The Effects of Cultural Differences in International Business;

There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure.

In this report I will be stating the differences of how Tesco function in South Korea compared to how they function in the United Kingdom. Tesco have to adapt to the local culture, traditions and tastes and have to recreate an environment in which shoppers will feel at home.

In this negotiation, we learned that it is important to research your opponent, to understand their culture, not only of their country or backgrounds, but also their company culture. When we are able to understand our opponent’s way of thinking about business and doing business we can then understand how to approach a negotiation situation with them. In this exercise, we learned that it is difficult for us to adjust when it involves breaking or acting in a way opposite of what we are accustomed to. We also learned that although my classmates live in the same country as we do, their upbringings may have similarities to their origin country and will therefore help them to communicate and adjust to that country’s norms and standards. We were surprised how we were able to stay in character although it was hard and it was surprising how people responded when they were unaware of your intentions and strategies. If we had to do this exercise again, what we can do is do more research on our opponents so that we would have an idea of what to expect in the negotiation table.

How does culture affect behaviour during negotiation in general and the different stages involved? Critically evaluate this link and assess its importance for international managers. Throughout your answer, refer to at least two contrasting cultures of your choice, and cite relevant theories and examples from international contexts.

Sometimes cultural difference between countries can cause a negative impact when conducting free market businesses. According to the textual evidence, economic advancement and globalization may be important factors in society change. The culture of societies may also change as they become richer because economic progress affects a number of other factors, which in turn influence culture.

International business can be defined as the exchange of goods and services across borders through the use of negotiators. It can be thought of as the deliberate investment into another country with the gain of a commodity in the transaction. Through the fast paced train known as globalization, many companies have found international business transactions to be quite fruitful as they spread losses and create new opportunities for growing markets and raw materials. As mentioned before, international business transactions are made possible through negotiators; the focal firm, the government, distribution channel

The purpose of this essay is to show that intercultural differences between French and Russian businessmen exist and discuss if they are a threat for effective business communication. The structure follows the different steps of a real business situation: a French businessman meeting his potential Russian partners for a negotiation in Russia.

International businesses are not only an issue of borders, as international business also crosses cultures. Culture profoundly influences how people think, communicate, and behave. The University of Minnesota defines culture as the shared patterns of behaviors and interactions, cognitive constructs, and affective understanding that are learned through a process of socialization. These shared patterns identify the members of a culture group while also distinguishing those of another group. Just as a thorough knowledge of a business is needed for a deal to succeed, so is an understanding culture. According to the New York

Although we may not notice it, differences in culture affect our everyday lives including business. In the business world, it is inevitable that you will cross paths with people of differ from you. Understanding these differences can play a major factor to being successful in business. Improving your level of knowledge of international cultural difference in business can help in building international skills as well as empowering you to increase competitive advantage. Hofstede’s theory allows for statistical comparison of cultures through various studies. His extensive work gives an insight of the culture and how its impacts business strategies of members of that society. Hofstede studied and categorized cultures into 5 different sections; Uncertainty Avoidance, Individualism, Long-term orientation, Masculinity and Power index. There are always a few generally clear signs you should notice that shows how a country cultural and business are created. Hofstede’s study results show vast differences between the United States and Japan’s culture and business. A clear majority of Americas population is made up and individuals who have fled their countries to explore new options in a new land.

To a certain extent, it is fair to acknowledge the fact that negotiations styles vary depending on the cultural background of the concerned party. Each culture has its own norms and standards. As such, a particular behavior can be understood differently in separate cultures. For instance, in United States and Australia, calling an individual by their family name is regarded as a friendly gesture; nevertheless, this is a sign of disrespect in Japan and Egypt. Thus, it is vital for a negotiator to observe appropriate behaviors regarding cultures before negotiating with foreign countries (Chang, 2006, para.3).

This portfolio project will analyze the strong need for proper negotiations between different cultures. This topic is one that needs everyone’s full attention, especially for those professionals involved in negotiations or government. Yes, this matter touches governments, because such negotiations, in many occasions involve other countries. For this particular exploration, one will focus on negotiations with Mexico. Therefore, it is for this affair that everyone must understand how important cross-culture negotiations are for this country. In addition, while involved in negotiations many individuals think that such topics only involves local companies or organizations. This is not always the case. When dealing with cross-cultural negotiations, many times the negotiators are negotiating for the good of the country. For these particular negotiations, it involves all of North America. Yes, this can also involve Canada. These three countries are part of The North American Free Trade Agreement, signed by the three states in 1994 (International Democracy Watch Staff, 2001). That is why this process is more than just making a sale with one particular party. Therefore making it very important for negotiators involved in this subject, to know how to approach parties from a different culture. Even more, knowing the other groups culture alone will not do the job. These responsibilities need deep communication knowledge, proper planning, and the correct negotiating tactic. Many already

Utilizing Hofstede’s cultural dimensions, there are three important factors each country must understand about the other in order to have effective business communication. First, both countries will have to understand what makes each other different, second they’ll have to understand what makes each other similar, and lastly they’ll both have to give great effort in comprehending each other’s language and communication styles; while acknowledging their differences and comparing their strengths. When these three factors are addressed, there is a high possibility that business between the two cultures can be efficacious.

Over the last ten years, numerous firms have continued to embrace international operations. However, the international operations come with numerous obstacles. For instance, culture is one of the bottlenecks faced by the firms operating in the global arena. Studies indicate that language problems and difficulties along with culture collisions are some of the cultural bottlenecks that an international firm must handle. The firms operating in the international market must recognize that different cultures have own modus operandi in terms of business transactions. In this regard, a subsidiary operating in the host country is obliged to respect the culture of the host nation.

1. Wade (2004) highlights some of the pitfalls of doing business internationally. As cultures can vary significantly from one region or country to the next, it is important to understand some of these differences and how they affect the process of doing business, or even just basic communication. There can be differences even between regions within a country (i.e. Ontario vs Quebec; New England vs. the South) so it is important to understand the cultural dynamics of each area before doing business there. In Wade's article, he highlights some superficial issues like punctuality, gift-giving, and gestures. Wade also outlines some of the more critical issues that are seen as deal-breakers.

he decision-making processes in multinational organisations are linked to several variables, such as political, social and legal elements. In the growth of international trade, foreign direct investment and the cross border flow of technology, increased emphasis is placed on culture in business. Culture is taking on a vital role in ensuring benefits for businesses, mainly with regard to business success or risk. The integration of cultural characteristics with management practice is now considered to be the main principle at work in accomplishment.