Cultural Project - Ali Raza (2) Edited

INB 4500 International Business & Culture
Project Title-: INB 4500 International Business and Culture

Course Title: BS Honors in International Business
Student Name: Ali Raza
Student Id # : 228839
Instructor Name: Prof. Dr. Paulson Mathew Chunkapura
Submitting to: Madonna University, Michigan, U.S.A.
Submission Date: 31-12-2013


Acknowledgement

First of all, I owe thanks to a great many people who helped and supported me during the writing
of this project.
My deepest thank to my family for the great support which they have given to
me in my entire life. Without my family I cannot reach anywhere. I am very thankful to have
them in my life.
I express my thanks to our principal Dr.PaulsonChunkakara for this great
opportunity and support that he gave me for this project.
I would also like to thank my teachers for guiding and correcting various
mistakes of mine.
I also extended my deep sense of gratitude to my all teacherswho really gave a
wonderful support for this project with lots of guidance and correcting my various mistakes. This
experience made me go beyond my skills and my project came to a new level.
I am so thankful to my all friends without them this project would have been very far reality.

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Declaration
I hereby declare that the project work entitled INTERNATIONAL BUSINESS AND
CULTURAL EXPERIENCE submitted to the MADONNA UNIVERSITY, Michigan is a record
of an original work done by me under the guidance of, Faculty Member, Dr. Paulson Mathew
Chunkapura, President of Madonna University Dubai, U.A.E. This project work has not
performed the basis for the award of any Degree or diploma and similar project if any.
Mr. Ali Raza
Madonna Id 228839

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Contents
Title
Acknowledgement
Declaration
Introduction to International Business
Domestic Vs International Business
Meaning and Role of Culture in International Business
Types of Culture
Importance of Culture
Elements of Culture
Global Cultural Environment
Cultural Diversit
Introduction: Pakistan
Cultural Environment
Mercantile Culture
Cultural Traditions
Business Culture
Cultural Differences
Introduction: United States
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Business Culture
Business Cultural contrast between Pakistan and U.S
Bibliography and References
Introduction to International Business
Today, business is acknowledged to be international and there is a general expectation
that this will continue for the foreseeable future. International business may be defined simply as
business transactions that take place across national borders. This broad definition includes the
very small firm that exports (or imports) a small quantity to only one country, as well as the very
large global firm with integrated operations and strategic alliances around the world. Within this
broad array, distinctions are often made among different types of international firms, and these
distinctions are helpful in understanding a firm's strategy, organization, and functional decisions
(for example, its financial, administrative, marketing, human resource, or operations decisions).
One distinction that can be helpful is the distinction between multi-domestic operations, with
independent subsidiaries which act essentially as domestic firms, and global operations, with
integrated subsidiaries which are closely related and interconnected. These may be thought of as
the two ends of a continuum, with many possibilities in between. Firms are unlikely to be at one
end of the continuum, though, as they often combine aspects of multi-domestic operations with
aspects of global operations.
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International business grew over the last half of the twentieth century partly because of
liberalization of both trade and investment, and partly because doing business internationally had
become easier. In terms of liberalization, the General Agreement on Tariffs and Trade (GATT)
negotiation rounds resulted in trade liberalization, and this was continued with the formation of
the World Trade Organization (WTO) in 1995. At the same time, worldwide capital movements
were liberalized by most governments, particularly with the advent of electronic funds transfers.
In addition, the introduction of a new European monetary unit, the euro, into circulation in
January 2002 has impacted international business economically. The euro is the currency of the
European Union, membership in March 2005 of 25 countries, and the euro replaced each
country's previous currency. As of early 2005, the United States dollar continues to struggle
against the euro and the impacts are being felt across industries worldwide.
International business is a term used to collectively describe all commercial transactions
private and governmental, sales, investments, logistics, and transportation that take place
between two or more regions, countries and nations beyond their political boundary. Usually,
private companies undertake such transactions for profit; governments undertake them for profit
and for political reasons. It refers to all those business activities which involve cross border
transactions of goods, services, resources between two or more nations. Transaction of economic
resources include capital, skills, people etc. for international production of physical goods and
services such as finance, banking, insurance, construction etc. Areas of study within this topic
include differences in legal systems, political systems, economic policy, language, accounting
standards, labor standards, living standards, environmental standards, local culture,
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corporate culture, foreign exchange market, tariffs, import and export regulations, trade
agreements, climate, education and many more topics. Each of these factors requires significant
changes in how individual business units operate from one country to the next. The conduct of
international operations depends on companies' objectives and the means with which they carry
them out. The operations affect and are affected by the physical and societal factors and the
competitiveenvironment.
In terms of ease of doing business internationally, two major forces are important, First
technological developments which make global communication and transportation relatively
quick and convenient; and second the disappearance of a substantial part of the communist
world, opening many of the world's economies to private business.
Domestic Vs International Business
Domestic and international enterprises, in both the public and private sectors, share the
business objectives of functioning successfully to continue operations. Private enterprises seek to
function profitably as well. Why, then, is international business different from domestic? The
answer lies in the differences across borders. Nation-states generally have unique government
systems, laws and regulations, currencies, taxes and duties, and so on, as well as different
cultures and practices.
An individual traveling from his home country to a foreign country needs to have the
proper documents, to carry foreign currency, to be able to communicate in the foreign country, to
be dressed appropriately, and so on. Doing business in a foreign country involves similar issues
and is thus more complex than doing business at home.
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The following sections will explore some of these issues. Specifically, comparative
advantage is introduced, the international business environment is explored, and forms of
international entry are outlined. Comparative advantage suggests that each nation is relatively
good at producing certain products or services. This comparative advantage is based on the
nation's abundant factors of productionland, labor, and capitaland a country will export
those products/services that use its abundant factors of production intensively. Simply, consider
only two factors of production, labor and capital, and two countries, X and Y. If country X has a
relative abundance of labor and country Y a relative abundance of capital, country X should
export products/services that use labor intensively, country Y should export products/services
that use capital intensively. Firms may develop expertise and firm specific advantages based
initially on abundant resources at home, but as resource needs change, the stage of the product
life cycle matures, and home markets become saturated, these firms find it advantageous to
invest internationally.
Meaning and Role of Culture in International Business
Culture refers to the cumulative deposit of knowledge, experience, beliefs, values,
attitudes, meanings, hierarchies, religion, notions of time, roles, spatial relations, concepts of the
universe, and material objects and possessions acquired by a group of people in the course of
generations through individual and group striving.Culture can be viewed as the customs, arts and
social interactions of a particular nation, people, or other social group. (Page 7)

