...An Evaluation of Cultural issues on International Business performance International business is dependent on co-operation and understanding. It is difficult to achieve this when there are so many inevitable cultural differences between countries and traders. While globalisation has meant the breaking down of many barriers, there are still issues that are unresolved or in need of some further development. Cultural issues such as communication, especially linguistically, religion and a cultures taste or preferences are still important today. When we look to the future these issues becomes perhaps even more important as international relationships continue to grow. The development of markets and the emergence of strong economies such as India and China are challenging the European market and deserve our attention. Therefore, we must examine these aspects over the range of geographical areas and evaluate their status and potential to develop further. The first major aspect of cultural issues can be seen in the obvious language barrier. If we look at China we can see that there are important aspects such as not just having phonetic translations of a product which will be confusing and irrelevant to a Chinese consumer. If it cannot be related to then it decreases the likelihood of being bought. Distributors have even been known to refuse to sell a product without a suitable Chinese name. However, it is not always just the translation that affects business. Meetings with a mix...
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...Global Business Cultural Analysis of South Korea John Smith University of Rochester BUS 800 – INTERNATIONAL BUSINESS Dr. Peterson March 6, 2015 Abstract Today, the United States conducts a substantial amount of business with South Korea. It is important that American managers, entrepreneurs, and businessmen understand the South Korean social, cultural, and religious dimensions of the nation. The South Korean culture and customs are uniquely different from those of the United States. The culture and customs of the United States are based on European traditions and religious Christian beliefs. The culture and customs of South Korea are based on Confucianism’s way of life, Buddhism’s individual salvation, and since the 1950’s Christianity’s redemption of the soul. American businesses that incorporate South Korean culture into American business practices will develop long lasting business relationships with their South Korean counterparts. American businessmen working in multinational corporations have adjusted well the collectivist culture of South Korea. Multinational enterprises considering cross border business in South Korea can feel safe investing in South Korea. Keywords: South Korea, United States, cultural dimensions, multinational business, Hofstede. Introduction South Korea is one of the United States most important strategic and economic partners in Asia. Members of Congress tend to be interested in South Korea for political purposes. South...
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...of a country might influence the costs of doing business in that country. Illustrate your answer with examples. Answer: Since in a sense the entire chapter is about this question, there can be numerous reasons and examples of how culture influences the costs of doing business. Several are highlighted in the following sentences, but there could be numerous others. When there are simply different norms between how individuals from different countries interact, the costs of doing business rise as people grapple with unfamiliar ways of doing business. For example, while in the US we may get down to business first, and then get to know each other socially later, in many South American countries it is important develop a good social relationship before trying to discuss business issues. Different class structures and social mobility also raise the costs of doing business. If there are inhibitions against working with people from different classes, then the efficiency with which information can flow may be limited and the cost of running a business increased. A country's religion can also affect the costs of business, as religious values can affect attitudes towards work, entrepreneurship, honesty, fairness, and social responsibility. In Hindu societies where the pursuit of material well-being can be viewed as making spiritual well being less likely, worker productivity may be lower than in nations with other religious beliefs. Finally, a country's education system can have important...
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...increasing the flow of goods and knowledge between the two regions along the Silk Road. One knowledge they give them was gun-making, which traveled from Asia to Europe when the Mongols was still ruling. They wanted to improve their economy and build their empire in peace.They started spreading and developing their empire when they decided not to make or trade anything themselves, but promote "international commerce" by maintaining secure trade networks. They did this because it allowed them to tax goods and get wealth from larger civilizations. This started of a true international economy and brought the two world (Europe and China) into a closer contact than ever before....
