Bus301 Final Report

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Culture

Culture is the behaviors and beliefs characteristic of a particular social, ethnic, or age groups. Culture

rules virtually every aspect of our life and like most people, we are completely unaware of this.

Culture is vital because it enables its members to function with one another without the need to

negotiate meaning at every moment. Culture is not fixed for whole life, it can be learned, can

changed, can be removable but this is so important because a group of people of a particular

culture can work together for each other very easily. In 1970s, the anthropologist Edward Tylor

defined as that complex whole which includes knowledge, belief, art, morals, law, custom and

other capabilities acquired by man as a member of society. Culture is an unavoidable part of

every society. It is a learned pattern of behavior and ways in which a person lives his or her life.

It is Significant for the existence of a society, because it ties people together. In the broader senseof the term, culture constitutes the music, food, arts and literature of a society. However, these

are only the products of culture followed by the society and cannot be defined as culture. It

affects our every aspect of daily life, how we think and feel, how we learn and teach, or what we

consider to be right or wrong. However, most people are unaware of their own culture until they

experience another. In fact, we don't usually think about our culture until somebody violates a

culturally-based expectation or we find ourselves in a situation where we have the feeling that

we violated somebody else's cultural expectations. Culture is necessary to establish an order and

discipline in the society. It is not only means of communication between people but also creates

a feeling of belonging and togetherness among people on the society. According to Hofstede, G.

(1984).National cultures and corporate cultures. In L.A. Samovar & R.E. Porter (Eds.),

Communication Between Cultures. Belmont, CA: Wadsworth.

"Culture is the collective programming of the mind which distinguishes the members of one

category of people from another." (p. 51).

Values and Norms:

Every country has their own unique types of cultures. Values are shaped by the culture in which

we live and by our experiences. There are values that are held high by most cultures. These

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include fairness and justice, compassion and charity, duties and rights, human species survival

and human well-being. Values are not just abstract concepts, they are invested with considerable

emotional significance. Members of the society can die for their values.Again Peoples actions

which are governs by the rules of society in any given situation known as Norms. Norms differs

widely across different cultural groups. Here we can say, Americans, for instance, maintain fairly

direct eye contact when conversing with others. On the other hand Asians, may avert their eyes

as a sign of politeness and respect. Norms can be classified into two major sectors: Folkways and

Mores. Folkways are standards of behavior that are socially approved but not morally

significant. They are norms for everyday behavior that people follow as maintaining tradition.

Breaking a folkway does not usually have serious consequences. People considered them as ill-

mannered but they are not strange or bad. We can say that if a Hindu person enters into the

Mosque for any reason, people will take it as breaks of folkways. On the other hand, in Mores

are norms of morality. Members of a particular society must maintain the Mores. Itsmust for

them. They get punished for avoiding Mores. It considered as a serious issues and it has great

significance than folkways. In Mores we can say it can be like theft, adultery, incest etc. Its also

varied from country to country. Like In Bangladesh alcohol is not accepted but in America

alcohol is widely accepted. Members of a culture must practice norms which is legal for the

culture to exist and function. Hence, members must want to act and obey rules. They first must

internalize the social norms and values that what is normal for their culture.

Culture, Society and The Nation State

Culture can be changed for external factors or by living of mixed different cultures people

together. We can see that, in a country different cultures people lives and working together. So

that a country people can observe different types of festivals and other applications. In our

country we can see their lives Muslims, Hindus, Buddhist, Christians, someother Tribes in hilltracts. So its mixed with different cultures. Same Cultures members generally live together in

society. In Arab Societies there are also two sub-groups: the Shiittes in the south and the Sunnis

in the middle of the country. There is also another sub-divisions in Arab societies. Same thing

also can be observe in America cultures. There many different society peoples lives in America

with their own different cultures.

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The Determinants of Culture

The importance of the socio-cultural aspect in the life of the business is very noticeable, they are

the guidelines of the firm to make a success entry in international market. If the business wants

to meet the tastes and needs of every client, then they should know all about culture. The cultureof a country is important and the business should respect it. In return, the people will give the

business the proper credit on it. The essence of knowing the socio-cultural on the country is that

the business can establish the limitations and make alternatives out of the traditional way. The

components of culture are language, religion, values and attitudes, aesthetics, law and political,

technology and material culture, education, social organizations, religion. There are several

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cultural and social forces that influence a consumers perception, attitude and understanding to a

given product or communication and so affect the way a consumer behaves in the behaves in the

buying process. In terms of the socio-cultural environment, there are a number of factors that you

will need to consider. These are:

Aesthetics

A culture's aesthetics refers to its ideas concerning good taste and beauty as expressed in the fine

arts - music, art, drama and dance - and in the appreciation of color and form. Insensitivity to

aesthetic values can not only lead to ineffective advertising and package design for products, it

can also offend prospective individuals.

