VII. Economic Status and Cultures of Major Regions.
 To understand cultures we must be able to communicate properly. The British economic  and military dominance in the nineteenth century and the U.S. dominance since World War II have been the result of a predominant language in their culture or lingua franca.
 Most Japanese and European public schools study English for many years. Countries that have many linguistic groups, such as India, Singapore, have adopted English as an official language in order to facilitate communication among the many diverse groups. Cultural diversity within a system tend to create problems which affect the political and economic  aspects of the system. However, widespread cultural uniformity, such as communication, does not necessarily solve all the problems. A good example is among the English-spoken countries because the meaning of some words vary among themselves, as well as, cultural peculiarities which are heavily influence by their local altitudes, believes, values, traditions, politics, and geography. Status, any position that determines where someone fits in society, serves as a window onto the culture by ascribing it or achieving it. Although mastery on understanding economic status of major regions is important, even small training can provide clues about cultural norms and attitudes that prove helpful in the comparative study.
 Customs or habitual way of behaving affects the different aspects of an economic systems. Economic forces and  principles which tend to be the same, varies from system to system due to the customs of the particular culture.
 

VIII. Cultural Diversity which affects economics approaches.

     1. Centralized vs. decentralize decision making:
 Centralization is a system in which all important decisions are made at the top of the  organization. The degree of centralization varies according to the local cultural environment and historical elements and characteristics. Centralization of culture will work for the common goals and objectives of the society as a whole
 Decentralization pushes the decision making down the line and gets lower level of the system involved. The Japanese system delegates less formal authority to the different levels while the US society tends to delegate more authority to individual members of the society.
 Whether a system is centralized or decentralized depends on how the system assigns, controls, sets, coordinates, and influences the system as a whole. Centralization or decentralization depends on who makes the crucial decisions, which involve level of authority, autonomy, power, control, and how much delegation is given to the different elements and components of the system.
Centralization may be on individual needs or wants rather than overall needs and wants  and the decisions made by a central authority can then take into account the whole system’s overall needs or wants. When authority is centralized, the decisions often hinder the ability of the whole system to quickly and effectively respond to changes in the local peculiarities.
 Both centralization and decentralization offer attractive benefits to the society and  depends on how it fits within the culture. Many systems use a blend of these two (i.e., Germany), and constantly tinker with the blend to achieve the best outcome in terms of overall economic strategies. While the need to address endowment of factors of production in different economic systems is handled by centralization and control, the need to address more specific cultural needs of different members of society across the culture works best by decentralization.

     2. Formal vs. Informal Procedures:
 A country’s formal or informal procedure is an important transmitter and reflection of the  cultural values and strict observance of social conventions of a society. This is reflected in the type of education system of public and private and ownership of resources. The formality of a society is reflected in the way in which individuals living in family units, working conditions, and language are use with each other. Societies differ on degree of formality and how they defined it within individual’s role within the group. The social attitudes, for example, are reflected in the importance that they attach to economic and business decisions.

     3. High vs. Low organizational context and organizational royalty:
 High organizational context or royalty culture is that one where society is already is  organize in social classes according to birth, social, economic,  family, and political status. From the theological stand point, they claimed to be direct descendent of the gods or claim a superior ancestor and background that allowed them to rule over other social classes and gives them complete ownership rights of means of production.  For example, the royals, the Church, and nobility.
 Low organizational context are those social classes or members of society which acquire rights either by being granted by the high context organization or got special dispensation or right from a particular institutions, organization or event within the historical and cultural happenings of history and/or  culture structure. For example, the military, the clergy, heroes, and legendary characters of different cultures.
 High context communication is one where the information is mainly internalized, implied might be a good word. People rely more in what is not say.
 Low context communication is where the majority of information is contain in explicit codes. What people say is what it meant and there is nothing to read between the lines. Things are black and white and there is no gray areas as it is in the high content communication. This difference ca n lead to many misunderstandings when an individual or team of one culture (i.e., American), sit down to negotiated with a team of another culture ( i.e., Japanese or Latin). American searches for meaning in what is said while Latin and Japanese for what is not said or is not there. High context emphasizes specificity and accuracy whereas low context is more circumspect and what high
 contexts. (e.g., legal contracts, property rights, international agreements and treaties). Hoftede, Geert, Culture’s Consequences: International Differences In Work Related Values (Beverly Hills, Calif.:Sage, 1980).

     4. Cooperation vs. Competition:
 Effective cultural communications within a system requires increase flexibility in cooperation and competition by all institutions and groups. To improve cooperation and understanding all members of the society must be prepared to give a little of something and be able to understand the consequences of benefit/cost analysis, opportunity costs, and trade-offs. When the system urges its people to strive for successful collaboration and cooperation, the system must give all its people involved designed do’s and don’t to make it work. Some guidelines must be design to ensure the requisite amount of flexibility and cooperation. The following may be guidelines for successful cooperation withing a society:
      a. Collaboration as a personal commitment, it is people that make the system work.
      b. Anticipate time of cooperation. This may be decide by a central authority (principle) or by a group or society as a whole.
          If  society can not spare the time, do not start it.
      c. Mutual respect and trust are essential in cooperation. If trust can not be establish, forget it.
      d. Everyone must get something out of the arrangement ( money, eventuality). Mutual benefits are essential.
          Everyone must give up something in order to get something else. This must be recognize from the onset.
      e. Recognize that during the time of collaboration, circumstances and matters change, and systems change.
      f. In order for cooperation to work problem recognition and flexibility is a must.
      g. Everyone must have the same expectations of the collaboration and its time scale. Happy and unhappy members is
      a formula for failure.
      h. Recognition of differences, interests, and independence are expected that have to be subservient to the general goal.

 5. Short Term vs. Long Term Horizons and Profits:
 As part of planing horizon, cultures tend to plan their goals, objectives, and systems in the long term or short term and spectrums in between which work to stabilize their relationships, maintain predictability, work for the common or individual objectives, and specificity of tasks. In the long term horizon, cultural changes must be gradual, predictable and controllable, and all goals and policies are plan for the future and not immediate results. The maximization of profit is for the long run, the Japanese believe in the long run to be two hundred years. Long term horizon gives more allocation of time to develop objectives, research, implementations of strategies, fostering of interpersonal relationships, greater emphasis on order and diligence on tasks, and develop on in house systems. A long term horizon taylor to specific needs of society and relies less on others in order to maintain integrity in relationships with all organizations. Goals of all institutions; government, households, business, suppliers, are for the common of society in the long term and not immediate gratification.

