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4 The Role of Culture

After studying this chapter, students should be able to: Discuss the primary characteristics of culture. Describe the various elements of culture and provide examples of how > they influence international business. Identify the means by which members of a culture communicate with > each other. Discuss how religious and other values affect the domestic environments > in which international businesses operate. Desc Descri ribe be the the major major cult cultur ural al clus cluste ters rs and their their use use to inter internat nation ional al > managers. Explain Hofstede’s primary findings about differences in cultural values. > Explain how ethical conflicts may arise in international business. >

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OPENING CASE: E-culture The opening case illustrates the impact of the Internet on the world's business cultures. Some cultures seem more suited to the Internet environment than others. Cultures that promote risk taking, taking, for example, might be more likely to engage in providing capital for  dotcoms. Key Points Internet Internet related related busines businesses ses require require managers managers that that are not risk-a risk-aver verse se and structures that allow quick response to changing conditions.

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Cultures which are more accustomed to tall decision-making hierarchies may find the transition transition to decision-maki decision-making ng in an environment as dynamic as the Internet more challenging than it would be for cultures less hierarchically oriented. •

Cult Culture ures s that that rewa reward rd creat creativ ivity ity may may also also be more more suit suited ed to succ succes ess s in the the dotcom environment. •

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> Chapter 4 Even cultural attitudes toward compensation affect a culture's attitudes toward e-commerce. Some cultures will be more receptive to compensation in the uncertain form of stock options than others. •

CHAPTER SUMMARY Chapter Four explores the issue of culture. It begins with a discussion of what comprises culture, then moves on to consider how culture affects international business. The chapter provides many specific examples of cultural differences. Teaching Note: Instructors may want to begin their lecture on culture with a discussion of cross-cultural differences experienced by students. Students can be asked to describe some differences in culture they experienced on trips to other countries, when living in another country, or simply as a result of interaction with a foreigner. This type of discussion is particularly interesting if foreign students relate their initial reactions to living in this country. Alternatively, the Wiring the World box ties in nicely with the opening case. Discuss Wiring the World: The Internet, National Competitiveness and Culture. This Box follows naturally from the opening case. It evaluates what it takes to succeed in the Internet Age. Attitudes toward compensation, group decision making, risk and trust all affect the likelihood of success in the Internet environment. I.

CHARACTERISTICS OF CULTURE Culture is the collection of values, beliefs, behaviors, customs, and attitudes that distinguish a society. Culture is important to companies because it determines the rules within which businesses operate. Culture is a learned behavior that may be transmitted intergenerationally or  intragenerationally. Culture’s elements are interrelated, and may change to adapt to external forces. Culture is shared by members of a society. •

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ELEMENTS OF CULTURE The basic elements of culture are social structure, language, communication, religion, and values and attitudes. The way in which the elements interact affects the local environment in which international businesses operate. Show Figure 4.1 (which depicts the basic elements of culture) here. Social Structure The overall framework that determines the roles of individuals within a society, the stratification of a society, and individuals’ mobility within a society is its social structure. Individuals, Families, and Groups. Societies differ in terms of how family is defined. In the U.S., the term is usually used to describe the nuclear family (father, mother, and offspring), while in other societies the term refers to an extended •

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family. In others, the term takes an even broader definition. The importance of  family to business is determined in part by a culture’s social attitudes. The importance of an individual to a group also reflects cultural differences. In the U.S., individualism is stressed, while in other cultures (for example, China and Japan) the role of the group is emphasized. •

Discuss Going Global: The Impact of Japanese Culture on Business This Going Global Box examines how Japan’s culture impacts its business practices. In particular, the Box explores how four  elements of Japanese culture, hierarchical structure, groupism, wa, and obligation, affect the way business is conducted in Japan. The Box also raises the question of  whether Western firms should adopt Japanese business techniques. The Box fits in well with a discussion of social structure, as well as with Review Questions 3, 8, and 10. Social Stratification. The importance of social stratification (the categorizing of  people on the basis of their birth, occupation, educational achievements, and/or  other attributes) differs by society. MNCs must be aware of the level of social stratification in a particular country when making personnel decisions and also when developing advertising campaigns. Social mobility, the ability of individuals to move from one stratum of society to • another, is higher in less stratified societies. Individuals’ attitudes and behaviors towards labor relations, capital formation, risk taking, and entrepreneurship may be determined in part by social mobility. •