It can also be defined as an appreciation of the arts and human intellectual achievement.
In both views of culture, examples can provide a good way to get a quick understanding of
culture.
Corporate Culture
Culture at work can be shown in a variety of ways including how people dress, how the
offices are designed, how the employees are treated and the way the company interjects its
culture into its products services and how it projects itself to its customers.
An office might be casual or formal in design.
Employees may be encouraged to dress casually to encourage a feeling of equality
and to encourage comfort and productivity.
Management might project a caring and personable attitude by sending cards and
gifts to employees on key dates in their lives such as birthdays, marriages, births and deaths of
family members.
The caring and personable attitude of management may be projected to the
customers through a high level of service, personal recognition of key customers and corporate
involvement in community and charitable organizations.
The design and location of the offices may relate to the employee's seniority with
more senior employees having larger offices or cubicles which are located the furthest from the
door.
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Culture of Diversity
You may live in a town that is very accepting of people of different races, genders, sexual
orientations and national origins.
The community calendar may be filled with festivals and events that include
community members from different races and national origins.
The local library may provide informational seminars and research materials for
citizens born in other countries.
There might be multiple sports options for citizens of both genders and all ages.
The agenda of the city staff, local businesses and religious organizations may
promote a wide variety of exciting shopping, educational and religious experiences.
Popular Culture
The activities of the citizens generate the popular culture. What you listen to, what you
read, what you wear and how you speak are all examples of your popular culture.The favorite
music of the culture may include artists on the Billboard Top 100 or from the newest pop stars on
YouTube.
Bestselling books and popular films can play a big role in shaping the opinions
and experiences of a culture.
Interaction through social networking can provide the vehicle for people of all
ages, races, interests and genders to quickly communicate and share their ideas.
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Fashion trends can be a bellwether of both the current culture and the direction in
which a popular is moving. Casual clothes may reflect a more relaxed culture while fast-moving,
quick-changing trends may echo the fast-changing cultural trends.
Language is a key way to communicate the goals, thoughts and experiences of
popular culture. Multiple languages, slang expressions, new words for new experiences can all
work together to describe the current culture.
Foreign Culture
You might visit a new country and marvel at the way in which people in that country talk,
think or act.
The language of a country binds together the citizens of a country and can allow
for their effective communication. Dialects and accents can help identify the various subcultures
within a country.
The way a country approaches their culture is often reflected in how they spend
their collective time, money and energies and may be reflective in how they establish their laws.
The etiquette and customs of a country can play a key role in developing the
appearance of a country. How a country acts is an important factor in the country's fashion,
language, family lives and business-to-business dealings.
The beliefs of a country, both religious and historical, are often at the core of a
country's culture.
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Culture Shock
Culture shock is the personal disorientation a person may feel when experiencing an
unfamiliar way of life due to immigration or a visit to a new country, or to a move between
social environments, also a simple travel to another type of life
Culture is a shared set of values and perceptions and a very powerful concept. Culture
can be limited to small groups, such as an office or a company, or it can be wide enough to span
continents as is the case when people refer to "Western Culture," which encompasses the
commonalities of numerous nations. Each individual runs into culture in our towns, regions,
nations, ethnic backgrounds and of course, work. Business intersects with culture at many
junctures and a smart businessperson considers all of these when making important
decisions.When companies interact with their customer bases, they have to consider that not
every market works the same way. The marketing and sales approaches that work in an upscale
suburb might be completely ineffective and even inappropriate to an inner-city area with ethnic
minorities or a rural area with a different socio-economic composition. Particularly in retail
sectors, companies have to construct their marketing and communication strategies to be
culturally sensitive and appealing to a numerous ethnic groups and demographics. This may
include using Spanish billboards in some areas orChinese signage in stores in other areas as well
as changing certain stores' product mixes to meet the needs and tastes of the local
populations.Working with overseas clients, business partners, vendors and offices means
understanding the cultures with which you're working. To sell effectively or create a strong
working platform, you have to make sure good communication is actually occurring and
communication only occurs when both parties reach a common understanding.
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When meeting with foreign clients, be sure to develop presentations that mesh with their
business culture.
Also be prepared to interact in a way that shows respect for their ways of doing business.
Effective international communication usually involves some careful preparation by studying a
culture as well as a lot of face-to-face communication, which may include video
conferences.Doing business on a global basis requires a good understanding of different cultures.
What works in your country might not work well in another, and could even be
interpreted as an insult! And in your role as an international human resources professional, its
important to raise the awareness of cultural issues within your organization to ensure
effectiveness. The cultural nuances that affect international business obviously go far beyond the
ability to greet your international colleague or choose the correct gift. Issues related to the
cultures time orientation, whether it is an individualist or collectivist society, space orientation,
and power distance, not to mention conflict assumptions and non-verbal communication all
affect understanding your colleague across the table, as well as your chances of being
understood.
Preparation by a trained expert related to these issues not only assures that unnecessary
blunders will be avoided, it brings to each of us a personal knowledge that deepens our
understanding of others, thereby promoting acceptance, understanding, and on the level of
international relations, peace and prosperity.
Understanding the different meanings and types of culture is important. When you
think about different examples of culture, it helps to give you a better understanding of the world
around you and of the ideas, beliefs and values that you experience every day. (Page 12 )

