Agriculture Reference
In-Depth Information
Values and norms
. Needs and wants may vary between cultures. Acceptable behavior within
a culture refl ects the values held by that culture. Underdeveloped cultures may value
adequate food, clothing, and shelter. A more developed culture may take these items for
granted and may place high value on money, status, and civility. Even further, values
and norms can have defi nitive impacts on food and agribusiness fi rms. For example,
as societies become more affl uent, they become less concerned about whether there is
enough food (hunger and food security concerns) and more interested in how food
is produced (issues related to animal welfare, organic production, energy use/food
miles and sustainability).
Beliefs and attitudes
. All cultures have some interest in a “higher power” or the supernatural
as seen in their various religions. Attitudes toward oneself, others, and the world
also distinguish cultures. U.S. business philosophy assumes that people can substan-
tially infl uence and affect the future. Other cultures may believe that events will occur
regardless of what they do.
Mental process and learning
. Some cultures emphasize abstract thinking and conceptualiza-
tion while others prefer learning and memory. However, most cultures do recognize and
reward reasoning processes.
Work and work habits
. Work and success at work may be viewed differently in different
cultures. Work habits, attitudes toward work and authority, and how work is rewarded
and measured may all vary within a culture. Some cultures view success at work in
terms of the status of the position held within the company, while other cultures view
success in terms of the total income earned.
The international agribusiness fi rm must be sensitive to differences in cultures and make the
appropriate adjustments in their business approaches. The experienced agribusiness man-
ager will try to accept the values of the local culture and will seek to work within
the accepted behaviors. Adjustments, if necessary, by international agribusiness fi rms are
generally made in three categories:
•
Product adaptations
: Products may undergo modifi cations and/or the way products are
marketed may change.
•
Individual
: A manager who is overseas for the fi rst time must learn the local language
and make adjustments in dealing with people.
•
Institutional
: Hiring practices and organizational structure often must change when
working in a new country. For example, an agribusiness must take into account class
distinctions, different religions, or different tribes that may require adjustments in hiring
and placing people within an organization.
Exchange rate fl uctuations
Exchange rates
determine the worth of one country's currency relative to that of another
country. An example of an exchange rate is one U.S. dollar may be equivalent to 116
Japanese yen. This exchange rate will change and fl uctuate over time. Agricultural trade is
very sensitive to changes in the exchange rate relative to some other industries because agri-
cultural goods are more homogeneous (U.S. wheat and Canadian wheat are nearly perfect
substitutes). When the value of the dollar rises relative to other competitors' currencies, U.S.
agricultural goods become more expensive—and thus less competitive. Therefore, the export
