Cultural Differences Of Business Practices

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With increasing economic globalization recently, there are more opportunities for business but yet brings some challenges because stakeholders become more geographical diverse and the market is bigger than before. Companies are also facing cultural differences when they enter into different countries. Culture is an important part of human society composing of knowledge, beliefs, art, morals, laws and other habits. Cultural differences are the variations in what people have, think and behave between different countries, religions or societies. (ghauri&cateora,2006) Whatever field a company is devoted to, whether they are local or multinational, cultural differences play an inevitable impact on their performance. Taking consideration of cultural differences unsuccessfully has caused many business failures. (Ricks, 1993). Business practice is a method, process, tactics, strategy and rules followed by a company in the pursuit of its targets. It may also refer to these collectively.In this essay, marketing has been chosen as a specific area to focus on. Marketing is the study of exchange processes: creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.(kotler,1986 ,Principles of marketing)The world becomes a village and there are an increasing number of entities entering the international arena. Therefore, it is necessary for multinational corporations to understand the importance of cultural

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