Types of Culture
There are many different types of culture but generally there are 2 types i.e. pluralism and
dualism.
1. Pluralism
This refers to the type of culture whereby smaller groups of people within a large society
tend to maintain their unique culture identities and their values, behaviors and identities are well
accepted by the wider society or culture. The minor groups of people participate fully within the
dominant society while still maintaining their cultural differences. It involves coexistent of
different cultures in a location without the domineering of one particular culture.
2. Dualism
This is a concept that is used to describe the integration of many cultures which combines
like a salad as compared to the prolific notion of a culture melting point. In this model, the
various cultures are juxtaposed but they are not merged together into one homogenized culture
just like the salad ingredients. Each culture maintains its distinct values and qualities. The society
is therefore composed of many individual pure cultures.

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Importance of Culture
Culture refers to the pattern of human activity and the symbols, which give
significance to this activity. Culture is represented through the art, literature, costumes, customs
and traditions of a community. Different cultures exist in different parts of the world. The natural
environment greatly affects the lifestyle of the people of that region, thus shaping their culture.
The diversity in the cultures around the world is also a result of the mindsets of people inhabiting
different regions of the world.
The cultural values of a community give it an identity of its own. A community gains a character
and a personality of its own, because of the culture of its people. Culture is shared by the
members of a community. It is learned and passed from the older generations to the newer ones.
For an effective transfer of culture from one generation to another, it has to be translated into
symbols. Language, art and religion serve as the symbolic means of transfer of cultural values
between generations.
Culture is a bond that ties the people of a region or community together. It is that one common
bond, which brings the people of a community together. The customs and traditions that the
people of a community follow, the festivals they celebrate, the kind of clothing they wear, the
food they eat, and most importantly, the cultural values they adhere to, bind them together.
Culture is seen as a system of social control, wherein people shape their standards and behavior.

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The cultural values form the founding principles of one's life. They influence one's
principles and philosophies of life. They influence one's way of living and thus impact
social life. The importance of culture lies in the fact that it is a link between people and
their value systems.
Elements of Culture
There are mainly 7 elements of culture.
Social Organization
Creates social structure by organizing its members into small units to meet basic needs.
Family is the most important unit of social organization. Through the family children learn how
they are expected to act and what to believe.
Customs and Traditions
Rules of Behavior are enforced ideas of right and wrong. They can be customs, traditions,
rules, or written laws.
Religion
It answers basic questions about the meaning of life. Supports values that groups of
people feel are important. Religion is often a source of conflict between cultures.
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Language
Language is the cornerstone of culture.All cultures have a spoken language (even if there
are no developed forms of writing). People who speak the same language often share the same
culture. Many societies include a large number of people who speak different languages.
Arts and Literature
They are the products of the human imagination. They help us pass on the cultures basic
beliefs. For examples: art, music, literature, and folk tales.
Forms of Government
People form governments to provide for their common needs, keep order within society,
and protect their society from outside threats.
Economic Systems
How people use limited resources to satisfy their wants and needs. Answers the basic
questions: what to produce, how to produce it, and for whom.

