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International Business Environment (Culture):The International Environment. . Managing a business in a foreign country requires managers to deal with a large variety of cultural and environmental differences. As a result, international managers must continually monitor the political,legal, sociocultural, economic, and technological environments.ReligionSacred objectsPhilosophical systemsPrayerValues andAttitudes TowardsLanguageTaboosSpoken languageHolidaysWritten languageScientific methodRitualsAchievementOfficial languageRisk-takingLinguistic pluralismEducationInternational languageSecondary educationVocational traininglawFormal educationINTERNATIONALBUSINESSENVIRONMENThome country lawInternational lawcommon law(CULTURE)foreign lawforeign lawHuman resourcesHigher educationLiteracy levelplanningSocial Organizationcode lawAuthority structuresforeign lawregulationPrimary educationSocial stratificationPoliticsNational interestsPolitical riskNationalismImperialismSocial institutionsStatus systemsTechnology andMaterial CultureInterest sEnergy systemsPowerTools & objectsUrbanizationinventionFigure 3: International Business Environment (Culture)Social mobility

4. International Cross Cultural ManagementManaging cross-cultural challenges in the international business management is akin to the "Hygiene"factor of the "Dual-factor Motivation" theory. In management of international business, embracing thecultural diversity of the country may or may not bring success, but not doing so will surely increase thechances of stagnation or failure. The world is becoming smaller day-by-day and therefore, the entrepreneurs & managers involved in the international businesses will have to become more sensitive to thechallenges emanating from the cultural and ethnic landscape of the countries they work in. In the last 2decades, cross-cultural challenges in the international business management have become prominent asthe companies have started expanding across the territorial boundaries. Even leading managementschools have started incorporating cross-cultural challenges as part of the curriculum of the internationalbusiness management.4.1.What is "Culture"?Culture is the "acquired knowledge that people use to anticipate events and interpret experiences forgenerating acceptable social & professional behaviors. This knowledge forms values, creates attitudesand influences behaviors". Culture is learned through experiences and shared by a large number of people in the society. Further, culture is transferred from one generation to another.In the figure below, it is specified that what are the elements of the culture?

Das Bildelement mit der Beziehungs-ID rId1 wurde in der Datei nicht odjokesfoodCelebrationsFolk ArtFigure 4: Culture4.2.What are the core components of "Culture"?4.2.1.4.2.2.4.2.3.4.2.4.4.2.5.Power distribution - Whether the members of the society follow the hierarchical approach or the egalitarian ideology?Social relationships - Are people more individualistic or they believe in collectivism?Environmental relationships - Do people exploit the environment for theirsocioeconomic purposes or do they strive to live in harmony with the surroundings?Work patterns - Do people perform one task at a time or they take up multiple tasks at a time?Uncertainty & social control - Whether the members of the society like toavoid uncertainty and be rule-bound or whether the members of the societyare more relationship-based and like to deal with the uncertainties as &when they arise?

Figure 5: Iceberg of Culture4.3.What are the critical issues that generally surface in cross-cultural teams?4.3.1.4.3.2.4.3.3.4.3.4.Inadequate trust - For example, on one hand a Chinese manager wonderswhy his Indian teammates speak in Hindi in the office and on the other hand,his teammates argue that when the manager is not around, why they can'tspeak in English?Perception - For instance, people from advanced countries consider peoplefrom less-developed countries inferior or vice-versa.Inaccurate biases - For example, "Japanese people make decisions in thegroup" or "Indians do not deliver on time", are too generalized versions ofcultural prejudices.False communication - For example, during discussions, Japanese peoplenod their heads more as a sign of politeness and not necessarily as an agreement to what is being talked about.

Table 1: Western Vs Non-Western4.4.What are the communication styles that are influenced by the culture of thenation?4.4.1.4.4.2.4.4.3.4.4.4.4.5.'Direct' or 'Indirect' - The messages are explicit and straight in the 'Direct'style. However, in the 'Indirect' style, the messages are more implicit & contextual.'Elaborate' or 'Exact' or 'Succinct' - In the 'Elaborate' style, the speaker talksa lot & repeats many times. In the 'Exact' style, the speaker is precise withminimum repetitions and in the 'Succinct' style; the speaker uses fewerwords with moderate repetitions & uses nonverbal cues.'Contextual' or 'Personal' - In the 'Contextual' style, the focus is on the speaker's title or designation & hierarchical relationships. However, in the 'Personal' style, the focus is on the speaker's individual achievements & there isminimum reference to the hierarchical relationships.'Affective' or 'Instrumental' - In the 'Affective' style, the communication ismore relationship-oriented and listeners need to understand meanings basedon nonverbal clues. Whereas in the 'Instrumental' style, the speaker is moregoal-oriented and uses direct language with minimum nonverbal cuesWhat are the important nonverbal cues related to the communication amongcross-cultural teams?4.5.1.Body contact - This refers to the hand gestures (intended / unintended), embracing, hugging, kissing, thumping on the shoulder, firmness of handshakes, etc.