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...Globalization and Culture Culture regarded “as the set of distinctive spiritual, material, intellectual and emotional features of society or a social group, and that it encompasses, in addition to art and literature, lifestyles, ways of living together, value systems, traditions and beliefs“. Culture can also be understood as communication, in the sense that all the involving features stated before are trespassed inside the social groups through both direct and subtler ways of communication. [Adrian, 2011] Critics of globalization contend that, even if increased trade promotes material prosperity, it comes with a high spiritual and cultural cost, running roughshod over the world’s distinctive cultures and threatening to turn the globe into one big, tawdry strip mall. George Mason University economist and Cato adjunct scholar Tyler Cowen has for years been one of the most insightful and incisive debunkers of that view. What globalization tends to increase difference, we’re used to a certain pattern or model of difference. Different peoples are different, and they live in different places. So there’s what Tibet looks like, there’s what Mexico looks like and there is what Ghana looks like. But that’s only one kind of difference. Another kind of difference shows up in the paths we choose to take through our lives, and I believe that individuals will always wish to choose different paths for their lives. If the world globalizes enough, Mexico, Tibet, the United States...
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...Marketing Comparison: International and Domestic Australia and the United States Marketing Comparison: International and Domestic Australia and the United States As defined by the American Marketing Association,'Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders' (AMA, 2004, 2). The definition is applied to any product, business firm'in any targeted country. Marketing is the core of any business venture. Two basic functions are derived from marketing: 1) to retain and sustain present customer base, and 2) to develop new and/or improved customer relations. Focusing on these two aspects is the essence of marketing. The plan for why, whom, how, and when'surrounding the product, service, or idea' all develop and stem from marketing ideas and concepts. Marketing is a process, a plan developed to identify, foresee, and satisfy customer needs and desires'no matter the product or service, the business, or the country. Whether the market is a domestic or international venue, marketing activities are essentially the same; however, must be tailored to the unique attributes of the product and the country of target. Mercadeo es un proceso, un plan desarrollado para identificar, prever y satisfacer las necesidades y deseos de los clientes, sin importar el producto o servicio, el negocio o el país. Ya sea...
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...and not to make promises they are not absolutely sure they can fulfill. American interviewers know how to interpret American CVs and interviews and they tend to discount the information provided. Dutch interviewers, accustomed to Dutch applicants, tend to upgrade the information. To an uninitiated American interviewer an uninitiated Dutch applicant comes across as a sucker. To an uninitiated Dutch interviewer an uninitiated American applicant comes across as a braggart.”1 Cultural differences, while difficult to observe and measure, are obviously very important. Failure to appreciate and account for them can lead to embarrassing blunders, strain relationships, and drag down business performance. And the effects of culture persist even in life-and-death situations. Consider the example of Korean Air’s high incidence of plane crashes between 1970 and 2000. As an analysis of conversations recorded in the black boxes of the crashed planes revealed, the co-pilots and flight engineers in all-Korean cockpits were too...
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...interrelated processes, which have in common the idea that relationships and organizations have increasingly spread across the world, bringing about a growing awareness of the world as a whole” (Fulcher. J. and Scott. J., 2011). I. Contribution of Globalization A) Economic The essential dimension of globalization refers mainly to increase in international integration among trade and market all over the world is mentioned as economic globalization. “One who first commits himself to a theory of globalization is Marx. In so doing he identifies an economic dimension of the process” (Waters. M., 2001). The Idea of replacing national boundaries with global union especially in the case of economy was primarily supported by Marx and the other theorists of twentieth century who were struggling to make the big changes for the world’s future. It can be said that the process of globalization rose after industrial revolution (1757-1800) in Europe. Some examples of development and change from that time at which the process has been extended throughout the world so far are; “from farm to factory, division of labor increase, increase in child labor, new methods of administration, mass production and etc”. Nowadays, through the globalized situation, international trade and the achievement of the free market economy is increasing so that workers, consumers, and companies have the strong possibility to go into economic relationships with other workers, consumers and companies anywhere in the...