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Global Cultural Environment
The term 'cultural environment' functions as a general term referring to an environment
that has been developed from various stages in culture interacting with nature. Business is an
activity undertaken by people whose values and attitudes are shaped by the culture and society of
which they are a part. To some extent the roles we perform in business are quitediscrete from
other aspects of our lives and require that we adopt different behaviors andpersonas. However
there is not, of course, a complete separation between work and life. We carryvalues and
attitudes shaped by the wider culture and society into our roles as managers, employeesand
consumers.
Cultural Diversity
Cultural diversity is the quality of diverse or different cultures, as opposed to
monoculture, as in the global monoculture, or a homogenization of cultures, akin to cultural
decay. For example, before Hawaii was conquered, the culturally diverse Hawaiian culture
existed in the world, and contributed to the world's cultural diversity. Now Hawaii has been
westernized; the vast majority of its culture has been replaced with Western or American culture.
The phrase cultural diversity can also refer to having different cultures respect each other's
differences. The phrase cultural diversity is also sometimes used to mean the variety of human
societies or cultures in a specific region, or in the world as a whole. The culturally destructive
action of globalization is often said to have a negative effect on the world's cultural diversity.

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The many separate societies that emerged around the globe differed markedly from each
other, and many of these differences persist to this day. As well as the more obvious cultural
differences that exist between people, such as language, dress and traditions, there are also
significant variations in the way societies organize themselves, in their shared conception of
morality, and in the ways they interact with their environment. Cultural diversity can be seen as
analogous to biodiversity.
Introduction
Russia
Russia also officially known as the Russian Federation , is a country in northern Eurasia. It is a
federalsemi-presidential republic, comprising 83 federal subjects. From northwest to southeast,
Russia shares land borders with Norway, Finland, Estonia, Latvia, Lithuania and Poland,
Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Mongolia, and North Korea. It shares
maritime borders with Japan by the Sea of Okhotsk and the U.S.state of Alaska across the
Bering Strait. At 17,075,400 square kilometres (6,592,800 sq mi), Russia is the largest country
inthe world, covering more than one-eighth of the Earth's inhabited land area. Russia is also the
world's ninth most populous nation with 143 million people as of 2012. Extending across the
entirety of northern Asia and much of Eastern Europe, Russia spans nine time zones and
incorporates a wide range of environments and landforms.

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The nation's history began with that of the East Slavs, who emerged as a recognizable group in
Europe between the 3rd and 8th centuries AD. Founded and ruled by a Varangian warrior elite
and their descendants, the medieval state of Rus arose in the 9th century. In 988 it adopted
Orthodox Christianity from the Byzantine Empire, beginning the synthesis of Byzantine and
Slavic cultures that defined Russian culture for the next millennium. Rus' ultimately
disintegrated into a number of smaller states; most of the Rus' lands were overrun by the
Mongol invasion and became tributaries of the nomadic Golden Horde. The Grand Duchy
ofMoscow gradually reunified the surrounding Russian principalities, achieved independence
from
the Golden Horde, and came to dominate the cultural and political legacy of Kievan Rus'. By the
18th century, the nation had greatly expanded through conquest, annexation, and exploration to
become the Russian Empire, which was the third largest empire in history, stretching from
Poland in Europe to Alaska in North America.
Following the Russian Revolution, the Russian Soviet Federative Socialist Republic became the
largest and leading constituent of the Soviet Union, the world's first constitutionally socialist
state and a recognized superpower, which played a decisive role in the Allied victory in World
War II. The Soviet era saw some of the most significant technological achievements of the 20th
century, including the world's first spacecraft, and the first astronaut. The Russian Federation
became the successor state of the Russian SFSR following the dissolution of the Soviet Union in
1991, and is recognized as the continuing legal personality of the Union state.

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The Russian economy ranks as the eighth largest by nominal GDP and sixth largest by
purchasing power parity. Russia's extensive mineral and energy resources, the largest reserves in
the world, have made it one of the largest producers of oil and natural gas globally. The country
is one of the five recognizednuclear weapons states and possesses the largest stockpile of
weapons of mass destruction. Russia is a great power and a permanent member of the
UnitedNations Security Council, a member of the G8, G20, the Council of Europe, the Asia-
Pacific Economic Cooperation, the Shanghai Cooperation Organisation, the Eurasian
Community, the Organisation for Security and Cooperation in Europe (OSCE), and the
WorldTrade Organisation (WTO) and the leading member of the Commonwealth of Independent
States.
Russian culture is the culture associated with the country of Russia and, sometimes, specifically
with ethnic Russians. It has a long history and can claim a long tradition of dividend in many
aspects of the arts,especially when it comes to literatureandphilosophy, classical musicand
ballet,architecture and painting, cinemaand animation, which all had considerable influence on
world culture. The country also has a flavorful material culture and a tradition in technology.
Russian culture started from that of the East Slavs, with their pagan beliefs and specific way of
life in the wooded areas of Eastern Europe. Early Russian culture was much influenced by
neighbouringFinno-Ugric tribes and by nomadic, mainly Turkic, peoples of the Pontic steppe. In
the late 1st millennium AD the ScandinavianVikings, or Varangians, also took part in the
forming of Russian identity and Kievan Rus' state. Kievan Rus' had accepted Orthodox
Christianity from the Eastern Roman Empire in 988, and this largely defined the Russian culture
of next millennium as the synthesis of Slavic and Byzantine cultures.
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After the fall of Constantinople in 1453, Russia remained the largest Orthodox nation in the
world and claimed succession to the Byzantine legacy in the form of the Third Rome idea. At
different points in its history, the country was also strongly influenced by the culture of Western
Europe. Since Peter the Great's reforms for two centuries Russian culture largely developed in
the general context of European culture rather than pursuing its own unique ways. The situation
changed in the 20th century, when the Communist ideology became a major factor in the culture
of the Soviet Union, where Russia, or Russian SFSR, was the largest and leading part.
Nowadays, Russian cultural heritage is ranked seventh in the Nation Brands Index, based on
interviews of some 20,000 people mainly from Western countries and the Far East. That's with
the fact, that due to the relatively late involvement of Russia in modern globalization and
international tourism, many aspects of Russian culture, like Russian jokes and the Soviet Art,
remain largely unknown to foreigners
People ethnically identified as Russians have been politically and culturally dominant in a vast
area for five hundred years of tsarist and Soviet imperial expansion. However, despite repression
of their cultural autonomy, minority cultures have survived within the Russian Federation;
including the peoples of the North Caucasus, numerous indigenous groups in Siberia, the Tatars
in the Volga region, and the East Slavic Ukrainians and Belorusians. The last three groups are
widely dispersed throughout the federation. All but the youngest citizens share a Soviet cultural
experience, since under Communist Party rule the state shaped and controlled daily life and
social practice. Much of that experience is being rejected by Russians and non-Russians who are
reclaiming or reinventing their ethnic or traditional pasts; many communities are asserting a
specific local identity in terms of language and culture.