 6. Stability vs. Innovation:
 Innovation and progress is many cultures is sacrifice in the name of status quo. In order no to disrupt the  social norms of society, it is necessary to sacrifice some progress. In some cultures this is done by the structure of social classes and the impact that innovation may bring not only to the culture or economic system but to the positions of the different historical structures. For example, in Africa and Latin America, technological progress in agriculture and advance in industrialization has been hold back by ruling classes or elite groups for the purposes of maintaining the past norms traditions and values (power) that had made them dominate the political and social systems of the regions.
 

IX. Cultural Dimensions and their Impact on Economic Decisions

 1. Power Distance dimension:
 Individuals in these cultures tend to accept centralized power and depend heavily on  superiors for instructions, directions, and commands. The rules for superiors and subordinates are different and accepted by all. Superiors will make all the decisions for the subordinates. Principle-agent relationship is very strict.

 2. Uncertainty Avoidance:
 Many societies are characterized by a strong uncertainty avoidance. Individuals in this culture feel uneasy in situations of uncertainty and ambiguity and preferred structure and direction. These societies prefer more security and more task structure on their activities. On the other side, countries characterized by weak uncertainty avoidance cultural dimensions, individuals tend to be relatively more tolerant of uncertainty and ambiguity.
 Improvement for these societies includes considerable degree of autonomy, independence, freedom, and low structure. The British society is a weak uncertainty avoidance culture because it places much greater importance on individual achievements and autonomy than the French culture where uncertainty avoidance is strong. The French value competent supervision, sound policies, social benefits, security, and comfortable working conditions. Hoftede,G., From Cultural Roots to Economic Growth. “Organizational Dynamics”, Spring,1980.

 3. Individualism vs. Communitarianism ( Collectivism):
 Communitarianism or collectivism is a collectivistic cultural dimension. People in this societies are tightly integrated and they belong to “in-groups” from which they can not detach themselves, they think “we” as oppose to individualistic societies where individuals make decisions motivate by the self interest and think of  “me” terms. For example, improved quality of life includes obtaining satisfaction from the society as a whole or group to preserve harmony within the system. On the other side, some nations are characterized by an individualistic cultural dimensions which look primarily after their own best interests. Improve of society for the individualistic system means individual success and achievement, and individual freedoms.
 Individualism refers to people regarding themselves as individuals, while communitarianism or colllectivism refers to people regarding themselves as part of a group. The US, Czechoslovakia, Argentina, Russia, and Mexico have high individualism. Decisions in cultures of high individualism typically are made at the spot, people achieve high things alone, and they assume great deal of personal responsibility. In cultures with high communitarianism, decisions are typically referred to committees, people ideally achieve things in groups, and jointly assume responsibilitie.
 Individualism describes the attitude of independence of a person who fell a large degree of freedom in his /her personal life. Personal accomplishments and self expressions, freedom of personal pursuits, entrepreneurship, free enterprise freedom of occupation and the perception of what is her/his best interest. Any intrusion in the rights of individual by a group is unwarranted. Individualism is the maximization of some utility by a wide arrange of human limitations and how we make choices, attitudes, goals, and face the consequences. An individualistic culture is that which maximizes differences, confrontation, and compromises. Individual’s interest take precedence over others and society. Schools emphasize the self-esteem of each child and encourages individual talents, respect fo individual authority and responsibility, therefore, destinies lie in their own hand. Conversely, Communitariasism or collectivism, like China, Japan, Israel’s Kibitzes, children are thought that their role is to serve the groups, the families, and ties. The Chine success and failures are share by the family or clans and in Latin American you expect to put always family and relatives before anything else.

 4. Materialism:
 The physical perceptibility of a culture to the attachment of property. It is related to the  philosophical  theory which regards matters and its motions as the most important part of the universe, all of phenomena including those of the mind, as due to material possessions. The main interest of society or culture is based purely in material possessions and accumulation of resources and wealth. The devotion of members of culture is to material objectives rather than spiritual objects and considerations. The United States is blessed with abundance but seen by others as a wasteful consumption of both resources and material goods (e.g., in US, we do no repair items such as household appliances, we trash them and buy new ones, including automobiles). On the other hand, Egypt, Korea, and India, nature is apart of the religious and spiritual dogma. Their rivers Ganges and Nile are sacred. In material cultures, humans are masters of nature and destiny and control nature and should, therefore, conquer, change, and control nature. Protestantism teaches us that it is not God’s Will but God gives a free will and guides us so we can act and react to events and situations. Hinduism believes in Reincarnation. Westerners attached status and symbols to physical objects as part of their culture, for example, designed clothing, articles, works of art, collections. Easterners enjoy aesthetics and spiritual values.

 5. Masculinity vs. Femininity:
 Many countries are characterized by a masculine cultural dimension. Societies dominated by this dimension stress material success and assertiveness, and assigned different roles to males and females. Males are expected to carry out the assertive, ambitious, and competitive roles in society; females are expected to care for the non material quality of life, for children, for the weak, to perform society’s caring roles. In such societies, a male might be the manager of finance, the decision maker, and the female the secretary and the one that takes orders of the decision maker, and a role reversal will be an exception to the rule and frown upon. Hoftede, Geert, 1985. International Dimensions of Culture.
 On the other side, some nations are characterized by a feminine or low masculine cultural dimension. These societies stresses interpersonal relationships, a concern for others, the overall quality of life, and define relatively overlapping social roles for males and females. In these cultures, neither male nor females, need to be ambitious or competitive, both may aspire great values of material success and respects others. Male secretaries and female truck drivers would be more acceptable. Increase quality of life and economic well being for individuals in masculine societies means increase in the job challenge and more education, and in feminine societies it means offering opportunities for developing relationships on the job.
 Natural culture is a contributing factor in nations cultural variations and dimensions. Hofstede’s study of forty-eight countries compared indexes appearing in the United Nations Development Program’s Human Development Reports of 1977. This indices rank nations’ intensity level of implementation of programs and deals with human development by ranking richer countries higher than poor countries. Other choices highly value for ranking range from political, economic, and social freedom to opportunities for being creative and productive and enjoying self-respect and guaranteed human rights.
 Characteristics of feminine societies include: quality of life and environment are important, sympathy for the unfortunate, men and women can both be breadwinners, and differences in sex roles should not mean differences in power. Masculine societies believe that performance and growth are important, sympathy for the success achievers, men are the breadwinners, women are care givers, and men should dominate in all settings. Feminine countries scored higher in intensity in human and economic development than masculine. Feminine countries put more priority in poverty reduction, gender inequality reduction and gender empower than masculine countries.