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...and not to make promises they are not absolutely sure they can fulfill. American interviewers know how to interpret American CVs and interviews and they tend to discount the information provided. Dutch interviewers, accustomed to Dutch applicants, tend to upgrade the information. To an uninitiated American interviewer an uninitiated Dutch applicant comes across as a sucker. To an uninitiated Dutch interviewer an uninitiated American applicant comes across as a braggart.”1 Cultural differences, while difficult to observe and measure, are obviously very important. Failure to appreciate and account for them can lead to embarrassing blunders, strain relationships, and drag down business performance. And the effects of culture persist even in life-and-death situations. Consider the example of Korean Air’s high incidence of plane crashes between 1970 and 2000. As an analysis of conversations recorded in the black boxes of the crashed planes revealed, the co-pilots and flight engineers in all-Korean cockpits were too...
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...business in the United Arab Emirates. It contains a general overview of the UAE including the states names, their rulers, the political and legal system and also major religion of the country, Islam. The body of the report covers many of the basic differences and cultural imperatives, adiaphoras and exclusives, which are then compared to Australian western culture. Differences and similarities in greetings, such as the shaking of hands are covered. The report then goes on to cover such issues as the interactions between males and females, issues that can arise due to religious obligations such as prayer 5 times a day and the holy month of Ramadan. Other issues such as how the Arab culture run business in a much more personal manner than in western culture, and how building personal relationships and trust are much more important than the efficiency of getting a project completed. Also covered is how the Arab culture value spoken agreements over written agreements, how a meeting in the United Arab Emirates might take place and how a foreign businessman might react or act in those meetings. Finally negotiation was covered and then a conclusion of what I learnt and my final thoughts. When I started this assignment, I wanted to learn about a country that was rich in culture but was also at the forefront of international business. I thought that the United Arab Emirates would be the ideal country. I knew little about the Arab state apart from the usual, that it was a mostly Muslim...
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...Analysis of Differences in Marketing Environment between Singapore and the U.S.A. March 05, 2013 Analysis of Differences in Marketing Environments between Singapore and the U.S.A. Abstract My motivation for analyzing the differences in marketing environments between Singapore and the United States was to be able to gain more knowledge of the marketing environment that lies between these two countries. The method that I used to approach this report was reading one book on international marketing and several websites that contained several topics and information regarding these countries. After analyzing the methods that I used, I learned several important facts about Singapore and the United States. Also, I learned that both countries face different problems in diverse cultures. One of the greatest implications is that you cannot market to Singapore the same way you would in the United States because both countries desire different things. Introduction This paper analyses the differences in marketing environments between Singapore and the United States, and is structured into five tables. Table 1 presents general differences between Singapore and the USA; it also gives information on both countries. For example, it shows the differences in land size, population, and GDP. Table 2 discusses trade relationship between Singapore and the USA. It explains the U.S. exports and imports from and to Singapore over the past five years. It also explains the key products and services...
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...Managing in International Economies Individual assignment Submitted by Student Name: SHI YONGQIANG Annotated Bibliographies 1. Christina Öberg , (2014),"Customer relationship challenges following international acquisitions", International Marketing Review, Vol. 31 Iss 3 pp. 259 - 282 2. Rajah Rasiah Peter Gammeltoft Yang Jiang, (2010),"Home government policies for outward FDI from emerging economies: lessons from Asia", International Journal of Emerging Markets, Vol. 5 Iss 3/4 pp. 333- 357 3. Hamid Yeganeh, (2011),"Culture and international trade: evidence from Canada", International Journal of Commerce and Management, Vol. 21 Iss 4 pp. 381 – 393 Table of Content Annotated Bibliographies 2 1.0 Customer relationship challenges following international acquisitions 5 1.1Citation 5 1.2 Introduction 5 1.3Aims and Research methodology 5 1.4 Scope – Analysis, Findings and Results 6 1.5 Usefulness 6 1.6 Limitation 7 1.7 Challenges and Critiques 7 1.8 Conclusion 8 1.9 Reflection 8 2.0 Home government policies for outward FDI from emerging economies: lessons from Asia 9 2.1 Citation 9 2.2 Introduction 9 2.3 Aims and Research Methods 9 2.4 Scope – Analysis, Findings and Results 10 2.5 Usefulness 10 2.6 Limitation 11 2.7 Critiques and Challenges 11 2.8 Conclusion 11 2.9 Reflection 12 3.0 Culture and international trade: evidence from Canada 13 3.1 Citation 13 3.2 Introduction 13 3.3 Aims and Research Methods 13 3.4...