Language Language is a primary means by which members of a society communicate with each other. It filters observations and perceptions and thus affects the messages that are sent. In fact, it has been shown by researchers that language itself alters •

the nature of the information that is being conveyed. Show Map 4.1 here. Language also provides information about the cultural values of a society and helps in the acculturation process. In countries such as India where more than one language is spoken, language provides information about a country’s population and suggests that there may be differences in income, work ethic, and/or  educational achievement. This information can be used by international businesspeople as they develop their marketing and business practices. Major linguistic groups within a country may also be an indicator of potential political conflicts between groups. The text provides examples of such conflict. Countries that share a language may not share a culture. For example, the text notes that while the U.S. and the U.K. share a language, there are actually many differences between the two countries. However, because cultural similarities facilitate the task of doing business internationally, many domestic firms will initially seek countries that speak the firm’s home language when expanding abroad. Language as a Competitive Weapon. Linguistic ties may create important • competitive advantages because the ability to communicate is so important in conducting business transactions. The text notes that commerce among Australia, Canada, New Zealand, the U.K., and the U.S. is facilitated by a common language. •

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> Chapter 4 Indeed, countries such as France and Britain frequently trade with former colonies that share cultural and linguistic ties. Show Map 4.2 here. Lingua Franca. English has emerged as the predominant common language, or  lingua franca, of international business. Consequently, some countries such as India and Singapore have adopted English as an official language, and some companies (i.e., Philips and Asea Brown Boveri) have adopted English as their  corporate language. Even though English has become a lingua franca, it is important to recognize that communication problems may still exist because the meaning of some common English words vary among English-speaking countries. •

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Teaching Note: Some students may have encountered differences in the English language in their travels. Instructors may wish to ask for some examples of such differences. Some of the more common responses include the British use of bonnet and boot to refer to a car’s engine compartment and trunk, and loo or W.C. to refer to a toilet. Even students who have not traveled to Britain may be aware of differences in some terms that exist within the U.S. such as the use of poor boy, hoagie or sub to refer  to a long sandwich, or the use of soda, pop, or cold drink to refer to a carbonated beverage. Discuss Wiring the World: French Language Experts Coin New Web Words Though English is the most common language on the web, the Academie Française is fighting to preserve the purity of the French language by coining uniquely French words and phrases for well-known Internet buzzwords. "The Web" is officially known as "la toile" (the spider's web). "Hackers" are known as "le fouineurs" (the nosy people). Since the Academie Française was founded in 1653, it has made considerable headway in persuading the French to adopt its substitutes for nonFrench words. Although the existence of English as a lingua franca may seem to be advantageous to native English international businesspersons, it can actually put them at a disadvantage when negotiating or operating on foreign turf. Failure by English speakers to learn a second language may spell failure for a firm’s operations in a second country. The text provides an example of a U.S. company that closed its Mexican operations because of this problem. While most experts agree that mastering a foreign language is an optimal means of gaining information about a culture, they agree that even modest levels of  language training can provide important clues about cultural norms and attitudes that prove helpful in international business. Translation. Translation is one means of overcoming linguistic differences; • however, the translation process requires more than simply substituting the words of one language for those of a second. Translators must be sensitive to subtleties in the connotations of words and focus on the translation of ideas, not words themselves. The text provides some examples of companies who have ignored this point and consequently had problems resulting from direct translation of words. To reduce translation problems, firms can hire local native speakers as • translators and use backtranslation as a check that the intended message is •

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actually being sent. Backtranslation is a process whereby after one person translates a document, a second person is hired to translate the translated version back into the original language. Discuss Going Global: International Communication: A Primer  This Going Global Box presents five principles that international businesspeople should follow when conversing with foreigners. It also presents four principles of presentation that, if followed, should help international executives make more successful presentations to their  foreign counterparts. The Box fits in well with a discussion of language, with Review Question 7, and with Discussion Question 2. Saying No. International businesspeople also may face a situation whereby words may have different meanings to persons with diverse cultural backgrounds. The word yes is used by the Japanese in a different way than it is used by Americans, for example. In fact, the Japanese avoid the use of the word no because it is considered impolite. It may be necessary, when negotiating with Japanese businesspeople, to repeat points of agreement in order to avoid misunderstandings. •

