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1International Business Culture袁克蕙Chapter 1 Introduction1. About this courseIt has become commonplace knowledge that globalization is one of the major forces shaping our world. If we look at the spread of information, ideas, capital, media, cultural artifacts or for that matter, people we can see the boundaries and borders that have historically separated one country or one group from another are becoming more and more permeable. For proof of this close to home, you need only to look at the transnational corporations in our country. Most students study hard in order to get a chance to work in the transnational corporations. Even if you have a company of your own, its still necessary for you to deal with business with people from different countries.Introduction“International Business Culture” is designed to help you meet the challenges of living in a world in which, increasingly, you will be asked to interact with people who may not be like you in fundamental ways. Its overarching goals are to help you become sensitive to intercultural communication differences, and to provide you with the knowledge and skills that will help you interact successfully with people from cultures other than your own. We hope the course will accomplish those goals by exposing you to Charles Mitchells book on this subject, and by giving you a variety of opportunities to practice intercultural communication yourself.Introduction2. Course aim: to improve culture awareness mainly through reading activities, together with some presentation exercises.Course duration: 1st 16th week (2(3) periods weekly)Course requirements: 4PsPresence: to show up for classPunctuality: to attend on timePreparation: to preview the textPresentation: to be active in team workWhat is culture?What are the core elements of culture?Why is learning culture important?To what extent can culture have a significant impact on international business?Can you give some examples of cultural difference or culture clash?Concepts of “culture”以文教化,人文教化。指运用文字的能力及具有的书本知识。 人类所创造的财富的总和,特指精神财富 ,如文学、艺术、教育、科学 .是一定社会的政治和经济的反映,又给予伟大影响和作用于一定社会的政治和经济。一种社会现象,是人们长期创造形成的产物。同时又是一种历史现象,是社会历史的积淀物。指一个国家或民族的历史、地理、风土人情、传统习俗、生活方式、文学艺术、行为规范、思维方式、价值观念等。 人类创造出来的所有物质和精神财富的总和。其中既包括世界观、人生观、价值观等具有意识形态性质的部分,也包括自然科学和技术、语言和文字等非意识形态的部分。 What can you see in this pictureOld woman, lined face, grey hair2Young lady, long eyelash, smooth skinChapter 1 Understanding Cultural DifferencesGlobal BackgroundMulticultural business environmentWinning acceptance from foreign colleaguesPeople from different cultures process information in different ways.Culture affects the most basic forms of personal and business interaction.National culture determines corporate culture.Case of DisneylandDiscussionwhy the company of Disneyland whose headquarters is in U.S.A had successfully opened a Disney park in Japan but failed to copy the success in France?What advice would you give to resolve the dispute over the sprinkle system?What details should EuroDisney have noticed in its daily operation?How do you understand the comment of the securities analyst “ the devil is often in the cultural details. They can make or break you.”?Detailed reasons:Underestimation of French attachment to the land.Lawyers, rather than executives, are employed to negotiate.Defiance of French law.Ignorance of French working norms of dress code. Misunderstanding of European dining habits.Ignorance of European consumer patternsDefinition of Culture“it is everything” “it is opera, art, and ballet” sociologists, anthologists, psychologists, physiologists, linguists, etc.Dictionary definition:the customs, beliefs, art, music, and all the other products of human thought made by a particular group of people at a particular time; artistic and other activity of the mind and the works produced by this. What is Culture?Software of the mindCulture is a set of learned core values, beliefs, standards, knowledge, morals, laws, and behaviors shared by individuals and societies that determines how an individual acts, feels, and views oneself and othersCharacteristics of Culture 1.Culture Is Learned (software of the mind)socialization (primary socialization)(=enculturation) (informal) Socialization education (secondary socialization) (formal)Interaction, observation, imitationInternalized, habitualA. We learn our culture through proverbs.Strike while the iron is hot.God helps those who help themselves.A mans home is his castle.3One does not make the wind but is blown by it.An iron pestle can ground down to a needle, perseverance will make success.B. We learn our culture from folk tales, legends, and myths.Pinocchios nose growing largerCinderella (USA: attractive, weak and passive; Japan: intellectual, gentleness; )C. We learn our culture through art.Art is a symbolic way of communicatingAsian countries, objects, animals, landscapeAmerican and European countries, people (Artists try to create a personal message ) innovate, inventD. We learn our culture through mass media.Innovation: is usually defined as the discovery of new practices, tools, or concepts that many members of the culture eventually accept and that may produce slight changes in social habits and behaviors. Diffusion: is the borrowing by one culture from another. Historically, diffusion has been part of cultural contact for as long as cultures have existed. Acculturation: as a type of cultural change, occurs when a society undergoes drastic culture change under the influence of a more dominant culture and society with which it has come in contact. Cultural ComponentsLanguage Verbal and non-verbal communicationCase of the American businesswoman making deal with British.Religion Case of the German investment banker in Vietnam.Conflicting attitudesIndividualism vs. CollectivismTask-driven vs. relationship-drivenCase of the Canadian representative in ChinaLanguage mirror of culturemultidimensional Religion 1). An obvious example of the effect on international business of religious beliefs is the prohibition of pork products and alcoholic beverages in the Middle East.2). Major holidays are often tied to religion. 