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Mercantile Culture

The company employed a mixed workforce of Europeans, Creoles, native Alaskans, and native
Californians as administrators, craftsmen, fur hunters, and agricultural laborers. An on-going
archaeological investigation is examining local native responses to Russian colonial practices in
northern California. We present the results of an archaeological survey of the Fort Ross State
Historic park. These data are employed to address research questions concerning the
acculturation process among native workers in a mercantile colony, and the long-term effects of
multi-ethnic interaction and cohabitation as sources of cultural change.
Cultural Traditions
Ethnic Russian clothes include kaftan, kosovorotka and ushanka for men, sarafan and kokoshnik
for women, with lapti and valenki as common shoes.
The Cossacks of Southern Russia have a separate brand of culture within ethnic Russian, their
clothes including burka and papaha, which they share with the peoples of the Northern Caucasus.
Russian people have many traditions, most prominent being the washing in banya, a hot steam
bath somewhat similar to the sauna.Christianity, Islam, Buddhism, and Judaism are Russias
traditional religions, deemed part of Russia's "historical heritage" in a law passed in
1997.Estimates of believers widely fluctuate among sources, and some reports put the number of
non-believers in Russia as high as 1648% of the population . Russians have been successful at a
number of sports and consistently finish in the top rankings at the Olympic Games and in other
international competitions. The Russian flag appeared in the late Tsardom of Russia period and
became widely used during the era of the Russian Empire .

