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Implications of cultural differences for international businesses
Cultural difference to international business
Cultural difference to international business
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Introduction
In my experience learning about Asian business culture one things stands out to me more than any other, the importance of etiquette. In Asia minding your manners and understanding unspoken social cues is just as important, if not more important than making a good business proposition. Accidentally being a little rude can break down a whole business partnership. For every country there are different traditions and different etiquette rules to be followed. Each country also seems to have their very own unspoken set of subtle social cues. The key to being a successful international businessperson seems to be in knowing all of your cultures very well and simply carefully minding your manners.
Different Cultures
Each Country has its very own culture and in turn it’s own set of etiquette rules, it is important to recognize and respect each and every one. In order to provide some examples to show just how much Asian cultures vary and to show how they all have one thing in common, that is, that they all value etiquette very much when it comes to choosing prospective business partners, I will go into detail about the business culture of two Asian countries.
Korea
In order to do business in Korea understanding their culture is crucial. Having polite manners will be seen as courteous it will be even more appreciated for the foreigner to have made the effort to learn about Korean customs and language, which in turn will greatly help you make stronger business partnerships. Koreans still follow certain Confucian traditions. This means that respect for elders and education is emphasized. Nowadays not all Koreans follow the Confucian principles quite as closely, however, they are still pretty important when it comes to bu...
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...nessperson you should always keep in mind that minding your manners can make or break international alliances between companies.
Works Cited
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"Export, Innovate, Invest - The Canadian Trade Commissioner Service." Site of the Canadian Trade Commissioner Service to help companies do business abroad: market studies, contacts abroad, services of our offices abroad.. N.p., n.d. Web. 23 Apr. 2014. .
"Doing Business in China." The Translation Agency For A Complete Professional Translation Service. N.p., n.d. Web. 1 May 2014. .
Clark, Donald N. "1. The Story of the Korean People." Culture and Customs of Korea. Santa
- "An Overview of the Korean History Project." An Overview of the Korean History Project. Web. 11 May 2014.
Unfortunately, this intercultural miscommunication does not only happen in personal relationships; it also occurs in many international deals with millions of dollars on stack. One such example is the famous case of Mitsubishi Motor Manufacturing in America. In this paper, I will try to analyze the Mitsubishi case as a consequence of intercultural miscommunication between American men and American women cultures, and the Japanese and American cultures.
Firstly, Korea is well known for ‘the country of courteous people in the East’. A long time ago, China called Korea like that at first, because Koreans have Confucian ideas. So, Koreans consider that Courtesy is very important and their daily life is steeped in courtesy.Koreans not only have respect and courtesy for the elderly, but also speak with respect to others. In addition, Koreans make concessions with each other. For example, we can see easily that young people give their seat to the elderly in the bus and young people do not sit the seats for the elderly in the subway even if there is no elderly. Also, we can find the courtesy in the meal time. Young people should not eat before elderly lift up their spoon. It is a kind of respect for elderly.
Soh, C. S. (2001). South Korea. In C. R. Ember & M. Ember (Eds.), Countries and Their Cultures (
South Korea was originally an independent country that was ruled by their respective dynasties and had a society of political independence and their own cultural identity. Korea was originally ruled by different kingdoms, and a majority of their high-class culture came from some Chinese ideas, including using Chinese characters in their written language, and the use of Neo-Confucianism as the philosophy of the ruling elite. It was not until the early twentieth century that they lost a lot of their identity due to Japan’s colonization. After the occupation of Korea, and the Korean War, South Korea in the past fifty-plus years has re-vamped their identity and made known that they are a prominent country in trade and global relations. (Armstrong...
The book Kiss, Bow, or Shake Hands, is written specifically with those doing international business in mind. It is essentially a guide to over sixty countries and an explanation of their society and cultural customs. Knowledge of those with whom you are doing business not only can help avoid costly blunders it can also give you an advantage when dealing with them.
The book I chose for this book review assignment is titled Korea Old and New: A History by author Carter J. Eckert along with other contributing authors Ki-baik Lee, Young Ick Lew, Michael Robinson and Edward W. Wagner. The book is published at Korea Institute, Harvard University in 1990. The book consists of 418 pages and it is more of a survey of Korean history and reference type of book, rather than selected readings on modern Korean politics. I chose this book because it is a complete survey of Korean history from the ancient Choson period up to the economic boom of the 1990's, a span of over 2000 years. Each chapter covers a different period, but they all share the same organization of describing the social, cultural, political, philosophical and scholarly aspects of the period in respective subsections. This made it easier to later refer to previous chapters and compare different periods in order to learn the comprehensive history of Korea.
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. He knows it is a risky decision; when he became a franchisor, he had to overcome a lot of difficulties. Steve anticipates he will face some of these difficulties again at the new location in Prague, Czech Republic. Although he was born in the United States, he has family and friends in the Czech Republic, speaks Czech fluently, and has visited the country of his origin several times. He knows the people and the culture. In this paper, I will analyze the cross-cultural differences between the United States and Czech Republic, determine comparative advantages in this country, and recommend ways to minimize the risks of establishing a franchise overseas.
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
The business world of the past encompasses a predominantly male environment with innate, discerned guidelines. Today, the business arena has changed with the civil rights movement and the entry of women into the workplace. The changes continue to evolve with other sociocultural issues. In order to be successful in the business world a masterization of business etiquette is imperative.
There are many differences among cultures in the modern world. Certain cultures hold high regard for specific values and distaste for other values. This difference in values can effect international business positively.
Chung, Mona (2009, January 16). Bi-cultural consultant is your key to the red gate. China Success Stories, Retrieved March 20, 2009, from http://www.chinasuccessstories.com/2009/01/06/between-two-cultures.
In addition, the second different culture is business card etiquette. In Malaysia, usually the business card is given out by the visiting party. When given or receiving a business card, must hold the card with both hand. Before putting the card into the pocket, must briefly study as seen as respect. If want to presenting the business card to Chinese partners, better translate into the Chinese, because this can make easily to Chinese partners read more detail. In Japan, business card is very important to Japanese business etiquette, usually their business cards have 2 sided, there are include Japanese and English languages. When Japanese presenting their business card, they are using the both hands and bow their hand while accepting card to others, and receiving the card from other people always using the same technique as well. Japanese usually would not straight to put the card into the pocket, they will prepare a card case and briefcase to store the card.
South Korea scores a 100 being one of the most pragmatic societies which is the exact opposite of Morocco who scores a 14, being very normative (Hofstede, n.d.). South Korea is less concerned about quarterly profit than they are with steady growth of the market for generations to come. They live their lives guided by virtue and good examples to lead their decisions that impact a long span of time. That is the exact opposite of Moroccan culture where the absolute truth is the most important and tradition is highly valued. The main focus is on achieving quick results that impact now. In Morocco it is a multicultural society made up of many different parts that have deeply rooted traditions, values, and beliefs that make it hard to do business with (Gray, 2002). An example of how this dimensional difference could impact these two countries is by understanding a ritualistic greeting done by the Moroccans. When greetings take place between family and acquaintances Moroccans have an extensive way to say their hellos and no business venture could slow or stop this ritual. It would be important for a Korean businessman who is on the opposite end of the spectrum to have patience during this time in order to show respect for the tradition that Moroccans