culture For Managing

and Marketing in Overseas Markets

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 Culture Effects All Aspects of Businesses
• Communication
• Advertising Campaigns
• Selection/Promotion
• Negotiation
• Management Styles
• Product Development and Management
– and all other aspects of everyday business

individual intelligence
• individual intelligence pertaining to culturally diverse contexts
• defined as an individual ability to adjust and function effectively in culturally
diverse contexts (Earley & Ang, 2003)
• crucial capacity for global business leaders:
– Greater effectiveness & performance;
– Greater creativity

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– Better decision making

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– Lower burnout

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aC s
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sh

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