IBUS 311 1st Edition Lecture 4Outline of Last Lecture I. What is globalization? Is it a new phenomenon?II. What are the drivers of market globalization?III. What are the dimensions of market globalization?IV. What are the consequences of market globalization for society?V. What are the consequences of market globalization for the firm?VI. Who are the Participants in international business? How are they arranged by value-chain activity?VII. Four Major Participants in International BusinessOutline of Current Lecture I. How is Culture Defined?II. How Does Culture Affect International Business?III. How is Culture Interpreted? Current LectureI. How is Culture Defined?- Culture can point to: Values, religion, food, sports, language, international business context, managerial implications- Culture is not inherited, it is learned - Ethnocentric Orientation: Using our own culture as the standard of judging other cultures- Polycentric Orientation: A mindset in which the manager develops a greater affinity for the country in which he or she works than for the him- Geocentric Orientation: A global mindset in which the manager is able to understand a business or market without regard to national boundaries- Managers should strive for a geocentric orientation- Socialization (Will be on Exam): The process of learning the rules and behavioral patterns- Acculturation: The process of adjusting and adapting to a culture other than one’s own commonly experienced by expatriate workersThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Culture is like an iceberg-Above the surface, certain characteristics are visible; below the surface is a massive base of assumptions, attitudes and values that strongly influence decision-making, relationships and other dimensions of businessII. How Does Culture Affect International Business?- Cross-cultural Risk: A situation or event where a cultural miscommunication puts some human value at stake. It arises in environments characterized by unfamiliar languages- Cultural Differences in Entrepreneurship Hong Kong: The whole family works towards success United States: Friends put up their money for the entrepreneur Turkey: Friends will ask entrepreneur to hire sons or daughterIII. How is Culture Interpreted? - Cultural Metaphors: Refer to a distinctive tradition or institution strongly associated with a society; a guide to deciphering attitudes, values, and behaviors.- Stereotypes: Generalizations that may or may not be factual and often overlook real,deeper differences.  People from the United States are said to be: Argumentative and aggressive, compared to Japanese who tend to be reserved and humble.Individualistic lovers of personal freedom, compared to Chinese who tend to be group oriented- Idiom: An expression whose symbolic meaning differs from its literal meaning; you can’t understand it simply by knowing what the individual words mean.  Australia: “The tall poppy gets cut down” (importance of not being showy or pretentious) Thailand: “If you follow older people, dogs won’t bite you”