Role of Culture in International Business

Role of Culture in International Business

Role of Culture in International Business

We are living in a global community nowadays . No country is too far away to be reached , with the help of modern technology the latest innovations . People can move to another country in a matter of hours whether for business or for leisure . Exploration and expansion has always been a part of our nature , where we tend to move from one place to another as much as we can . This has also been the trend for businesses , especially for large

scale companies . When they are well established in their own lands , they tend to expand to other nations as well . But they can 't assume that their success in their own lands can be carried over to another nation . There are certain aspects that needed to be considered to be successful in International business . The most important aspect is the role of culture in international business Before discussing the relationship between them , culture must be defined first

Key Elements That Define Culture

Culture is referred to as the pattern of human activity combined with different symbolisms that give meaning and importance to those human activities . It is more of a conglomeration of different symbolic structures that would define certain groups of people . These symbolic structures are the key elements that define culture , as well as give meaning to how groups of people react to these symbols

One of these elements are artifacts . These are the physical things or objects which have particular symbolism for a certain culture . These artifacts serve as a reminder or a trigger for a certain culture , which people can easily recognize as something unique of their culture Another element associated with artifacts are symbols and symbolic action . It also triggers the recognition of people about their culture their rules and beliefs . It could also be used to indicate status in a culture (Brown , 1998

Another element that defines a culture is its rituals , ceremonies and celebrations . These events are unique for every culture , in which are repeated in specific situations with specific meanings . Another related element is the culture 's heroes . These heroes are people who are looked up to by the people in that certain culture as the ideal ' citizen wherein that hero becomes the pattern for their behaviours

Rules , norms , ethical codes , values , beliefs , assumptions and mental models are also important elements that define a certain culture . It defines the people 's way of life : the rules that they follow , the violations they shouldn 't do , as well as their way of thinking and their views in life . It is the basis of how they communicate with each other or with people from other cultures

Dealing with Ethnocentricity

When a company expands to another country , there is a tendency to compare the cultures of different countries . At this point , it is unavoidable to take a position on which country or culture bests the other . Most probably , one would take side of the...