Cultural Diffrerences in International Business

Cross Culturale Introduction • Culture: encompasses the knowledge, experience, beliefs, values, attitudes, religion, symbols, and possessions acquired by a group of people who lived in the same region or country for generations. • Subculture: a cultural group within a larger or predominant culture distinguished from it by factors such as class, ethnic background, and religion, and unified by shared beliefs and interests • Counter Culture: A culture that has values or lifestyle that are in opposition to those of a current accepted culture. Members of a counter culture openly reject the established cultural values that surround them. • Culture Determinants: The main factor that shape the culture of a specific group include religion, politics, topology, climate, and history. Culture of Saudi Arabia • Revolves around religion of Islam • Prays 5 times a day • Friday is a holy day, Weekend is Thurs – Sat • Clothing is loose because its hot • Women hide everything except hand feet and face • Criminal cases are tried under Sharia (Sunni Islam) courts Culture of Japan • Shintoism and Buddhism dominate (caring for nature and logic • Hierarchical, status matters • Kimonos worn by women during special events • Gifts are informal for visits, formal for meetings • Wrapping is often more important • Opened when recipient is invited to do so • Extravagant gifts are not appreciated, sets up inequalities between both parties • Belittle your informal gift at visit (“It’s only a token but..”) Cultural Awareness and Business • Canadian firms going global must determine the cultural differences • Decide whether or not their business can adapt to foreign culture Extent of foreign operations • Level of cultural awareness will depend on how much business a company does in foreign country • Primary domestic operations that export do not need to care •