Module 2: CULTURAL&GOVERNMENT INFLUENCES ON GLOBAL BUSINESS

• It refers to the interconnected network of economic activities, trade,and commerce that spans across countries and regions worldwide.

  Global Business World
• International Business Skills

  1. History
  2. Geography
  3. Foreign Language/s
  4. Cultural Awareness
  5. Management Skills
  6. Cross-Cultural Communication
• Understanding the historical context of different countries and regions can provide valuable insights into their economic, political, and social dynamics.

  History
• A solid grasp of geography is important for understanding trade routes, logistics, market accessibility, and regional economic disparities.

  Geography
• Language skills facilitate clear and effective communication and demonstrate respect for other cultures.

  Foreign Language/s
• It helps prevent misunderstandings and fosters positive relationships with international counterparts.

  Cultural Awareness
• Effective management skills are universal but adapting them to different cultural contexts is key in international business.

  Management Skills
• Clear and effective communication across cultures can prevent misunderstandings and build trust.

  Cross-Cultural Communication
• It refers to the shared values, beliefs, norms, attitudes, and behaviors that characterize an organization.

  Culture in Business World
• Key Aspects of Culture in the Business World:

  1. Values and Beliefs
  2. Norms and Behaviors
  3. Leadership Style
  4. Organizational Structure
  5. Employee Engagement
  6. Adaptability
• These are the fundamental principles and convictions that guide the organization

  Values and Beliefs
• These are the accepted patterns of behavior within the organization.

  Norms and Behaviors
• The behavior and leadership style of top executives and managerscan strongly influence the culture.

  Leadership Style
• The way the company is organized, including hierarchy and reporting lines, can impact culture.

  Organizational Structure
• A positive culture often leads to higher levels of employee engagement and job satisfaction.

  Employee Engagement
• The willingness to embrace change

  Adaptability
• Culture and its Elements

  1. Symbols
  2. Language
  3. Values
  4. Beliefs
  5. Norms
  6. Customs and Traditions
• They are objects, gestures, words, or images that carry specific meanings within a culture. In business can include logos, brand names, and corporate imagery that convey the company's identity and values.

  Symbols
• It is a fundamental element of culture, encompassing spoken and written communication.

  Language
• They are the principles and beliefs that guide a company's actions, policies, and decision-making. They guide behavior and decision-making.

  Values
• They are specific ideas or convictions held by individuals within a culture.

  Beliefs
• They encompass the accepted behaviors, rules, and ethical standards.

  Norms
• They are specific rituals, practices, and behaviors passed down through generations.

  Customs and Traditions
• Cultures can be classified as:

  1. Low-Context Culture
  2. High-Context Culture
• In a Low Context Culture:

  • Focus on problems rather than people
  • Emphasis on words
  • Communication is typically explicit (Direct)
  • Detailed contracts required
  • Plans are followed carefully
• In a High Context Culture


  • Focus on people and relationships
  • Emphasis on nonverbal cues
  • A lot of communication is implicit (Indirect)
  • Time to build trust is required
  • Plans can change often
• It is a cultural group or community within a larger society that shares distinctive values, norms, beliefs, behaviors, and practices.

  Subculture
• Key Characteristics of Subcultures

  1. Distinct Identity
  2. Shared Interests
  3. Symbolism and Style
  4. Community and Social Bonds
• Subcultures often have a strong sense of identity and belonging. Members of a subculture may identify more closely with the values and norms of their subgroup than with those of the dominant culture.

  Distinct Identity
• These interests can be related to hobbies, music, fashion, sports, political beliefs, religious practices, or other aspects of life.

  Shared Interests
• Subcultures often have distinctive symbols, clothing, slang, and visual elements that members use to signal their affiliation with the group. These symbols can include tattoos, clothing brands, music genres, and more.

  Symbolism and Style
• Subcultures often foster strong social bonds among their members. These communities provide a sense of belonging and support, particularly for individuals who may feel marginalized or misunderstood by the dominant culture.

  Community and Social Bonds
• Examples of Subcultures

  • Punk Subculture
  • Goth Subculture
  • Hip-hop Subculture
  • Geek and Fandom Subcultures
  • Cosplay Subculture
  • K-Pop and K-Drama Fandom
  • Balikbayan Subculture
  • Biker and Motorcycle Subculture
• Geert Hofstede’s Cultural Dimensions Theory


  1. Power Distance
  2. Individualism vs. Collectivism
  3. Masculinity vs. Femininity
  4. Uncertainty Avoidance
  5. Long-term Orientation vs. Short-term Orientation
  6. Indulgence vs. Restraint
• This refers to how openly a society or culture either accepts or rejects differences between people like hierarchies in the workplace, in politics, and so on.

  Power Distance
• Openly accept that a boss is "higher" and therefore deserves more formal respect and authority.

  High Power Distance
• Superiors and subordinates are more likely to see each other as equals

  Low Power Distance
• It considers the degree to which societies are integrated into groups as well as their perceived obligations and dependence on groups.

  Individualism vs. Collectivism
• People's tendency of take care of themselves and their immediate circle of family and friends, perhaps at the expense of the overall society.

  Individualism
• Individual members render loyalty to the group, and the group takes care of its individual members.

  Collectivism