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International Business Chapter 003

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Differences in Culture

Chapter Outline

OPENING CASE: McDonald’s in India

INTRODUCTION

WHAT IS CULTURE?

Values and Norms Culture, Society, and the Nation-State The Determinants of Culture

SOCIAL STRUCTURE

Individuals and Groups Social Stratification Country Focus: Breaking India’s Caste System

RELIGIOUS AND ETHICAL SYSTEMS

Christianity Islam Country Focus: Islamic Capitalism in Turkey Hinduism Buddhism Confucianism Management Focus: DMG-Shanghai

LANGUAGE

Spoken Language Unspoken Language

EDUCATION

CULTURE AND THE WORKPLACE

CULTURAL CHANGE

FOCUS ON MANAGERIAL IMPLICATIONS

Cross-Cultural Literacy Culture and Competitive Advantage

SUMMARY

CRITICAL THINKING AND DISCUSSION QUESTIONS

CLOSING CASE: Wal-Mart’s Foreign Expansion

Learning Objectives

1. Know what is meant by the culture of a society.

2. Identify the forces that lead to differences in social culture.

4. Identify the business and economic implications of differences in culture.

5. Understand how differences in social culture influence values in the workplace.

6. Develop an appreciation for the economic and business implications of cultural change.

Chapter Summary

This chapter begins by introducing the concept of culture. The determinants of culture are identified, which include religion, political philosophy, economic philosophy, education, language, and social structure. The first half of the chapter focuses on the influence of social structure, religion, language, and education on culture. The section on religion explains the economic implications of Christianity, Islam, Hinduism, Buddhism, and Confucianism. In addition, Geert Hofstede’s model of how a society’s culture impacts the values found in the workplace is presented.

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