 6. Time
 Time holds different values, norms, traditions, and believes to different cultures. It is  important differently for different cultures whether attached to material or spiritual aspects. Time is considered a finite commodity. Allowing enough time for important issues before arriving to a decision. In the Western society, time is money and strategic commodity to be use frugally. Some cultures, US for example, perceived time as a commodity and an asset, and very high importance is place on it  “time is of the essence”, “time is money”. Conservation of time is, therefore, an efficient process in these cultures.
 Punctuality is expected behavior, tardiness is unacceptable behavior and norm. People in other cultures, however, do not place as much of premium on time and punctuality; to them, time does not equal money, tardiness is quite acceptable, and punctuality is view as an unreasonable behavior. Non time oriented societies place much greater premium in relationship and more relaxed lifestyle than they do on time and punctuality. They tend to be more traditional, apprenticeship oriented, and things tend to pass the same way from one generation to another, no room for experimentation, emphasizes other social sciences rather than economics, and profit is not a major motivating factor. No time oriented cultures get extremely offended by other cultures that apply time-oriented behavior in business and economics transactions. They prefer that amicable relationships be established before business is conducted.
 Schedules are important to individuals in some time oriented cultures, but relatively unimportant for people in non time oriented. It must be done by tomorrow mentally but other cultures when it gets done mentally now is more important. Furthermore, in some cultures which tasks get done fist depends on factors such as relationships. Telling someone in the Middle East, Latin America or Africa that something must be done now or by the end of the day or by tomorrow may prove to be a mistake.
 The recipient of the direction may stop work because he/she is place under pressure like putting a red flag in front of a bull or may be perceive that the person putting the order as rude or pushy. This is the way that always American come across. Some cultures take along time to make important decisions while other cultures make important decisions quickly. Consequently, low managers in cultures that take a long time to make important decisions often try to heighten their work status by lingering over routine decisions.  Foreign managers who try to make important decisions quickly in these cultures are likely to downgrade their importance in the local people’s eyes. Rodrigues, Carl, “International Cultural Management Approach”, 2nd ed. 2002.

 7. Progress vs. Environment:
 Materialistic, individualistic, and time oriented cultures tend to be more progressive and technology (entrepreneurial ability) oriented. These societies tend to work more with the environment and considered themselves masters of nature and should, therefore, conquer, change, and control nature for mankind’s benefit. The environment is to serve the culture and culture can use this environment to achieve their goals and objectives. Changing and modifying the environment is a natural phenomena and future is not predestined, and their actions and deeds are capable of manipulating the environment. The Japanese culture emphasizes the integration of people with the natural world, whereby natural environment shapes people and, in turn, is shaped by people. The Indian culture, for example, sees people dominated by nature. The fatalistic society sees nature as exerting potentially harmful powers over people, and to try to understand and counteract these harmful powers would be hopeless. To many people, the natural world is close to the supernatural, and although natural phenomena are not envisioned in such malevolent terms as India, the world of nature is seen as a manifestation of God, and as such, is not able to influenced, much less transformed, by the human hand. In many cultures, particularly those influence by Catholicism, God is closely associated with the natural world and environment. Ancient civilizations thought that the sky, sun. ocean, etc where places where God live and reign or simply were gods themselves. Many cultures believe that the environment ought to be respected and revered. If in fact such environmental phenomena as rain, rivers, and mountains are conceived of as God’s creation and symbols of God’s presence, it would be presumptuous and a sin for people to want to alter, control, or dominate nature and progress simply represents that. Rather cultures are expected to establish proper relationships with God, which among other things, involves respecting and living in harmony with the world of nature, and therefore, progress is man’s intervention in God harmonious environment. Ferraro, Gary, Cultural Dimensions of International Business 4nd ed., 2001.

 8. Work Value ( Ethics):
 Work value or ethics is another lexicon for values and emphasis placed on work,  activities, and achievement by the culture. Societies and cultures put different levels on human energy. The United States has been known for its high levels of human energy, its aversion to idleness, and its preference for the person of actions over the person of ideas. Nature and the physical environment not only can be, but should be, controlled for human convenience. Cultures put emphasis in different resources, and some specialized according to their factor endowment, comparative, and absolute advantage. Throughout time and history, as well as, geography, politics, laws, and other environmental characteristics cultures have use work and its value differently. The value of labor could go for survival to surpluses, specialization and profitability of it when trade for other resources or other specialties. To be certain, constant toiling was the price of the pioneers and colonial farmers had to pay for surviving and taming and eventually developed a nation.  Cultures throughout history have used it to build their great empires and to conquer. But the value of the work per se was an idea that arose out of the Protestant Reformation, which view work as means of salvation. Martin Luther held that a person’s highest duty was the concientiouss discharge of his labor. Later interpretations by Calvin gave positive sanctions to work, achievement, and activity. The Protestant Ethic gave the notion that hard work is the only way to serve God and idle hands are the devil’s workshop. God, when coupled with the Social Darwinism and the free enterprise economic system, gave rise to the concept of the Protestant Ethics which holds that people do not work for themselves along. The Protestant Ethics believes that a person’s work comes from God, and it is through his/her work that a person or culture demonstrates his/her/its worth to God, his/herself and society. Ferraro, Gary, Cultural Dimensions of International Business 4nd ed., 2001.
 In some cultures like the American culture, work is not only respectable but is virtuous,  and work for its own sake is healthy and revered.
 Many cultures of the world considered work value so important that surnames reflect their professions, ancestry, lineage, and even caste. Occupation plays an important part of cultures and sometimes plays a powerful force in shaping individual and society’s identity. Occupation and work value also plays an important role in the hierarchy of the society and the position of the individual within that pyramid of that society’s hierarchy. Identity is intertwined with the work value and sanction and rewards are attached to it such as job threat or losing occupation or license. Self esteem, aging, unemployment, retirement, and sociological and psychological aspect associated with ethics or values are part of the different identities of cultures influence by their believes, norms, and traditions. Denial of work, low status jobs, and unconventional work involves not only low pay, low wages, low social and economic status, but also self- esteem, and identity.
  Different cultures and individuals put different work value and status on self-employment, public employment or working for others. Still, other cultures, they prefer that others work for them rather than themselves. Other cultures give priorities to other activities such as visiting, argument and discussion, socialization, participation in the arts, music, philosophy, dance, storytelling, and educating.
 The American culture emphasizes doing and demands of its members the kind of activity that results in measurable accomplishments. The Latin American and oriental cultures, for example, tend to emphasize as important the traits of thought to be given into the human personality and less demands on activities, the intellectual, the eldest or the wise is held to the highest esteem rather than the person who performs visible deeds.

