Dr. Balbir B. Bhasin
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Dr. Balbir B. Bhasin. BUS 300 International Business Culture. What is Management?. “Management is a form of work that involves coordinating an organization’s resources - human and capital – to accomplish organizational goals.”. Levels of Management.

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Bus 300 international business culture

Dr. Balbir B. Bhasin

BUS 300

International Business Culture


Bus 300 international business culture

What is Management?

“Management is a form of work

that involves

coordinating an organization’s

resources - human and capital –

to accomplish organizational

goals.”


Bus 300 international business culture

Levels of Management

  • 1. Top management

  • 2. Middle management

  • 3. Supervisory management


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    Functions of Management

    • Planning

    • Organizing

    • Staffing

    • Leading

    • Controlling


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    Roles of a Manager

    Interpersonal - leader, figurehead,

    liaison

    Informational - monitor, disseminate,

    represent

    Decisional - allocate resources,

    negotiate,

    problem solving


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    Management Skills

    Conceptual skills - decision making,

    planning, organizing

    Human relations skills - understand people,

    motivating, collaborating

    Technical skills - able to get a particular

    job done


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    What is International Management?

    “Process of developing strategies,

    designing and operating

    systems, and working with

    people around the world

    to ensure sustained

    competitive advantage”


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    What is International Business?

    • “Profit related activities

  • conducted around national

  • boundaries, ever changing”.


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    What are the variables affecting the

    management function?

    • National variables - economic system,

    • legal system, political system

    • Socio-cultural variables - religion, education,

    • language

    • Cultural variables - values, norms, beliefs

    • Attitudes - work, time, individualism,

    • materialism

    • Response - motivation, productivity, ethics,

    • commitment


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    End


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    Chapter 2

    Culture & International Business


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    What is Culture?

    • Set of commonly held values

    • A way of life of a group of people

    • Includes knowledge, belief, art, morals,

    • law, customs and habits

    • Everything that people have, think and do

    • as members of their society

    • An integrated system of learned

    • behavior patterns that are characteristic

    • of the members of any given society


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    Cross Cultural Myths

    • Myth One:We really are all the same

    • Myth Two: I just need to be myself and

    • everything will be okay

    • Myth Three: I have to adopt the practices

    • Of the other culture to succeed

    • (Adapt rather than adopt)


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    US Values & Possible Alternatives

    • Beliefs - control vs. destiny

    • Change - action vs. accept

    • Attitude - practical vs. dreams aspirations

    • Approach/work ethic - hard work vs. luck

    • Promises - keep vs. perhaps

    • Time - depends on priorities

    • Obligation -company or family

    • Employment - short term vs. lifelong

    • Meritocracy - best person vs.

    • Other considerations


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    Stereotypical American

    (as seen by people of other countries)

    • Inconsiderate of other people’s cultures

    • Racially prejudices

    • Ignorant of other countries

    • Shallow, immature, naïve

    • Violent, aggressive

    • Generous, forgiving

    • Always in a hurry

    • Outgoing, friendly

    • Informal

    • Loud, rude, boastful

    • Hard working

    • Arrogant, proud, insensitive

    • Innovative

    • Extravagant, wasteful,

    • Confident they have all the answers


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    Culture is Learned

    • “Culture is transmitted through

    • the process of learning and

    • interacting with one’s environment

    • rather than through the generic

    • process”

    • Primary Socialization

    • Cultures and Subcultures

    • Secondary Socialization


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    Culture Universals

    • Common problems and common features

    • Economic systems

    • Marriage and family systems

    • Educational systems

    • Social control systems


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    Cultural Change

    • All cultures experience continued change

    • Cultural change is a selective process

    • Cultural change through borrowing

    • Cultural change through innovations

    • Cultural diffusion


    Ethnocentrism

    Ethnocentrism

    Ethnocentrism

    • Tendency for people to

    • behavior by their own standards

    • The belief that own culture is superior

    • All people in all societies are ethnocentric

    • to some degree

    • Ethnocentrism can contribute to prejudice


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    End


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    Chapter 3

    Communicating across Cultures

    Languages


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    What is Communication?

    • Process of sharing meaning by transmitting

    • messages - words and behavior”

    • Critical factor in cross cultural management

    • Need for effective communication to: give

    • information, share ideas, give orders, and to

    • motivate

    • Interpersonal issues: leadership, motivation,

    • group interaction, negotiation


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    Barriers to Effective Communications

    • Semantics - different words have different

    • meaning to different people: fix, fag, shag

    • Jargon - technical terms

    • Acronyms and Abbreviations - culture,

    • military

    • Perception - interpreting information,

    • distortion

    • Emotions - breakdown in communication


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    The Need to Understand Language

    • There is a close relationship between

  • language and culture

    • 2.Language is a precondition to success

  • in international business

    • Languages helps in understanding

    • culture

  • 4.Second language is first step to learning

  • third and fourth language

    • 5.Learning other languages helps us

  • appreciate our own language (and culture)


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    What is Language?