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Business Culture
There are three types of business entity in Russia.These are: limited liability companies
(LLCs), Joint-Stock Companies (JSCs) and partnerships. The first two are joint-stock companies
(in that they are owned by their shareholders) and have limited liability (the shareholders are
only liable for the company's debts to the face value of the shares).
Joint-Stock Companies :
There are two types of Russian Joint-Stock Companies:
1. Open joint-stock companies is a legal entity where shares may be publicly traded without
the permission of other shareholders. An OAO can distribute its shares to an unlimited
number of shareholders and sell them without limitations. The statutory minimum charter
capital is 100,000 Russian roubles.
2. A closed joint-stock company is a legal entity whose shares are distributed among a
limited number of shareholders - maximum 50. The statutory minimum charter capital is
10,000 Russian roubles.
Founders of a joint-stock company sign a written agreement for its formation. This agreement
establishes procedures for creating the company, such as size of authorized capital, types and
categories of shares, cost of shares, the order for settling payments and the rights and
responsibilities of the founders. This agreement then becomes the organization charter, which
contains information on the name of the company, the locations of offices, the type of company ,
as well as other specific information on shares, capital, and so on. The company shares allotted
upon founding the company must be fully paid within a year from the company's foundation,
unless a shorter period is required by the founding contract.
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However, at least half of the shares must be paid within three months, starting from the state
registration of the company. Though a share which has been paid does not necessarily give
voting rights to its owner.
Joint-stock companies are required to register the issue of shares with the Russian Federal
Securities Market Commission (FSMC), so that shares can be traded either publicly (for an
OAO) or among a limited number of people (for a ZAO). For registration, a set of documents
must be submitted to the FSMC, and the procedure usually takes 30 days to enact.
State-owned corporations
In Russia, a JSC can be completely or partially owned by the federal government. Such JSCs are
different from another type of state-controlled company, the unitary enterprise. This is a
commercial organization that operates state-owned assets. State-owned JSCs do not own or
operate any state property and the state acts just like an ordinary shareholder.
Some state-owned public corporations were formerly government agencies in the Soviet Union
which were reorganized into completely state-owned JSCs in 1992-1993 in order to undergo
transition to a fully independent business. The management and the board of directors in such
state-owned corporations were appointed by the Council of Ministers/the government, and
included top government officials and ministers. The largest of such corporations were initially
incorporated as Russian joint-stock companies (RAOs). Best known examples were RAO UES
and RAO Gazprom. But they have since been converted to public JSCs (OAO), even though
their shares remain the property of the government.
Less important or partially owned JSCs are managed through the Federal Agency for State
Property Management.
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Cultural Differences
With a population of 290 million in 1990, the former Soviet Union was the world's third most
populous country - after China and India. There is a strong determination to preserve their
distinct languages and cultures, despite 70 years of Soviet attempts to force Russian language
and culture on everyone under their control . Russians are more likely to be cautious and
conservative defenders of the status quo. Their cruel climate, harsh history, and skeptical outlook
on life has caused Russians to value stability, security, social order, and predictability, avoiding
risk. The tried and tested is preferred over the new and unknown. Americans, as a nation of risk-
takers, can have their patience tested by Russian caution, and anticipation of the negative.
Russian cities swarm with people. Most city dwellers live in small apartments in large multi-
storied buildings rather than in detached houses. Around 15% live in communal apartments with
several families in one apartment. Shopping takes an inordinate amount of time, and most items
were formerly scarce and hard to find. Hospitality is a great Russian virtue. An invitation to a
Russian's home is a real treat and education into the true meaning of hospitality. Visit a small
city or village to see the real heart of Russia. Visit stores, and churches, ride the Metro, go to a
train station, In the big cities, experience the world class symphonies and ballets. In this
motherland, women are strong, hard-working, nurturing, long-suffering, and the true heroes of
Russia. Ninety percent are in the work force, where they occupy mostly secondary positions.
Forty million Soviet men died in the three cataclysmic events of the Soviet era - 1) the
collectivization of the agriculture, 2) the political purges, and 3) World War II [known as The
Great Patriotic War] - creating a severe shortage of men for two generations of women.
Although Russian culture is very male-chauvinistic in flavour, usually the women of the society
are the responsible ones. Russian women contribute to the situation by be excellent naggers.
Rather than working through the problems, men often retreat to hanging around together
smoking and drinking vodka late into the night, perpetuating the irresponsibility. Women are
forced to take hold of the responsibilities, but not given the authority in family or society.
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Introduction
United States
The United States of America (USA), commonly called the United States (US or U.S.)
and America, is a federalconstitutional republic consisting of fifty states and a federal district.
The country is situated mostly in central North America, where its forty-eight contiguous states
and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered
by Canada to the north and Mexico to the south. The state of Alaska is in the northwest of the
continent, with Canada to the east and Russia to the west across the Bering Strait. The state of
Hawaii is an archipelago in the mid-Pacific. The country also possesses several territories in the
Pacific and Caribbean. At 3.79 million square miles (9.83 million km
2
) and with over 315
million people, the United States is the third- or fourth-largest country by total area, and the
third-largest by both land area and population. It is one of the world's most ethnically diverse and
multicultural nations, the product of large-scale immigration from many countries. The
geography and climate of the United States is also extremely diverse and is home to a variety of
species. The United States is a post-industrialdeveloped country and has the world's largest
national economy, with an estimated 2011 GDP of $15.1 trillion (22% of nominal global GDP
and over 19% of global GDP at purchasing-power parity). Per capita income is the worlds sixth-
highest. The economy is fueled by an abundance of natural resources, a well-developed
infrastructure, and high productivity; and while its economy is considered post-industrial it
continues to be one of the world's largest manufacturers.
(Page 26 )

The country accounts for 41% of global military spending, and is a leading economic, political,
and cultural force in the world, as well as a leader in scientific research and technological
innovation. The land area of the contiguous United States is 2,959,064 square miles
(7,663,941 km
2
). Alaska, separated from the contiguous United States by Canada, is the largest
state at 663,268 square miles (1,717,856 km
2
). Hawaii, occupying an archipelago in the central
Pacific, southwest of North America, is 10,931 square miles (28,311 km
2
) in area.
The United States is the world's third or fourth largest nation by total area (land and
water), ranking behind Russia and Canada and just above or below China. The ranking varies
depending on how two territories disputed by China and India are counted and how the total size
of the United States is measured: calculations range from 3,676,486 square miles
(9,522,055 km
2
) to 3,717,813 square miles (9,629,091 km
2
) to 3,794,101 square miles
(9,826,676 km
2
). Measured by only land area, the United States is third in size behind Russia and
China, just ahead of Canada. The United States is a federal union of fifty states. The United
States is the world's oldest surviving federation. It is a constitutional republic and representative
democracy, in which majority rule is tempered by minority rights protected by law. The
government is regulated by a system of checks and balances defined by the U.S. Constitution,
which serves as the country's supreme legal document. The United States has operated under a
two-party system for most of its history.For elective offices at most levels, state-administered
primary elections choose the major party nominees for subsequent general elections. Within
American political culture, the Republican Party is considered center-right or conservative and
the Democratic Party is considered center-left or liberal.
(Page 27 )

