Cultural Differences in International Business

CULTURAL DIFFERENCES IN INTERNATIONAL BUSINESS. Cultural differences should be kept in mind, while embarking on an international business venture.
Understanding cultural differences would help an entrepreneur form the necessary business ties by observing correct business etiquette. Starting a business outside the geographical boundaries of a country requires assessing a number of factors. Drawing up a business plan, assessing demand and supply, applying for loans and grants, getting permits and licenses and deciding on the location of the business are important issues that preoccupy the entrepreneur. Very often, an entrepreneur focuses only on the technical aspects and ignores the cultural aspects of a business. A good business plan is useless, unless people believe in the success of the plan and are willing to do business with the entrepreneur. This is when cultural differences gain prominence. An entrepreneur who is unaware of the differences in intercultural communication will find it exceedingly difficult to communicate with potential suppliers and buyers and foster relations, that are necessary for any business.
Relationship between Cultural Differences and International Business Role of the Government and Bureaucracy: This is an important factor that is often overlooked by American entrepreneurs, who expect minimal government intervention in the affairs of the private sector. Generally, in developing countries the government plays an important role and as a consequence the private enterprise has to deal with red tape and bureaucracy. In fact, even in case of a few industrialized countries, the government and the private enterprise maintain close ties. For instance, it is a common practice in France, for retired government officials to occupy positions of responsibility in a private company. In case of South American countries, administrative complexity and bureaucracy are common problems that are encountered by an entrepreneur. Business Meetings: The duration of the business meetings is generally long in Asian and South American countries. Whereas, in the U.S., meetings are short and to the point. Most business decisions in Asian and South American countries are taken after a lot of deliberation. Despite this, strict schedule is rarely drawn and disbursed. In Japan, business ethics demand punctuality; while being well-prepared and getting the facts right is important in Germany. One should avoid setting up meetings well in advance, in case of South American countries, since there are frequent changes in schedule. Again, French business firms rely on long-term plans; while South American firms prefer short-term plans.
Communication: In some countries, written communication is important; while others give preference to verbal communication. In Argentina and Brazil, verbal communication is very important. In France and Germany, written communication is desired. French lay great emphasis on
grammatically correct communication; while Germans expect the business communication to be precise. Humor is often used in office communication in both Australia and the U.S., unlike Germany, Japan and China. In the U.S., excessive modesty is neither appreciated nor desired; but in case of Asian countries, modesty is essential. Diplomacy is the key to good communication in Britain.
Seniority, Meritocracy and Decision-Making: Seniority is given a great deal of importance in the Asian countries; while meritocracy is important in countries like U.S., Australia and Germany. In France, a combination of seniority and meritocracy determines the promotions and importance of the individual in the organization. One should not assume that the senior-most person has the authority of making business decisions. This is especially true, in case of South American countries, where the decision-making rules are not strictly defined. Even in an industrialized country like Britain, many times, authority and responsibility may be unclear, since the job descriptions are not precise.
Gifts and Personal Favors: Gifts and favors are common, in case of Asian and South American countries; unlike the U.S., where there are strict rules regarding exchanging favors within an organization. While Americans feel that gifts and favors affect impartial decision-making capacity, in Asian countries exchanging favors is a way of life.
Appreciating the cultural differences and making a conscious effort to adapt to the ways of a country is necessary for any flourishing business. Even seemingly unimportant practices in some countries, might assume a great deal of significance in others. For instance, in some countries, taking too much interest in the personal affairs of the subordinates may be considered rude; whereas, in a few Asian countries, it is expected, and the employees might disapprove if the employer maintains a strictly formal relationship. Of course, one cannot hope to master the minutia of cultural differences, but can hope that a sincere apology will go a long way in smoothing the bumps along the path to cultural orientation.
Impact of Culture on an International Business There are many things like culture, economy, politics, etc. that impact the working of international businesses in today's world. Read on to know about the impact of culture on an international business. When the two aspects of human society, culture and business, interact with each other, it leads to the development of interesting conditions or scenarios. When different cultures converge at a common point with business as the platform, the clashes are bound to take place. But most importantly, such a scenario helps us adapt to challenging situations.
Different communities or countries in the world follow different mannerisms and
etiquette. The way or view to see a problem might change from country to country, across the globe. The international business culture, as a whole, is a congregation of various business practices, cultural influences and the thought processes followed in different nations. In this article we will discuss the impact of culture on an international business which can be seen in mannerisms, communication, and many such things. Body Language Every nation has a separate culture; a part of which is reflected in the behavior and the body language of the people. In an international business, understanding the undercurrents beneath the mannerisms or gestures become necessary. There are chances that behavior might get misinterpreted by people from different cultures. Thus, it requires a skilled coordinator to handle challenging situations during meetings. Communication The way of communicating could be different in different cultures. The terms used by some might sound harsh to others. The way in which words are pronounced to impact the intercultural communication in the corporate houses. In fact, it is one of the major hindrance in the process of business communication.
Time People from Britain and Germany are keen on following the time-bound schedule. The different 'time-cultures' might be the reason behind clashes, between people from diverse cultures. The way in which the boardroom meetings are handled, is also a reason behind differences in opinions. Corporate houses from western countries stick to the schedule during meetings. They get down to business in an outright manner. Other cultures may differ in this aspect of business. The marketing executives sent for international assignments, are bound to face problems in dealing with the corporate cultures of that particular country. Understanding a foreign market and formulating the company policies to cater to the need of international clients is a challenging job. Skilled professionals possessing the quality called 'empathy' are able to deliver the goods in such cases. With today's businesses entering a 'globalized' world, the interaction between different cultures is bound to happen. Merely learning different languages, won't be enough. It is necessary for corporate houses to understand the social conditions of different countries, to successfully tap the respective markets. Being sensitive to the values and beliefs of different cultures of the world, is necessary.
International businesses are not only a way of making profits by the exploitation of
international talent, but also a bridge between different nations of the world. Tomorrow's world will rely more on a symbiotic relationship between international businesses and cultures as a whole.
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Ms.K.Shalini,M.B.A. D/O Shri.T.Kanakajyothi is working as ASST.PROFESSOR in our college.
PRINCIPAL

Cultural Differences in International Business

Uploaded by

Copyright:

Available Formats

Cultural Differences in International Business

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Read this document in other languages

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cultural Differences in International Business

Uploaded by

Copyright:

Available Formats

CULTURAL DIFFERENCES IN INTERNATIONAL BUSINESS. Cultural differences should be kept in mind, while embarking on an international business venture.

Different communities or countries in the world follow different mannerisms and

TO WHOMSOEVER IT MAY CONCERN

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.