Culture and International Business

CULTURE AND INTERNATIONAL BUSINESS

ANG 6930 Section 7077 / GEB 6930 Section 4425

Dr. Roy CrumDr. Anita Spring

Office: 309 StuzinOffice: 451 Grinter

Phone: 392-0115Phone: 392-7102 x:308

Office Hours: T R 11:45-1:15Office Hours: T 1-4 pm

E-mail:mail: aspring.ufl.edu

or (for attachments)

COURSE DESCRIPTION: Culture and International Business explores the opportunities and challenges of the global economy from both anthropological and business perspectives. Students will develop a more complete understanding of the complex cultural and economic issues that determine the success of multinational ventures, from NGO programs in developing countries to large corporate investments in foreign economies.

Culture and International Business begins with a thorough conceptualization of “business” and “anthropological” notions of terms like culture, communication, social organization, value, wealth, trade, and labor. Next it explore the politics of the global market, the role of entrepreneurship across cultures, the evolution of multinational businesses, and how business, marketing, and advertising practices vary around the world. The course concludes by examining some of the more controversial issues in globalization (e.g., wages, the environment), and inquiring how these are shaped by different concepts of the roles and responsibilities of governments and corporations. Cross-cultural concepts of gender and how these can affect international business activities are discussed throughout the course.

COURSE REQUIREMENTS: Students are expected to attend all classes and have read the readings in advance. The following are the course assignments:

A team project comparing and contrasting the anthropological and business aspects of international business.
Several short (3-4 page) papers on cases which address the unique business and cultural issues found in different regions of the world.
An individual case project that explores a relevant issue in a country or region of the student’s choosing.

REQUIRED TEXTS:

1. Ferraro, Gary P. 2002. The Cultural Dimension of International Business. Upper Saddle River, New Jersey: Prentice Hall. (Available at Goering’s)

2. Ricks, David A. 1999. Blunders in International Business. 3rd edition. Malden, Massachusetts: Blackwell Publishers. (Available at Goering’s)

3. Jordan, Ann T. (editor) 1994. Practicing Anthropology in Corporate America: Consulting and Organizational Culture. Napa Bulletin 14, American Anthropological Association. (Available from the instructors)

4. Reader of Articles. (Available at Custom Copies)

TOPIC 1: Introduction to Basic Concepts

I. Introduction:Why understanding culture is important in international business

Goals of the course

II.Culture:Anthropological vs. other definitions

Basic anthropological concepts:

Cultural relativity Business culture

Real and ideal behavior Corporate culture

Emic vs. eticIntercultural management

READINGS:

* Ferraro, Chapters 1 and 2.

* Ricks, Chapter 1 pp. 3-9.

* Burkhalter, S. Brian

1989 If Only They Would Listen: The Anthropology of Business and the Business of Anthropology. In Applying Anthropology: An Introductory Reader. Aaron Podolefsky and Peter J. Brown, eds. Pp. 165-170. Mountain View, California: Mayfield Publishing.

* McCurdy, David

1998 Using Anthropology. In Applying Cultural Anthropology: Readings. Gary Ferraro, ed. Pp. 66-72. Belmont, California: Wadsworth Publishing.

* Siwalop, Sana

1989 What’s an Anthropologist Doing in My Office. In Applying Anthropology: An Introductory Reader. Aaron Podolefsky and Peter J. Brown, eds. Pp. 171-172. Mountain View, California: Mayfield Publishing.

III.Business:What is a “business”? Ownership issues in business

Production The proper role of the state in the economy

DistributionPublic vs. private ownership of the means of Warehousing production

Marketing Market equilibrium allocation of resources

Controls on economic activities or on allocation of value created

Examples of the spectrum: USA, Sweden, Cuba

Recent Developments

VIDEO: “Cultural Awareness in Business”

READINGS:

* Hayek, Frederich

1938 Freedom and the Economic System. Contemporary Review, April:434-442.

* Niehans, Jurg

1990 Karl Marx. In A History of Economic Theory: Classic Contributions, 1720-1980. Baltimore: The Johns Hopkins University Press. PAGES 137-144 ONLY.