The United States exercises global economic, political, and military influence. It is a
permanent member of the United Nations Security Council and New York City hosts the United
Nations Headquarters. It is a member of the G8,G20, and Organization for Economic Co-
operation and Development. Almost all countries have embassies in Washington, D.C., and
many have consulates around the country. Likewise, nearly all nations host American diplomatic
missions. However, Cuba, Iran, North Korea, Bhutan, and the Republic of China (Taiwan) do not
have formal diplomatic relations with the United States. The United States has a capitalist mixed
economy, which is fueled by abundant natural resources, a well-developed infrastructure, and
high productivity. According to the International Monetary Fund, the U.S. GDP of $15.1 trillion
constitutes 22% of the gross world product at market exchange rates and over 19% of the gross
world product at purchasing power parity (PPP). Though larger than any other nation's, its
national GDP was about 5% smaller at PPP in 2011 than the European Union's, whose
population is around 62% higher.The country ranks ninth in the world in nominal GDP per capita
and sixth in GDP per capita at PPP. The U.S. dollar is the world's primary reserve currency. The
United States is the largest importer of goods and second largest exporter, though exports per
capita are relatively low. In 2010, the total U.S. trade deficit was $635 billion. Canada, China,
Mexico, Japan, and Germany are its top trading partners. In 2010, oil was the largest import
commodity, while transportation equipment was the country's largest export, China is the largest
foreign holder of U.S. public debt.The U.S. Census Bureau estimates the country's population
now to be 315,085,000, including an estimated 11.2 million illegal immigrants. The U.S.
population almost quadrupled during the 20th century, from about 76 million in 1900.
(Page 28 )

The third most populous nation in the world, after China and India, the United States is the only
major industrialized nation in which large population increases are projected.
The United States has a very diverse populationthirty-one ancestry groups have more
than one million members. White Americans are the largest racial group; German Americans,
Irish Americans, and English Americans constitute three of the country's four largest ancestry
groups. Black Americans are the nation's largest racial minority and third largest ancestry group.
Asian Americans are the country's second largest racial minority; the two largest Asian
American ethnic groups are Chinese Americans and Filipino Americans.
The culture of the United States is primarily a Western culture, but is also influenced by
Native American, African, Asian, Polynesian, and Latin American cultures. American culture
started its formation over 10,000 years ago with the migration of Paleo-Indians from Asia into
the region that is today the continental United States. It has its own unique social and cultural
characteristics such as dialect, music, arts, social habits, cuisine, and folklore. The United States
of America is an ethnically and racially diverse country as a result of large-scale immigration
from many different countries throughout its history.Its chief early European influences came
from English, Scottish, Welsh and Irish settlers of colonial America during British rule. British
culture, due to colonial ties with Britain that spread the English language, legal system and other
cultural inheritances, had a formative influence. Other important influences came from other
parts of Western Europe, especially Germany, France, and Italy.
(Page 29 )

American culture includes conservative and liberal elements, scientific and religious
competitiveness, political structures, risk taking and frees expression, materialist and moral
elements. Despite certain consistent ideological principles (e.g. individualism, egalitarianism,
and faith in freedom and democracy), American culture has a variety of expressions due to its
geographical scale and demographic diversity. The flexibility of U.S. culture and its highly
symbolic nature lead some researchers to categorize American culture as a mythic identity;
others see it as American exceptionalism.It also includes elements that evolved from Indigenous
Americans, and other ethnic culturesmost prominently the culture of African Americans,
cultures from Latin America, and Asian American cultures. Many American cultural elements,
especially from popular culture, have spread across the globe through modern mass media. The
United States has often been thought of as a melting pot, but beginning in the late 1990s and
early 2000s, it trends towards cultural diversity, pluralism and the image of a salad bowl instead.
Due to the extent of American culture, there are many integrated but unique social subcultures
within the United States. The cultural affiliations an individual in the United States may have
commonly depend on social class, political orientation and a multitude of demographic
characteristics such as religious background, occupation and ethnic group membership.Being a
major superpower, the United States has influenced the cultures of many other countries, but as
countries around the world become more inter-connected and inter-dependent, the general
cultural trends (of the US and other countries) head towards multiculturalism and sociocultural
globalization. Though most Americans in the 21st century identify themselves as middle class,
American society and its culture are considerably fragmented.
(Page 30 )

Social class, generally described as a combination of educational attainment, income and
occupational prestige, is one of the greatest cultural influences in America. Nearly all cultural
aspects of mundane interactions and consumer behavior in the U.S. are guided by a person's
location within the country's social structure.
America is ultimately a nation of immigrants and as a result is a cultural mish-mash in
every sense of the word. Not only is the country populated by people from foreign countries but
all Americans in one way or another trace their ancestry back to another culture, whether Irish,
German, Italian or Scottish. Looking around any major city one will notice the melting-pot that
it is.
Business Culture
Doing business in the US could be quite different from the way it is done in your home
country. The greetings, dress codes, and schedules may vary from what you are habituated to.
Every individual company sets certain standards for business outfits. Usually, as a general rule,
most of the large companies and organizations require a more formal dress. If you choose to
wear jewelry, it should be minimum and compliment your outfit. Large, flashy jewelry is usually
not appropriate for a business environment. The normal business hours are Monday through
Friday, 8.30 or 9.00 a.m. to 5 or 6 pm, with a 30 to 60 minute lunch break. Being on time is a
very important rule of business etiquette. Every effort should be made to arrive on time to any
scheduled meetings or appointments. If you would be late for an appointment, then a call should
be made announcing the expected delay.
(Page 31 )

