The Importance of Cultural Difference to International Management

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The distance between people is smaller during the past two decades because of globalization and the development of information technology. Asian people can purchase the products from America, European countries and India or vice versa. There is not just distribution of goods but also doing business with people around the world. Enterprises enter foreign markets in order to expand the market or look for resources or reduce cost etc. However, Multinational Enterprises (MNEs) not only need to know the political, legal and regulatory environment in host country but also the culture difference which is very important to lessen the cultural problems and know how to solve it wisely. Companies may be abandoned by customers or spend a lot of money…show more content…
The statement of multi-ethnic population concurs with Peters (2010), not only Western societies have developed multicultural societies but Eastern societies have.
Steenkamp (cited in Watchravesringkan 2011) states that the importance of ethnic subcultures not only help to retain important patterns in the national culture but they develop their own different patterns of disposition and behaviour, this is companies should not ignore.
In this essay, the cultural difference refers to national level, ‘national cultures differ at the level of unconscious values which are acquired during childhood and these national cultures are stable, the afterward changes that occur are practices whereby the underlying values are left untouched (Kawar 2012, p. 105).’
Ijose and Iossifova (2011) suggest that national culture is an important role in understanding the diffusion and adoption of organizational practices which companies need to beware. Companies should recognize that employees bring their cultural values and norms with them to workplace in the process of effectively distributing organizational practices even facing deep political and economic changes.
Kawar (2012) states that culture is complex because is dynamic, is not possessed by a certain social class, and it changes over time, this change in culture might also cause conflict. Companies will destroy a partnership (Hall cited McLean & Lewis 2010) and result in
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