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...MARKETING PLAN – WOOD’S INTERNATIONAL TITLE PAGE TO BE COMPLETED INTRODUCTION TO BE COMPLETED ENVIRONMENTAL & INTERNAL ANALYSIS Economic statistics and activity - ERIC * Q1: Is the market economically viable and sustainable? Political System – CHEN – REFERENCES! * Q 2: Is the political environment supportive of the venture? a) Political structure: the government of Malaysia comprises the federal, state and local government. Malaysia is a federation of 13 states operating within a constitutional monarchy using the Westminster parliamentary system and is categorized as representative democracy. The federal government adopts the principle of separation of powers and has three branches: executive, legislature and judiciary. The state governments in Malaysia also have their respective executive and legislative bodies. The judicial system in Malaysia is a federalized court system operating uniformly throughout the country. The federal government of Malaysia adheres to and is created by the Federal Constitution of Malaysia, the supreme law of the land. b) Political parties: Malaysia has a number of parties in operation, while there is only one party holds the true power of the nation. c) Local government: local government of Malaysia is the lowest level in the government system. The local authority has the power to collect taxes, create rules and to grant licenses and permits for any trade in certain areas. d) Stability of government: Since has...
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...expand and franchise there. With faster communication, transportation and financial flows, the world is rapidly shrinking. International trade is booming. Imports of goods and services now account for 24% of gross domestic product worldwide. However, sometimes corporations fail to understand the culture of countries that they target as marketing opportunities, therefore not being able to market their brand successfully. Culture is defined simply as the learned distinctive way of life of a society. Each country has its own traditions, cultural norms and taboos. When designing global marketing strategies, companies must understand how culture affects consumer reactions in each of its international markets. In turn, they must also understand how their strategies affect culture. In the global marketplace, extension of products and services into foreign markets often faces unanticipated cross-cultural challenges involving consumer cultural behavior. For example: in Japan, “Diet Coke” was renamed “Coke Light” after the firm learned that the word “diet” carried an embarrassing connotation. A “blunder” is a careless mistake usually caused by a person’s ignorance, poor judgment or confusion. International marketing blunders represent avoidable mistakes made by companies in foreign markets. Many types of blunders result from ignorance of culture. If international marketers are misinformed about the cultural characteristics of a foreign market they may stumble into blunders. A simple cultural...
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...India, considered one of the biggest emerging markets in the world, is a country located in southern Asia with a population of over a billion people and its capital city being New Delhi (http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html.) The current leadership in India is implementing extensive changes to encourage international business in India, from privatization to the liberalization of trade (http://www.cyborlink.com/besite/india.html). India has more than fourteen major and three hundred minor languages, but the official language is English and Hindi. The Indo-Aryan ethnic group makes up seventy-two percent of India’s population, with 25 percent Dravidian and 3 percent Mongoloid and/or other (“Country Profile: India”). The market opportunity’s this country brings is enormous; the majority of this country is surrounded by water, thus making trade an appealing aspect. Furthermore, the country itself has a very abundant supply of raw materials with an improving rail system and India holds a very stable parliamentary government (“Country Profile: India”). In the following summary, I will provide you with greater understanding on how India’s business environment works and the benefits this country can bring to a company wanting to expand their foreign operations. The country of India has common laws with a written constitution ensuring the rights of individuals and property. Invasion of privacy by people is not spoken of in the...
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