Effect of culture in business

1012 Words Jan 14th, 2014 5 Pages
1. A growing number of Americans work for foreign-owned firms in the United States. Do you think that these American employees are being influenced by the foreign owner's approach to management and the culture of the country of the owner?

Because of globalization, businesses are open to do business in new markets and improving profits. Also because of globalization, companies are faced with different cultures, religion and norms. For a company to do business in another country, a manager needs to understand the differences associated with the host country. "Globalization is defined as this interdependency of transportation, distribution, communication, and economic networks across international borders" (Gibson, Ivancevich, Donnelly, &
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Communication skills: Communication is essential when working abroad. It is imperative that a manager or employee be able to communicate with peers and superiors effectively.

Transfer of knowledge skills: "Learning about a practice, technique, or approach in one country that can be transferred elsewhere is a skill that managers can apply on a regular basis" (Gibson et al., 2012, p 62).

3. Describe the attitudes a manager would need to be successful and effective in managing in India, China, and Saudi Arabia.

A manager would need to have the same basic skills in order to a successful and effective manager in India, China, and Saudi Arabia. According to Gibson, Ivancevich, Donnelly, & Konopaske

Strong technical skills

Good language skills

Strong desire to work overseas

Knowledge of the culture

Well-adjusted family situation

Spouse support

Behavioral flexibility


Good relational ability

Stress management skills

According Goodall and Warner (2007), a manager who wants to work in China would need to be:

Open-minded to the culture shock.

Desire to learn the language and culture.

Good communication skills.

Strong organizational commitment: "Think not what your company can do for you, but what you can do for your company" (Goodall et al., 2007, p 13).

In China, it is hard to retain employees due to the competition of labor. China does not have enough skilled labors and is experiencing tremendous growth economically. To be an
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