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EGT1

Global Business
Cross Cultural Differences in India
Western Governors University

India has become a global conduit for business as they have liberalized their economic policies over the past 20 years. Companies are flocking to India because of many factors, including, less expensive labor costs, increasing growth rate, and an abundance of a highly skilled workforce. These factors in addition to other advantages have substantially increased the number of United States businesses looking to grow beyond the U. S borders into the county of India. Dunlop Software Consultant’s goal is to also expand its operations internationally and believes that India has the business environment to meet our goal of expansion globally. Accordingly, I will be examining cross cultural challenges, differences in business practices, and ethical issues that we encounter as by expanding operations into India. As we consider our expansion of our consulting business into India, there are cultural differences that we must consider and understand. There are obvious cultural differences between business and personal standards in the U.S and India. The first major cross-cultural difference to be aware of is communication. India has a culture of hierarchy that can be traced back to the caste systems of 3000 years ago. (Kumar, 2005) The caste system is a rigid and upward mobility is difficult if not impossible. Although India abolished the caste system it continues to have steeped tradition in the culture today. This legacy has created a business environment where employees are typically not empowered to make independent decisions without orders from superiors; even to the point of following the orders when they know those orders are incorrect. This scenario is often not the case with U.S. employees because of a smaller power distance index and power is distributed more...

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