Question

Discuss why the culture of a country might influence the costs of doing business in that country. Illustrate your answer with examples.

Answer 1

The culture consists of language, social institutions, religion, political systems economic systems, and philosophy, education, and symbols. Thus, it is important to consider the influences of culture on international business; these aspects must be taken into account, especially the impacts from history, language, religion, and social institution, which can reflect the attitudes, beliefs and habits of the society

In a globalized economy, cultural sensitivity is a major factor. It is vital to understand and know about cultural differences for succeeding in business. To know language nuances, etiquette and cultural time management differences are helpful to navigate several complex interactions. Misinterpreting the words or the cultural meaning associated with them can affect the entire interchange negatively; and this in turn may lead to be a deal-breaker.

When doing business with an affiliate from another nation, the cultural differences need to be considered which includes basic customs, gestures and mannerisms. For example, If a salesperson approaches a business meet with knowledge of a customer’s cultural background, then his body language, words, and actions may all be adapted to better suit those of the customers; and consequently will be better liked by the customer, and ultimately increasing the salesperson's opportunity to win the deal.