The Environment And The Culture Of A Country

Expansion of a company is never easy, especially if the company were to expand overseas to a foreign country. The products or service the company offers or sells must fit into the culture and environment of the country. Ignorance to these factors can lead to a major downfall

All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they

Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place

Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability.

     Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum

Cultural differences between countries have strong effects on individual personality and behavior, as well as on organizational culture (Hofstede 2001). These differences can be a significant barrier for an international business leader. Failure to understand and adapt to these differences may

. Geert Hofstede (1980) describes culture as, ‘a source of conflict rather than synergy. Cultural differences are a nuisance at best and often a disaster’. Justin Paul (2011) also supports this view stating that, human beings tend to have an instinct ‘deep inside’ that all human beings are the same. Therefore, if one goes into another country and makes decisions based on how one operates in one’s home country-‘the chances are that he or she will make some very bad decisions’ (Paul 2011). Hence, different types of factors need to be understood to ensure that you and the business are readily available to adapt to any change in culture or environment, this will be shown by a number of examples involving companies that have successfully set up business and others that have failed significantly all due to the lack of understanding of CCM.

Using appropriate theories critically analyse the role of culture in International Business. Support your answer by quoting relevant examples from the case study.

2. When a company grows in size and makes the decision to expand internationally, it is vital for its image among current and future customers to complete projects effectively and on time. Furthermore, it is also likely that such an expansion would entail the representation of more than one culture among the workforce. Indeed, while many employees will be relocated from the home country, a further proportion will be hired from the host country. To facilitate the relations and

Outline why the culture of a country might influence the costs of doing business in that country.

In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case problems can occur due to ethical and cultural barriers in global expansion. In this paper I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences.

For the international business, the connection between culture and competitive advantage is important for two reasons. First, the connection suggests which countries are likely to produce the most viable competitors. Second, the connection between culture and competitive advantage has important implications for the choice of countries in which to locate production facilities and do business.

The increasing innovations and creativity in the business pattern, the cross-cultural business operation, and marketing is increasing day by day. Cross cultural business enables different nations to have a better understanding of global business pattern along with their marketing strategies and tactics that help them to achieve their target in the market place. Moreover, cultures of different nations differ from each other that created the urge for organisations especially multinational corporations to study the culture and life style of other nations before expanding or internationalisation their business organisation.

The most challenging decision that a company may face in internationalization is the degree of standardization or adaptation in its operations. The question of standardization or adaptation affects all avenues of a business’ operations, such as R&D, finance, production, organizational structure, procurement, and the marketing mix. Whether a company chooses to standardize or adapt its operations depends on its attitudes toward different cultures. These attitudes are defined by three orientations toward foreign culture: ethnocentric, polycentric, and geocentric.

Political environment is significant to do business in other countries. There are different factors of political environment. These factors can influence the government decision making and other activities. For foreign investors every country set some rules and regulations. Investor need to maintain these rules and regulation to do business on certain country. Political factors can influence the government to change these regulations. So investors need to know the regulations and get the proper knowledge about political environment.