Page 106 - Business Principles and Management

Chapter 4 • International Environment of Business

100 yen to the dollar, that same camera
will now cost $125 (12,500/100). Thus, FIGURE 4-5 Australian and
American English
the Japanese camera becomes more
expensive in the United States entirely
because of exchange rate changes. To AUSTRALIAN AMERICAN
protect firms against adverse changes in ENGLISH ENGLISH
the exchange rates, international business
managers use many techniques. Arvo Afternoon
Biscuit Cookie
CULTURAL DIFFERENCES Bloke Man
International business also requires under- Brolly Umbrella
standing and coping with cultural values Cozzie Bathing suit
and traits in foreign countries that are (also bathers
or swimmers)
different from those of the home country.
Culture refers to the customs, beliefs, val- Crook Sick
ues, and patterns of behavior of the people Entree The appetizer,
of a country or group. It also includes lan- not the
guage; religion; attitudes toward work, main course
authority, and family; practices regarding Fair dinkum The real thing
courtship, etiquette, gestures, and joking;
Footpath Sidewalk
and manners and traditions. In many
countries, especially large ones like India, Jumbuck Sheep
Russia, and South Africa, numerous Jumper Sweater
cultural differences exist within their
own populations. Likewise, in the United Lollies Candy
States, there are cultural differences, such Mate Friend
as among various racial and ethnic groups.
Some cultures may be more familiar to Nought Zero
Americans, such as those of Canada and Sandshoes Sneakers
Great Britain. Others seem very unfamil- Serviette Table napkin
iar to Americans, such as those of India
and Thailand. Businesspeople who work Sweets Dessert
in foreign countries need to be aware of Ta Thank you
cultural differences in order to be success-
ful in their assignments. The greater the Takeaway food Food to go
cultural gap, the more the businessperson Taxi rank Cab stand
will have to adjust.
Culture affects how people commu- Yank An American
nicate in a country. In a low-context
culture such as the United States, people
communicate directly and explicitly. A
person is expected to come to the point directly and not beat around the bush.
An American manager might say, “Do this task immediately.” The receiver of
this message is not expected to read between the lines. In contrast, in a high-
context culture such as Japan, communication tends to occur through non-
verbal signs and indirect suggestions. Ambiguity and indirect suggestions are
expected and highly valued. A person is not supposed to come right out and
say it. A Japanese manager might say, “This task is very important, and your
attention to it will be greatly appreciated.” The difference between high- and
low-context cultures can cause communication misunderstandings.
Although English has become the language of international business, its
usage and terminology vary across the world. As Figure 4-5 suggests, even

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