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Sample Essay on Cultural Factors Affecting International Business

Cultural Factors Affecting International Business

International business can attribute all it success to the gradual evolution of globalization. As the international business broke many boundaries, the development of Multinational Corporations [MNCs] strengthened and enhanced penetration in the globe. These are companies that have a worldwide approach to markets and production or with extraordinary operations in other countries. Most of these companies have been successful, but culture shock in many nations has impacted their operations in one way or another. International businesses have to face many cultural differences which are crucial challenges to their operations.

Culture is made up of many different elements that have been passed from one generation to another. These elements include experiences, religion, art, ideas, mores, knowledge, belief systems, laws and others. Some of the aspects of culture are visible and they include the way people in different nations dress or their eating habits whereas other features of culture are invisible and they include beliefs surrounding the role of family, significance of religion and the way people think or feel about certain issues.

The invisible elements of culture have most influence on how people view the world and what taking part in every nation. Consequently, they use the same aspects to view the approaches of operation of the international business and evaluate whether it has any impact to their lives or not. In a sense, there different ways through culture affects the international business.  Understanding the significance of culture and the many roles it plays in the lives of many people in the world, more so in the foreign markets can determine the success of a business venture.

Culture determines the kind of decisions an international company has to make, how to properly interact with clients, the kind of strategies to embrace and how to suitably localize a business venture via the internet. To succeed in the global market level, there are numerous cultural factors to keep into consideration always, and they include;

  1. Languages- Communication is imperative in the international world business.  It can be quite off-putting and challenge to conduct any business negotiations in languages that both parties do not comprehend. Even with literal translation, it can be challenging to promote products in such as way. Many times, this results to anger or ridicule as physical gestures vary from one country to another.
  2. Tastes- Culture helps shape preferences of color and tastes of different people. At all times, a foreign business should appreciate local customs and sense of taste. The company can use these preferences to modify their products to satisfy the needs of the targeted audiences.
  3. Religion- Different countries have varying religious beliefs and every international company should respect them to top. Religion impacts peoples [customers] values or attitude on different products available in the market.
  4. Negotiations- Different countries have different ways of tackling negotiations and foreign managers and CEOs need to adapt to them. Every company should come up with clear goal, style or exhibit certain attitude while making negotiations.

For international business to be successful it is wise to also consider practices such as bribe, nepotism and gift-giving as they make most of the deals successful. Culture has great power in the business world. This power can create an insensible matrix of pictures and ideas that have exceptional impacts on international business. Failing to put culture into consideration can led to loss of credibility from customers, negative public responses and loss of revenues.

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