 9. Universalism vs. Particularism:
 Universalism is the believe that ideas and practices can be applied everywhere in the  world without modifications while particularism is the believe that circumstances dictate how ideas and practices should be applied and sometimes cannot be done the same everywhere. In cultures with high universalism, the focus is more on formal rules than relationships, business contracts are adhered to very closely, and people that believe that a deal is a deal. Particularistic societies focus on relationships and trust more than formal rules. In a particularistic society laws can be change and modified, people try to get to know each other better, and often change the ways in which activities are executed changes. Countries like US, Australia, Germany, Sweden, and the United Kingdom are highly universalists, while such as Venezuela, Russia, Indonesia, and China are high particularist countries. North America and Western Europe which are universalists, the rules apply regardless of the situation, while particularist countries are more willing to bend the rules and help their friend.
 Universalistic cultures are usually individualistic cultures, they are rational, prepared for arguments and get down to business without waste of time attitude. Conversely. particularists prepare for personal meandering or irrelevancies that seem to go nowhere and should not regard personal, get to know you attitudes as mere small talk.

 10. Neutral vs. Emotional:
 A neutral culture is one in which emotions are held in check. Japan and the United
 Kingdom are high neutral cultures. People in neutral cultures try not to show their feelings, they act stoically and maintain their composure. An emotional culture is one in which emotions are openly and naturally expressed. People in emotional cultures often smile a great deal, talk loudly when they are excited, and greet each other with a great deal of enthusiasm. Mexico, Costa Rica, Netherlands, Switzerland are examples of this type of culture.

 11. Specific vs. Diffuse:
 Specific culture is that culture which individuals have a large public space. They readily  share with others and a small private space which they guard closely and share with only close friends and associates. Austria, UK, US, and Switzerland all are specific cultures. Diffuse culture is a culture which   both public and private space  are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well. Venezuela, China, and Spain are examples of diffuse cultures. In specific cultures, people often are invited into a person’s open, public space; individuals in this culture are often open and extroverted; and there is a strong separation of work and private life such as the Japanese culture. In diffuse culture , people are not quickly invited into a person’s open, public space, because once they are in, there is easy entry into the private space as well. Individuals in this cultures often appear to be indirect and introverted, and work and private life often are closely linked, such cultures are presented in Latin America.

 12. Achievement Vs. Ascription:
 An achievement is one in which people are accorded status based on how well they  perform their functions. An ascription is one in which status is attributed based on who or what a person is. Achievement culture gives status to those who achieve in doing such as a person who had done research and discovered or find a cure for AIDS; while ascription cultures accord status based on gender, age, or social connections. An ascription example is a person who has been in the organization because longevity, respect or family ties.. Australia, US, Switzerland, UK are achievement cultures, while Brazil, Indonesia, and China are ascription cultures.

 13. Cluster:
 A cluster culture  is one that bring together a number of entities making up and bring  together different cultures or subcultures to be considered as a unit. Cluster cultures are form by commonality of elements and characteristics such as values, believes, norms and traditions. It can be common religion, language, history, etc. Cluster cultures may be the Arab Crescent nations, Canada, UK, US, New Zealand, Australia,  and the Persian Gulf States. Cluster cultures are also those cultures which have cultural similarities ( grouping) like the Latin European nations which provide guidelines to handle their intercultural similarities.

 14. Conformity:
 It is the tendency of group members to establish a group norm and the tendency of  individuals to comply with the respective norm ( Burnkrant, R.E and Cossineu, A (1975) “Informational and normative social influence behavior”, Journal of consumer Research, vol.2, December, pp.206-14.
 It is the extend to which individual member of a society are likely to follow the norms of the associative group and to accept how the group as a whole behaves, acts, and relates to the environment. Formalistic tends to be conformist with the majority or main stream and reflects the collective value system, where an individual’s behavior is influence by factors such as group norms.
 

X. Economic Systems Across Cultures

 1. Globalization vs. Natural Propensity Matrix:
 Globalization is the accelerating independence of nations in a world system linked economically and through mass media, transportation, and communication.
 Natural propensity tends to follow Charles Darwin and Alfred Rusell which provides a process by which nature selects the forms most fit to survive and reproduce in a given environment such as the tropics. It allows for differences among cultures and systems.
 Globalization is the production and distribution in a homogeneous form products, services and quality are the same worldwide, while natural responsiveness is the need to understand the differences in consumer tastes in segment markets and respond to different national standards and cultures imposed by autonomous authorities and agencies. Globalization imperatives believe that one worldwide approach to do things is the key to both efficiency and effectiveness within the cultures. Globalization is given more attention than natural responsiveness or sovereignty. Some areas had begun to de-emphasized globalization imperative in a need to focus on natural and local focus. Some of the reasons that account for this new strategy are: the need to address diverse worldwide cultures, the importance of differentiating products and resources for local markets, the need to become an insider rather than relying solely on export policies, and the need to give more and more authority to the local conditions.
 Globalization and natural or local propensities can be analyzed conceptually via a two dimensional matrix which measuring the economic integration and movement up and down the axis measures degree of economic integration. Globalization ( vertical axis) generates economies of scale and also capital on further lower unit costs as culture moves into worldwide markets. The horizontal axis measures the need for cultures to respond to natural responsiveness or differentiation such as local tastes, preferences, and governmental regulations.

 2. Parochial vs. Simplification
 Parochialism is the tendency to view the world through one’s own eyes and perspectives. Societies with advanced economic systems believe that their state of their art and culture  is more adequate than the lesser developed countries cultures.
 The parochial cultures believe that their way is the only way and justify that their profit orientation, utilization of resources, organizational structure, scientific methods, education,  health care, social goods and services, and other cultural characteristics and elements such as training, experiences,  economic structure, and way of doing business is the only and best way and other cultures must follow. Parochial cultures tend not learn from others beyond mere manifestations of norms.
 Simplification is the process of exhibiting the same orientation toward different cultures and groups. For example, the way that Americans behave towards the British and Germans is the same way that they behave towards the Asian cultures, and thus,  reflecting an orientation of one basic culture, the American culture. American culture shows the same basic orientations to other cultures. American culture believe that other people are basically good, that its relationship with nature is dominant, relationship with others is lineal, collateral, and individualistic, and the conception of space is private. Florence & Stodtbeck, Variations in Value Orientations, New York: Peterson Publishing, 1961. The Japanese culture is very high context communication and shows this to all other cultures which they interact showing the same orientation of long lasting relationships, communicating with others implicitly, people of authority are personally responsible for the actions of the subordinates, premium loyalty to both superiors and subordinates, they tend to be more spoken than written, insiders and outsiders are distinguishable and treated the same no matter what culture and outsiders, regardless of culture, can not regain entrance to their culture.

 3. Similarities vs. Differences in cultures:
 Despite similarities of cultures,  far more differences in cultures have been found. Similarities and differences can be found in elements: norms, traditions, values, and believes, and characteristics such as religion, language, legal system, art, dance, music, etc. Some cultures can modify the differences or similarities better than others.

