Professional Documents
Culture Documents
is known to be extremely complex and dynamic and is known to have a significant impact on
every single element, party, and authority of society. Culture is also known to be making a major
the international level can contribute to providing new opportunities for business that can be
exploited to initiate growth and earn more amount of profit. However, it is important to note that
it is not an easy task and is affected by several challenges and risks that must be dealt with by the
business to be successful in the international market. One such challenge is the barriers of
culture.
Definition of Culture
and communication patterns that impact its business operations, decisions, and relationships.
Culture is essential in international business because it influences how multinational and cross-
cultural teams interact and collaborate. It dictates the business world’s values, etiquettes,
1. Personal Challenges
When we come across cultural differences and are unable to recognize and deal with
Anxiety and stress are common reactions for people new to working in a foreign
culture. When people find themselves confronted with difference, they feel
For example, decision making may be impaired or people may withdraw from others,
The ‘Culture Shock’ experienced by many expatriates who move abroad is a very
for an extended period of time into a culture markedly different from their own.
2. Cognitive Challenges
Working with people from different cultures can present considerable cognitive
challenges.
Cognitive challenges relate to how we think, process information and essentially how
Two simple examples of this are the concepts of time and relationships.
Some cultures place a high value on time, others don’t. If you come from a culture
in which ‘time is money’ and you find yourself working with a culture in which it
isn’t, your cultural norms can result in you making bad decisions.
or even disrespectful. They don’t appreciate that in the culture they are working
In reverse, those cultures that are a lot more flexible with their approach to time
can see the time-conscious professionals as rigid and materialistic, which ties in
orientated.
3. Pragmatic Challenges
Doing business with people from different cultures can also affect the more
All of us have specific ideas as to what is the good or bad way to conduct a job
not necessarily translate into other cultures, which can cause challenges.
For example, the simple act of eye contact can cause several practical challenges.
What happens when you have a culture that sees eye contact as a sign of confidence
and engagement interact with one that sees eye contact as rude? If the two parties are
unaware of this there can be several consequences such as a lack of trust, poor
cause challenges in the workplace. What happens when you have a manager who is
used to a more hands-off leadership style, whereby they leave their team to their job,
come into a country where the management style is much more authoritative and
directive? They can come across as weak and unqualified. And if it is was the other
way around, the manager would be seen as a controlling leader who doesn’t trust their
team to do anything.
Language
cultural understanding.
At present the world has nearly 7,000 active languages, including over 2,000 in Africa
and Asia.
Language is a function of the environment. The concept and meaning of a word are not
universal, even though the word can be translated into another language.
The Japanese word “muzukashii”, for example, can be variously translated as “difficult,”
“delicate,” or “I don’t want to discuss it,” but in business negotiations it usually means
Communication
Effective communication is essential to the success of any business venture, but it is particularly
critical when there is a real risk of your message getting “lost in translation.”
spoken words.
They tend to be in northern Europe and North America, which place central
around the bush,” and agreements are concluded with specific, legal contracts.
care and respect for others; careful not to embarrass or offend others.
In Japan, superiors are given favored seating as a show of respect, i.e., farthest
Social structure
Social structure is the basic component of a social system. Relations, regulation, financial
system, faith and group of all belong to the communal framework.
The notion of social stratification is that society is separated into different levels. The
different regions have the different social structures which urge business people to adopt
In the Middle East, people think highly of relationships, such as family members, tribe
members, network members and close friends. Family and extended family are the
fundamental social unit throughout society and the dominant force in every relationship.
The Middle Eastern area also has the strong hierarchy. Not only can the top-man make
the important decisions for everyone in the family or organization, but also his authority
cannot be challenged. The top man in the firm can control and manage everything.
In America, people who come from different places with different background respect
each other and accept the diverse cultures and values. Hierarchy is not obvious in
America. People advocate individualism and emphasize individual freedom and personal
achievement. The American workers are not prone to accept the concept of administrative
privileges; the employees generally consider that the bosses are the same with me.
Therefore, in the United States, the relationships between employees and managers are
more equal and harmonious, which make employees achieve personal values.
Religion
Religion is something that influences all aspects of life up to the maximum extent. From
eating habits to clothing style and from internal feelings to once personality, religion
For example, Muslims female followers are easily recognized by their hijaab. Hijaab is
like scarf that is used to cover head, etc. in Muslims, exposing body, hair and other parts
is not allowed at all. Similarly Christians can be identified as most of them wear cross
sign lockets.
Hinduism, and Confucianism are the four dominant religions in world. Religion affects its
For example, the Protestant ethic emphasizes individual hard work, frugality and
achievement as ways of glorifying God. The Protestant ethic insists people should
possess the virtues of having high savings rates, constant struggling for efficiency and
For international business, different religions have their own customs and rules according
to different countries. The business people should respect these religions. Due to religious
female status
staff’s religious needs
misunderstanding on God.
religious tradition is that the female cannot be seen in public. Women should be covered
from head to foot and cannot go out in their own. Of course, they are not allowed to
work. Therefore, Female executives of Western firms have to face the great obstacle in
this place. People definitely do not work with women. The different religions have the
Values/Attitudes
Values are people’s views about what is right and wrong and what is important in life.
Attitudes relate to people’s actions, feelings and thoughts for work, life and society.
In the international business, the differences of values and attitudes can determine
whether the foreign companies are accepted by the local markets and influence
finding themselves confronted with diverse ethical issues. Moral values, which are
taken for granted in the home market, may cause some questions as soon as
For example, attitudes toward race and gender in the Western countries may
Similarly, in developed countries, the law strictly regulates employees’ working hours
and relevant wages, whilst in some developing countries; employees always work
beyond their working hours and do not get the relevant wages.
businessman, it is tough to judge the right and wrong of these different values and
attitudes. Businessman should adjust to the rapidly changing markets and insist on the
National Relationships
The history between two nations may influence the international business. Due to
historical reasons such as wars, aggression and abruption, the domestic citizens
boycott the products from that countries which they dislike.
For example, Japan once invaded South Korea many years ago, which leads to
Korean boycott Japanese companies and products. Many old and traditional citizens
believe that buying Japanese products is unpatriotic. These values and attitude are
formed for a long time which seriously influences the sale and competitive
competencies.
The relationships between two governments also may impact international business. If
between two countries is more convenient and mutually advantageous. Citizens are
For example, a few years ago, China and France had some conflicts. France
intervened in the internal affairs of China, which made Chinese people so angry. They
boycotted Carrefour in China, which made Carrefour suffer the crisis. Therefore, the
external factors, such as history, politics may impact individuals’ values and attitudes