This textbook explains the effects of culture on business practices and introduces students to the cross-cultural and international dimensions of working internationally, exploring topics across both business and finance.
Given that doing business across cultures has become the norm in modern companies, managers must develop and acquire the skills to lead effectively in cross-cultural contexts. This textbook will help you to attain those skills through its practical and situational examples involving countries and regions around the world while learning about the cultural and business practices of people from different backgrounds, ethnicities, diversities, educational levels, and social strata and hierarchies. It covers important aspects of doing business across cultures/countries, such as the role (and importance) of technology adoption, different organizational forms, financial and accounting approaches in different parts of the world, negotiating practices, ethics across the globe, and working and studying abroad. Further, it equips readers with useful knowledge about cross-cultural nuances beyond the usual discussions of high vs. low contexts, power distance, uncertainty avoidance, and such dimensions of cross-cultural interactions.
The varied experiences of the authors – having lived and worked in many countries – along with their backgrounds in linguistics, communication, and financial accounting provide unique perspectives not available elsewhere. With its case studies, end-of-chapter exercises, as well as multiple-choice and short-answer questions, this broad, yet thorough textbook will guide you in leading with cultural intelligence.
Author(s): Binod Sundararajan, Oksana Shkurska, Shannon Lin
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 196
City: Cham
Acknowledgments
Binod Sundararajan’s Acknowledgments
Oksana Shkurska’s Acknowledgments
Shannon Lin’s Acknowledgments
Contents
About the Authors
List of Figures
List of Tables
1 Introduction
PESTLE (STEEPLE, PESTEL, PESTLIED, SLEPT, LONGPESTLE)
Political Factors
Economic Factors
Sociocultural Factors
Hofstede’s Cultural Dimensions
Technological Factors
Legal Factors
Environmental Factors
Waterbody Innovations and Technologies Inc. (WITI)
References
2 Political, Economic, and Cultural Climate of International Business
Perceptions of Business Across Cultures
Types of Economies that Have Flourished Across Cultures
Market Economies
State Capitalism
State Run
Distributed Economies
National Culture vs. Organizational Culture
National Culture
Organizational Culture
Does Culture Override Business Strategy?
Cultural Sensitivity, Diversity Training, and Truly Benefiting from a Culturally Diverse Workforce
Unconscious Biases
Affinity Bias
Confirmation Bias
Attribution Bias
Conformity Bias
The Halo Effect
The Horns Effect
Contrast Effect
Gender Bias
Ageism
Name Bias
Beauty Bias
Height Bias
Gaslighting
Micro-aggression
References
3 Culture Shock, Work, and Study Abroad
Read and Reflect
What Is Culture Shock?
Oberg’s Culture Shock Theory
Kim’s Adaptation Theory
Bennet’s Developmental Model of Intercultural Sensitivity (DMIS)
Berry’s Acculturative Model
Cultural Intelligence and Intercultural Adaptation
Coping with Culture Shock and Stress
Practical Recommendations/Survival Tips
Culture Shock and Business Jargon
Online Resources
References
4 Ethics and Ethical Dilemmas Across the Globe
Globalization and Ethics of International Business
Cultural Differences in Ethics
Guidelines for Ethical Decision-Making Across Cultures
Corporate Social Responsibility (CSR) and Sustainable Development Goals
Online Resources
References
5 The Role of Technology in Doing Business Across Cultures
What Is Technology?
Connected Technologies
Social and Professional Networks
Distributed Networks and Virtual Teams
Challenges to VTs
The ConnecT Framework
Dealing with Complexities and Contexts
Types of Leaders
Types of Tasks
Integrate Culture
Creating a Sense of Community
Types of Conflict Resolution
Co-activate Leaders
Disruptive Technologies and Adoption
Conclusion
References
6 Accounting Practices
Accounting: The Language of Business
A Brief History of the Double-Entry Accounting System
The Usefulness of Accounting Numbers
The Role of Financial Audits
Types of Audits
What Is Accounting Fraud?
Types of Fraud
Infamous Past Scandals
Enhanced Regulation: The Sarbanes-Oxley Act
Why Accounting Frauds Matter
Current Accounting Practice and GAAP
One Common Standard: IFRS Adoption Around the World
Accounting, Legal Structure, and Tax Considerations for Operations Abroad
Recent Trend Away from Globalization
References
7 Banking and Financial Markets Around the Globe
Brief History of Banking
Equity and Bond Markets Around the Globe
What Is a Bond?
What Is Equity?
Why Banking Regulation Is Necessary
Regulation Full Disclosure (Reg FD)
Technological Disruptions to Banking and Financial Markets
Cryptocurrencies
Central Bank-Issued Digital Currency (CBDC)
Global Financial Contagion
Listing a Business Abroad
References
8 Negotiating Practices
Who Is Involved in Negotiations?
Steps in Intercultural Negotiations
Communication Style
Survival Tips
Long-Term Versus Short-Term Orientation
Negotiation Tactics
Forms of Agreement
Team Building and Decision-Making
Approaches to Conflict and Conflict Management Strategies
Approaches to Time
Developing Intercultural Negotiation Skills
Online Resources
Appendix
References
9 International Organizational Forms
International Organizational Forms
Multinational Corporations
How a Multinational Corporation (MNC) Works
Foreign Investment (FDI—Foreign Direct Investment)
Mergers and Acquisitions
Joint Ventures (JV)
International Market Entry Strategies
Potential Export Challenges and Factors
Planning to Enter International Markets
Other Modes of International Market Entry
Emerging Markets
Cultural Considerations in Advertising
People—Expatriates, Host-Country Nationals, Third-Country Nationals
International Business Terms
Incoterms
Conclusion
References
10 Bringing It All Together
Together, From Aways©
Core Principles from Around the World
Themes of Christian Social Teachings (Estimated at About 2.4 Billion Followers)
The Five Pillars of Islam and Social Teachings (Estimated at About 1.9 Billion Followers)
Basic Tenets of Hinduism (Estimated at About 1.2 Billion Followers)
Principles of Buddhism (Estimated at About 0.5 Billion Followers)
The Seven Principles of Kwanzaa
Principles of Ubuntu
Cultural Practices Around the World
Flowers to a Russian
Gifts to Chinese Classmates
Avoid Salt While Dining in Egypt
Concept of Punctuality in Many States
Table Manners in Norway
Using Sharp Items
Losing a Tooth in Greece
Avoid Clinking Glasses but Say Cheers in Hungary
Avoid Discussing Business in the Events in Bolivia
Don’t Try to “Go Dutch” in Turkey
Avoid Using Red Ink
A Trip to the Sauna in Finland
Sitting Seat in the Taxi
Greeting a Magpie in the UK
Birthday Greetings in the Netherlands
Greeting People in Japan and Germany
The Finger-Pulling Tradition in Austria
The Tradition for Unmarried People in Germany
Face on a Birthday Cake
Wife-Carrying as a Competitive Sport
Durga Puja in Bengal
Lucia Festival of Sweden
Yi Peng in Thailand
Fasching Parade in Germany
Shinbyu in Myanmar
How Does One Acquire Cultural Sensitivity?
Conclusion
References
Glossary
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Index