Aesthetics also embrace people's dress and appearance, for example their outward garments and

accessories. Distinctive national clothing, for instance, includes the Japanese kimono, Dutch

clogs, and the Englishman's bowler hat

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Education

The process of acquiring knowledge, developing the ability of judgment, and preparing oneself

for mature life is known as education. Education has often been considered as synonymous to

instruction, i.e. the imparting of knowledge and information. Education, in the true meaning of

the word, is something quite different, something that is much more inclusive, and that in a

certain sense, even has the opposite meaning. Instruction means to infuse, to put something in

that is lacking, and to fill. The meaning of the word education is to bring to light what is

hidden, to render actual what is only potential, to develop.`

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Technological Forces

If you take a look at the people that you see around you, what do you notice? Is there something

different about the way we talk, act, or carry on our business? One thing you may notice when

observing society today is that almost everyone you see can be found using some form of the

latest technology. Whether it be something as simple as a cell phone, or something as trendy as a

tablet pc; anywhere you look in today's society, you are bound to find someone attached to their

favorite high-tech gadgets. With this being said; has technology changed the face of society and

the culture of humanity forever?

It seems as if only yesterday, it was a luxury to own such a fine piece of technology, such as a

laptop. The much bulkier models of yesterday were not as convenient as the condensed versions

we know today as net books. A cell phone was something hard-wired into your vehicle, only

accessible in emergency situations and the subscription fee attached to the service was highly

overpriced. Now, owning a cell phone is more like a necessity that most people cannot livewithout and most laptops fit conveniently into any purse or briefcase, and in some instances, can

even fit easily in your back pocket!

Instead of talking to each other; people are texting instant messages back and forth over a

cellular frequency. Parents that work in another part of the country and soldiers at war for the

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sake of our freedom and national security are tucking in their children over the World Wide Web

on live video conferences. The way people communicate with each other has totally changed in a

way our ancestors would have never imagined. Beginning with crude pictures of the stars and

sky carved into the damp walls of some ancient cave; to get a message through to our friends and

business colleagues, we now send words through time and space, itself!

Technology may have changed the culture of the world for the better and has totally changed the

way society acts and functions in a number of ways. However, we must also look at the negative

ways that technology has affected our society as well.

Language

Language is central to the expression of culture. Within each cultural group, the use of words

reflects the lifestyle, attitudes and many of the customs of that group. Language is not only a key

to understanding the group; it is the principal way of communicating within it.

A language usually defines the parameters of a particular culture. Thus if several languages are

spoken within the borders of a country, that country is seen to have as many cultures. In Canada,

for instance, both English and French are spoken; in Belgium, French and Flemish; while in

South Africa there are 11 official languages with a number of other African languages also

spoken by the population. In addition, there are often variations within a language - different

dialects, accents, pronunciations and terminology may distinguish one cultural group from

another, e.g. English-speaking South Africans, the British, Americans and Australians.

The importance of being able to understand other languages cannot be over-emphasized - this is

particularly relevant when executives travel abroad and are negotiating with people of different

language groups. Because English is the predominant language of business in the western world,

people with English as a home language are usually reluctant to learn foreign languages and tend

to expect others to converse with them in English. In contrast, European and Far Eastern

businesspersons have been willing to learn and converse in the language of their trading partners,

leading inevitably to a better understanding and better rapport between the parties concerned. If

exporters do not speak the language of the country they plan to visit, they should at least

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establish the extent to which their own language is spoken there and, if necessary, engages the

services of an interpreter during discussions or negotiations.

If promotional material needs to be prepared in a foreign language, it is important to ensure that

none of the meaning is lost or distorted when the information is translated. Thus, translations

should be undertaken within the country concerned or at least by a native of the country in

question.

Legal Characteristics

Political, legal and regulatory forces are closely intertwined in most countries. A countrys legal

and regulatory infrastructure is a direct reflection of a countrys political

climate. Political climate and political officials directly affect legislation and

regulation. Elected industry officials also set the tone for a nations regulatory

environment. A nations political system, laws, regulatory bodies, special

interest groups, and courts all have great impact on international marketing. A

governments attitude toward importers has a direct impact on the economic

feasibility of exporting to that country. For example In Bangladesh RULES OF

BUSINESS, 1996 is followed, when you go for a business you have to obey

these rules.

Social Organization

Social organization refers to the ways in which people relate to one another, form groups and

organize their activities, teach acceptable behavior and govern themselves. It thus comprises the

social, educational and political systems of a society.