4.5.2.4.5.3.Interpersonal distance - This is about the physical distance between two ormore individuals. 18" is considered an intimate distance, 18" to 4' is treatedas personal distance, 4' to 8' is the acceptable social distance, and 8' is considered as the public distance.Cross-cultural challenges in international business management", has become a keenly followed topic in last two decades. There are enough examples of business failures or stagnation or failure of joint ventures, on accountof the management's inability to recognize cross-cultural challenges andtackle them appropriately. There are also examples of companies havingcompulsory training on culture management or acculturation programs foremployees being sent abroad as or hired from other countries, to ensure thatcross-challenges are tackled effectively.5. Strategy for International Cross Cultural Management - Cross Cultural Differences (Cultural dimension)1. Individualism / Collectivism2. Power Distance3. Uncertainty Avoidance4. Quality Versus / Quantity of LifeIndividualism, versus its opposite, collectivism, is the degree to which individuals are supposed to look after themselves or remain integrated into groups, usuallyaround the family. Positioning itself between these poles is a very basic problem allsocieties face. A concise definition is: “Individualism stands for a society in whichthe ties between individuals are loose: Everyone is expected to look after him/herself and her/his immediate family only. Collectivism stands for a society in whichpeople from birth onward are integrated into strong, cohesive in-groups, whichthroughout people’s lifetime continue to protect them in exchange for unquestioning loyalty” [4]. National differences in Individualism are calculated in an Individualism Index (IDV). The highest IDV scores were found in the United States, Australia, and Great Britain. The lowest IDV scores were found in Guatemala, Ecuador,and Panama.Individualism (USA) / Collectivism (Japan or China-family, social network and friendsare very important).In fact the representative of Individualism is USA that the opposite of Japan Whichsymbolizes of collectivism.5.1.

FFFFigure 6: Individualism vs Collectivism7Each individual is connected to a very complex net of relationship. In sch cultures and countries,communication is the first word and it’s major cause for success Business.Cross- Cultural Differences ( Cultural Dimension)Individualism (USA) / Collectivism (Japan or China) – these are the most common onesIt has long been believed that the Japanese are more collectivistic than the Americans.To assess the validity of this common view, the based on 15 empirical studies that compared these two nations on individualism/collectivism. Surprisingly, 14 studies did notsupport the common view; the only study that supported it turned out to bear little relevance to the ordinary definition of individualism/collectivism. An examination of thesupportive evidence of the common view disclosed that this view had been formed onan unexpectedly flimsy ground. It further turned out that the wide acceptance of thecommon view may have been the result of the fundamental attribution error, which mayhave led to an underestimation of situational factors in interpreting the past obviouslycollectivistic behaviour of the Japanese.5.1.1.USACULTURALCONTEXTself- General lfreedom,opposing interestsJAPANcollective, consensusand cooperation oriented,embeddedness in society,harmonyLow power distance,low Geert hofstede:uncertainty avodiance, very Culture's Consquenceshigh individualism and highmasculinityHigh power distance,Very high uncertaintyAvoidance,lowindividualismAnd very high masculinityUniversalism,individualism, Fons trompenaars:Particularismemotional relations,specific Riding the waves of Collectivism, neutralcultureculturesRelations, vague cultureTable2: The state of America and Japan in terms of individualistic culture7Source, Yang Liu

Collectivists focus on communal, societal, or national interests in various types of political, economicand educational systems and that's the opposite of Individualistic.5.2.Power Distance (distance between you and your boss)Power distance is the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. Thebasic problem involved is the degree of human inequality that underlies the functioning of each particular society. In Hofstede’s research, power distance ismeasured in a Power Distance Index (PDI). The values and attitudes found atthe national level contrast “low-PDI countries” with “high-PDI countries”, withsome countries placed in between. High PDI countries include Malaysia andMexico. Low PDI countries include Austria and Denmark.A high PDI score indicates that a society accepts an unequal, hierarchical distribution of power,and that people understand "their place" in the system. A low PDI score means that power isshared and is widely dispersed, and that society members do not accept situations where poweris distributed unequally. Application: According to the model, in a high PDI country, such as Malaysia (100),team members will not initiate any action, and they like to be guided and directed tocomplete a task. If a manager doesn't take charge, they may think that the task isn't important.Diagram1: power distance vs. Individualist

