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Chapter 7 Social Environment Facing International Business Learning objectives identify the social groupings and interactions that make up societies understand the social changes taking place in industrial, developing and transitional economies and their impact on business activities appreciate how social stratification systems in diverse societies affect the international business environment access the importance of social change in a variety of contexts relating to business, including the changing nature of work in the gender and family issues Text: Society and Business Introduction Types of society: the development of modern industrial societies Stratification in societies Changing populations Aging societies and implication for business Urbanism Labour relations Gender and work Families Introduction Social interaction and social relations are among the most basic of human activities. Within societies there may be numerous cross-cutting ties: religion, gender, age, race or ethnic grouping. Differences in the social environment from country to country have a direct effect on international business operations and, in particular, on business practices and consumer markets. Types of society: the development of modern industrial societies Industrial society and capitalist society Industrialization refers to the shift from human and animal power to machine production, in which energy was derived from inanimate sources. Major social changes brought about by industrialization, including urbanization, changes in the nature of work and changes in family life. Stratification in societies ‘Social stratification’ refers to this hierarchy of groups into which people in a society are classified. This classification may be rigidly institutionalized, as in caste systems; or it may allow for upward mobility, as in a capitalist class society. Social class is one of the key factors used marketers in understanding consumer behaviour. Changing populations Populations are not
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