The exporter's ability to communicate depends to some extent, on the educational level of the

foreign market. If the consumers are largely illiterate, advertising materials or package labels

may have to be adapted to the needs of the market. In this regard, however, a company marketing

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baby food in a certain African country put the picture of a smiling child on the outside of the jar.

The local resident assuming there were preserved babies inside, avoided the product! In addition,

there are unspoken signals which identify cultural differences, from certain taboos to less

obvious practices like the time taken to answer a letter. In some societies, for instance, an

important issue is dealt with immediately; in others, promptness is taken as a sign that the matter

is regarded as unimportant, the time taken corresponding with the gravity of the issue.

In a culture where great importance is attached to the family unit, promotional efforts should be

directed at the family rather than the individual. The size of the family unit differs from one

culture to another. It can range from the nuclear family, i.e. mother, father, and children, to the

extended family which includes many relatives and whose role is to provide protection, support

and economic security to its members. In the extended family, characteristic of developing

countries, consumption decision-making takes place in a larger unit and purchasing power

patterns may be different from those evident in western cultures.

In any society, certain occupations carry more prestige, social status and monetary reward than

others. In India, for example, there is a strong reluctance amongst people with university

education to perform 'menial' tasks using their hands, even answering the telephone. In many

countries, including France, Italy and Singapore, financial independence is considered essential

for occupation-related prestige. In Japan, however, the majority of university-educated

professionals tend to prefer working for large multinational firms than for themselves.

Social organization is also evidenced in the operation of the class system, e.g. the Hindu caste

system and the grouping of society members according to age, sex, political orientation, etc.

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Religious Beliefs

A religious system refers to the spiritual side of a culture or its approach to the supernatural.

Western culture is accepted as having been largely influenced by the Judeo-Christian traditions,

while Eastern or Oriental cultures have been strongly influenced by Buddhism, Confucianism,

Taoism and Hinduism. Although very few religions influence business activities directly, the

impact of religion on human value systems and decision-making is significant. Thus, religion

exerts a considerable influence on people's actions and outlook on life, as well as on the products

they buy. In certain part of the world, such as Latin America, the influence of religion extends

even beyond the individual or family and is manifested in a whole community's deep

involvement in, and devotion to, the church.

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A society's religious belief system is often dependent on its stage of human or economic

development. Primitive tribesmen tend to be superstitious about life in general while people in

technologically advanced cultures seem to have dismissed the notion of traditional religious

worship and practice in favor of a more scientific approach to life and death.

To disregard the significance of religious beliefs or superstitions evident in a potential export

market could result in expensive mistakes.

Attitudes and Beliefs

Attitudes are psychological states that predispose people to behave in some specific ways.

Attitudes may relate with work, wealth, achievement, change, the role of women in the economy,

etc.

In Western cultures, for example, value individualism and promote the importance of autonomyand personal achievement needs. In contrast, in many eastern and developing countries, there is a

strong sense of collectivism and the importance of social and security needs. For instance, the

Hindu religion imparts a type of work ethic that considers work central to one's life but maintains

that it must be performed as a service to others, not for one's own personal achievement.

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Stereotypes are sets of attitudes in which one attributes qualities or characteristics to a person on

the basis of the group to which that person belongs. An international businessperson's tendency

to judge others by his or her personal and cultural standards instead of attempting to understand

others in the context of their unique historical, political, economic and social backgrounds.

Material Culture

Material culture relates to the way in which a society organizes and views its economic activities.

It includes the techniques and know-how used in the creation of goods and services, the manner

in which the people of the society use their capabilities, and the resulting benefits. When one

refers to an 'industrialized' or a 'developing' nation, one is really referring to a material culture.

The material culture of a particular market will affect the nature and extent of demand for aproduct. Whereas a luxury item, such as a sophisticated piece of computer hardware, may have a

ready market in a country such as France, demand for it may be non-existent in a developing

country which is hampered by inadequate facilities and/or foreign exchange shortages. The

material culture of a country may also necessitate modifications to the product. Electrical

appliances, for example, may have to be adapted to supply for differences in voltage levels. To

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illustrate this: the United States operates under a system of 110V in contrast to South Africa's

220V. Alternatively, weights and measurements may have to be converted to those applicable in

the importing country. Material culture can also have a significant effect on the proposed

marketing and distribution strategies. While highways and rail transport are the principal means

of moving goods within the United States, rivers and canals are used extensively in certain

European countries. If the company is planning to develop a manufacturing operation in a

foreign market, aspects such as the supply of raw materials, power, transportation and financing

need to be investigated.

Values

Values are judgments regarding what is valuable or important in life, and they vary greatly from

one culture to another. People who are operating at a survival level will value food, shelter and

clothing. Those with high security needs, on the other hand, may value job security, status,

money, etc. From its value system, a culture sets norms, for example: acceptable standards of

behavior.