Communication Communication, whether verbal or nonverbal, can go awry between people who share a culture. The chance for miscommunication increases substantially, however, when people are from different cultural backgrounds. In cross-cultural communication, the sender encodes a message using his/her  cultural filters and the receiver decodes the same message using his/her cultural filters. This frequently creates misunderstandings. The text provides an example of  a cross-cultural misunderstanding involving Boeing. Nonverbal Communication. Between 80 and 90 percent of all information is • transmitted among members of a culture via nonverbal communication such as facial expressions and hand gestures. Outsiders may find it difficult to understand nonverbal communication. Table 4.1 lists many common forms of nonverbal •

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communication. Nonverbal communication can often lead to misunderstandings. The text illustrates this concept with several examples involving various types of nonverbal communication. Gift Giving and Hospitality. In many cultures, gift giving and hospitality are an important means of communication. It is important for international businesspeople to be aware of each culture’s set of rules on the subject. The text provides several examples of different attitudes toward gift giving and hospitality. •

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Religion Religion affects the ways in which members of a society relate to each other  and to outsiders. Seventy percent of the world’s population follows Christianity, Islam, Hinduism, or Buddhism. Map 4.3, depicting the major world religions, should •

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> Chapter 4 Religion shapes the attitudes its followers have toward work, consumption, individual responsibility, and planning for the future. The Protestant ethic for  example, stresses individual hard work, frugality, and achievement as a means of  glorifying God. On the other hand, the goal of a Hindu is to achieve nirvana, a state of spiritual perfection, by leading a progressively ascetic and pure life as one’s reincarnated soul goes through the cycles of death and rebirth. Islam emphasizes the individual’s responsibility to society. Religion may constrain business activities and the types of products consumers may purchase. The impact of religion on international business varies from country to country, depending on a country’s legal system, its homogeneity of religious beliefs, and its tolerance of other religious viewpoints. The text provides examples of the impact of the Muslim faith on business in Saudi Arabia and Catholicism in South America. Countries that are religiously diverse may represent a greater challenge to companies than those in which a single religion dominates. Firms operating in countries with diverse religious beliefs must accommodate followers of each religion or risk absenteeism, low morale, and lost sales. •

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Values and Attitudes Values are the principles and standards accepted by members of a society; attitudes encompass the actions, feelings, and thoughts that result from those values. Attitudes about time, authority, education, and rewards reflect an individual’s deep-seated values and shape the behavior of, and opportunities available to, companies operating in a given culture. Time. In Anglo-Saxon cultures the prevailing attitude toward time is that it is • valuable and should not be wasted. Conversely, Latin Americans and Arabs do not share this attitude and think nothing of starting a business meeting late, or being interrupted during a meeting. In low-context cultures, business meetings follow a precise, well-planned agenda, while in high-context cultures, time is initially spent deciding whether there is trust between the participants before focusing on the business at hand. Age. Attitudes toward age differ by culture. In the U.S., youthfulness is • considered a virtue and young “fast-trackers” are nurtured, while in Asian and Arab cultures age is respected and reflects a manager’s stature. Education. A country’s formal education system transmits and reflects the • cultural values of its society. Individualism is stressed in the U.S. education system, and education is available to everyone. In the U.K. however, education is linked to the class system, and an elite education is available only to a few. The text also provides examples of German, French, and Japanese attitudes toward education. Status. Status in some cultures is inherited, while in others it is earned through • individual achievements. How status is acquired affects job attitudes and performance. The text provides several examples of attitudes toward status and its effect on business. •

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SEEING THE FOREST, NOT THE TREES This section looks at the dimensions and characteristics of culture, instead of looking at cultures individually. Hall's Low Context-High Context Approach

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Edmund and Mildred Hall have identified two distinct types of culture. A lowcontext culture is one in which the words used by the speaker explicitly convey the speaker’s message to the listener. Examples of low-context cultures include •