 4. Selected countries
 Some cultures are quite different from the United States as well as from others, for  example, their ability to use, disseminate, interpret, and understand information and communication. Characteristics such as imagination, leadership, reality and analysis vary and are the same in Netherlands, France, Germany, and Britain. The concept of hourly wage is different in Mexico and the United States. Austria and Brazil have automatic pay vacation, Swedish companies must have the head of human resource management on the board of directors, German companies have employees in the board of directors, Britain allows forty weeks of maternity leave and employers must provide a government mandated amount of eighteen weeks of those weeks.
 The United States does not required public schools to ware uniforms while many other cultures this is a requirement. In the EU nations such as France, Spain, Italy, and Belgium, compensation strategies for employees are similar. In the Pacific Rim countries incentive plans are group based. In high masculinity countries (Japan, Hong Kong, Malaysia, The Philippines, Singapore) high salaries should be paid to senior level management. In the United States, Britain, Ireland individualism, opportunity, recognition, advancement, and challenge are the same characteristics of culture.  The Chinese place great deal of emphasis on trust and mutual connections, and they are true in their word.  The Russians like to build personal relationships, briberies and gift given to those who you would like to gain favors from are acceptable, patience is a virtue of the culture, stress free and face to face communications is a must. Personal financial information and affairs are never divulge. In India is important to be on time, personal affairs should not be asked unless the other individuals are friends, close associates or relatives. Titles are important, public displays of affection are considered to be inappropriate (e.g., backslapping or touching others). Always accepting things and eating, the right hand is used, because the left hand is considered to be unclean. Bargaining for goods and services is common. Indians are very tolerant of others and understand that others are unfamiliar with their many cultures. In France being fashionably late is frowned upon, shaking hand with a French person, use a quick shake with some pressure in the grip, personal questions and the subject of money are never brought up. Great importance is put in neatness and taste. French are very  cultural defensive.  In the Arab countries is important never to display feelings of superiority so not to make others inferior, credit is always the result of a group and to indicate of accomplishing something alone is wrong. All important communication are done in person.  Hodgetts, Richard, Cross Cultural Implications, Compensation & Benefits Review, March-April 1993.
 

XI. Organizational Culture and Diversity in Economics Systems:

 1. Nature of Organization:
 It refers to how culture relates to the internal and external environments.  It is a pattern of basic assumptions that are developed by the culture or a group as it learns to cope with problems of external adaptation and internal integration and that are taught to new members as the correct way to perceive, think, and fell in the relationship of these problems.

 2. Definitions and Characteristics:
 Organizational culture includes: observed behavioral regularities, as typified by common language, terminology, and rituals, norms as reflected by things such as work ethic; dominant values such as expectations of share participation and cooperation; rules that dictate the do’s and don’ts such as group cooperation, relations, participation, and productivity; and organizational climate, atmosphere, participation, interactions, high-low level relationships.
 The major problem is that sometimes, organizational culture in one country differs sharply from those in other countries.

 3. Interactions between Economic Systems and Organizational Culture:
 Organizational cultures tends to moderate or erase impact on national cultures. When a culture interacts with other cultures, many times, cultures start to think like those cultures which they interact. International and economic systems Culture is a learn behavior and therefore organizational cultures tend to learn, adjust, modify, and even change when they interact with other cultures.  National cultural values have a significant impact on heir organizational performance, and that the cultural values bring them together and makes the organization not easy to change. Foe example, French have high power distance than Swedes and some low power distance Scandinavian countries, so change in the hierarchical organization in Paris will be more difficult than in Stockholm. In examining and addressing the differences between organizational cultures, a set of cultural analysis techniques and programs can be use to diagnose the organizational culture in order to understand the cultural strategic applications. This approach identifies the dimensions of the organizational culture such as motivation, relationships, identity, communication, control, and conduct. When cultures are compare , different cultures often exist in each other. Europeans view the American culture slightly activity oriented and very time oriented,  job oriented, and identification with themselves rather than the organization, work better individually and in groups, and coordinate work activities and the organization better. To deal with interactions between and among economic systems and different cultures   organizations, multiculturalism is used. Multiculturalism brings together different cultural characteristics and elements . For example, United Kingdom, French, German, Italian, Spanish, and Portuguese characteristics and elements into the European Union. Sometime a series of cultural characteristics, elements and organizational forms
 are put together to form a hybrid culture.

 4. Multinationals and Organizational Culture:
 Multinational corporation (MNC) is a firm having operations in more than one country and culture, international sales, and a multicultural mix of managers, directors, and owners. MNCs are the largest disseminators, integrators, propagators, and delineations of cultures. They shape and change many factors of organizational cultures including tastes, preferences, patterns of behavior, work ethic,, preferences, and procedures, just to mention few.
 Given recent international expansion and the globalization phenomena, mergers and acquisitions, etc, the integration of these organizational cultures is a critical concern in multinational cultures. There are many aspects of organizational cultures and multinationals, for example, cultures have to establish purpose, goals, and focus; they have to develop mechanisms to identify the most important organizational structures and roles; they have to determine who has authority over the resources needed from getting things done; and they have to identify the expectations of all parties involved and facilitate communication between all organizations and individuals in the structure. There are some aspects that the organizational culture and the multinationals must take into consideration: the general relationships that define the roles; hierarchical systems of authority that define the roles of principles and agents, managers and subordinates; and the general views that cultures hold about MNCs such as goals and objectives, purposes, destiny, and places.

 5. Family Culture:
 It is a culture that is characterized by a strong emphasis on hierarchy and orientation to the person. The result is a family type environment that is power oriented and headed by a leader who is regarded as caring parent and one who knows what is best for the culture. Cultures in countries like Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore seems to have elements and characteristics which categorize them as family culture. These culture respect individuals who are in charge but look to them for both guidance and approval as well. These cultures are characterized by tradition, customs, and associations that bind together people in the culture and make it difficult for outsiders to become members easily. The value putting people in positions not based in their abilities and achievements, like the United States, but rather their age and position in the hierarchy.
 Other characteristics of family culture include the emphasis given to intuitive rather than rational knowledge. More concern is given in the development of people rather than their deployment or use. Personal knowledge of the people rather than their deployment or use. Personal knowledge is more important than empirical knowledge about the culture. Conversations are more important than research questioners, and subjective information is superior than objective. In addition, family cultures tend to be motivated more by praise and appreciation than by money. They tend to socialized risk by spreading it among the members, and they recist motivation that threatens family bonds. Hodgetts, Richard M. & Luthans, Fred, International Culture, Strategy, and Behavior, 4rd. Ed., 2002.