TOPIC 2: Communication

I. Forms of Communication:

Language

Gender and language

Language diversity

Non-verbal behavior

II. Language and business communication:

Different concepts of the verbalized, written, and body language.

The importance of “face”

VIDEO: “The Cultural Environment of International Business”

READINGS:

* Ferraro, Chapters 3 and 4.

* Ricks, Chapter 1 (pp. 9-15) and Chapter 5

* Harris and Moran, Global Leaders and Communication (in reader)

* Adler, Nancy J. and John L. Graham

1989 Cross-Cultural Interaction: The International Comparison Fallacy? Journal of International Business Studies (Fall):515-537.

* Ferraro, Gary

1998 The Need for Linguistic Proficiency in Global Business. In Applying Cultural Anthropology: Readings. Gary Ferraro, ed. Pp. 98-105. Belmont, California: Wadsworth.

* Chen, Ming-Jer

2001 Chapter 7: Never Say “No”: Communicating with the Chinese. In Inside Chinese Business: A Guide for Managers Worldwide. Boston: Harvard Business School Press.

* Nakane, Chris

1974 The Social System Reflected in Interpersonal Communication. In Intercultural Encounters With Japan: Communication--Contact and Conflict. John C. Condon and Mitsuko Saito, eds. Pp. 124-131. Tokyo: The Simul Press.

* Earley, P. Christopher

1997 Chapter 3, Pp. 42-55: Face and Social Context. In Face, Harmony, and Social Structure: An Analysis of Organizational Behavior Across Cultures. New York: Oxford University Press.

TOPIC 3: Concepts of “Value” and “Wealth”

I.Value:Anthropological definitions of “Value”

Temperaments cross-culturally and by gender Attitudes and ideals cross-culturally

Attitudes toward time, work, wealth, consumption, achievement, change,

and risk

Considerations of gender and culture

Role of the leader

View of life and approach to the world: scientific method, karma, que sera

sera, etc.

Business definitions of “Value”

Creating value, not maximizing “profits” is what counts

The Risk/Return relationship

Cash flows, not accounting net income

Rate of return versus total dollar return

Timing of cash flows

Expected return versus required return

READINGS:

* Ricks, Chapter 6.

* Ferraro, Chapter 5.

* Condon, John C.

1974 The Values Approach to Cultural Patterns of Communication. In Intercultural Encounters With Japan: Communication--Contact and Conflict. John C. Condon and Mitsuko Saito, eds. Pp. 124-131. Tokyo: The Simul Press.

* Epstein, Cynthia F.

1988 Chapter 4: It’s All in the Mind: Personality and Social Structure. In Deceptive Distinctions: Sex, Gender, and Social Order. New Haven: Yale University Press.

* Jain, Uma

2001 Transcending Cultural Boundaries for Human and Organization Development: Experiences of International Exchanges Between India and the United States. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 737-756. New York: Marcel Dekker.

II.Wealth:Wealth can mean different things to different people

For whom do businesses create wealth?

Stakeholders

Shareholders

Companies versus governments: are they fungible?

Are government or corporations responsible for addressing social issues?

Globalization debates, the living wage, the environment, etc.

What are the implications of corporate altruism?

READINGS:

* Dunning, John H.

1999 Some Paradoxes of the Emerging Global Economy: The Multinational Solution. In International Business Organization: Subsidiary Management, Entry Strategies, and Emerging Markets. Fred Burton, Malcolm Chapman, and Adam Cross, eds. Pp. 5-21. New York: St. Martin’s Press.

* Miller, Janice S., Peter W. Horn, and Luis R. Gomez-Mejia

2001 The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover? Journal of International Business Studies 32(3):585-595.