Canada, the U.K., the U.S., and Germany. Discuss Figure 4.2 here. A highcontext culture is one in which the context in which a conversation occurs is just as important as the words that are actually spoken and cultural clues are important in understanding what is being communicated. Examples of high-context cultures include Japan and Arab countries. A society’s type of culture will have an impact on its business behavior. Table 4.2 should be used here to discuss differences in negotiating style across cultures. The Cultural Cluster Approach International businesspeople must recognize cultural differences as they market products, manage workforces, and deal with host country governments. While one may initially conclude that business practices must be customized to meet the demands of each local culture, in reality there are similarities between cultures. Eight country clusters have been identified by researchers. Each cultural • cluster  comprises countries that share many cultural similarities, although •

differences do remain. Discuss Map 4.4 here. Many companies formulate their internationalization strategies using the country-clustering approach. Cultural similarities may impact a firm’s choice of entry method. The text notes • for example, that Canadian firms are likely to expand into Britain via a joint venture with a British partner; however, Japanese firms are likely to enter the market via a greenfield investment (a brand new one) because they are less comfortable working with British partners. •

Hofstede's Five Dimensions International businesspeople need to understand how personality traits and need structures differ across cultures. Many studies today focus on this area. One of the most influential studies was done by Geert Hofstede. His work identified five dimensions along which people seemed to differ across cultures. The dimensions include social orientation, power orientation, uncertainty orientation, goal orientation, and time orientation. Present Figure 4.3 here. 1. Social Orientation Social orientation, the first dimension identified by Hofstede, is a person’s beliefs about the relative importance of the individual and the groups to which the person belongs. Two extremes of social orientation are individualism (the cultural belief that the person comes first), and collectivism •

(the belief that the group comes first). Discuss Table 4.3 here. It is important to be aware of the differences in the cultural orientations of  countries along the social orientation dimension. The text notes, for example, that a country’s reward system will reflect its cultural values. U.S. managers, for  example, are compensated according to their individual achievements. On the •

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> Chapter 4 other hand, a Japanese manager’s compensation is linked to group performance. Cultural differences also impact worker mobility. Because Japanese workers focus on group goals, individuals who switch jobs are considered disloyal. In contrast, U.S. managers are expected to accept new jobs that offer  better salaries. •

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Power Orientation Power orientation, the second of Hofstede’s dimensions, refers to the beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations. Introduce •

Table 4.4 here. In cultures characterized by power respect, people tend to accept the • power and authority of their superiors simply on the basis of the superiors’ positions in the hierarchy and to respect the superiors’ right to that power. In contrast, in cultures that are characterized by power tolerance, much less significance is attached to a person’s position in the hierarchy. Discuss Figure 4.4 here. 3. Uncertainty Orientation Uncertainty orientation, the third of Hofstede’s dimensions, is the feeling that people have regarding uncertain and ambiguous situations. Those individuals characterized by uncertainty acceptance are stimulated by change and new opportunities, while those individuals characterized by uncertainty •

avoidance dislike and avoid ambiguity. Discuss Table 4.5 here. 4. Goal Orientation Goal orientation, Hofstede’s fourth dimension, is the manner in which people are motivated to work toward different kinds of goals. People exhibiting aggressive goal behavior  place a high premium on material possessions, money, and assertiveness. Those who exhibit passive goal behavior place a higher value on social relationships, quality of life, and concern for others. •

Show Table 4.6 here.

5. Time Orientation Time orientation, a fifth dimension in Hofstede’s framework, is the extent to which members of a culture adopt a long-term versus short-term outlook on life, work, and other aspects of society. As noted by the text, cultures such as Japan, Hong Kong, and South Korea have a long-term orientation, while Pakistan and West Africa have a shorter-term outlook. INTERNATIONAL MANAGEMENT AND CULTURAL DIFFERENCES •

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Many experts believe that the world is currently experiencing a cultural convergence, as cultures grow more similar as a result of improvements in communication and

