Intercultural Communication • Intercultural communication refers to the communication between people from two different cultures. Intercultural communication is a symbolic, interpretive, transactional, contextual process in which people from different cultures create shared meanings. • National Cultural Variables • Individual Cultural Variables • https://corporatefinanceinstitute.com/resources/knowledge/other/hofstede s-cultural-dimensions-theory/ Hofstede’s Dimension National Cultural Variables • Education • Law and Regulations • Economics • Politics • Religion • Social Norms • Language National Cultural Variables - Education • What is the level of education of middle managers? • To what degree is education of women supported in the country? • Does education constitute a significant portion of the national budget? National Cultural Variables – Laws and Regulations • To what extent are the laws of the country codified? • Is the uniform enforcement for laws and regulations of the country? • Are laws and regulations of your country accepted and enforced? • advertising to children is restricted in the United States, Canada, and Scandinavia. Even the type of product to be advertised—for instance, cigarettes—is restricted in Europe. Also there is a stricture on the amount of money that can be spent on advertising. Other countries, such as France, Mexico, and the Province of Quebec, also have a restriction on the use of foreign languages in advertisements. In Iran, western publications showing unveiled women are forbidden. No fashion magazines are allowed into the country, and cosmetic makeup—including perfume—is prohibited. Women must wear either a chador (a head-to-toe veil) or a manteau (a loose smock worn over pants) with a scarf on the head. Men cannot wear short sleeves or T-shirts. (Some of these rules may change in the 1990s.) National Cultural Variables – Economics • Which economic changes have occurred in the last 5 years that will affect the future? • Is the government supportive of the economic changes occurring? • How welcome are outside investors in your host country? • May funds be easily removed from your host country? • With our free-enterprise system in the United States, competitors usually set their own prices. In contrast, OPEC (Organization of Petroleum Exporting Countries), as a cartel, sets oil prices. Israeli agricultural competitors mutually agree on a price. Some Japanese businesses check with the government before initiating major production and trading changes. National Cultural Variables – Politics • Which political changes have occurred in the past 5 years? • How supportive is the current government of outside investors? Of Joint ventures with other states? • What are the protocols? The Conventions individuals must respect in the host country. • Political factors can impact a business by making the market environment more or less friendly for that business. Typically, governments have a great deal of power over businesses and many times, there is not much that businesses can do about it. ... Political decisions affect the socio-cultural environment of the country. National Cultural Variables – Religion • Are you aware of the major religious beliefs that could affect your business relationships? • Will the religious holidays affect your rhythm of conducting business? • What personal behavior is acceptable and unacceptable? • Consumption of alcohol • Holidays • Status of women • Jews vs Muslims National Cultural Variables – Social Norms • Are you aware of the social hierarchies of the country? • Is there a rank order of importance for participants at the meetings? • Who will really make the business decision? • Which country’s influence is still evident after previous colonial control? National Cultural Variables – Languages • Is it necessary to have an interpreter at business sessions? • Is English understood at the oral or written level? • Is there a protocol to follow for formal and informal communication? • Languages shape the way people feel and think. By speaking the mother tongue of your co-workers and associates, and by constructing your phrases correctly, you will avoid all unexpected reactions from them. It will help you to run your business more efficiently Individual Cultural Variables • Individual cultural differences relate to your preferences for things through your personal experiences that include the influence of your family, your peers, school, media, co-workers, and so on. • Perception of time • Perception of Space • Perceptions of Food • Perception of Dress • Perceptions of Manners • Perceptions of Decision Making Individual Cultural Variables – Time Perception • Is the concept of time considered linear or circular? • What impact will time have on business decisions? • Is time considered a valuable or an intangible asset? • Persons in Latin America and the Middle East treat time more casuals than do Americans, who usuallv prefer promptness. Germans are time-precise; rarelv do vou wait for an appointment in Germany. In Latin America—and in Buddhist cultures—vou may wait an hour; your host is not showing disrespect therebv, just reflecting a different concept of time; arriving late is a sociallv accepted custom. In some cultures business people take afternoon naps, close shops, and postpone times for business meetings and dinner. Germans have, bv law, definite opening and closing hours for business. • Even when referring to seasons of a v ear, countries differ. Some speak of the rainv and the drv season; Americans and Europeans think of spring, summer, fall, and winter. Individual Cultural Variables – Space Perceptions • What is the average acceptable personal space between the natives of the country? • Does it differ across and within genders? • Dance of the diplomats Individual Cultural Variables – Food Perceptions • Are you aware of the eating habits of your host? Are there table conventions that you should be aware of? • Are there foods you might find disagreeable? • It used to be that tourists visiting Hong Kong or Tokyo, for example, would rush off to the ubiquitous McDonald's, or order a Domino's pizza or a meal at Kentucky Fried Chicken in Beijing. Natives in those countries now also frequent such places. When we get off the beaten path, however, food, its preparation, its cleanliness will vary. Pork is forbidden in middle eastern countries but is a part of the Chinese diet and that of many other countries; beef is hard to find in India; veal is plentiful in Europe; rice is ever present in Hong Kong and China. In the Far East dark and light tea are national drinks—thev also have good beer—while in Europe French workers enjoy a glass of wine with lunch, often a stated codicil in a labor contract. Alcohol, as stated in the preceding section under Religion, is forbidden for Buddhists, Moslems, and Hindus. You can get into trouble by carrying liquor into some countries. Cheese may be dessert in France, part of a sandwich in Denmark, or an hors d'oeuvre in Germany. Your palate must adapt as well as vour view of time and space. Individual Cultural Variables – Dress Perceptions • How much skin may be exposed in both informal and in a formal situation? • Are certain colors disturbing? • Will western or eastern attire be accepted? Individual Cultural Variables – Manners Perceptions • What is the protocol regarding the introduction of persons in a business situation? • What are the rules of gift giving? Individual Cultural Variables – Decision Making Perceptions • Is the pattern for making decisions consistent from one company to another? • Is placement of the major decision maker consistent in a meeting situation? • Japanese vs Americans Individual Cultural Variable-Verbal and Non- Verbal Communication • Are any gestures offensive? Are there any issues relating to time, space, dress, manners to be avoided in order to avoid miscommunication? • What is acceptable and unacceptable -A handshake is a traditional form of greeting in the West. In Polynesia, the traditional greeting is embracing and Ribbing each other's back. Eskimos Rub noses as a form of greeting; a kiss on the cheek or lips signifies the same thing in many western cultures. In China and Japan public kissing is frowned on, an action reserved for one's private life. Touch as a form of behavior varies and is limited to certain persons.