* Ralston, David A., Nguyen Van Thong, and Nancy K. Napier

1999 A Comparative Study of the Work Values of North and South Vietnamese Managers. Journal of International Business 30(4):655-673.

TOPIC 4: Social Organization of Societies and Businesses

I.Anthropological Concepts of Social Organization and Related terms:

Family and kinshipNetworks and Associations

Roles, norms, and achieved versus ascribed statusGender considerations

Societal social organization

Corporate social organization, cross-culturally

Patriarchy and Paternalism: role of company in family life

Status of various occupations

READINGS:

* NAPA Bulletin 14: Organizational Culture: The Anthropological Approach, by Ann Jordan and Organizational Culture: The Management Approach, by Nancy Morey and Robert Morey.

* Costa, Janeen Arnold

1995 The Social Organization of Consumer Behavior. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 213-244. Thousand Oaks, California: Sage Publications.

II.Corporate Social Organization:

What is so special about the modern corporation?

Forms of business organization

What the modern corporation does

How the modern corporation differs from the 19th century corporation

READINGS:

* Adler, Nancy J. and Dafna N. Izraeli

1994 Where in the World Are the Women Executives?. Business Quarterly 59(1):89-94.

* Issac, Robert G. and Douglass C. Pitt

2001 Organization Culture: It’s Alive! It’s Alive! But There’s No Fixed Address!. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 113-144. New York: Marcel Dekker.

*Kilduff, Martin

2001 Hegemonic Masculinity and Organizational Behavior. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 599-608. New York: Marcel Dekker.

III.Religion and Society:

Religion and Values

Religion and economic development, business

Islamic prohibitions on interest and Judeo-Christian concept of interest

Asian Belief Systems

READINGS:

* Chen, Ming-Jer

2001 Chapter 4: Roles and Rules of the Social Fabric. In Inside Chinese Business: A Guide for Managers Worldwide. Boston: Harvard Business School Press.

TOPIC 5: Practical and Political Factors in a Global Market

I.Why do people Trade?

Acquire commodities, scarce goods, exotic goods, status goods

Build and nurture alliances

Maintain social relationships

READINGS:

* Brian, Robert

1990 Business Friends. In Conformity and Conflict: Readings in Cultural Anthropology. 7th edition. James Spradley and David W. McCurdy, eds. Pp. 293-298. New York: HarperCollins Publishers.

II.Why do Countries Trade?

For many of the same, basic reasons people have always engaged in exchange

MercantilismAbsolute Advantage

Comparative AdvantageAssumptions of theories of specialization

READINGS:

* Porter, Michael E.

2000 The Competitive Advantage of Nations. In Transnational Management: Text, Cases, and Readings in Cross-Border Management. 3rd edition. Christopher A. Bartlett and Sumantra Ghoshal, eds. Pp. 216-239. Boston: McGraw-Hill Higher Education.

III.Anthropological Considerations of Trans-Cultural Trade:

Influence of policies on economic activities

Legitimized versus non-legitimized power

Policies: Business enablers and constraints

READINGS:

* NAPA Bulletin 14: Practical Implications of Organization Culture Where Americans and Japanese Work Together, by Jill Kleinberg

* Eames, Elizabeth A.

2000 Navigating Nigerian Bureaucracies. In Conformity and Conflict: Readings in Cultural Anthropology. 10th edition. James Spradley and David W. McCurdy, eds. Pp. 294-302. Needham Heights, Massachusetts: Allyn & Bacon.

* McCaffey, Janet

1998 Creatively Coping with Crisis: Entrepreneurs in the Second Economy of Zaire (the Democratic Republic of Congo). In African Entrepreneurship: Theory and Reality. Anita Spring and Barbara McDade, eds. Pp. 37-50. Gainesville: University Press of Florida.