    • Language is “a symbolic code of

    • Communications

    • Meanings attached to any word are

    • totally arbitrary

    • Major languages of the world are:

  • Mandarin, Spanish, English, Bengali,

  • Hindi, Portuguese, Russian, Japanese,

  • German, Wu


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    The Influence of Culture on Language

    • The vocabulary of a language depicts

    • what is considered important in that

    • culture

    • Industrialized societies have more

    • Technological terms

    • Example: 7 words for bamboo in South

    • India but none for snow


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    The Influence of Language on Culture

    • Language influences perception,

    • categorization and worldview

    • Language reflects values of the group

    • Example “individualism” in the US – so

    • many words pertaining to “self”

    • In Japan. “we” always comes before the

    • “I” indicating the “collectivist” approach


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    Language Key Points for Business

    • The US is the only country where business

    • people don’t think its necessary to learn a

    • foreign language

    • Is it easier to speak or understand a foreign

    • language?

    • Comprehension is a function of speed

    • Is it easier to speak or write a foreign

    • language?

    • Is there an international language of

    • business?


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    Avoiding Misunderstandings Across

    Language Barriers

    • Recognizing the symptoms: blank stares,

    • unnatural stopping points in conversation,

    • feeling of “not connecting”

    • What to do: explain the message in several

    • different ways, use visual aids, slow down,

    • avoid slang and idiomatic expressions, listen

    • to the other person’s entire message…don’t

    • assume anything, keep good notes, follow up


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    High Context vs. Low Context Cultures

    Low context cultures: task oriented,

    communication is specific, elaborate, direct

    and unambiguous. Swiss, German, American,

    French, British

    High context cultures: based on relationships,

    rely on communication that is: indirect,

    ambiguous, nonverbal, and the context.

    Japanese, Chinese, Arab

    In between: Italian, Spanish, Greek


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    End


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    Chapter 4

    Communicating across Cultures

    The Nonverbal Dimension


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    Function of Nonverbal Communication

    • Helps convey feelings and emotional states

    • Elaborates on verbal messages

    • Governs the timing and turn taking

    • between communicators

    • Concerns:

    • 1, Same nonverbal cue carries different

    • meanings in different cultures

    • Different nonverbal cues carry the same

    • meaning in different cultures


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    Nonverbal Cues

    • Facial expressions (smiles, frowns)

    • Hand gestures

    • Posture

    • Touching

    • Scents or smells (perfume)

    • Color symbolism

    • Clothing, hairstyles, cosmetics

    • Artifacts (jewelry, fly whisks)

    • Graphic symbols

    • Silence


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    Non- verbal Language

    • Touching – U.S. vs. Latin America

    • Space – U.S. vs. Japan

    • Queues: U.S. vs. China vs. Britain vs. Japan

    • Dress – U.S. vs. Europe vs. Japan

    • Silence – U.S.: a gap that must be filled

      • - Japan – preferable to conversation


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    Nonverbal Language

    • Eye Contact: intermittent in U.S., Intense,

    • Unbroken in Arab countries, Very little in

    • Japan

    • Para Language: um, er, ah, hai

    • Smiling,

    • Head movements: Bulgaria, India

    • Arm Movements: Italy vs. Japan

    • Posture: U.S. vs. China

    • Handshakes


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    Cultural Variables

    • Stereotyping - assuming that all have same

    • attributes

    • Language - literal or poor understanding

    • Kinesic behavior - posture, gesture, facial

    • expression, eye contact

    • Oculesics - behavior of the eye during

    • communication

    • Proxemics - effect of proximity and space

    • Paralanguage - how something is said

    • Time – mono-chronic or poly-chronic

    • Context - in which the communication

    • takes place


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    Proxemics

    • Distance preferred by middle class US:

    • Intimate distance - body contact to 18”

    • Personal distance -18” to 4 feet

    • Social distance - 4 feet to 12 feet

    • Public distance- 12 to 20 feet


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    How to Manage Communication Effectively

    • Develop cultural sensitivity - be aware of self

    • and the other!

