3-1. BADM 633 - Wk1 International Business Culture Terry Ryan.

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BADM 633 - Wk1

International Business Culture

Terry Ryan

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Original Work

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My International Bona Fides . . . . Lived and worked in nine states, Puerto Rico, Scotland and Wales (seven years offshore)

Traveled and worked in China, England, Japan, Northern Ireland and the Republic of Ireland Have worked with Mexican, French-Canadien and Korean companies With Toyota and Nissan for fourteen years, including seven trips to Japan

Presented to Toyota's Main Board of Directors Hosted Toyota Chairman, President and Vice Presidents during US visitations

Was Chief Analyst for Europe in Ford's International Product Planning Office (Fiesta) Earned MBA in International Business and Marketing at the Univ. of Michigan Hold a Diploma in Company Direction from the Institute of Directors (London) Other

Co-founder and former Director General (US) of the Wales North America Business Council; VP of Wales North America Chamber of Commerce.

Director of Flax Trust - Belfast Former non-exec Chair of the Wales New Media Group and Track 2000 Operating Committee (board) of the Wales Information Society Member of British American Business Council, Ireland Chambers of Commerce in the USA and

Ireland-US Council for Commerce and Industry. Numerous UK political, regulatory and inward investment contacts

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Where was this photo taken?

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Globalization

The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace

In many industries, it is no longer meaningful to talk about the “German market” or the “American market”

Instead, there is only the global market

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Globalization

Falling trade barriers make it easier to sell internationally

The tastes and preferences of consumers are converging on some global norm

Firms help create the global market by offering the same basic products worldwide

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Declining Trade & Investment Barriers

Table 1.1: Average Tariff Rates on Manufactured Products as Percent of Value

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Reasons to Go Global

Increase market share. Respond to competitive pressures in labor

and material costs. Expand the product life cycle. Increase profits. Balance business cycles. Acquire technology. Gain access to additional factors of

production.

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BEIJING – General Motors Corp. on Wednesday said its first-half sales in China rose 38% from a year earlier to a record 814,442 units, underlining the importance of the Chinese auto market to the U.S. car maker as it works to emerge from bankruptcy protection. Sales of small autos helped GM's January-June period, and new models will boost second-half sales.

The market has benefited from Chinese-government

stimulus policies and growing demand in rural areas,

Mr. Wale said. In January, China halved the purchase

tax on small cars to 5% and also introduced a subsidy

program for rural residents who scrap old vehicles and

buy new ones.

GM's China sales in June climbed 61.6% from a year

earlier to 143,294 units, the company said, but the

increase was a slowdown from May's sales jump of

75% to 156,000 units.

The company's sales rose 25% in March and 50% in April and have been outstripping China's overall auto sales.

GM Sales Show Significance of China

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Glocalization

What is Glocalization?

Think Global . . . Act Local

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Introduction

Successful international managers need cross-cultural literacy - an understanding of how cultural differences across and within nations can affect the way in which business is practiced A relationship may exist between culture and the costs of doing business in a country or region

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CULTURE – CULTURE - CULTURE

SELF-REFERENCING CRITERION

SRC(ABBREVIATED)

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What Is Culture?

Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living

where

-values are abstract ideas about what a group believes to be good, right, and desirable

-norms are the social rules and guidelines that prescribe appropriate behavior in particular situationsSociety refers to a group of people who share a common set of values and norms

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Values And Norms

Values provide the context within which a society’s norms are established and justified and form the bedrock of a cultureNorms include folkways (the routine conventions of everyday life) and mores (norms that are seen as central to the functioning of a society and to its social life)

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Classroom Performance System

Abstract ideas about what a group believes to be good, right, and desirable are called

a) norms

b) values

c) folkways

d) mores

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Classroom Performance System

Abstract ideas about what a group believes to be good, right, and desirable are called

a) norms

b) values

c) folkways

d) mores

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Culture, Society, And The Nation-state

There is not a strict one-to-one relationship between a society and a nation stateNation-states are political creations that can contain one or more culturesSimilarly, a culture can embrace several nations

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The Determinants Of Culture

The values and norms of a culture are the evolutionary product of a number of factors at work in a society including religion, political and economic philosophies, education, language, and social structure

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Social Structure

Social structure refers to a society’s basic social organization

Two dimensions to consider:the degree to which the basic unit of social organization is the individual, as opposed to the groupthe degree to which a society is stratified into classes or castes

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Classroom Performance System

The basic social organization of a society is its

a) culture

b) social strata

c) social structure

d) caste system

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Classroom Performance System

The basic social organization of a society is its

a) culture

b) social strata

c) social structure

d) caste system

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Individuals And Groups

A group is an association of two or more people who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other’s behaviorSocieties differ in terms of the degree to which the group is viewed as the primary means of social organization

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Individuals And Groups

In many Western societies, there is a focus on the individual, and individual achievement is common This contributes to the dynamism of the US economy, and high level of entrepreneurshipBut, leads to a lack of company loyalty and failure to gain company specific knowledge, competition between individuals in a company instead of than team building, and less ability to develop a strong network of contacts within a firm

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Individuals And Groups

In many Asian societies, the group is the primary unit of social organization This may discourage job switching between firms, encourage lifetime employment systems, and lead to cooperation in solving business problemsBut, might also suppress individual creativity and initiative

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Classroom Performance System

The group is the primary unit of social organization in

a) Japan

b) the United States

c) Switzerland

d) Mexico

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Classroom Performance System

The group is the primary unit of social organization in

a) Japan

b) the United States

c) Switzerland

d) Mexico

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Classroom Performance System

Which of the following is not characteristic of individualism?

a) individual achievement

b) low managerial mobility

c) low company loyalty

d) entrepreneurial behavior

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Classroom Performance System

Which of the following is not characteristic of individualism?

a) individual achievement

b) low managerial mobility

c) low company loyalty

d) entrepreneurial behavior

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