3). The role of women in business is tied to religion, especially in the Middle East, where they are not able to function as they would in the West. (implications?)Values and Attitudes Values are shared beliefs or group norms that have been internalized by individuals. Attitudes are 4evaluations of alternatives based on these values. Cultural valuesprimary, secondary, tertiaryOther key ComponentsManners and customsThe artsEducationHumorSocial organizationsManners and Customs Understanding manners and customs is especially important in negotiations, because interpretations based on ones own frame of reference may lead to a totally incorrect conclusion. Aesthetics Each culture makes a clear statement concerning good taste, as expressed in the arts and in the particular symbolism of color, form, and music. Education Education, either formal or informal, plays a major role in the passing on and sharing of culture. Educational levels will have an impact on various business functions. If technology is marketed, the level of sophistication of the product will depend on the educational level of future users. Social Institutions A. Social institutions affect the ways people relate to each other. B. The concept of kinship, or blood relations between individuals. C. Social organization also determines the roles of managers and subordinates and how they relate to one another. Do Cultures Evolve?Forever evolving and reinventing itself.The case of Moscow morphThe case of Japanese business valuesCoping with Another CultureAccept it and learn from the experienceView the differences as opportunities for creative solutions.Religion and Islamic BankingIslamic Economic Order based solely on the teachings of the Koran. It strives to build a society based on social justice, equity, and moderation.Islamic legal code must conform to ShariahFour basic techniques of Islamic bankingMurabahaMusharakaIjaraMudarabaAssignmentFind as many definitions of “culture” as possible and which is the most appropriate in your mind and state your reasons.State the major changes taken place in Chinese culture (esp. busness-related)in recent decades and give specific examples.Find some more material about Islamic banking system and some unique features of Islamic trading . Make a short report by using ppt.5Introduction to Islamic BankingImportance of Trade in IslamIslam has given an immense importance to trade.The nobility of this profession is obvious from the fact that it was the chosen profession of prophet Muhammad(PBUH).Why Islamic BankingBefore explaining the concept “what is Islamic Banking” the elaboration of concept “why Islamic Banking” is very important.Islam is a complete code of life that provides guidance regarding each aspect of life.Why Islamic BankingThe primary objectives of Islamic Economic System:Equal distribution of wealthSocial justiceThese objectives can never be achieved in Interest/Riba economic systems.What Is Islamic BankingIslamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah.Difference Between Islamic and Conventional BankingIslamic Banking1. Functions and operations are based on Shariah principles2. Promote risk-sharing between provider of capital(investor) and user of funds(entrepreneurs) 3. Aim at maximising profit but subject to Shariah restrictions 4. Partners, investor and traders, buyer or seller relationship5. Based on money trading. Money is a medium of exchange and not a commodity, its sale and purchase is prohibited in Islam.6. No right of profit is there is no risk involved. The profit and loss sharing depositor may lose money in case of loss.Chapter 2 Basic Cultural TypesIt refers to both the conditions that contribute to the way in which a people perceive and think about the world, and the manner in which they live in that world. Cautionary remarks for one to better use the cultural typesThe value of the culture may not be the value of all individuals within the culture.It would be useful if you try to visualize each cultures response to a specific pattern as a point on a continuum rather than one of only two possible responses.The pattern are interrelated with a host of other values and do not operate in isolation. Hofstedes DimensionsGeert H. Hofstede was born on October 2, 1928 in Haarlem, the Netherlands. Hofstede is most well known for his work on four dimensions of cultural variability: Uncertainty Avoidance, Power Distance, Masculinity-Femininity, Individualism-Collectivism 6Individualism vs Collectivism On individualist cultures Hofstedes respondents said that individuals should look after their own interests and the interests of their immediate family (husband, wife, and children). Traits of Highly Individualist Cultures Emphasis on individual initiative, decisions, and achievement. The belief that in society, everyone is supposed to take care of himself or herself and his or her immediate familyEmotional independence of the individual from organizations or institutions The idea that the same value standards should apply to all: universalism 日本:突出来的钉子,将会被打下去In Japan, “the nail that sticks up is pounded down”前苏维埃:最早长出来的草,最先被砍去。In the former Soviet Union, “the highest blades of grass is always the first to be cut” that governed the attitude of the “have-nots” are valid reflection of collectivist societal attitudes.枪打出头鸟人怕出名猪怕壮表现了社会对个人超过集体的不能容忍Bothe express societys intolerance of the placement of personal success over that of the group.Some examplesIn the United States executive pay is 28 times that of the average manufacturing worker and in South Africa it is 24 times. In Japan, the top executive earns only about 10 times the average workers pay.Business in Arab societies places far greater value on the loyalty of employees than they do on efficiency.Case Study: Praising Japanese in Public Workplaces 在工作场所当众表扬日本人美国人:苏奇木拓先生,我发现你工作干得很出色,希望其他员工能知道你是怎么做到的。