 6. Eiffel Tower ( pyramid):
 It is  culture that is characterized by a strong emphasis on equality and orientation to a  hierarchy to the task. Under this cultural organization jobs and positions of the members of society are well defined, members know what they are to do, and everything is coordinated from the top. As a result, this culture is steep, narrow at the top, and broad at the base like a pyramid or he tower of Eiffel. Unlike other cultures, where leader is revered, and consider absolute, it can be replace at any time and it would have no effect on the cultural organization. It is found in North America and Northwestern European countries such as Canada, Denmark, France, Norway, Germany, and the United States. Is uses rewards and motivation on resolving conflict.

 7. Guided Missile Culture:
 A culture characterized by a strong equality in hierarchy and orientation tasks. This organizational culture is oriented to work, which is typically in undertaking teams or projects groups. This culture derived its name from high-tech organizations, in which the use of project groups working  together for improvement is paramount. Guided culture but emphasis on professionals and education. And focus on a particular objective, for example, science, medicine, art. Music, and so forth. It tends to be individualistic since it allows for a wide variety of different of socialites within the organization. Members are gregarious, idiosyncratic, and intelligent, but their mutuality is a means , not an end. They do not know each other intimately, and may avoid doing so

 8. Codetermination:
 A practice in which some cultures whereby major actions, policies, decisions, etc., are  decided through committee, boards and even popular voting so that workers as well as management (principal-agent) have a large voice in the decisions. Aside from some monetary and fiscal policies, The United States has made little use for indicative planning  or industrial policy to influence the structure of the economy.  One of the most interesting aspects of the German and Swedish systems are the systems of codetermination, wherein the workers are given voice in the management of the companies and sit in the board of directors of companies. German and Swedish employees are able to participate in management through work councils and through representation on corporate supervisory boards. They have equal voice in boards and management on matters relating to job evaluation, overtime, breaks, and holidays; recruitment, selection, and dismissal; and training and safety.

 9. Indicative Planning:
 A practice which uses planning, and indicates or guides future actions ( plans, targets,  purges) to rich conclusions regarding future economic decisions. Indicative planning, employed in France, Japan through the Ministry of International Trade and Industry (MITI), and a number of other countries, is a hybrid system that uses the market to coordinate short-term decisions (how many apples to pick this week) in combination with plan to coordinate long term decisions (how many trees to plant this year). Unlike directive plan (command planning), which must provide detailed instructions to individual producers, an indicative plan typically includes broad goals for entire industries over a long (usually five year) time horizon.  Private sectors are legally not require to comply with the plan targets, but the government may use fiscal and monetary instruments to encourage compliance. Ideally, if the government or authority sets goals and objectives that are beneficial to all segments and sectors of society, an indicative plan should evoke voluntary compliance and it should be a self-fulfilling prophecy. Often, countries that engage in indicative planning also conduct an active industrial policy (IP) which may include several different kinds of programs. First, a list of winning and losing industries may be formulated, with measures designed to support the former and phase out the later. For example, the Japanese government support development of the steel and auto industries in 1950s, consumer electronics in 1960s, computer chips ion the 1970's, and knowledge intensive industries in the 1980s. Gardner, Stephen, Comparative Economic System, Dryden, 2nd  ed., 2002. Second, an industry policy may include measures to strengthen industrial stability and/or competition. Where monopoly power is pervasive, existing companies may be regulated, nationalized, or split into smaller units. Conversely, small companies may be merged into larger units to enhance their financial strength, production efficiency, and competitive position on the world market.

 10. Incubator Culture: Organizational Culture
 A culture that is characterized by a strong emphasis on quality and orientation to person.  This culture is based heavily on the existential ideal that the organizations per se  secondary fulfilment of the individuals within them. This culture is based on the premise  that the role of the organization is to serve as incubators for the self expressions and self fulfilment of their members, as a result, this cultural has little formal structure. It is fast and expontaneous, and all members work toward the same objectives.. The participants are more concern with the unfolding creative process than they are in gathering power and ensuring personal and  pecuniary gain, and leadership is achieve and not gain by position. Very much in contrast with the family culture person..

 11. Country’s Economic system Preferences
 The above organizational cultures describe economic systems of preferences. In reality in  the real world these are mixed and some inter lapped. The best way to categorized countries’ cultures under this section of organizational culture and diversity of the historical and modern economic systems is to create questionnaires designed to identify national patterns of cultures, for example, family organizations, relationships, attitudes towards authority, ways of thinking and learning, attitudes towards others, learning, and changing, motivations and rewards, and criticism and conflict resolution.
 

XII. Multiculturalism and Diversity:
 The effect of multiculturalism and diversity depends on the stage of the society in its evolution. Diversity may or not may play impact on the organization of the culture, although multiculturalism may have a significant impact. As cultures interact with others, they tend to become more international in their organization, and tend to adapt more their approach to other cultures as other cultures also adapt to their approaches and local cultures. As cultures interact, specially through international business and the MNCs, the impact of multiculturalism is highly significant. Culture is a learn behavior and continues to evolve, therefore, multiculturalism and diversity become extremely important in the dynamics of cultures.
 International cultural diversity traditionally affect neither the organizational culture nor its relationship with other cultures. This happens only when domestic culturalism has a direct impact on the dynamics of relationships and external environments. However, when the culture is very open to other cultures , tend to be feminine, weak, open to change, etc., cultural diversity has a strong impact on its external relationships with potential interactions with other cultures

 1. Phases of Multicultural Development:
  Multiculturalism is more common for cultures with diverse cultural backgrounds, heterogeneous cultures, or cultures where the elements are characterized by very incongruent such as many languages, ethnic groups, religions, etc.  The phases of culturalism depends on exposure, technology, innovation, how open and acceptable the culture is to others, and other factors. The phases of evolution are from purely domestic cultures to international culture, to multinational, and finally global culture.

 2. Types of Multiculturalism:
      a. Domestic:
  Domestic culturalism is present in those countries with diverse cultural backgrounds within its culture but are not expose or adapt to other cultures outside of its own. Examples are China, India, Guatemala, Yugoslavia, the former Soviet Union. This domestic culturalism happens when the diversities of the culture tend to work separate but within the culture and are strongly opposite.