SpaceThe concept of space is different wherever one goes. In western corporate culture, the size and

location of an executive's office is usually determined by his level of seniority in the company.

The locality and size of an Arab business executive's office, on the other hand, are a poor

indication of the person's importance.

Conversation distance between two people is learned early in life - almost completely

unconsciously. A western business executive, conditioned to operating within a certain amount

of personal space, may feel uncomfortable or alarmed at the closeness and physical contact

displayed in the Middle East or Latin America, for example.

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TimeTime also has a different meaning in each country. Western cultures tend to perceive time in

terms of past, present and future. They are orientated towards the future and in the process of

preparing for it; they save, waste, make up or spend time.

In South Africa, giving a person a deadline is a way of indicating the degree of urgency or

relative importance of the work. In the Middle East, however, time does not usually include

schedules and timetables. The time required to get something accomplished depends on the

relationship. With South Africans, the more important an event is, the earlier it is planned, which

is why last minute invitations are often regarded as an insult. In planning future events with Arab

businesspersons, it is often advisable to keep the lead time to a week or less, because other

factors may intervene and take precedence.

Socio-cultural Analysis

To be able to construct the socio-cultural analysis, it best to start it with a research to gather the

cultural intelligence. The cultural intelligence can be used effectively in determining the

information about the socio-cultural or lifestyle in the certain area. It will also determine the

reasonable action in the sense that it can be used in decision-making. In addition, the cultural

intelligence includes perspective, theory, and method derived from the social and behavioral

sciences.

Having the cultural intelligence also means of the capability to adapt effectively to new cultural

contexts and proposes constructs for recognition, motivation, and behavior.

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Identifying the business and economic implications of differences in culture

International business is different from national business because countries and societies are

different because their cultures vary. Their cultures vary because of profound differences in

social structure, religion, language, education, economic philosophy and political philosophy.

Three important implications for international business flow from these differences. The first is

to develop cross cultural literacy. The second is culture and competetitive advantage and the

third one is the connection between culture and ethics.

Cross-culture literacy:

One of the most problems faced by the company that goes abroad to expand their business for

the first time. Because first of all knowing the countrys practices is must otherwise how the

company would attract customers towards them? Doing business in different cultures requires

adaptation to conform to the value systems and norms of that culture. Before conducting

business in a completely new culture the main condition is to adopt the culture of that country in

the companys organization so that the company can easily hire the countrys local employees,

labors and also by understanding their practices they can have new deals. There is always danger

of being ill-informed about the new country. To come out of this danger it should be always in

mind all the time that what works in one culture might not work in another culture. It must also

be ensured that the executives are expert enough or well trained to understand the cultural

differences. Transferring executives overseas at regular intervals to expose them to different

cultures will help build a cadre of cosmopolitan executives. An international business must also

be constantly on guard against the dangers of ethnocentric behavior. Ethnocentrism is a belief in

the superiority of ones own culture. For example: according to anthropologist Edward T Hall

that how Americans tend to be informal in nature, react strongly to being corrected in public.

This can cause problem in Germany where a culture tendency toward correcting strangers can

shock and offend most Americans. For their part Germans can be a bit taken aback by the

tendency of Americans to call everyone by their first name. This is uncomfortable enough among

executives of the same rank, but it can be seen as insulting when a young and junior American

executive addresses an older and more senior German manager by his first name without having

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been invited to do so. Business people in Germany and Britain are very conscious about

scheduling time and are quickly irritated when their time is wasted because they talk about time

as though it were money that can be spent, saved and lost. On the other hand in Arab, Latin,

Mediterranean cultures, time has a more elastic character. Ethnonocentrism is a fact of life, on

that international business must be on guard against.

Culture and competetitive advantage:

One thing that continually is being focused and that is, the relationship between culture and

national competitive advantage. In simple word the value systems and norms of a country

influence the costs of doing business in that country. The cost of doing business in a country

influences the ability of firms to establish a competitive advantage in the global marketplace. It is

must be focused on the attitude towards cooperation between management and labor, work and

the payment of interest are influenced by social structure and religion. To describe the link we

have to go through some sociologists with their opinion in Protestantism and Confucianism.

Religion may be defined as a system of shared beliefs and rituals that are concerned with the

realm of the sacred. Most of the worlds ethical systems are the product of religions. The

relationship among religion, ethics and society is complex. Four dominate in terms of numbers of

adherent: Christianity with 1.7 billion adherents. Islam with 1 billion adherents, Hinduism with

750 million adherents and Buddhism with 350 million adherents. Here the relationship between

culture and competitive advantage is discussed with the opinion of sociologist by Protestantism

and Confucianism. First of all we have to know about Protestantism. Christians are divided into

three beliefs the Catholics, the Orthodox and the Protestants. According to Max Weber

Business leaders and owners of capital, as well as the higher grades of skilled labor, and even

more the higher technically and commercially trained personnel of modern enterprises are

overwhelmingly Protestant.

