Lecture on Culture and International Business Relations

Introduction to Culture

• Definition of Culture: A system of values and norms shared among a group of people that directs and justifies behavior.
• Nature of Culture:
  • Like Morpheus described the Matrix; it's everywhere.
  • Comparable to a computer's operating system.

Elements Comprising Culture

1. Religion
   • Influences values and social norms.
   • Examples: Judeo-Christian values in the US, Islam's emphasis on hospitality.
2. Political Philosophy
   • Affects decision-making and power distribution.
   • Democracy vs. collectivism.
3. Economic Philosophy
   • Impacts wealth distribution and market operations.
   • Free markets vs. centralized control.
4. Communication
   • Varies widely across cultures (verbal and non-verbal).
5. Social Structure
   • Degree of mobility and hierarchy within societies.
6. History
   • Past events shape current cultural norms and behaviors.
7. Customs and Traditions
   • Unique practices that define a culture.
8. Stories and Mythologies
   • Reinforce cultural values and norms.

Cultural Components: Values, Norms, Folkways, Mores, and Taboos

• Values: Aspirational principles of a society (e.g., freedom, equity).
• Norms: Social guidelines for appropriate behavior.
• Folkways: Routine conventions of everyday life (e.g., eating habits).
• Mores: Central norms of morality (e.g., drug abuse as a moral issue).
• Taboos: Behaviors considered abhorrent (e.g., incest, cannibalism).

Cultural Relativism vs. Universality of Human Rights

• Cultural Relativism: Cultures dictate norms, and external intervention is seen as imperialistic.
• Universality of Human Rights: Some rights are universal, transcending cultural differences.

Hofstede's Cultural Dimensions

1. Power Distance
   • Acceptance of unequal power distribution.
2. Individualism vs. Collectivism
   • Preference for acting as individuals or as part of a group.
3. Masculinity vs. Femininity
   • Preference for traditional masculine or feminine values.
4. Uncertainty Avoidance
   • Comfort with ambiguity and uncertainty.
5. Long-term vs. Short-term Orientation
   • Focus on future rewards vs. immediate results.
6. Indulgence vs. Restraint
   • Extent of gratification of desires.

Communication Styles

• Low Context Cultures: Direct, explicit communication (e.g., USA).
• High Context Cultures: Implicit, relational communication (e.g., Japan).

Perception of Time

• Monochronic (M-time): Time is structured and managed.
• Polychronic (P-time): Time is fluid and relational.

Culture Shock

• Causes: Encountering cultural differences leads to emotional responses.
• Handling Culture Shock:
  • Be aware of reactions.
  • Analyze causes.
  • Let emotions subside.
  • Develop appropriate expectations.

Conclusion

• Emphasized the importance of respecting cultural differences and learning to navigate them effectively in international business and relations.