Chapter 4 - Differences in culture. In this chapter, you will learn to: Explain what is meant by the culture of a society, identify the forces that lead to differences in social culture, identify the business and economic implications of differences in culture, recognize how differences in social culture influence values in the workplace, demonstrate an appreciation for the economic and business implications of cultural change. | Global Business Today 8e by Charles . Hill Chapter 4 Differences in Culture Introduction Cross-cultural literacy - an understanding of how cultural differences across and within nations can affect the way in which business is practiced Important to success in international business There may be a relationship between culture and the costs of doing business in a country or region Culture is not static The actions of MNEs can contribute to cultural change What is Culture? Question: What is culture? Culture is a system of values (abstract ideas about what a group believes to be good, right, and desirable) and norms (the social rules and guidelines that prescribe appropriate behavior in particular situations) that are shared among a group of people and that when taken together constitute a design for living A society is a group of people who share a common set of values and norms What is Culture? There is not a strict one-to-one correspondence between a society and a nation-state Nation- states are political creations that can contain a single culture or several cultures Some cultures embrace several nations Culture arises from: Prevailing political and economic philosophies A society’s social structure The dominant religion, language, and education Social Structure Question: What is social structure? A society's social structure is its basic social organization Two dimensions to consider: The degree to which a society is stratified into classes or castes The degree to which the basic unit of social organization is the individual, as opposed to the group Social Structure In societies where the individual is emphasized: Individual achievement and entrepreneurship are promoted But, this can encourage job switching, competition between individuals in a company rather than team building, and a lack of loyalty to the firm In societies where the group is emphasized: Cooperation and team work are encouraged and life time employment is common But, individual initiative and | Global Business Today 8e by Charles . Hill Chapter 4 Differences in Culture Introduction Cross-cultural literacy - an understanding of how cultural differences across and within nations can affect the way in which business is practiced Important to success in international business There may be a relationship between culture and the costs of doing business in a country or region Culture is not static The actions of MNEs can contribute to cultural change What is Culture? Question: What is culture? Culture is a system of values (abstract ideas about what a group believes to be good, right, and desirable) and norms (the social rules and guidelines that prescribe appropriate behavior in particular situations) that are shared among a group of people and that when taken together constitute a design for living A society is a group of people who share a common set of values and norms What is Culture? There is not a strict one-to-one correspondence between a society and a nation-state .