Weber theorized that there was a relationship between Protestantism and the emergence of

modern capitalism. He argues that Protestant ethics emphasize the importance of hard work and

wealth creation (for the glory of God) and frugality (Abstinence from worldly pleasures).

According to Weber Protestants work hard and systematically to accumulate wealth. However

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their ascetic beliefs suggested that rather than consuming this wealth by including in worldly

pleasure, they should invest it in the expansion of capitalist enterprises.

Some scholars maintain that Confucianism may have economic implications as profound as

those Weber argued were to be found in Protestantism. The basic thesis is that Confucian ethics

may help explain the economic success of China, Japan, South Korea and Taiwan because it

lowers the costs of doing business in those countries. In this regard, three values central to the

Confucian system of ethics are of particular interest: loyalty, reciprocal obligations and honesty

in dealings with others.

Connection between culture and ethics in decision making:

Many of the ethical issues in international business are rooted in the fact that political systems,

law, economic development and culture very significantly from nation to nation. What is

considered normal practice in one nation may be considered unethical in another. Because they

work for an institution that transcends national borders and cultures, managers in multinational

firms need to be particularly sensitive to these differences. In the international business setting,

the most common ethical issues involve employment practices, human rights, environmental

pollution, corruption and moral obligation on Multinational Corporation.

Employment practices:

When work conditions in a host nation are clearly inferior to those in a multinationals home

nation, what standards should be applied those of the home nation, those of the host nation or

something in between? While few would suggest that pay and work conditions should be the

same across nations, how much divergence is acceptable? For example: like Apple in the 1990s

Nike found itself the center of a storm of protests when new reports that working conditions at

many of its subcontractors were very poor.

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Human rights:

Questions of human rights can arise in international business. Basic human rights are not still

respected in many nations. Rights that we take for granted in developed nations, meant freedom

of association, freedom of assembly, freedom of movement, freedom from political repression

and so on , are by no means universally accepted. One of the most obvious historic examples of

South Africa during the days of white rule and apartheid that did not end until 1994. Several

western businesses started to change their policies in the late 1970s and early 1980s. For example

General Motors that had significant activities in South Africa was at the forefront of this trend.

General Motors adopted what came to be called Sullivan Principles, named after Leon Sullivan a

black Baptist minister and a member of General Motors board of directors.

Environmental pollution:

Ethical issues arise when environmental regulations in host nations are inferior to those in the

home nation. Many developed nations have substantial regulations governing the emission of

pollutants, the dumping of toxic chemicals, and the use of toxic materials in the workplace and

so on. Those regulations are often lacking in developing countries. For example: Bangladesh is

one of the countries.

Corruption:

Corruption has been a problem in almost every society in history and it continues to be one

today. There always have been and always will be corrupt government officials. International

business can and have gained economic advantages by making payments to those officials. For

example: in the 1970s Carl Kotchian the president of Lockheed, made a $ 12.5 million payment

to Japanese agents and government officials to secure a large order for Lockheeds TriStar jet

from Nippon.

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Moral obligation:

Multinational corporations have power that comes from their control over resources and their

ability to move from country to country. Although that power is constrained not only by laws

and regulations but also by the discipline of the market and the competitive process, it is

nevertheless substantial. However some multinationals have abused their power for private gain.

The most famous historic example relates to one of the earliest multinationals. The British East

India Company. Established in 1600, the East India Company grew to dominate the entire Indian

subcontinent in the 19th century.

Cultural Differences In Business & WorkplaceCultural differences are when differences in race, ethnicity, language, nationality, religion, and

sexual orientation are represented within a community. The community can be a country, region

or city. Cultural differences have become a hot-button issue when applied to the international

business.

Why does cultural difference matter? People from different races, etc. have different life

experiences. This flavors their interpretation of events. These differences can bring strength to

the group if it is valued and integrated into the group dynamics. However, it can take time, intent

and the willingness to be open-minded and non-judgmental about the value the differences bring.

It definitely takes effort to make cultural diversity strength.

Cultural differences can also weaken a group. Differences in interpretation of events can lead to

miss-communication, awkwardness and hostilities if not addressed. Prejudices about people of

different backgrounds can also lead people to jump to conclusions and misinterpret actions and

behaviors. Sometimes it can be seen that a profit making business from one country goes down

in another country by default.

It is illegal for employers to discriminate against employees based on their cultural differences.

