3. Culture can be define as the system
of values and norms which a society
shares; it includes beliefs, laws,
knowledge, art, and customs
(Hill, 2010).
Values are a set of beliefs
Values are a set of beliefs
about, or attitudes towards,
about, or attitudes towards,
concepts concerning a society,
concepts concerning a society,
while norms are unwritten, but
while norms are unwritten, but
accepted, rules and laws about
accepted, rules and laws about
society members’ behaviors.
society members’ behaviors.

4. Values and norms are influenced
Values and norms are influenced
by aanumber of factors within
by number of factors within
society such as “social structure,
society such as “social structure,
religion, language, education,
religion, language, education,
economic philosophy, and political
economic philosophy, and political
philosophy” (Hill, 2010).
philosophy” (Hill, 2010).
The differences in these factors
The differences in these factors
across the globe provide the
across the globe provide the
diverse societies, which must be
diverse societies, which must be
viewed individually so as to
viewed individually so as to
comprehend the implications they
comprehend the implications they
have for international business.
have for international business.

5. One of the most important rules to remember when working
within a multi-national organization is that there is not
necessarily one right way of doing things

6. An important aspect of any business is to be able to analyze and
evaluate the environment, both internally and externally, in which the
business is to operate (Plunkett, Attner, & Allen, 2008).
The cost of doing business overseas is a concept that is related to
evaluating the external environment, where a manager or business
owner must consider such elements as “the strengths and weaknesses of
suppliers and partners, the availability of additional labor and
technology, and the needs of external customers” (Plunkett, Attner, &
Allen, 2008).
The globalisation of business and commerce has become an increasingly
significant reality worldwide: in 2000, the global trade in goods and
services reached 25% of world GDP (Govidarajan & Gupta 2000), while in
terms of manufactured goods, international trade has multiplied by more
than 100 times since 1955 (Schifferes 2007).

8. Each nationality has its own characteristics, which combine
Each nationality has its own characteristics, which combine
to contribute to the strength of the organization.
to contribute to the strength of the organization.
For example, in countries such as Britain and the US with aa
For example, in countries such as Britain and the US with
culture of small power distance between top management
culture of small power distance between top management
and general staff, organizations benefit from an
and general staff, organizations benefit from an
environment of empowerment and acceptance of
environment of empowerment and acceptance of
responsibility
responsibility
In countries where management maintains aalarge power
In countries where management maintains large power
distance, staff will follow aamuch tighter regime of discipline.
distance, staff will follow much tighter regime of discipline.
+) Hong Kong,
Malaysia, Taiwan
-) Denmark,
Germany

9. +) France, Spain
-)Malaysia,
Netherlands

10. Individualism vs. collectivism is an important aspect that influences the
costs of business. For instance, Husted (1999) has found an important
correlation between software piracy and individualism criterion.
Collectivism has been associated with unethical behavior and
corruption (Hooper 1995).
With the significant expense to a company of sending a person abroad and
the cost of a failed assignment, simple investments can be made to avoid
such situations. The respondents in the survey indicated that a company
should not make any promises it cannot meet and provide a realistic
picture of the job and living conditions.
+) Belgium,
Italy
-)Malaysia,
Japan

11. Masculinity vs. femininity also tends to influence
business costs. For instance, high masculine cultures
have been associated with unethical practices (Vitell et
al 1993). Feminine cultures could result in higher
secrecy and conservatism in accounting and finance
(Salter & Niswander 1995).
+)Singapore,
US
-)South Korea,
Portugal

13. Cultural Differences in Selected
Countries and Regions: China
• Doing Business in China
1. The Chinese place values and principles above money and expediency.
2. Business meetings typically start with pleasantries such as tea and general
conversation about the guest’s trip to the country, local accommodations,
and family.
3. The Chinese host will give the appropriate indication for when a meeting is
to begin and when the meeting is over.
4. Once the Chinese decide who and what is best, they tend to stick with these
decisions. Although slow in formulating a plan of action, once they get
started, they make fairly good progress.

14. Cultural Differences in Selected
Countries and Regions: China
5.
6.
7.
8.
In negotiations, reciprocity is important. If the Chinese give concessions,
they expect some in return.
Because negotiating can involve a loss of face, it is common to find
Chinese carrying out the whole process through intermediaries.
During negotiations, it is important not to show excessive emotion of any
kind. Anger or frustration is viewed as antisocial and unseemly.
Negotiations should be viewed with a long-term perspective. Those who
will do best are the ones who realize they are investing in a long-term
relationship.

15. Cultural Differences in Selected
Countries and Regions: Russia
Doing Business in Russia
•
1.
2.
3.
4.
Build personal relationships with partners. When
there are contract disputes, there is little protection
for the aggrieved party because of the time and
effort needed to legally enforce the agreement.
Use local consultants. Because the rules of business
have changed so much in recent years, it pays to
have a local Russian consultant working with the
company.
Ethical behavior in the United States is not always
the same as in Russia. For example, it is traditional in
Russia to give gifts to those with whom one wants to
transact business.
Be patient. In order to get something done in Russia,
it often takes months of waiting.

