TAILIEUCHUNG - Lecture Global business today (6e): Chapter 3 - Charles W.L. Hill

After completing this unit, you should be able to: Explain what determines the level of economic development of a nation, identify the macro-political and economic changes occurring worldwide, describe how transition economies are moving toward market-based systems, explain the implications for management practice of national difference in political economy. | Global Business Today 6e by Charles . Hill McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3 Differences in Culture Introduction Cross-cultural literacy (an understanding of how cultural differences across and within nations can affect the way in which business is practiced) is important to success in international business There may be a relationship between culture and the costs of doing business in a country or region Culture is not static, and the actions of MNEs can contribute to cultural change What is Culture? Question: What is culture? Culture is a system of values (abstract ideas about what a group believes to be good, right, and desirable) and norms (the social rules and guidelines that prescribe appropriate behavior in particular situations) that are shared among a group of people and that when taken together constitute a design for living A society is a group of people who share a common set of values and norms What is Culture? There is not a strict one-to-one correspondence between a society and a nation-state Nation- states are political creations that can contain a single culture or several cultures Some cultures embrace several nations Culture arises from prevailing political and economic philosophies a society’s social structure the dominant religion, language, and education Social Structure A society's social structure is its basic social organization Two dimensions to consider: the degree to which the basic unit of social organization is the individual, as opposed to the group the degree to which a society is stratified into classes or castes Social Structure In societies where the individual is emphasized individual achievement and entrepreneurship are promoted but, this can encourage job switching, competition between individuals in a company rather than team building, and a lack of loyalty to the firm In societies with a strong identification with the group cooperation and team work are .

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