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transportation. MNCs facilitate cultural convergence through their advertising and through their transfer of new management techniques, technologies, and cultural values. Understanding New Cultures Individuals who rely on their  self-reference criterion (the unconscious use of  one’s own culture to assess new surroundings) may find themselves making numerous cultural blunders. It is important that international businesspersons attempt to follow a “when in Rome, do as the Romans do” philosophy. This involves achieving cross-cultural literacy. Cross-cultural literacy is best achieved through experiences, although cross-cultural training programs and information about specific cultures can facilitate the process. Acculturation occurs when an individual not only understands a foreign culture, • but also modifies and adapts his or her behavior to make it compatible with the foreign culture. Acculturation is particularly important to the international businessperson that frequently interacts with foreigners. •

Cultural Differences and Ethics Ethical problems may exist as a result of cultural differences. What is considered acceptable behavior in one culture may be considered immoral in another. The text presents two ethical dilemmas to illustrate the impact of ethics on international business, and the relationship between ethics and cultural values. •

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The Benefits of Foreign Exchange The closing case examines the results of a management swap between two hotel managers. Both managers felt that by exchanging positions for a week, they could better understand their customers. Key Points Two hotel managers, one from a hotel in London, the other from the Ritz in Atlanta agreed to swap positions for a week so that each could better identify the needs and expectations of business travelers. •

The industry servicing business travelers is increasingly emphasizing the idea of  serving customers with similar wants and needs. However, the two hotel managers note that there can be huge differences in what travelers actually want. Both noticed that their hotels do not always provide exactly what customers want, but instead, what the hotel thinks they want. Both managers agreed that the actual managing process of the hotel is very similar. The British manager noted though, that American senior staff tend to spend far  more time than their British counterparts on the floor. She feels that this time spent •

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> Chapter 4 interacting with guests provides managers with a better idea of what the customer  really wants. She plans to institute the practice at her English hotel. •

Both managers feel that they should extend the swap to other positions. In particular, they note that maids and restaurant workers could benefit by knowing more about foreign customers’ expectations.

Case Questions 1. What lessons might an international manager learn from this case?  Most students will probably agree that even managers who are in contact with foreigners on a daily basis have much to learn. In this case, both managers discovered that practices they felt were quite appropriate, such as tea or coffee services, or the provision of fruit in the room, were actually culturally bound practices--that their  counterpart hotels did things in a different way, which reflected local customs and attitudes. 2. What business characteristics lend themselves most to organizational learning from this  practice? What characteristics are least conducive to learning from this practice?  The managers involved in this swap probably found that they learned more about issues such as understanding the customer rather than issues such as how accounts are handled and so forth. Students will probably point out, however, that a swap involving a different type of manager, for example, a member of the human resources staff, would gain an entirely different set of benefits. 3. What are the advantages and disadvantages of using the method described in the case?  Clearly, a great advantage of this management swap was the opportunity to better  understand the customer and how customer needs can be met. However, as the case notes, business travelers are not limited to Americans and British, but distributed to many nations around the world. For example, although both managers feel that they have gained much insight, there is still a wide range of people who may find that their  expectations are not being adequately met. Furthermore, because the swap was limited to two general managers, many customer needs may still go unmet simply because those individuals who interact with the customers daily, such as maids, have not had the chance to see the cultural differences first-hand.  Additional Case Application Instructors may want to ask students in the class to play the role of business travelers from different parts of the world. Students can either assume the role of travelers from their own countries (assuming there is a good mix of foreign students present) or  research a foreign culture, and play an individual from that culture. Other students can play the role of an American hotel manager trying to understand what his/her  customers want.

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1. What is culture?  Culture consists of the interrelated values, beliefs, behaviors, customs, and attitudes that distinguish a society. It is a learned behavior that is shared between members of a society and it changes to adapt to external forces that affect a society. 2. What are the primary characteristics of culture?  The primary characteristics of culture are social structure, language, communication, religion, and values and attitudes. How these elements interact affects the local environment in which international businesses operate. 3. What is a lingua franca? Why has English become a lingua franca?  A lingua franca is a predominant common language. Lingua francas emerge because international businesspeople need to communicate. English has become a lingua franca as a result of the economic and military dominance of the United Kingdom in the nineteenth century and the U.S. since World War II. 4. What is backtranslation? What problem is it designed to solve?  Back-translation is a technique used by firms to ensure that they are actually sending the right message to their customers. The technique involves a process whereby after one person translates a document into another language, a second person translates the translated document back into the original language. The process thus provides a check that the intended message is actually being sent. 5. Describe the difference between high-context and low-context cultures. In low-context cultures such as the U.S. and Germany, a speaker’s words explicitly convey his/her message to the listener, whereas in high-context cultures such as Japan, the context in which the conversation takes place and accompanying cultural clues are just as important as the actual words. 6. What are cultural clusters?  Countries can be grouped into cultural clusters based on similarities in their cultures. Within each cluster, countries may be similar in terms of attitudes, values, language, or  some other cultural element. At least eight cultural clusters have been identified: Near  Eastern, Nordic, Germanic, Anglo, Latin European, Latin American, Far Eastern, and Arab.