16. Cultural Differences in Selected
Countries and Regions: Russia
5.
6.
7.
8.
Russians like exclusive arrangements and
often negotiate with just one firm at a
time.
Russians like to do business face-to-face.
So when they receive letters or faxes,
they often put them on their desk but do
not respond to them.
Keep financial information personal.
Russians wait until they know their
partner well enough to feel comfortable
before sharing financial data.
Research the company. In dealing
effectively with Russian partners, it is
helpful to get information about this
company, its management hierarchy, and
how it typically does business.

17. Cultural Differences in Selected
Countries and Regions: Russia
9.
10.
11.
12.
Stress mutual gain. The Western
idea of “win–win” in negotiations
also works well in Russia.
Clarify terminology. The language of
business is just getting transplanted
in Russia so double-check and make
sure that the other party clearly
understands the proposal, knows
what is expected and when, and is
agreeable to the deal.
Be careful about compromising or
settling things too quickly because
this is often seen as a sign of
weakness.
Russians view contracts as binding
only if they continue to be mutually
beneficial, so continually show
them the benefits associated with
sticking to the deal.

18. Cultural Differences in Selected
Countries and Regions: India
•
Doing business in India
1. It is important to be on time for
meetings.
2. Personal questions should not be
asked unless the other individual
is a friend or close associate.
3. Titles are important, so people
who are doctors or professors
should be addressed accordingly.
4. Public displays of affection are
considered to be inappropriate,
so one should refrain from
backslapping or touching others.

19. Cultural Differences in Selected
Countries and Regions: India
5.
6.
7.
8.
Beckoning is done with the palm
turned down; pointing often is
done with the chin.
When eating or accepting things,
use the right hand because the
left is considered to be unclean.
The namaste gesture can be used
to greet people; it also is used to
convey other messages, including
a signal that one has had enough
food.
Bargaining for goods and services
is common; this contrasts with
Western traditions, where
bargaining might be considered
rude or abrasive.

20. Cultural Differences in Selected
Countries and Regions: France
•
Doing business in France
1. When shaking hands with a French person, use a quick
shake with some pressure in the grip.
2. It is extremely important to be on time for meetings and
social occasions. Being “fashionably late” is frowned on.
3. During a meal, it is acceptable to engage in pleasant
conversation, but personal questions and the subject of
money are never brought up.
4. Great importance is placed on neatness and taste.
Visiting businesspeople should try very hard to be
cultured and sophisticated.
5. The French tend to be suspicious of early friendliness in
the discussion and dislike first names, taking off jackets,
or disclosure of personal or family details.
6. In negotiations the French try to find out what all of the
other side’s aims and demands are at the beginning, but
they reveal their own hand only late in the negotiations.
7. The French do not like being rushed into making a
decision, and they rarely make important decisions
inside the meeting.
8. The French tend to be very precise and logical in their
approach to things, and will often not make concessions
in negotiations unless their logic has been defeated.

21. Cultural Differences in Selected
Countries and Regions: Brazil
•
Doing business in Brazil
1. Physical contact is an acceptable form of
communication. Brazilians stand close to
others when having a conversation and
may touch the person’s back, arm, or
elbow as a greeting or sign of respect.
2. Face-to-face interaction is preferred, so avoid
email or telephone calls. Meetings may start 10 to
30 minutes late. Greet with a pleasant demeanor
and accept refreshments.
3. Trust is not a given in Brazil, so be sure to form a
strong relationship before bringing up business
issues. Close relationships are very important
because Brazilians will do anything for friends.
4. Appearance is very important. It reflects you and
your company. Men should polish their shoes and
wear conservative dark suits. Women should dress
nicely, but avoid being too conservative or formal.
Think fashion.
5. Patience is key. Many processes are long and
drawn out, including negotiations. Expressing
frustration or impatience and attempting to speed
up processes may lose the deal. Brazilians will be
very loyal and committed once the agreement is
reached.
6. It is not acceptable to be ill-prepared.
Presentations should be informative and
expressive. Consistency is important.

22. Cultural Differences in Selected
Countries and Regions: Arab Countries
•
Doing business in Arab countries
1. It is important never to display feelings of
superiority, because this makes the other
party feel inferior. Let one’s action speak for
itself and do not brag or put on a show of
self-importance.
2. One should not take credit for joint efforts. A
great deal of what is accomplished is a result
of group work, and to indicate that one
accomplished something alone is a mistake.
3. Much of what gets done is a result of going
through administrative channels in the
country.
4. Connections are extremely important in
conducting business.
5. Patience is critical to the success of business
transactions. This time consideration should
be built into all negotiations.
6. Important decisions usually are made in
person, not by correspondence or telephone.
This is why an MNC’s manager’s personal
presence often is a prerequisite for success
in the Arab world.

23. The complexity of playing at the global level presents
companies with different conundrums and choices, many
of which are not straightforward. However, the way
forward implies a careful strategic analysis and a strong
cultural sensitivity in order to take advantage of global
opportunities.