Culture and

International
Trade
Alizza Anne Asoque

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 What is culture?
• Culture is a term that has different
meanings.
• It can be defined as the socialization
process, in reference to the friends, the
education of parents and etc who play a
veritable role in the people's life.
• The key elements of culture for the
business world are: the language, the
religion, the values, the customs and the
history and each of them are important.
 Significance
• As companies continue to expand
across borders and the global
marketplace becomes increasingly more
accessible for small and large
businesses alike, the global
environment brings ever more
opportunities to work internationally.
 Basic Elements of Culture
The laws and
politics

The manners and Technology

customs

The values and Material Culture

attitudes
Major Elements of Culture
•The language

•The religion

•The education
Role of Culture in International Business
Culture's role in
International Business
can be as important as
the influence of tariffs,
legal regulations, and
competition

Failure to consider that

influence could ruin a
negotiation
Cultural Factors that
affect International
Business
1. Communication

2. Workplace Ethics

3. Organizational
Hierarchy
Communication
 Effective communication is essential to the
success of any business, but it is particularly
critical when there is a real risk of your message
getting “lost in translation.”

 While fluent English might give you a professional

boost globally, understanding the importance of
non-verbal communication between cultures can
be equally crucial in international business.

 Navigating cross-cultural communication can be a

challenge, but approaching cultural differences
with sensitivity and openness can help to put
everyone at ease.
Workplace Ethics
 Formality of address is a big consideration when
dealing with business partners from different
countries
 Asian countries use Mr., Mrs, or Ms.
 Americans and Canadians use first names

 Concept of Punctuality
 Americans may arrrive few minutes early
 Filipinos have this concept called “Filipino time”

 Working hours
 Asians view working long hours as a sign of
commitment
 Westerners may see this as inefficiency and lack of
time for personal time
Organizational Hierarchy
 Organizational hierarchy and attitudes towards
management roles can also vary widely between
cultures.

 Japanese traditions values social hierarchy, and

respect for seniority. This helps to define roles and
responsibilities across the organization. Those in
senior management positions command respect
and expect a certain level of formality.

 Scandinavian countries, such as Norway,

emphasize societal equality, and tend to have a
comparatively flat organizational hierarchy.