On the other hand regularly arriving late or missing appointments would have a negative impact
on your business. It is customary for business meeting with people from outside your company to
begin and end with a firm handshake. Eye contact should be maintained during the handshake
and whenever someone is speaking to you. During introductions, listen carefully to the
pronunciation of the persons name so that you could address properly. While introducing
yourself, give your full name not just the first name. The appropriate way of addressing someone
may depend partly on his or her position in the company. For instance, it could be acceptable if
you address your coworkers by their first name but not the senior officers of the company. This
is a bird's eye view of the US business culture. Your employers and coworkers could be of great
help for you to adjust and make your work experience enjoyable and successful.
The worlds third largest country both in size and population, the United States is a
nationmoving forward rapidly and successfully with its unique cultural diversity. Throughout the
years, America has experienced waves of immigration from virtually every corner of the
worldmolding the country into what it is today. After establishing its independence in 1776,
theUnited States has endured civil war, the Great Depression, and two World Wars to become
therichest and most powerful nation state in the world. Today, the US is considered to have
thestrongest and most technologically powerful economy. For those wishing to conduct business
inthe US, gaining a professional insight into the cultural design of this distinctive country is
essential for success.

(Page 32 )

Business Cultural contrast between Russia and U.S

Russian business culture retains many of the characteristics instilled during the Soviet era, most
noticeably an autocratic management style that contrasts sharply to the more open and
collaborative practices used by American businesses. When doing business in Russia or with
Russian businesspeople, Americans should err on the side of formality and deference for those in
positions of authority.

Corporate Structure
Russian companies follow a stricter, more clearly defined hierarchy than do American
businesses. Many Russian businesses are led by a single, autocratic authority figure who makes
the decisions and delegates tasks to middle managers and lower-level employees. Employees are
expected to follow management's direction with little to no discussion. In American businesses,
though, even lower-ranked employees often ask questions about duties assigned to them and
collaborate with supervisors.
Communication Style
Russian businesspeople place greater emphasis on the spoken word than do professionals
in the United States. While American businesspeople do much of their business via
written communication such as email, letter or fax, Russian professionals prefer to hear
things directly from people they trust. (Page 33 )

Face-to-face meetings are usually more productive than written correspondence because they
allow participants to more fully discuss and explain issues. Russian businesspeople also
demonstrate much less body language than American professionals, especially in meetings. They
might listen silently without even nodding in agreement, confusing their American counterparts
who rely on visual cues such as eye contact and posture.
Meetings and Teamwork
In Russia, meetings are formal, serious gatherings, and casual behavior is considered a sign of
disrespect. Decisions are usually made in advance, either one on one or in small groups of
decision-makers, with meetings held solely to share information and give direction. In contrast,
in the United States meetings are slightly less formal, with participants interacting casually and
frequently debating and discussing issues. Russian businesspeople value personal relationships
and trust, and tend to be suspicious of strangers. As a result, they usually work in small teams
where people know each other well. Instead of forming a new team for each project, these teams
often work together regularly. By contrast, in America teams are often created on a project basis,
and the participants frequently have not previously met.
Dress Code
Business attire in Russia is similar to that in the United States, with men usually opting for dark
suits and women wearing business suits or skirts and blouses. Women in Russia wear slacks at
work less frequently than American businesswomen.
(Page 34 )

A major difference is the emphasis on designer labels. Russian professionals usually dress as
expensively as their salaries permit, and clothing that is obviously expensive is a sign of
credibility. While a tasteful wardrobe is also a status symbol in the United States, a designer
label is less important. When doing business in Russia, though, American professionals should
appear elegantly dressed to be perceived as equals.

Bibliography and References
Books reference:-
Dr. Paulson Chunkapura: The basic of understanding cultural changes in all-round
International Business: The Challenge of Global Competition (Tenth Edition, Ball, McCulloch,
Frantz, Geringer, Minor)
Administration.
Bibliography
http://www.crwflags.com/fotw/flags/ru-_misc.html
http://www.geographia.com/russia/rushis01.htm
http://cnr.berkeley.edu/ucce50/ag-labor/7article/article01.htm

(Page 35 )

http://cindyking.biz/define-international-business/
http://www.analytictech.com/mb021/cultural.htm
http://www.diversity-books.com/what-is-cultural-diversity.html
http://www.scribd.com/doc/33306756/Cultural-Environment
http://www.nicerussia.com/culture.htm
http://www.fao.org/docrep/W5973E/w5973e07.htm
http://en.wikipedia.org/wiki/Etiquette_in_Russia
http://www.tradestart.ca/domestic-vs-international
http://tutor2u.net/business/organisation/culture_more.htm

(Page 36 )

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