The Equal Employment Opportunity Commission (EEOC) promotes equal opportunity and

handles complaints about workplace discrimination. In some country laws have been made to

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prohibit discrimination in the workplace for: age, disability, national origin, race, religion, and

gender. However, sexual orientation and gender identity are not protected by Federal law.

Relationship between cultural differences and international business:

Cultural differences should be kept in mind, while embarking on an international business

venture. Understanding cultural differences would help an entrepreneur forge 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.

Role of the Government and Bureaucracy

This is an important factor that is often overlooked by 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 practicein 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.

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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,

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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.

Factors that affect business communication:

Customs

When doing business with an affiliate from another country, consider the cultural differences that

may be presented. This includes basic customs, mannerisms and gestures. For example, if a

salesperson approaches a meeting with knowledge of a customers cultural background, then his

words, body language and actions can all be adapted to better suit those of the customers. This in

turn may lead to being better liked by the customer, ultimately increasing the salesperson's

opportunity to close the deal.

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Simple gestures can mean different things for people of different cultures, and can affect business

communication

Target Audience

When launching a marketing campaign or advertising to members of a different culture, always

research the target market prior to beginning the campaign. Levels of conservatism, gender

views and ideologies can vary greatly between cultures. Presenting a campaign that is not in line

with specific cultural norms can insult the target audience and greatly hinder the campaign.Being aware of cultural norms can also help company to narrow down the target audience. For

instance, in Japan and Austria, men usually are in control of decision making, but women make

the majority of purchasing decisions in Sweden.

Technology

Due to globalization, people from various cultures and countries increasing conduct business

with each other. Technology enables people to easily connect with people around the world in a

moment's notice, but there are a few rules to remember before doing so. If making an

international phone or video conferencing call, one must be conscious of the time zone

differences and make sure to set a reasonable time for all involved parties to interact. It is

important to remember that cultural differences can also affect availability. For instance, just

because one party schedule a conference call for the middle of the business day does not mean

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that the time will be favorable for the people they are conducting business with. Many Spanish

cultures have longer lunch breaks than Americans are accustomed to, which means there may be

a two- to three-hour time period during the day in which the person you would like to meet with

is unavailable. Asking for availability prior to making the call is the best way to avoid any

confusion. Once it is able to connect, speaker must be clear and slow.

Politics

Political influences, both past and present, can potentially affect the way a person or company

does business. Some cultures have a very strong sense of nationalism and government pride, and

therefore, are more comfortable and willing to purchase from companies with some sort of

government backing. Conducting business with those of differing cultures can also impact

negotiations if there are on-going political disputes between the involved parties' countries of

origin. To avoid conflict, it is best to avoid discussing any political matter that does not directly

pertain to the business at hand. This is also true for inter-office interactions.

Culture in international business:The art of business has evolved as globalization has set disparate businesses cultures of the world

on a collision course. Emerging economies have begun to integrate the business cultures of

traditional powerhouse nations into their businesses, and they have been leaving traces of their

own culture wherever they go. The impact of cultural differences on business communication has

widespread implications from corporate boardrooms to employee break-rooms and small

business owners can benefit from gaining an understanding of the eccentricities of all cultures to

which they are exposed.

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Cultural diversity affects workplace communication in powerful ways

In this business world, communication is imperative for the successful execution of daily

operations. Understanding cultural differences and overcoming language barriers are some of the

considerations people should have when dealing with business with people of various cultures.

Often business deals are lost because the parties involved did not take the time to learn about

their each other's cultures prior to interacting.

International Business Communication

In the past, it may have been commonplace for entrepreneurs and corporate managers to develop

their own unique communication style for dealing with customers, business partners and

suppliers. Today, however, managers must take the time to study the cultural eccentricities of

their business counterparts before attempting to make contact with people in other countries or

from other subcultures. The Texas oil tycoon, for example, has to understand that grabbing his

Chinese partner's hand in a firm handshake is not a good idea but that a slight bow and smile are

the appropriate form of greeting. Verbal communication and body language are more important

than ever in international business dealings because innocent hand gestures, mannerisms or even

posture can cause a rift between culturally diverse business partners. The diversity of culturally

distinct managers has been melding slowly as globalization and Westernization give managers

extensive experience in different cultures.

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Cultural Influences

There are some obvious ways culture influences an international business:

The way how we present ourselves

How we express opinions Assumptions based on the environment and context Perceptions of voice, and other personal physical details

When someone works inside an international company, he/she learn to adapt to these cultural

differences. They stop interfering with communication.

