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Differences in World Culture Closely Related to Global Business Operation

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Submitted By happybb13
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Differences in World Culture Closely Related to Global Business Operation
梁宇轩 20130250016 Now the world is increasingly globalized and the world seems to become smaller since the vehicle become more and more advanced. It is very easy for a person to travel and do business all over the world. But the advanced vehicle could not speed up people to know others abroad because of the cultural difference. While doing business in a foreign country, sometimes it is very important for the businessman to realize the cultural of the country. Even nowadays there exist some countries have a institution that its politics are closely connect with its religions such as the Islamic areas. There exist a lot of taboos in Islamic countries and maybe something usual in our normal days is evil in those countries. That means if someone wants to do business in the Islamic areas and he needs to know the country’s religion and cultural otherwise he may lose his money or even break the law. For example, the financial industry is very different in Islamic areas. In the ancient time, Prophet Muhammad observed the usury behavior harmed his people as a witness. And he thought that these behavior will make the society injustice and intensify the contradiction. So he made the regulation that no one will be allowed to get interest from lending money to others. Even in the Quran charging interest is not allowed. There is no doubt that this regulation can not adjust the world’s convention. The interest income is the main source of income of the other banks in the world. That means is very hard for a normal bank to do financial business in the Islamic area because its profit model has totally changed. Except this regulation, the Islamic banks also not allow its clients to use the money that lend from the bank to invest on some industries such as gamble, tobacco, speculation or pork industry. Recently a kind of Islamic Bond was issued in London, and it was the first time that London issue the Islamic Bond. Islamic Bond is a special kinds of bonds. The bond buyer can not gain interest from the bond. But there is a special way for them to gain the time value of their money. The bond issuer will invest money that from the bond buyers on some legal industry and the bond buys will share the benefit of the investment. That means the bond buyer have the ownership of the earnings instead of the creditor’s rights. Maybe it is another way for the buyers to gain interest but its risk may not depend on the credit of the issuer but the investment. About a quarter people of the world is Muslim but the scale of Islamic Finance is less that one percent of the whole world’s. That means a large scale of demand is exist. But expending speed of a Islamic bank or financial institution may not as fast as a normal bank because it is less leveraged. It is clear that it may has a lower risk. But it is very hard for a pure Islamic bank survive in the complicated financial environment that full of leveraged. Along with the globalization of the Islamic area, the financial activities may have some transformation base on its doctrine. People who know well this doctrine will have a greater chance that other. Just like the financial business above, different places have different rules. Even in some western countries or Asian countries have their taboos. Such as the number of floor will skip four or fourteen in China as it will skip thirteen in European countries. It is very important for the businessman from other business area to know different cultural even in some minor things. Or it may lose the chance to success and even break the local law in foreign country if one don’t abide by the rule.

[1] 瞿强. 伊斯兰金融的近期发展[J]. 国际金融研究. 2008(11)
[2] 巴曙松,路扬,王璟怡. 伊斯兰金融的全球化发展[J]. 西部论丛. 2009(01)
[3] 蔡笑春. 伊斯兰金融的原则、模式及宁夏利用途径探讨[J]. 现代商贸工业. 2009(05)

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