I. Culture Defined: an integrated system of learned behavior patterns that are characteristic of the members of any given society (page 37)1. Comment on the assumption, "If people are serious about doing business with you, they will speak English."CHAPTER 2CULTUREChapter Objectives- To define and demonstrate the effect of culture’s various dimensions on business- To examine ways in which cultural knowledge can be acquired and individuals and organizations prepared for cross-cultural interaction- To illustrate ways in which cultural risk poses a challenge to the effective conduct of business communications and transactions- To suggest ways in which businesses act as change agents in the diverse cultural environments in which they operateOpening VignetteCrossing Cultures: Balancing the Global with the LocalSummary:This vignette tells how MTV has developed an effective strategy for a global market. While the core of its productions is still American, 70 percent of its content is local imagery. The company also encourages local production of shows that can have appeal in other countries by the use of financial incentives. MTV therefore reflects the local culture while also influencing the local culture.Chapter OutlineI. CULTURE DEFINED: AN INTEGRATED SYSTEM OF LEARNED BEHAVIOR PATTERNS THAT ARE CHARACTERISTIC OF THE MEMBERS OF ANY GIVEN SOCIETY (PAGE 37)A. Acculturation—adjusting and adapting to a specific culture other than one’s ownB. High-context cultures—the listener and the speaker rely on a common understanding of the context and what is not being said can carry more meaning than what is saidC. Low-context cultures—most of the information is contained explicitly in the words spokenD. International business acts as a change agent by introducing new products, ideas, and practicesFocus on PoliticsProtecting MozzarellaSummary:This article reports on efforts by the European Union (EU) to protect product names by geographic indication. So Mozzarella cheese would have to be cheese from Mozzarella, not a type of cheese. Some countries want to take this notion even further and protect culturally specific names as applying only to products produced in their countries. Many claim that this is just another form of protectionism.II. The Elements of CultureA. Language1. Verbala. Roles of language capability in international business1) Aids in information gathering and evaluation2) Access to local society3) Company communications4) Interpretation of contexts that may influence business operationsb. Local assistance is required to deal with local languagesc. Backtranslation –translating a foreign language version back to the original language by a different person than the one who made the first translation2. Nonverbal languagea. Timeb. Spacec. Material possessionsd. Friendship patternse. Business agreementsB. Religion1. May affect attitudes toward entrepreneurship, consumption and social organization2. Christianity (more than 2 billion people)a. Catholicism—questions making moneyb. Protestantism—emphasizes value of work and accumulation of wealthc. Holidays such as Christmas affect business3. Islam (more than 1.2 billion people)a. Supports entrepreneurshipb. Discourages exploitationc. Fatalistic—nothing happens without the will of Allahd. Attitude toward women affects businesse. Restriction on the consumption of certain products (alcohol)4. Hinduism (860 million people)a. A way of life predicate on the caste system affecting workforce issuesb. Family is emphasized5. Buddhism (360 million)a. Offspring of Hinduism but without caste systemb. Life is seen as filled with sufferingc. Seek nirvana—a spiritual state marked by an absence of desired. Emphasis on spiritual achievement, not worldly goods6. Confucianism (150 million)a. More of a code of conduct stressing loyalty to group and authority b. Relationships must be developed to have business tiesC. Values and Attitudes1. Values are shared beliefs or group norms internalized by individuals2. Attitudes are evaluations of alternatives based on valuesD. Manners and Customs1. Especially important in negotiations2. Gift giving customs vary by culture3. Focus groups can help avoid problems arising from differing manners and customsE. Material Elements1. Material culture refers to the results of technology and is directly related to how a society organizes its economic activity2. Economic infrastructure—transportation, energy, and communications3. Social infrastructure—housing, health, and educationally systems4. Financial and marketing infrastructure—provides facilitating agencies for operationin a marketF. Aesthetics1. What is considered of good taste, as expressed in the arts and symbolism of colors, form, and music2. Differences in the use of sex, meaning of colors and symbolsG. Education1. Literacy2. Educational emphasis varies by cultureH. Social Institutions1. Family patterns affect consumption and obligations2. Social stratification—division of a particular population into classes3. Reference groups—provide values and attitudes that influence behavior4. Roles of managers and subordinates is determined by cultural social organizationsIII. Sources of Cultural KnowledgeA. Objective or factual information is gained from others through communication, research, and educationB. Experiential knowledge is gained by being involved in a cultureIV. Cultural AnalysisA. Researchers often use checklists and models (Figure 2.3, page 57)B. A Model of Cross-Cultural Behavior by Sheth and SethiC. Natural self-reference criterion by James A. Lee –the unconscious reference to one’s own cultural valuesD. An analytical approach to reduce the influence of cultural bias1. Define the problem or goal in terms of domestic cultural traits, habits, or norms2. Define the problem or goal in terms of the foreign cultural traits, habits, or morns. Make no value judgments3. Isolate the self-reference criterion influence in the problem, and examine it carefully to see how it complicates the problem4. Redefine the problem without the self-reference criterion influence, and solve for the optimum-goal situationE. Ethnocentricism—the tendency to consider one’s own culture as superior to othersV. The Training ChallengeA. Foreign language trainingB. International business skillsC. Cultural understanding and sensitivity1. culture-specific information2. general cultural information3. self-specific informationD. Cross-Cultural Training