Cultural Conflict within a Company

Some people may think that conflict within an international company is a result of the

confrontation between cultures. Although cultural personality issues and misunderstandings do

happen, it is difficult to identify how culture influences teamwork within a company in

international business. Most people learn to adapt to the different cultures and this enhances

personal growth, interpersonal relations and intercultural interactions. And this is where there

may be differences in an international company and a company that is not international. Most of

the employees in an international company will be at a comparable level of personal growth.

They will have similar interpersonal and intercultural skills. And in a company that is not

international, there could be wider differences in these areas.

Influence of values by cultural differences in workplace:

Cultural differences in some way are beneficial to an organization and its employees. It can

improve creativity and business image and increase recruitment and marketing opportunities.

When companies take cultural differences seriously by assessing their competency and creatingdiversity plans, they can reap benefits. Business thrives on productivity and employee interaction

with customers. The more productive a company is and the better its customers service, the

more income that it generates. Productivity is measured by the output of employees. No other

factor influences productivity and customer interaction more than how the employees feel about

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their job. Those emotions are heavily mired on the culture in the workplace. This culture is

generally cultivated by the management team.

Broad Service Range

Having a diverse employee population brings expertise in multiple languages, cultural

knowledge and experiences that can connect with a broader customer base which is very much

beneficial in international business.

Variety of Viewpoints

The multifaceted points of view, ideas and experiences of employees from various backgrounds

bring richness to an organization that allows for creativity and productivity.

Challenges

Simply acknowledging differences among employees does not make a diversity program.

Managers and organizational leaders must put forth sincere effort in assessing their effectiveness

in this area and creating strategies to make adjustments and improvements.

Communication

While diverse communication patterns and values benefit an organization, they can also be

barriers to communication among employees. Thus, the organization must work to overcome

these barriers.

Resistance to Change

Employees steeped in the mindset "we have always done it this way" may be resistant to the

creation of diversity plans or policies. By including the resistors at every stage of the policy

planning and development process, companies can overcome this challenge.

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Development of Economic and business implications to cultural change

Cultural changes and transformations are taking place in different parts of the world over time.

Where there was question of the capability and acceptance of womens participation in the

business world in developed countries like USA, now-a-days the percentage of their participation

increases enough though still tough for them to reach at top. Modern Urbanization and the

improvements in the quality and availability in education gradually lead to the economic

progress and that make the declining emphasis on the traditional values associated with poor

rural societies. People are coming out with their innovative ideas and spreading out their own

individualistic successes. The interdependency among people associated with politics, economy

or business is reduced. Hereby, the countries like Russia, China or Japan who believed incollectivism are more likely moving away from it and emphasizing towards individualism. It is

really a fact that when a country gets richer economically, the need for social and material

support disappears.

Modern concept of Globalization now refers to the growing economic interdependence among

countries with increased cross-border flow of goods and services or capital. Hence global

business is attached with the flows of information, technology, money, and people all over the

world. With advantages of low wages and cheap labor, many western entrepreneurs or firms set

up their businesses in developing countries like ours and they faces cultural clashes during their

full operation of any global business here. The problem arises when the underdeveloped labor

forces and management cannot cope up with the terms that are not associated with each of their

own cultural standard.

Understanding the dynamic multi- level culture explains how culture at different levels is

being shaped and reshaped by changes that occur at other levels, either above it through top-

down processes or below it through bottom-up processes.

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Clear assumption on individual behavior results in the innovations and affects the surrounding

units and all the members of the unit share the same core values. Groups that share similar values

create the organizational culture through the process of interactions, and local organizations that

share similar values create the national culture that is different from other national cultures.Accommodating these cultural values shift from traditional values to modernization in the global

culture that helps to understand the people with whom we deal international business.

Convergence of the culture paves the way to the global firms where International Business

related practices would indeed become increasingly similar. It is really important to catch-up the

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local cultures and try to be like a part of that culture in order to capture and sustain own

production being like local business firms in the market. One of the most problematic issues a

firm faces in the global business is being ill-informed about the norms and values of the culture

of other countries. The way of negotiation, name of products or services, relations between

management and labor, structure of organization or the product promotion policies etc. varies in

different culture which is why Cross-Cultural Literacy is so important to master. Employing

local citizens would help them do any business in any particular culture. Besides, exchanging

overseas employees would develop the understanding and adaption of diversified cultures in the

international business arena. But one thing that should be avoided is the ethnocentric behavior of

any ethnic group.

Anthropologists Edward T.Hall admits the necessity of cross-cultural literacy making an

interesting example of the German people. Without invitation or close relationship, it can be

insult or overfriendly and rude to call an old German by his/her first name within very short time

of acquaintance by young one. Americans are used to by calling everyone with first name but it

can offend Germans. Moreover, Americans are informal in nature as sensitive to being corrected

in public. These types of cultural perception affect the international business.