IV.Concepts of Labor and Capital:

First and Third worlds

Multinationals

READINGS:

* Fuentes, Annette, and Barbara Ehrenreich

2000 Women in the Global Factory. In Conformity and Conflict: Readings in Cultural Anthropology. James Spradley and David W. McCurdy, eds. Pp. 164-171. Needham Heights, Massachusetts: Allyn & Bacon.

* Robbins, Richard H.

2002 Chapter 2. In Global Problems and the Culture of Capitalism. Pp. 32-58. Boston: Allyn & Bacon.

TOPIC 6: Entrepreneurship and Business

I.Entrepreneurship:

Definition of Entrepreneurship

Cross-cultural variation

Formal and informal sector; scale and size, characteristics

Local versus global

Gender considerations in entrepreneurship across cultures

READINGS:

* Begley, Thomas M. and Wee-Liang Tan

2001 The Socio-Cultural Environment for Entrepreneurship: A Comparison Between East Asian and Anglo-Saxon Countries. Journal of International Business Studies 32(3):537-553.

* Coulter, Mary

2000 Chapter 1. In Entrepreneurship in Action. Pp. 2-32. Upper Saddle River, New Jersey: Prentice Hall.

* Gattiker, Urs E. and John Parm Ulhoi

2001 Entrepreneurial Phenomena in a Cross-National Context. In Handbook of Organizational Behavior. 2nd edition. Robert T. Golembiewski, ed. Pp. 389-414. New York: Marcel Dekker.

* Spring, Anita and Barbara McDade

1998 Entrepreneurship in Africa: Traditional and Contemporary Paradigms. In African Entrepreneurship: Theory and Reality. Anita Spring and Barbara McDade, eds. Pp. 1-36. Gainesville: University Press of Florida.

* Spring, 2002: Gender and the Range of African Entrepreneurial Strategies: The “Typical” and the “New” women Entrepreneurs. In African and African American Business: Historical and Contemporary Perspectives. Alucine Jalloh and Toyin Falola, eds. Rochester: University of Rochester Press. (In Press)

TOPIC 7: The Evolution of Multinational Businesses

I.Traditional and Modern Corporations:

Evolution of Western Corporations

What a modern corporation does

Forms of business organization

Non-western corporations, past and present

READINGS:

* Hofsteade, Geert

1980 Motivation, Leadership, and Organization: Do American Theories Apply Abroad?. Organizational Dynamics (Summer):42-63.

* Perlmutter, Howard V.

2000 The Tortuous Evolution of the Multinational Corporation. In Transnational Management: Text, Cases, and Readings in Cross-Border Management. 3rd edition. Christopher A. Bartlett and Sumantra Ghoshal, eds. Pp. 73-82. Boston: McGraw-Hill Higher Education.

II. Why the rise of multinational enterprises?

Product life cycle

Internalization

Value chain management

READINGS:

* Ricks, Chapters 7 and 8.

* ADDITIONAL READINGS ON MULTINATIONALISM (Tourism, Baby Formula) TO BE ADDED SOON.

TOPIC 8: How Business Practices, Marketing, and Advertising Vary Across Cultures

I.Business Practices:

Structure of corporations in other culturesManagement practices in other cultures

Decision-making in other culturesPerformance evaluations in other cultures

READINGS:

* Ricks, Chapter 2.

* Fadiman, Jeffery A.

2000 Chapters 4, 5, and 9. In South Africa’s ‘Black’ Market: How to Do Business with Africans. Yarmouth, Maine: Intercultural Press.

* Reeves-Ellington, Richard H.

1995 Anthropology and Total Quality Management: Improving Sales Force Performance in Overseas Markets. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 169-208. Thousand Oaks, California: Sage Publications.

II.Marketing and Advertising

Considerations of culture and genderMarketing to urban and rural/peasant markets

READINGS:

* Ricks, Chapters 3 and 4.

* Arnould, Eric J.

1995 West African Marketing Channels: Environmental Duress, Relationship Management, and Implications for Western Marketing. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 109-161. Thousand Oaks, California: Sage Publications.

