International Business
January 23, 2013
Question of the Day
Identify the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business
Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place
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“Attitudes are positive or negative evaluations, feeling, and tendencies that individuals harbor toward objects or concepts” (Wild). As the book mentions, attitudes are similar to values, these are formed according to a culture background and varies from country to country. Manners are knows as the appropriate ways of behaving, speaking, and dressing in a culture. Manners are something that could ruin a business meeting if they are not practiced in the right way according to the foreign country’s guidelines. Customs are habits or ways of behaving in specific circumstances are passed down generations (Wild). Examples from the book are: sharing foods gifts during the holy month of Ramadan, as is the Japanese tradition of throwing special parties for youth women and men who turn age 20. Social structure embodies a culture’s fundamental organization, including its groups and institutions, its systems of social position and their relationships, and the process by which resources are distributed. As in every country social structure are founded different and knowing to identify this aspect could help a company to know who to direct the product to. Religion is an aspect that influences countries which have strong religious believes. In one country many religious can be practiced. Some religious might find insulting some advertisement, logo’s, or even the product. Personal communication is a system everybody
International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.
It is very important to study the different elements of culture of the country. When consider China and India, being large countries, the cultural diversity is higher and varies with the geographical areas. In some cultures, the value systems and ethics will be critically affected on the business. Some businesses are almost impossible to start in some regions due to cultural factors such as religion and value systems. Particularly, in Chinese culture, collectivism plays a major role in decision making. Therefore, a thorough knowledge about the culture is necessary before going to start a business.
In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.
As you plan your itinerary, it’s important to note that you can only serve yourself and your clients better by researching the local business customs. Even different cities in the same country can prove to have a unique work cultures. A quick Internet search will produce numerous articles on the culture of your host country or city. If you are embarking on an international business trip, it’s important to remember these tips to assist in the success of your endeavors:
Beliefs, attitudes and values are three little words that have and make a massive impact on who we are as individuals, who we are as people, and even how the world is viewed by ourselves and others. A belief is something that individuals or groups think, such as believing in a god. Where a Value would be the living life in the ways a religion expects, this value will be made from the belief that the person or group has in their God. The attitude towards this would be the feelings, beliefs and behaviour tendencies towards this, for example praying, reading the holy book,
There are significant cultural differences between Japan and the United Kingdom that need to be taken into account when doing international business. There are also a number of methods and systems by which these differences have been described. These include the Geert Hofstede cultural dimensions, Trompenaars seven dimensions of culture and the Globe Project's cultural dimensions. This paper will discuss these differences and similarities, and shed light as to the best approach to international business in these countries.
An attitude are the long lasting beliefs, feelings, and behavioral responses towards social objects such as other people or issues (Attitudes and Behavior, n.d.). Attitudes can either be positive or negative.
Attitudes are thoughts that you have accepted as true and that lead you to think, feel, or act positively or negatively toward a person, idea or event. They represent an emotional readiness to behave in a particular manner. (Reece) Positive and negative attitudes affect how you work and how you influence other people around you. These attitudes can absolutely be changed though because we are not born with those attitudes. We form them as time passes, depending on the situations that we have been through. For instance, if you had a job where your supervisor was racist toward you, you would begin to form a negative attitude about supervisors thinking that all of them are going to be racist. Instead, you can change your attitude by thinking that not everyone acts the same way. A positive attitude can make a difference between an amazing life and a nonsense one. Therefore, a lot of people should try to change their attitude to a positive one.
Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum
Using appropriate theories critically analyse the role of culture in International Business. Support your answer by quoting relevant examples from the case study.
An attitude is an evaluation. As we said, attitudes are made up of thoughts, feelings, and behaviors. The attitudes we hold can influence how
Attitudes are the way someone communicates, behaves and interprets the message from others. This is when they will apply different generalities to specifically comprehend various groups (such as: stereotyping). These factors help them to analyze and interpret the meanings of numerous cultures / subcultures. In most cases, this can often lead to clashes with many people not fitting into these categories and using them to generalize about specific segments of society. (Deresky, 2011) (Sepehri, 2011)
This paper will provide an analysis of Steve Kafka’s decision to open and operate a Chicago-style pizza business in the Czech Republic (University of Phoenix, 2011). This analysis will include information on the cultural differences between the United States and the Czech Republic and how these differences may affect the business climate. This paper will also review potential risks in doing business overseas and what Kafka may be able to do to mitigate these risks. In addition, trade barriers and price structures will also be discussed.
In international business, the culture is very important and we can consider one fundamental element " the culture shock" where
As more businesses turn to international markets, professionals are discovering themselves in overseas locales, wheeling and dealing like never before. Thus to be successful working abroad, one must understand the different aspects of a culture and how the cultural dimensions play a role in business transactions, negotiations, and managerial positions. Once those differences and dimensions are understood a person must be willing to make personal adjustments and implement courses of action to accomplish acculturation. Consequently, our cultural intelligence, literacy, and communication abilities play a significant role in the success or failure of working internationally; furthermore, establishing credibility amongst colleagues.