IBUS1101 Lecture Notes - Lecture 3: Intercultural Competence, Acculturation, Ethnocentrism

• School: University of Sydney
• Department: International Business
• Course: IBUS1101
• Professor: Sidney Gray

Document Summary

Culture refers to the values, beliefs, customs, arts, and other products of human thought and work that characterise the people of a given society. Culture defines our values and attitudes and the way we perceive the meaning of life. A business must be familiar with culture in cross-border business because culture introduces new risks. Cross-cultural risk is a situation or event in which a cultural misunderstanding puts some business at risk. Misunderstanding and miscommunication arise because people have differing values and expectations. For example, a head nod has different meanings in india and the united kingdom. However, differences in culture should not treated as only a risk. A business opportunity is where cultural differences provide an opportunity for businesses to learn and benefit, perhaps make a profit. Cross-cultural misunderstandings can ruin business deals, hurt sales, or harm the corporate image. Today, businesses must not only understand cultural differences, they must also develop international cultural competence.