    • Careful encoding - use proper words, gestures

    • Selective transmission - use proper medium

    • Careful decoding of feedback - careful

    • interpretation of message

    • Seek feedback - ask, verify, follow-up


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    Greetings

    • “When you shake hands, look them straight

    • In the eye and give ‘em a good firm grip”

    • Asia Mid East: gentle handshake

    • Mexico/Latin America: palm slip/grasp thumb

    • Never shake hands with a woman in the

    • Middle East and parts of India

    • Staring at someone is intimidating and

    • disrespectful in many areas of the world,

    • especially Japan

    • Slight bows are appreciated in Asia

    • Presenting business cards?


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    Touching

    • Touch: Middle East, Latin America, Italy,

    • Greece, Spain/Portugal, Russia

    • Don’t Touch: Japan, U.S., England,

    • Scandinavia, Northern Europe, Australia

    • Middle Ground: France, China, India


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    Hands/Eyes/Arms/Feet

    • Where to place hands when eating?

    • US: Beneath table

    • Europe: On top of table

    • Eyes: “Closed” in Japan indicates concentration

    • Eyelid pull in France and England

    • Arms: Folded arms – universal defensive

    • posture

    • Hands on hip – aggressiveness in Asia,

    • along with finger pointing

    • Feet: Remove shoes in Japan, India, Asia

    • Do not show the soles of shoes in the

    • Middle East


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    End


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    Chapter 5

    Contrasting Cultural Values


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    Hofstede’s Value Dimensions

    (IBM data collected on 100,000 individuals in 40 countries)

    Power distance - extent to which subordinates

    accept authority

    Uncertainty avoidance - threatened by

    ambiguous situations, prefer formal structure,

    feel safe and secure

    Individualism vs collectivism

    Masculinity - assertiveness, materialism

    Femininity - concern for society, others


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    Trompenaar’s Findings

    Obligation - universalism, pluralism

    Emotional in relationship - neutral, affective

    Involvement in relationship - specific, diffuse

    Legitimization of power and status –

    based on achievement and competency

    or based on position, age or education


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    Five Universal Problems

    • Human nature orientation: innately good

    • or bad?

    • 2. Man-nature orientations: mastery or

    • harmony?

    • 3.Time orientation: past, present or future>

    • 4.Activity orientation: individual’s

    • accomplishment or personal traits?

    • 5. Relational orientation: individualism or

    • collectivism?


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    Cultural Dimensions

    • Individual-Collective dimension: the self

    • first or the community?

    • 2.Equality-Hierarchy dimension: differences

    • in power or status or equality?

    • Tough-Tender dimension: what is success-

    • material comforts or relationships?

    • Uncertainty-Avoidance dimension: the

    • need for un-ambiguity and predictability

    • of the future?

    • 5.Time dimension: tight or loose?


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    Time Dimension

    Single Focus (American Western Europe,

    Industrialized Asia): one task at a time; meet

    deadlines, “Let’s get to work”, “Time is

    money”

    Multi Focus (Southern Europe, Latin America,

    Middle East): Simultaneous tasks, completion \

    of task based on strength of relationship,

    delays are expected, commitments are not

    Written in stone


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    Environment Dimension

    Control Cultures (Western Societies): “Go for

    it”, “Life is what you make it”, “The future can

    be planned for”

    Harmony Cultures (Asian Cultures): “Don’t

    rock the boat”, “Go with the flow”

    Constraint Culture (Latin America, Middle

    East): “It’s a matter of fate”, “You take what

    life gives you”


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    Action Dimension

    Doing Cultures (American):

    “God helps those who help themselves”

    “If at first you don’t succeed, try again”

    “Who are you?” Answer with job title

    Being Cultures (Latin America, Africa,

    Middle East, Southern Europe):

    “Who are you?” Answer with family

    description or philosophical outlook


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    Competitive Dimension

    Competitive Cultures (U.S., Western Europe,

    Hong Kong, Mexico, Argentina, Japan):

    “Winner takes all”

    “Predominantly materialistic”

    “We live to work”

    Cooperative Cultures (Scandinavian

    Countries, Some Latin Countries, Some

    European Countries, Parts of Asia):

    “We’re in this together”

    “We work to live”


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    Individualistic and Collectivist Cultures

    Individualist: USA, UK, Italy, Scandinavia,

    France, Germany

    Intermediate: Israel, Spain, Japan, Argentina

    Collectivist: Brazil, Turkey, Mexico,

    South America, Much of Asia.


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    End


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    Chapter 6

    Negotiating Across Cultures


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    Negotiations

    • “a process between two or more parties aimed

    • at reaching a mutually acceptable agreement”

    • Goal - to bring about a win-win situation

    • where all parties benefit

    • Process: preparation, relationship building,

    • exchange of task related information,

    • persuasion, concession and agreement.


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    Variables in the Negotiation Process

    • Competitive process or problem solving

    • approach?