Another Economic factor Competitive Advantage has very close relationship with the culture.

Any cultural value system or regulation can change the cost of doing business in any country and

cost of doing business is the basis of being competitively advantaged in the global market.

Besides, religious values or social class system of any particular culture may bring industrial

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disruption if there is any class-based conflict between management and labor. A country based

on process-innovation or entrepreneurial activity and technological advancement has more

competitive advantages with minimal price reducing strategy over the country that also has cost

reducing process with mass productivity using most skilled labor or engineers. With the

differences in culture, the choice of business strategy depends. It is obvious lets assume when a

firm is deciding whether to expand their business between country X and Country Y. Here both

countries are at similar economic conditions and have low labor costs and good access to world

market. But if the Country X is underdeveloped, social class system is there with several local

languages, and then it is better to do business in Country Y where there is no socio-economic

class system and have one language. By this choice, there would be no possibility of conflict

among management and labor or between different language groups. Here we see, the cultural

factors have great impacts on how the business can be set up globally and to what extent any

business can get competitive advantages over others. So the adaptation of the cultural change is

important to reduce the divergence of the culture.

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References

http://www.justice.qld.gov.au By Kimberly Amadeo,( author ) www.about.com Guide By David Ingram, Demand Media ( author ) By Cynthia Gomez, eHow Contributor ( author ) www.assetanswers.com www.wikipedia.org
http://www.justice.qld.gov.au/http://useconomy.about.com/bio/Kimberly-Amadeo-22286.htmhttp://www.googleadservices.com/pagead/aclk?sa=L&ai=CBX8NqIRmUMTrLIfGige9kYDIApzX_5wElJuxrVDAjbcBEAEgqYmtBlD31Nir-f____8BYDOgAZzGgNsDyAEBqAMBqgSFAU_QJmzcHkLyGMOLJXe_Z5dPiP16aNqBiP8zZ1sDU4GVgkLQgTe5aIBYobphQl4_U2LL58HUJqg8sZAZpIq6LmKWdZxz7nHp1_ixGypvO5omo7HntpHvCsHp7O_CoeHFWmIU3EzcKTTjeo7gjw5eQtfz7-bMc_4EsNHi8J1lIrvVj-KtOqKIBgE&num=1&cid=5GjUI8BHk3vI-ccAT8i5C0xy&sig=AOD64_1dT5e4eRop2Tco8SlOsK7bQC_Y7A&client=ca-ehow_300x250&adurl=http://www.assetanswers.com/ten_reasons.asphttp://www.googleadservices.com/pagead/aclk?sa=L&ai=CBX8NqIRmUMTrLIfGige9kYDIApzX_5wElJuxrVDAjbcBEAEgqYmtBlD31Nir-f____8BYDOgAZzGgNsDyAEBqAMBqgSFAU_QJmzcHkLyGMOLJXe_Z5dPiP16aNqBiP8zZ1sDU4GVgkLQgTe5aIBYobphQl4_U2LL58HUJqg8sZAZpIq6LmKWdZxz7nHp1_ixGypvO5omo7HntpHvCsHp7O_CoeHFWmIU3EzcKTTjeo7gjw5eQtfz7-bMc_4EsNHi8J1lIrvVj-KtOqKIBgE&num=1&cid=5GjUI8BHk3vI-ccAT8i5C0xy&sig=AOD64_1dT5e4eRop2Tco8SlOsK7bQC_Y7A&client=ca-ehow_300x250&adurl=http://www.assetanswers.com/ten_reasons.asphttp://www.wikipedia.org/http://www.wikipedia.org/http://www.wikipedia.org/http://www.googleadservices.com/pagead/aclk?sa=L&ai=CBX8NqIRmUMTrLIfGige9kYDIApzX_5wElJuxrVDAjbcBEAEgqYmtBlD31Nir-f____8BYDOgAZzGgNsDyAEBqAMBqgSFAU_QJmzcHkLyGMOLJXe_Z5dPiP16aNqBiP8zZ1sDU4GVgkLQgTe5aIBYobphQl4_U2LL58HUJqg8sZAZpIq6LmKWdZxz7nHp1_ixGypvO5omo7HntpHvCsHp7O_CoeHFWmIU3EzcKTTjeo7gjw5eQtfz7-bMc_4EsNHi8J1lIrvVj-KtOqKIBgE&num=1&cid=5GjUI8BHk3vI-ccAT8i5C0xy&sig=AOD64_1dT5e4eRop2Tco8SlOsK7bQC_Y7A&client=ca-ehow_300x250&adurl=http://www.assetanswers.com/ten_reasons.asphttp://useconomy.about.com/bio/Kimberly-Amadeo-22286.htmhttp://www.justice.qld.gov.au/

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