AOF Business in a Global Economy Unit 2

There are three elements to culture Linguistic Organizational Social

Language fluency is essential to global businesses Fluency enables you to gather information, hold conversations, and build business relationships. Why should companies pay for employees to learn another language?

Nonverbal communication has power too • Facial expression • Proximity • Eye contact • Posture Which gestures in American business are considered polite? Rude?

Culture affects technology and finance, and vice versa • Transportation • Banks • Communication • Research and development • Energy How can a country’s access to energy resources impact its global business dealings?

Social institutions are defined by culture Family Religion Education How did an educated work force change Japan’s economic destiny after World War II?

Attitudes are strongly influenced by culture • Time perception • Aesthetics • Gender roles Should American companies send their female employees to countries that don’t consider women the equals of men?

Values reflect cultural beliefs Some cultures have strict social classes; others don’t. Customs vary greatly across cultures. What American customs should foreign businesspeople be aware of?

Manners differ across cultures Manners include knowing the polite way to greet people and the expected way to say thank you. Are table manners formal or casual?

Cultural awareness is essential in global business Learning about the culture of business partners is key to building relationships, and that’s what success in business is all about.