INTERNATIONAL BUSINESS AND TRADE CH. 3

• Culture is a system of learned, shared, unifying, and interrelated beliefs, values, and assumptions
• Beliefs are the nature of a person, thing, or concept
• Values are positive and negative ideals
• Assumptions are statements taken for granted as facts
• Subculture is a part of a larger culture with values, beliefs, and assumptions different from the larger culture
• Cultural baggage is the idea that individuals carry their beliefs, values, and assumptions with them at all times
• No two business subcultures share an identical set of beliefs
• When two general cultures are similar, their subcultures are likely to be similar as well
• Business subcultures shape the personal and professional behaviors of business persons worldwide
• Many societies are at least partially organized around a family
• A nuclear family consists of parents and unmarried children living together
• An extended family consists of parents, children, and other relatives living together
• Family units provide early education to younger members and instruct them in the ways of their culture
• Family members are assigned different roles based on gender
• Language facilitates international business transactions
• Language differences present a common stumbling block in international business communication
• Learning another language is learning another culture, breaking up cultural differences, building trust, and showing respect
• Non-verbal communication consists of actions, facial expressions, movement, appearance, eye contact, gestures, and posture
• Body language refers to the meaning conveyed by facial expressions, movements, and gestures
• Appearance in the international business world is important for communication
• Eye contact varies from culture to culture and is a form of nonverbal communication
• Touching and smells are also forms of nonverbal communication with varying acceptability worldwide
• Individualism, leadership, power, authority, technology, and collectivism are values that vary from culture to culture
• Different cultures have different values relating to leadership, power, and authority
• Some cultures embrace technology for material improvement, while others view it negatively for cultural or religious reasons
• Collectivism emphasizes strong social and individual ties, while individualism stresses independence
• Religion and time are values that regulate behavior and influence how people view the world
• Time is often viewed differently across cultures, with some cultures dominated by one religion
• Culture shock is the feeling of uncertainty, confusion, or anxiety when experiencing a different society
• Social norms can vary significantly across countries and regions, leading to culture shock
• Culture shock can arise from unfamiliarity with local customs, language, and acceptable behavior
• Stages of culture shock:

  • The honeymoon stage
  • The frustration stage
  • The adjustment stage
  • The acceptance stage