The Cultural Challenges Of Doing Business Overseas Essays

Understanding the differences and similarities inherent in other cultures may provide opportunities when working with individuals (or groups) who may have different cultural values, beliefs, and/or norms. There are multiple ways to explore different cultures. One way is through Hofstede’s (2017) cultural dimension; which are currently made up of six broad categories, including high-low power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, long-short term orientation, and indulgence-restraint. It is beyond the scope of this paper to explore all these cultural dimensions in great detail; however, it is important to understand some of the implications of these scores. The scores for both the US and China can be seen in Table 1, along with the differences between each score.

The average point differential between Japan and Canada on Hofstede’s cultural dimensions is 35.6. The largest differentials between the two cultures are pragmatism (52), uncertainty avoidance (43), and masculinity (42). Given that individualism has the largest differential in favor of Canada, as well as being Canada’s highest scoring dimension, it will be included for analysis as well. (The Hofstede Centre)

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

The Czech Republic and Slovakia were now able to own their own businesses. They could move freely for jobs and homes. The countries are now able to vote as they wish. They did however change their language. All countries in the Soviet Union used to speak German. Now Czech is spoken in the Czech Republic and Slovak is spoken in Slovakia. The national anthem changed, both countries now have their own. In the Soviet Union the religion was Atheism, and now Czechoslovakia is free to believe whatever they want. The soviet Ruble was the currency in the Soviet Union and then it changed to the Czechoslovak Koruna and finally, when Czechoslovakia split, it changed to Czech Koruna in the Czech Republic and the Euro in Slovakia. The government in the Soviet Union was dictatorship. Now, a Parliamentary Republic is the form of government in Slovakia and Czech Republic. Although life after the Soviet Union collapsed was free, some people say it was easier to live in the Soviet Union because everything was already set and organized for you. They were not making many of their own decisions. However, when Czechoslovakia became free, the people realized that they had more freedom. They had to make decisions on their

First, before the Second World War, the nation of Czechoslovakia had been a strong democracy in Central Europe, but beginning in the mid 1930s it faced challenges from both the West and the East. Until the Soviet’s invasion where they installed a whole new communist government in Prague. For the next twenty

However, Hofstede Center’s (2014) cultural assessment comparison of these three countries displayed higher difference mainly America scoring Individualism and Power Distance, while it scoring very low for Long-Term Orientation. It appears that American people promote a high degree of interdependence. People are mainly look after themselves and their direct family. Has less commitments for extended or elderly families. Emphasis on equal rights in all aspects of the society and government as individual not as collectivist societies. Organizations are

Between November and December of 1989, the Velvet Revolution took place in Czechoslovakia. The defeat of the Communist party in Czechoslovakia was a result of popular protest and student demonstrations. The country returned to capitalism and democracy and later separated to become the Czech and Slovak

Throughout this paper, I will be striving to answer the question of What I need to know before conducting business with Cuba, or starting a business in Cuba. Cuba is a totalitarian communist country whose leader is Raul Castro, and the country is in extreme need of all types of products and services from other countries, therefore, Cuba decided to

The case, Charles Foster sends an email, is a perfect example of the how globalization and increased cross cultural interaction is increasing the complexity and ambiguity facing the managers of large multinational companies. The specific focus of this case is to address the repercussions that can occur by using inadequate communication methods, given the importance and complexity of a situation. Also, the case addresses the possibility of cross cultural communication misinterpretation leading to confusion and confrontation amongst the parties involved. The objective of this qualitative analysis is to utilize both theory and practical

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

difficulty balancing their identity within themselves due to the influence of both of their cultures.

4. Language and social differences in potential markets act as barriers to business activities. Without knowledge of the foreign languages, conducting business transactions becomes harder. The culture differences make it even more complicated, since there are differences in business etiquette depending on the country.

6. Describe the way in which cultural differences can act to impede communication between business people of different nationality.

For instance: “Thus, U.S. managers often have relatively little difficulty doing business in England, because managers in both countries speak the same language, and a common framework exists for understanding both commercial and personal relationships”( DeNisi & Griffin, 2014, p. 56). However, this can open a can of worms if both the in house management and the business country are having issues with the foreign country such as Canada or India; to name a few. These differences can alter the direct business practices to stray from its original format, causing misunderstandings, personal norms, and certain customs to play a major role in the misfortune of the situation being evaluated. “As a result of these and myriad other cultural differences, then, managers may encounter unexpected complexities when doing business in countries where these sort of cultural differences exists” (DeNisi & Griffin, 2014, p. 56).

The definition of culture offered in one textbook is “That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society.”