Multinationals and the Global Environment of Business
Home	Schedule	Syllabus

I. What is culture?

A.Culture: A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.

1. Values: What a group of people thinks is good, right, and desirable.

2. Norms: Prescribed appropriate behavior in particular situations.

 

B. Is culture a moving target?

1. Cultural Divergence:

2. Cultural Imperative:

II. Cultural Dimensions: Hofstede's (1983), identifies four cultural dimensions. Later, he describes a 5th dimension.

A. Uncertainty avoidance

 

B. Power distance

 

C. Masculinity-Femininity (Jones calls this dimension achievement oriented versus nurturing)

 

D. Individual-Collectivism

 

E. Short- versus Long-term Orientation

III. Cross-Cultural Interaction: How much will you be expected to adapt?

A. Cultural Imperatives: Things that you must do.

 

B. Cultural Adiaphora: You can do it, but you are not required to do so.

 

C. Cultural Exclusives: Things best left to the natives.

IV. Strategies for entering international markets

A. Exporting:

1. Advantages

 

2. Disadvantages

 

B. Licensing or Franchising:

 1. Advantages:

 

2. Disadvantages

 

C. Joint Ventures:

1. Advantages

 

2. Disadvantages

 

D. Wholly Owned Subsidiaries:

1. Advantages

 

2. Disadvantages