  Their believes, values, norms, and traditions are very different and they tend not to compromise nor work in harmony with each other. In Singapore, for example, there are four distinct cultural and linguistic groups: Chinese, Eurasian, Indian, and Malay. In Switzerland , there are four distinct  ethnic groups: French, German, Italian, and Romansch. In Belgium, there are two linguistic groups: French and Flemish. In the United States , millions of first generation immigrants have brought their language, religion and their culture in general from all over the world. Although the American culture tends to be homogeneous because of commonality of elements, influences of some cultures exist in particular geographic areas such as New York, Los Angeles, Miami, Chicago, and others.

      b. Groups: homogeneous, token, bicultural, and muticultural.
  There are many ways that diverse groups can be categorized. Four of the most common include:
           i. Homogenous groups: is characterized by members who share similar backgrounds and generally perceive, interpret,
           and evaluate events in similar way.
           ii. Token Group: a group in which all members but one have the same background.
           iii. Bicultural group: a group in which two or more members represent each of two distinct cultures.
           iv. Multicultural group: a group in which there are individuals from three or more different ethnic backgrounds.
 

XIII. Building Economic Systems Based on Culture:
 Culture have a great deal of potential to be either very effective or very ineffective. For example, cross cultural groups and societies, if led properly, can be highly effective but they tend to be managed improperly and be highly ineffective. In other words, diverse cultures are more powerful than single culture societies. They can hurt the organization, but if managed effectively, they can be the best.

 1. Team Effectiveness:
 Most effective team cultures are those ones which are innovative and less effective in  routine and traditional tasks. Cultural diversity provides the highest assets for team oriented with difficult, discretionary tasks requiring innovation. Diversity becomes less helpful when members of society are working on simple tasks involving repetitive or routine procedures. Therefore, diversity generally becomes more valuable during planning and development of projects and less helpful during their implementation. Diversity is therefore extremely valuable to senior members, both within and across cultures. Adler, International Dimensions of Organizational Behavior Business Horizons, 1999.

 2. Conditions:
 In order economic systems to achieve the greatest amount effectiveness certain conditions  need to be met such as team, and the activities must be determine d by the stage of the development (e.g., entry, working, and action). For example, focus on building trust and developing team cohesion. This is a difficult task for cultures whose members are accustomed to working in different ways. For example, American, German, and Swiss spend little time getting to know each other; they find out the nature of the task and set about pursuing it on their own without first building trust and cohesion. Latin Americans, Southern Europeans, and Middle Easterners spend great deal of initial time in getting to know each other. This contrast between time oriented and relationship oriented may cause difficulty creating cohesion. Hodgetts, Richard, Cross Cultural Implications, Compensation & Benefits Review, March-April 1993.

 3. Proper Guidelines:
 Systems tend to created guidelines in order build better system and also tend to delegate  certain degree of authority to a central authority which may expand from overseeing to regulation to control and command the systems. Besides some overall conditions, a number of specific guidelines for effectively managing culturally diverse groups have been identified.
 Some guidelines include:
      a. Team members must be selected for their task-related abilities and not solely based on ethnicity.
      b. Team members must recognize and be prepared to deal with their differences
      c. Because members of diverse groups tend to have more difficulty agreeing on their purpose and tasks than members
          of homogeneous groups, the group leader must help the group to identify and define its overall goals and objectives.
          This goal requires members to cooperate and develop a mutual respect in carrying out heir tasks.
      d. Members of society must show mutual respect for each other. This often is accomplish by choosing members of
          equal ability, making prior accomplishments and task related skills known to the group, and minimizing early judgements
          base on ethnic stereotypes.
      e. Because groups often have difficulty determining what is a good or a bad idea or decision, positive feedback on
          progress and output helps members to see themselves as a team, and it teaches them to value and celebrate their
          diversity, recognize contributions made by the individual members, and trust the collective judgement of the group.
      ``Wellford Wilms, Alan Hartcastle, and Deona Zell, Cultural Transformation at NUMMI.”Sloan Management Review,
      Fall 1994.
 

XIV. External and Internal Cultural Communications and Economic Systems:

 1. Direct and Indirect Verbal Communications:
 Communication is the process of transferring meaning from sender to receiver. In high  context cultures, messages are implicit and direct. One reason is because those who are communicating (family, friends, coworkers, and clients) tend to have both close personal relationships and large information networks. As a result, each knows a lot about each others, in their communication, they do not have to rely on language alone to communicate. Voice intonation, timing, and facial expressions can all play roles in conveying information. In low context cultures, people often meet only to accomplish objectives. Since they do not know each other very well, they tend to be direct and focused in the communications.

  A. Elaborate:
  There are three degrees of communication quality: elaborate, exacting, and succinct. High context societies are elaborate style because they tend to have a moderate degree of uncertainty avoidance. There is a great deal of talking, description includes much detail, and people often repeat themselves. This elaborate style is widely used in Arabic countries. The exacting style is more common in nations such as England, Germany, and Sweden. Elaborate focuses on precision and the use of the right amount of words to convey the message. If a person uses too many words, this sis considered exaggeration; if the individual relies on too few, the result is an ambiguous message.
  The succinct is most common in Asia ( high context cultures) where people tend to say few words and allow understatements, pauses, and silence to convey the meaning. In particular, in unfamiliar situations communicators are succinct in order to avoid risking a loss face. Hodgetts, Richard, Cross Cultural Implications, Compensation & Benefits Review, March-April 1993.

  B. Contextual and Personal Styles:
  Context is the information that surrounds a communication and helps to convey the message.  Context plays a key role in explaining many communication differences. Personal styles may be indirect and direct styles such as the high context and low context communications, and elaborate and succinct.

  C. Affective and Instrumental Styles:
  Affective style is characterized by language which requires the listener to carefully note what is being said and to observe how the sender is presenting the message. The meaning that is being convey is usually non verbal and requires the receiver to use intuitive skills in deciphering what is being said. The part of the message that is left out may be just as important as the part that is being included. This style is common in collective, high context cultures such as Middle East ( Egypt, and Saudi Arabia), Latin America, and Asia ( Korea and Japan).
  In contrast, the instrumental style is goal oriented and focuses on the sender. The individual clearly lets the other party know what wants them to know.  This style is more commonly found in individualistic, low context cultures such as Switzerland, Denmark, Australia, Canada, and the United States.

  D. Interpretations of Communications:
  Effective communication often is determined by how closely the sender and receiver have the same meaning for the same message. If the meaning is different, effective communication will not occur. In China, for example, audiences to a class, conference, and so forth, listen very politely but if invite to ask questions and participate they will remain quiet. When people deal with other cultures, they often misinterpret the message and as a result they arrive to erroneous conclusions.

