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Chapter 4

GMS 724 Chapter Notes - Chapter 4: Fatalism, Ethnocentrism, Collectivism


Department
Global Management Studies
Course Code
GMS 724
Professor
Lori Anne Heckbert
Chapter
4

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CHAPTER 4: THE CULTURAL ENVIRONMENTS FACING
BUSINESS
Introduction
Culture: learned norms based on the values, attitudes, and beliefs of a
group of people
Every business employs, sells to, buys from, and is owned and
regulated by people
Another means of gaining global competitive advantage is fostering
cultural diversity
oBy bringing together people of diverse backgrounds,
perspectives, and experience, companies often gain a deeper
knowledge of products and services and how to create and
deliver them
Cultural Collision: occurs when divergent cultures come in contact
oWhen a company implements practices that are less e!ective
than intended
oWhen a company’s employees encounter distress because of
di#culty in accepting or adjusting to foreign behaviours
Cultural Awareness
Most cultural variables are universal, but the forms of these variables
di!er among cultures and not everyone responds to them in the same
way
The Idea of a “Nation”: Delineating Cultures
The idea of a nation provides a workable de+nition of a culture because
the basic similarity among people is often both the cause and e!ect of
national boundaries
The existence of shared attributes doesn’t mean everyone in a country
is alike, or that each country is unique in all respects
A national culture must be -exible enough to accommodate a mixture
of subcultures, ethnic groups, races, and classes
A nation’s shared and mediated characteristics constitute its national
identity and a!ect the practices of any company that does business
under its jurisdiction
How Cultures Form and Change
Culture is transmitted in various ways, but most people acquire their
basic value systems as children
Change by choice
oMay occur as a reaction to social and economic situations that
present people with new alternatives
Change by imposition
oCultural Imperialism: imposing certain elements from an alien
culture that, over time, becomes part of the subject culture
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