    • How negotiators are selected - best qualified?

    • How are persuasive arguments presented?

    • Rational or emotional?

    • Motivations? Personal, family, company,

    • country?

    • Ability to take risk?

    • Decision making process - individual or

    • collective?

    • Trust - handshake or legal document?


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    Effective Strategies for International

    Negotiators

    • Concentrate on long term relationships

    • Focus on interest behind the positions

    • Avoid reliance on cultural generalizations

    • Be sensitive to timing

    • Remain flexible

    • Prepare carefully

    • Learn to listen

    • Be patient!


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    Eight Recommendations for Success

    In Global Negotiations

    • Do pre-work with the other side if possible,

    • possibly using cultural go-betweens

    • Develop a strategy to deal with the language

    • barrier

    • Use visual aids extensively, but check with

    • cultural expert

    • Be prepared for long negotiations

    • Decide on strategy for obtaining a written

    • agreement, where acceptable

    • Know your walk away point

    • Avoid ethnocentrism


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    Confrontation

    • Expect less confrontation in high context,

    • collectivist cultural settings

    • But, face is more important within the

    • culture than outside it

    • “Disrespectful” out-of-group behavior

    • does not carry as many social issues

    • as the same behavior within the

    • cultural group

    • Agents or third parties can be helpful when

    • confrontation may be expected


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    End


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    Chapter 7

    Coping with Culture Shock


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    What is Culture Shock?

    It is the “unpleasant consequences

    of experiencing a foreign culture”

    Results in:

    confusion, surprise, disgust,

    panic, rejection, loss of self-esteem,

    and inability to function effectively


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    Manifestations of Culture Shock

    • Homesickness

    • Boredom

    • Withdrawal

    • Irritability

    • Marital stress

    • Stereotyping

    • Hostility

    • Inefficiency

    • Physical un-wellness

    • Depression


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    Process of Adjustment: 4 Stages

    • Honeymoon stage: unrealistically positive

    • feelings and approach

    • Irritation and hostility: problems arise and

    • become insurmountable

    • Gradual adjustment: Passing of crisis

    • and gradual recovery

    • Biculturalism: Full recovery and ability

    • to function effectively in both cultures


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    Minimizing Culture Shock

    • Choose to stay at home and not enter IB

    • Select the IB arena where adjustment

    • can be made more easily

    • Have a realistic understanding of issues

    • and likely problems

    • Learn cross cultural coping skills –

    • language, religion, history, social

    • environment

    • 5.Approach issues as opportunities to

    • learn and grow


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    Monochronic People

    • Do one thing at a time

    • Concentrate on the job

    • Take time commitments seriously

    • Are low context and need information

    • Show great respect for private property,

    • seldom borrow or lend

    • Are accustomed to short term relationships


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    Polychronic People

    • Do many things at once

    • Are highly distractible and subject to

    • interruptions

    • Consider time commitments an objective

    • to be achieved, if possible

    • Are high-context and already have info

    • Borrow and lend things often and easily

    • Have tendency to build lifetime

      • relationships


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    End


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    Chapter 8

    Developing Global Managers


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    Global Management Goals

    • Maximize long term retention of

    • international managers so that company

    • can develop a top management team with

    • global experience

    • Understand, value and promote role of

    • women and minorities in order to maximize

    • underutilized resources, and

    • 3.Work effectively within local labor laws


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    The Need to Develop Global Managers

    • Difficult to control geographically

    • dispersed operations

    • 2.Need for local decision making independent

    • of home office

    • 3.Suitability of managers from alternative

    • sources


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    Staffing Alternatives

    • Ethnocentric staffing - fill staff position

    • from HQ

    • 2.Polycentric staffing - local managers,

    • host country nationals

    • 3.Global staffing - recruiting the best

    • within and outside the country

    • (transpatriates)

    • 4.Regio-centric staffing - from the region


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    Training Global Managers

    • Area studies - history, geography, politics,

    • economy

    • 2.Language training

    • 3.Sensitivity training

    • 4.Field experiences )host family, immersion)

    • 5.In-country training


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    Developing Skills for Global Managers

    • Communications skills

    • Personality traits

    • Motivation

    • Family circumstances

    • Cross cultural training


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    Managing Process for Global Managers

    • Preparation

    • Adaptation

    • Repatriation - reverse cultural

    • shock

    • 4.Transition - mentor program


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    Developing Global Management Teams

    Objective - “how to develop and empower

    intercultural groups and task forces at all

    levels of an organization to achieve set goals.

    Synergy advantages: different perspectives,

    share experiences, share technology

    Disadvantages: language problems,

    different management styles, complex decision

    making process


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