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7. What are individualism and collectivism? How do they differ?  Individualism is the cultural belief that the person comes first and collectivism is the belief  that the group comes first. Individuals from individualistic cultures typically possess a high degree of self-respect and independence, while those from collectivistic cultures tend to put the good of the group ahead of their own personal interests. 8. Discuss pay systems between the U.S. and Japanese firms. To what extent are these differences culturally determined?  U.S. employees are typically compensated according to their individual accomplishments. On the other hand, Japanese employees are compensated on the basis of the group’s achievements. These differences in pay systems are very much rooted in the differences in the two countries’ cultures. The Japanese culture is a group-oriented one, while the U.S. stresses individualism. 9. What is power orientation?  Power orientation, the second of Hofstede’s dimensions, refers to the beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations. In cultures characterized by power respect, people tend to accept the power and authority of their superiors simply on the basis of the superiors’ positions in the hierarchy and to respect the superiors’ right to that power. In contrast, in cultures that are characterized by power tolerance, much less significance is attached to a person’s position in the hierarchy. 10. What is uncertainty orientation?  Uncertainty orientation, the third of Hofstede’s dimensions, is the feeling people have regarding uncertain and ambiguous situations. Those individuals characterized by uncertainty acceptance are stimulated by change and new opportunities, while those individuals characterized by uncertainty avoidance dislike and avoid ambiguity. 11. What are aggressive and passive goal behaviors? How do they differ?  Goal orientation, Hofstede’s fourth dimension, is the manner in which people are motivated to work toward different kinds of goals. People exhibiting aggressive goal behavior place a high premium on material possessions, money, and assertiveness. Those who exhibit passive goal behavior place a higher value on social relationships, quality of life, and concern for others. 12. What is the self-reference criterion?  It is the reliance, usually subconscious, on one's own culture to help assess new surroundings. Using one's own culture as a reference point can lead to problems when dealing cross-culturally.

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Questions for Discussion 1. How can international businesspeople avoid relying on the self-reference criterion when dealing with people from other cultures?  Reliance on the self-reference criterion refers to the unconscious use of one’s own culture to help assess new surroundings. International businesspeople who rely on their selfreference criterion when dealing with people from other cultures run the risk of creating ill will. It is important for an individual doing business in another country to remember that he/she is the foreigner and must adapt to the culture of the other country. One should attempt to achieve cross-cultural literacy and become familiar with the other culture either  directly through personal experience or indirectly via training programs and publications. Teaching Note: This concept can be illustrated directly if there are foreign students in a class. Instructors can ask foreign students in their classes about any cross-cultural preparation they received prior to moving to this country, and on the basis of  that response, raise the question of what would have made the adjustment process easier. 2. How important is it for native English speakers to learn a second language? Should all  business students whose native tongue is English be required to learn another language?  Why or why not?  Responses to this question are likely to vary depending on the composition of the class. A class that is primarily made up of native English speakers, particularly ones who had difficulty with an introductory foreign language course, will probably conclude that since English is a lingua franca, native English speakers can make better use of their time if they pursue goals other than learning a foreign language. However, a class that has a large foreign student representation is likely to take the perspective that learning a foreign language is important and all students should be capable of doing so. However, as the text notes, widespread usage of English does not solve all communications problems, and may in fact put a firm at a competitive disadvantage. Moreover, experts have concluded that mastery of a foreign language is not necessary and that much can be gained from modest levels of training.

