Differences in Culture and the impact on international business; the dynamics of culture
Instructions: Refer to the key concepts covered in Chapter 4 of the text and the power points about culture, the dynamics of culture and how cultural differences can
affect international business. Utilize this information to answer the questions 1- 2 and 5 indicated below. Read the Part 2 Case: “Wal-Mart’s Foreign Expansion” on
page 167 of the textbook (9th edition)* of the textbook and answer question 3. Read the Opening Case: “Culture and Business in Saudi Arabia” on pages 98 and 99 of the
textbook (9th edition) and answer question 4. Use the Internet to research and answer question 6. Your answers must be typed, double-spaced, size 12 font, in
question-answer format with complete answers and approximately 2-3 pages in length.
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1) What is culture? What are the six determinants or factors that influence culture? (1 point)
2) What is ethnocentric behavior? What is needed to overcome ethnocentric behavior? (1 point)
3) Read the Part 2 Case: “Wal-Mart’s Foreign Expansion.” Apply and utilize (cite) the facts of the case to answer the following questions about the challenges
which companies faced to manage cultural differences in the global marketplace (2 points):
a) Why was Wal-Mart able to achieve success in Mexico?
b) What cultural differences did Wal-Mart encounter in trying to expand into other areas of the global marketplace, specifically in South Korea and Germany? What
impact did these cultural differences have on the effectiveness of the entry strategy and performance of Wal-Mart in these countries?
c) What type of actions did Wal-Mart take in order to succeed in China? Did it lose too much of its identity as Wal-Mart by making these changes?
4) Read the Opening Case: “Culture and Business in Saudi Arabia.” Apply and utilize (cite) the facts of the case to answer the following questions about the challenges
of managing the dynamics of culture (2 points).
a) Reflect on the long standing cultural traditions in Saudi Arabia and how they shape the country’s business environment. How should non-Saudi’s approach a business
meeting in Saudi Arabia?
b) Saudi Arabia has a long held aversion to manual labor and any behavior that might be considered menial or servile. What are the implications of this value system.
How does it impact companies doing business in the country? How is this basic cultural tradition beginning to change? What are the long term implications of this?
c) Consider the restrictions put on Saudi Arabian women. How do these restrictions impact the way products are marketed successfully toward women?
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5) Does culture change? To what extent is it possible for a company like Wal-Mart to change the culture of the country in which it is doing business? What is the
relationship between the culture of a country and its competitive advantage? (2 points)
6) Cultural differences influence business etiquette practices (folkways). Use the Internet to research differences in business etiquette in a country of your choice.
Select two (2) countries other than the U.S. and describe two (2) rules of etiquette that are different in each of the two countries you chose compared to the U.S. (in
other words, a total of four different rules of etiquette which you must compare to U.S. standards.) Be sure to identify the source. There are many websites available,
such as the one indicated below. (2 points) (e.g.www.globaledge.msu.edu,http://www.executiveplanet.com/index.php?title=Main_Page ).
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