日本人:(有些不安)表扬就不必了,我只是做了自己该做的而已。 (他真希望其他同事没有听到他们的对话)美国人:你是我们公司所见到的最优秀、最杰出、最勤奋的员工。日本人:(他脸红了,不住地点头,仍然埋头工作。 )美国人:苏奇木拓先生,你是该说“谢谢” 呢,还是只是保持沉默?日本人:对不起,约翰先生,我可以离开五分钟么?美国人:当然可以。 (他有点不悦地看着苏奇木拓走出去)真不明白有些日本人怎么这么没礼貌,你表扬他们,他们好像会很不安,也不回答你,只是静静地听着。Questions for discussion为什么约翰先生与苏奇木拓的谈话会不愉快?如果你是约翰先生,你会当众表扬苏奇木拓么?如果你是苏奇木拓,你会如何处理这种情景?Power-DistanceAccording to Hofstede mother by girls.Men should dominate in all settings: there is a machismo (ostensive manliness) ideal; women can be kept ignorant. Weaker position of the mother in the family: male-dominated fertility decisions. Appreciate aggressiveness and assertiveness, respect the goal of material acquisitionSuccess is the function of individual and society is made up of leaders and followersAssignmentGroup work: Analyze which cultural types Chinese business fits into and give some specific examples to support your arguments. Make a brief report by making ppt.Time: Polychronic vs MonochronicTime is one of the fundamental bases on which all cultures rest and around which all activities revolve. Understanding the difference between monochronic time and polychronic time is essential to success. Monochronic time is characterized as linear, tangible, and divisible. Polychronic time, on the contrary, is characterized by “the simultaneous occurrence of many things and by a great involvement with people“. High-Context vs Low-ContextHigh and low context refers to the amount of information that a person can comfortably manage. This can vary from a high context culture where background information is implicit to low context culture where much of the background information must be made explicit in an interaction. Relationship-Driven vs Task-DrivenRelationship driven feminine culture high-context culture9Concepts of the FutureChinese place greater emphasis on “time past”, value the continuation of tradition and established practicesAmericans live more in the present and have a view towards the futureJapanese value tradition, have a longer time horizon; willing to absorb short-term losses in exchange for long-term gainsSense of TimePastIn past-oriented societies, the cultural memory is rich and deep. People tend to look back at glorious past and believe tradition is important.PresentIn present-oriented societies, the past and present often exist side by side.FutureFuture-oriented societies often have a strong belief in progress and leaders feel less need to rewrite or reinterpret history. People intend to make plans for the future.PromptnessSocieties that are monochronic value punctuality. Societies that are polychronic are very ambivalent about promptness.Cross-Cultural Success TipsShow empathyBe flexibleManage your responsesDont go nativeRespect local customsBe aware of non-verbal communicationDevelop trust by combating mistrustBecome involvedChapter 3 The Impact of CultureRegional Differences in a Given CultureThe United StatesFour basic regions: Northeast, South, Midwest, WestCanadaEnglish and French culturesEuropeWestern Europe, Central or Middle Europe, Eastern EuropeRussiaBelgiumFlemish people in the north, French-speaking Walloons in the southSwitzerlandThree distinct cultures: French, Italian and GermanDiscussionDiscuss the regional differences in a given culture other than those listed in the textbook, for example, regional differences in China.The Value of Cultural StereotypesDefinitionStereotypes are a means of organizing your images into fixed and simple categories that you use to stand for an entire collection of people. (Lippmann, 1922)10A Stereotype is really a composite of the cultural mores of a society and in many cases can be narrowed to a specific region. A stereotype is “ a fixed, over generalized belief about a particular group or class of people.” (Cardwell, 1996)A stereotype is a cognitive structure containing the perceivers knowledge , beliefs, and expectancies about some human social groups. (Abbate, Boca, just say something about sports, family, food or travel experiences.Assignment: find as many taboos as possible in specific cultures and make a report of it.2) social occasion: includes business meals and after-hour meetings, a good chance to reinforce your relationships (time of dining, the manner of eating(P56)Dont talk about your business during breakfast time.Accept any invitationMeal times vary in different culturesa light breakfastthe king luncha light mealc) Its quite possible for you to be faced with sth. you dont like. Accept it pretending to be drunk after one or two drinks; using a substitute ; trying to outfox your partner.Dining Etiquette RulesP 62-633.Business Dress-“Your clothes can be your best friend or your worst enemy.”- An expensive watch is usually noticed and is considered a subtle symbol of success and prosperity in just about every culture.- international business uniform: men: a dark suit, white shirt, and conservative tieWomen: a knee-length dress or skirt, high-cut blouse, and comfortable shoes-color counts Dont wear black or solid white in Thailand (funeral connotations) Avoid wearing all white in China. (mourning) In the U.S., black is typical worn at funerals but has no special significance in business situationsGreen is color of Islam.Its probably a good thing the businessman did not wear his green tie in the Czech Republic where green is the symbol for poison and toxic materials.Discussion:do you know some other color hints in different cultures?Is it true that cultures attribute different characteristics to different colors? Can you give one example to support your point of view?Some Interna

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