  Suggestions for communication:
  a. Use the most common words with the most common meaning.
  b. Select words that have few alternative meanings
  c. Strictly follow the basic rules of grammar and most so that native speakers.
  d. Speak with clear breaks between the words so that it is easier for the person to follow.
  e. Avoid using words that are esoteric or culturally biased such as “he struck out”,  “you betcha”, “watch out” or “the whole
      idea is Mickey Mouse”because this cliches often have no meaning for the listener.
  f. Avoid the use of slang.
  g. Do not use words or expressions that require the other person to create a mental image such as “we were knee deep in
      the Big Muddy”.
  h. Mimic the cultural flavor on the nonnative speaker’s language, for example, by using more flowery communication
      with Spanish speaking listeners than with Germans.
  i. Continually paraphrase and repeat the basic idea.
  j. At the end,   test how well the other person understands by asking the individual to paraphrase what has bee said.
  Maddy Jansen, Jeanne Brett, and Frank Smith, “Conformity Cross-Cultural Research: testing veracity of a
  Corporation-Wide Safety Policy,”Academy of Management Journal, June 1995.

      a. Downward and Upward Communications:
Downward communication is the transmission of information from superior to subordinate. It facilitates the flow of information to those who need it for operational purposes. In Asian countries, downward communication is less direct than in the United States. Orders tend to be implicit in nature. Conversely, in some European countries, downward communication is not only direct but extends beyond business matters.

      b. Communication barriers: language, perceptual, political, and interpretative.
Language barriers usually consists of lack of knowledge of the home country’s language and culture. When language is not clearly understand, is likely to make errors. The ability to speak the language is not enough, it is needed to be certain that the communication is clear. For example, Continental airlines’ logo is: “we do not just speak Spanish, we communicate in Spanish”. Written communication is more commonly used. Poor writing improves a greater barrier of poor talking. Language barriers are the main culprits of problems associate with translation.
Closely related to language barriers are cultural barriers. Nonnative speakers tend to exaggerate politeness, provide unnecessary personal and professional information, and made inappropriate requests of the other party. Americans are more blunt, tactless, and direct which may come out as insincere and rude.
Perceptual barriers deals with a person’s view of reality. How people see reality can vary and influenced the judgement and decision making. One way is that perception can be a problem. For example,  when one person uses words that can be interpreted differently by others in advertising. Failure to understand home cultural perceptions can result in disastrous advertising programs. For example, using religious symbols such as Baygon using the “Last Supper “in and add for rat killing poison in Spain, Ford, “Fiera” in Mexico where is meaning is ugly old women. Political miscommunication can be disastrous also when people misinterpret or use parochialism dealing with other cultures.

     C. Non Verbal Communications:
  Non verbal communications is the transfer of meaning through means such as body language and the use of physical space.
  Some common forms of non verbal communications are:
  a. Hand gestures, both intended and self directed (autistic) ,such as the nervous rubbing of hands.
  b. Facial expressions, such as smiles, frowns, and yawns.
  c. Posture and stance
  d. Clothing and hair styles ( hair being more like clothes than skin, both subject to fashion of the day).
  e. Interpersonal distance (proxemics).
  f. Eye contact and direction of gaze, particularly in the listening behavior.
  g. Artifacts and nonverbal symbols, such as lapel pins, walking sticks, and jewelry.
  h. Paralanguage 9though often in language, just as often treated as part of nonverbal behavior , such as speech rate,
      pitch, inflections, and volume).
  i. Taste, including symbolism of food and communication function of chatting over coffee or tea, and oral gratification,
    such as smoking or gum chewing.
  j. Cosmetics: temporary such a powder and perfumes and permanent such as tattoos and piercing.
  k. Time symbolism: what is too late or to early to call or visit, or too long or too short to make a speech or visit.
  l. Timing and pauses within verbal behavior.
    Source: J. C. Condon and F. Yousef, An Introduction to Cultural Communications (Indianapolis, IN: Bobbs-Merill, 1985.

  A. Kinesics:
   It is the study of communications through body movements, stances, gestures, and facial expressions. Primary areas of concern include eye contact, posture, and gestures. For example, when one communicates verbally with someone in the United Sates, it is good manners to look at to other person in the eye (oculesics which is communication through the eye contact). In some cultures, staring or maintain continuos eye contact is frown.

  B. Haptic:
   The use of tactical sensations or bodily contact to communicate nonverbally, such as touching and other tactile sensations. Gestures are also widely used and take many meanings. For example, Canadians hand shake hands, Japanese bow, Middle Easterners of the same sex kiss on the cheek, Latins embrace.

  C. Proxemics:
It is the use of space as means of communication such as walking, standing, seating, and movement distance. It is the way   people use physical space to convey messages and interact with others.
   There are four distances people use in communicating on a face-to-face:
   a. Intimate distance: Distance between people that used for very confidential communications.
   b. Personal distance: In communicating, the physical distance used for talking with family close friends.
   c. Social distance: in communicating, the distance use to handle most business transactions.
   d. Public distance: in communicating, the distance used when calling across the room or giving a talk to a group.
   Proxemic examples are when Americans are communicating with those from the Middle Easterners or South Americans is that the intimate or personal distance zones are violated. Americans often tend to be moving away in the interpersonal communication with their Middle Eastern or Latins counterpart, while the latter are trying to physically close the gap. Office space is another example of proxemics. In the US, the more important you are, the larger the office, and often secretary screen visitors, initiate calls. In Japan, most important managers have large offices, they spent great deal of time out of the office. Thus the Japanese have no problem communicating directly with their superiors. European have no walls between the space alocated to superiors and the subordinates.

  D. Chronemics:
   The use of time to communicate in a culture.
   There are two types:
   Monochromatic: is a time schedule in which things are done in a linear fashion. Issues are solve first A and then B. In this societies, time is very important and time is viewed as something that can be controlled and should be use wisely.  It is important to be on time, time is of the essence, time is valuable, additionally meeting not only start on time but end on time. In individualistic cultures such as the United States, U.K., Canada, Australia, and other Northen European countries, the culture adheres to monochromatic time.
   Polychromatic: A time schedule in which people tend to do several things at the same time and place higher value on personal involvement than getting things on time. It is common to start meetings and finish them late. Schedules are subordinate to personal relationships such as Latin America, Middle East and Africa.

  E. Chromatics:
   Communication of messages through colors. Every society uses chromatics, but colors mean one thing in the United States may mean something different in Asia or Africa. For example, in the United States it is common to wear black when one is mourning, while in some locations in India people wear white when they are mourning. In Hong Kong red is use for happiness or luck and traditional bridal dresses are red, in US brides wear white. In Asia people like colored shampoos because they like the shampoo to be the color of their hair because they believe different or lighter colors change the color of their hair.
   In the United States shampoos tend to be light colored because people see this as a sign of cleanliness and hygiene. In Chile a gift of yellow roses conveys the message of  “I do no like you” while in US is just the opposite. Knowing the importance of chromatics can be very helpful because it can avoid embarrassing situations. For example red roses in Peru romantic interest.