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3. U.S. law protects women from job discrimination, but many countries do not offer women such protection. Suppose several important job opportunities arise at overseas factories owned by your firm; however, these factories are located in countries that severely restrict  the working rights of women. You fear that female managers thus will be ineffective there. Should you adopt gender-blind selection policies for these positions? Does it make a difference if you have good reason to fear for the physical safety of your female managers? Does it make a difference if the restrictions are cultural rather than legal in nature?  This is a difficult question to answer and instructors may wish to simply raise the issue rather than suggest a correct or incorrect response. From a U.S. manager’s perspective, the correct response would be to take a gender-blind approach to the selection process for  these positions; however, from an international business perspective it is important to recall the saying “when in Rome, do as the Romans do.” The U.S. manager’s task may be made easier if the restrictions are legal rather than cultural because the manager would have a tangible reason for not using a gender-blind selection process. While some students will probably argue that females should not be selected if they could be at risk physically, others will probably point out that women can be taught to protect themselves. This latter  concept is reminiscent of the question of whether women in the U.S. Armed Forces should be permitted to engage in combat. 4. Under what circumstances should international businesspeople impose the ethics of their  culture on foreigners with whom they do business? Does it make a difference if the activity  is conducted in the home or host country?  Acceptable behavior in one country may not be acceptable in another. International businesspeople must be cautious about relying on their self-reference criterion when doing business with foreigners and adapt their perspectives as much as possible to fit with the foreign culture. In some cases, however, legal restrictions can force international businesspeople to impose the ethics of their culture on foreigners. For example, the Foreign Corrupt Practices Act (discussed in Chapter 8) prohibits U.S. companies from using bribes when dealing with foreigners. Thus, the ethics of the U.S. culture is imposed on foreigners. In general, though, if business is conducted in the host country, the rules of  the host country should be followed, while if business is conducted in the home country, home country rules should be followed. 5. Is nonverbal communication more important or less important when two people speak  different languages? What are the pitfalls of trying to use only nonverbal communication to “talk” to someone from another country?  Nonverbal communication probably becomes more important when two people speak different languages. In fact, some researchers believe that between 80 and 90 percent of  all information is transmitted among members of a culture by nonverbal communication. However, nonverbal communication may be difficult for a foreigner to comprehend and may lead to miscommunication. If an individual attempts to use only nonverbal communication to converse with a foreigner, misunderstandings are likely. For example, nodding in the U.S. means “yes,” but in Bulgaria nodding means “no.” Unless there is verbal communication, a Bulgarian and an American would certainly miscommunicate.

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6. How would you evaluate yourself on each of Hofstede’s dimensions?  Students will probably have a fairly good idea where they stand on each of Hofstede’s dimensions and they may choose to confirm their beliefs my exploring some of the maps, tables, and figures presented in the section discussion Hofstede’s work. This question can be particularly interesting in a class with students from a range of countries and cultures. 7. Assume you have just been transferred by your firm to a new facility in a foreign location. How would you go about assessing the country’s culture along Hofstede’s dimensions?  How would you incorporate your findings into conducting business there?  Most students would probably suggest that examining the dimensional maps that identify where different countries lie on each of the dimensions would be a good starting point in assessing the culture of a foreign location. Students might then suggest that managers attempt to translate that knowledge into specific ideas about how business might be conducted. For example, students considering a highly individualistic culture might suggest that reward systems should provide incentives for individual performance rather  than group performance. V a lu

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2. Can you think of specific products that are in high demand in the United States that would  simply not work in specific other countries because of cultural factors?  Students will probably rely on their own purchasing patterns when responding to this question. Products in high demand among most college students include beer and hamburgers, neither of which would sell well in the Middle East because of religious beliefs. 3. How do you think foreign firms assess American culture as they contemplate introducing   products into the U.S. market?  Most students will probably suggest that foreign firms assess the American culture in much the same way as Americans assess foreign cultures: that when introducing products one first determines if a product will sell as it is, and then considers the impact of making changes in the product (and packaging, advertising, and so forth). Students will probably conclude that because the American culture is a melting pot of many cultures, there is probably a market for most foreign products somewhere (although some may be rather  small). Other Applications An interesting way to illustrate the impact of culture on a company is to identify a real product that is sold in multiple countries. Students can then identify how the product is sold in each country, and what, if any, changes had to be made to make the product a success. McDonald’s is usually a good company to start with.