* Van Rij, Jeanne

1998 Trends, Symbols, and Brand Power in Global Markets: The Business Anthropology Approach. In Applying Cultural Anthropology: Readings. Gary Ferraro, ed. Pp. 110-115. Belmont, California: Wadsworth Publishing.

* Gladwell, Malcolm

2000 Listening to Khakis: What America’s Most Popular Pants Tell Us about the Way Guys Think. In The Gender and Consumer Culture Reader. Jennifer Scanlon, ed. Pp. 179-191. New York: New York University Press.

* Robbins, Richard H.

2002 Chapter 1. In Global Problems and the Culture of Capitalism. Pp. 1-31. Boston: Allyn & Bacon.

* Sherry Jr., John F.

1995 Marketing and Consumer Behavior: Into the Field. In Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. John F. Sherry, Jr., ed. Pp. 3-44. Thousand Oaks, California: Sage Publications.

* Weems, Robert E.

2000 Consumerism and the Construction of the Black Female Identity. In The Gender and Consumer Culture Reader. Jennifer Scanlon, ed. Pp. 179-191. New York: New York University Press.

TOPIC 9: Issues in Globalization:

Global level, country level, and multinational corporations

The development cycle: Can countries skip stages of economic development?

Economic power

Political power

Sovereignty

Dependency

Comparative Advantage

READINGS:

* NAPA Bulletin 14: The Bridges Process: Enhancing Organizational Cultures to Support Diversity, by S. Kanu Kogod.

* Christmann, Petra and Glen Taylor

2001 Globalization and the Environment: Determinants of Firm Self-Regulation in China. Journal of International Business Studies 32(3): 439-458.

* Giovannini, Maureen J. and Lynne M. H. Rosansky

1990 Anthropology and Management Consulting: Forging a New Alliance (pages 1-31). NAPA Bulletin 9, American Anthropological Association.

* Harris, Marvin

1987 Chapter 6. In The Sacred Cow and the Abominable Pig. New York: Touchstone.

* McPhail, Kathryn and Aidan Davy

1998 Chapters 1-3. In Integrating Social Concerns Into Private Sector Decision Making: A Review of Corporate Practices in the Mining, Oil, and Gas Sectors. World Bank Discussion Paper, 384. Washington, D.C.: World Bank.

* Reeves-Ellington, Richard H.

1994 Corporation Anthropologists at Work in the Third World. In What Can Multinationals Do for Peasants?. V. Sutlive and T. Hamada, eds. Pp. 219-255. Studies in Third World Societies Publication Number 49. Williamsburg: College of William and Mary.

* Robbins, Richard H.

2002 Chapter 7. In Global Problems and the Culture of Capitalism. Pp. 194-220. Boston: Allyn & Bacon.

CASE STUDIES

Additional cases may be added depending on student interest

COURSE READINGS RELATED TO AFRICA:

* Arnould, Eric J.

* Eames, Elizabeth A.

* Fadiman, Jeffery A.

2000 Chapters 4, 5, and 9. In South Africa’s ‘Black’ Market: how to Do Business with Africans. Yarmouth, Maine: Intercultural Press.

* Kuada, John, and Olav Jull Sorensen

2000 Chapter 7. In Internationalization of Companies from Developing Countries. New York: International Business Press.

* McCaffey, Janet

* Spring, Anita

* Spring 2002: Gender and the Range of African Entrepreneurial Strategies: The “Typical” and the “New” women Entrepreneurs. In African and African American Business: Historical and Contemporary Perspectives. Alucine Jalloh and Toyin Falola, eds. Rochester: University of Rochester Press. (In Press)

COURSE READINGS RELATED TO ASIA

* Begley, Thomas M. and Wee-Liang Tan

2001 The Socio-Cultural Environment for Entrepreneurship: A Comparison Between East Asian and Anglo-Saxon Countries. Journal of International Business Studies 32(3):537-553.