Question

why the culture of a country might influence the cost of doing business in that country?

Answer 1

Ans) Cultures, traditions, and languages in any nation can affect the cost of doing business in many different ways. The World Bank, over the years has been ranking nations on certain metrics such as; "ease of doing business," and also taking into consideration factors such as; time taken for regulatory approvals for starting businesses, access to reliable electricity, ease of registering property, and ability to resolve disputes. Cultures also have a high positive or negative influence on the competitive advantage of a country.

Global business markets have broken the technological barriers and accelerated the pace of global economic growth, alongside facing challenges of cultural diversity among countries. In todays time, the business environment is much more dynamic, competitive and has become extremely complex and in addition to all this, cultural diversity altogether changes the business environment of a country. Cultural diversity has a deep influence on the way International business is carried out, and apart from this the cost of running business overseas is also impacted highly.