5.3.Uncertainty (Risk) AvoidanceRefers to the extent to which a culture programs its members to feel either uncomfortable orcomfortable in unstructured situations. Unstructured situations are novel, unknown, surprising,and different from usual. The basic problem involved is the degree to which a society tries tocontrol the uncontrollable. The countries from Hofstede’s study were each given a score onUncertainty Avoidance Index (UAI). UAI was derived from country mean scores on questionsdealing with rule orientation, employment stability, and stress. Hofstede’s research has foundUAI values for 50 countries and three regions. The countries rank from Greece, Portugal, andGuatemala (highest UAI) to Singapore, Jamaica, and Denmark (lowest UAI).5.3.1.5.3.2.Uncertainty avoidance is one of five key qualities or dimensions measuredby the researchers to understand why some ideas and business practiceswork better in some countries than the others.The uncertainty avoidance dimension expresses the degree to which a typical person in a society feels uncomfortable with a sense of uncertainty andambiguity (fuzzy).In cross-cultural psychology, uncertainty avoidance is a society's tolerance for uncertainty andambiguity. It reflects the extent to which members of a society attempt to cope with anxiety byminimizing uncertainty.The research show People in cultures with high uncertainty avoidance tend to be more rational.They try to minimize the occurrence of unknown and unusual circumstances and to proceedwith careful changes step by step by planning and by implementing rules, laws and regulations.In contrast, low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible. People in thesecultures tend to be more pragmatic and more tolerant of change. This dimension describes howwell people can cope with anxiety. In societies that score highly for Uncertainty Avoidance,people attempt to make life as predictable and controllable as possible. If they find that theycan't control their own lives, they may be tempted to stop trying. These people may refer to"mañana," or put their fate "in the hands of God "People in low UAI-scoring countries are morerelaxed, open or inclusive. Bear in mind that avoiding uncertainty is not necessarily the same asavoiding risk. Hofstede argues that you may find people in high-scoring countries who are prepared to engage in risky behavior, precisely because it reduces ambiguities, or in order to avoidfailure. Application: In Hofstede's model, Greece tops the UAI scale with 100, while Singaporescores the lowest with eight. Therefore, during a meeting in Greece, you might be keen to generate discussion, because you recognize that there's a cultural tendency for team members tomake the safest, most conservative decisions, despite any emotional outbursts. Your aim is to

encourage them to become more open to different ideas and approaches, but it may be helpfulto provide a relatively limited, structured set of options or solutions.Diagram2: Uncertainty avoidance IndividualistMasculinity vs. Femininity ‘Quality/Quantity of Life’ Hofstede (2010) the distribution of emotional roles between the genders: whether people are motivated bywanting to be the best, or liking what they do Masculinity versus its opposite,femininity, refers to the distribution of emotional roles between the genders, whichis another fundamental problem for any society. This distinction opposes “tough”masculine and “tender” feminine societies. The duality of the sexes is a fundamental fact with which different societies cope in different ways. Surveys on theimportance of work goals show that almost universally women attach more importance to social goals such as relationships, helping others, and the physical environment, and men attach more importance to ego goals such as careers andmoney. However, Hofstede’s data revealed that the importance respondents attached to such “feminine” versus “masculine” work varied across countries as wellas across occupations. Masculinity stands for a society in which gender roles areclearly distinct. Men are supposed to be assertive, tough, and focused on materialsuccess. Women are supposed to be more modest, tender, and concerned with thequality of life. Femininity stands for a society in which gender roles overlap. Bothmen and women are supposed to be modest, tender, and concerned with the qualityof life. Because the respondents were mostly men, Hofstede suggested calling thisdimension the Masculinity Index (MAS). The list of countries in order of MAS(high gender roles distinction at work) shows Japan at the top. German-speakingcountries (Austria, Switzerland, and Germany) scored high; so did the CaribbeanLatin American countries Venezuela, Mexico, and Colombia, and Italy. The Anglo countries (Ireland, Great Britain, South Africa, the United States, Australia,New Zealand, and Canada) all scored above average. Asian countries, other thanJapan, were in the middle. The feminine side (low gender roles distinction at work)

includes other Latin countries (France, Spain, Salvador, etc.). At the extreme“feminine” pole were the Nordic countries including Sweden, Norway, and theNetherlands. Low MAS countries are characterized by cooperation at work and agood relationship with the boss, belief in group decisions, promotion by merit,lower job stress, and preference for smaller companies. High MAS countries arecharacterized by challenge and recognition in jobs, belief in individual decisions,higher job stress, and preference for large corporations.Masculine/ Quantity of life Cultures value are competitiveness /assertiveness materialism ambition and powerMore dramatic and less fluiddifference between genderrolesFeminine/Quality of life Cultures place more value onrelationship and quality of lifeMen and women have the samevalues emphasizing modestyand caringTable3: Masculinity vs. Femininity6. Danger of Sophisticated StereotypingFirst of all what is Stereotyping:6.1.6.2.6.3.6.4.6.5.6.6.A simplified representation which focuses on certain characteristics of a group andassumes these to be share across all group members.A stereotype is a preconceived notion, especially about a group of people.Stereotype is categories of objects and people.Sets of generalizations about the characteristics of individuals or groups of peopleand often destrted the representations.Sex, race, age, sexual orientation, religion and physical ability are various catagories which exist in stereotyping. The most prevalent and controvers

Intercultural communication: is defined as situated communication between in-dividuals or groups of different linguistic and cultural origins. 2.2. International Teamwork: Getting Cross-Cultural Teamwork Right. People strug-gle with global teamwork, even tho