Unit 5- Learning Aim D
P7- Explore the cultural differences affecting international business.
Culture
Culture refers to how things are done in a specific Industry or, more broadly, in a country or
group or group of countries, such as Europe. There are subtle differences in the way people
communicate/interact with one another all over the world, based on individual histories of
those countries, how people work there and sometimes, other factors, Such as religious
beliefs or attitudes.
Culture Factors
Culture factors come in various ways in which different countries operate, and these are
segmented into eight major factors.
Languages
Since there are over 7000 different languages in the world yeah being able to communicate
in the appropriate language is critical when abroad. There are approximately 150 to 200
languages spoken by at least 1,000,000 people in the United states. There are two types of
languages the ones spoken by native speakers and those spoken by non-native speakers.
The most popular native language in the world is English followed by Mandarin Chinese and
Hindi.
Being able to communicate in relevant languages is very important in order to:
1-to avoid misunderstandings.
2-to make business communications happen much faster in much clearer.
3- to build trust and appreciation of different perspectives.
4- to build teams made up of individuals from a wide range of geographical locations.
Ethnic population makeup
The number of ethnic groups in various countries varies which has an effect on how foreign
companies work in those countries the ethnic makeup of a country can influences whether
or not a product or services comment as well as how it is marketed and promoted. Since
there are significant differences between countries it is important for foreign companies to
consider these differences in how they affect their operations
, Values
People’s principles in specific countries had an effect on how they make decisions. These
beliefs are derived from ancient practises and the upbringing of people in these countries
giving bribes as part of business dealing is completely appropriate in certain countries in
reality if a foreign country does not do so they will be unable to trade there.
This is illegal in some nations such as the United Kingdom who funds a paid to workers to
ensure that business continues especially in public sector companies, must be declared and
made public to ensure that those businesses are not treated unfairly as a result.
Attitudes to work
The typical working week, the amount of vacation time offered to businesspeople, and the
manner in which business negotiations are conducted are all quite different in certain
countries around the world. In Spain, for example, it is customary to take a siesta (a type of
rest) in the middle of the day and then work later into the evening. In France it is common
to have a long brake at work. However, this is starting to become less common.
Social Structure
The social structure of a country refers to the class structures that exist in that country.
There is a class hierarchy in the United Kingdom that runs from the elite social class, which
comprises the top 6% of British society and has access to large sums of money, to the lower
levels of working-class society, where qualifications are low and economic prosperity is
restricted. In Japan, the class system is rather common, and it involves various hierarchical
levels such as the middle and upper classes, much as in the United Kingdom.
Knowing the class structure of different countries will help companies figure out where
collaborations are needed, who to approach and collaborate with in terms of partnerships,
and how to create more relevant, tailored campaigns for their goods or services based on
that country's class structure.
Religion
There are many different religions around the world, each with its own influence on the
people who practise it. Alcohol consumption is forbidden in some religions, such as Islam
and Buddhism. It is permissible for other faiths, such as Christianity. Knowing the religious
preferences of businesspeople meeting for a business dinner can have a major impact on
how such dinners are conducted.
Corporate dinners are often held to help participants network, so it is important that these
events adhere to all religious expectations to avoid offending anyone. Religion may have an
impact on how companies work. Some countries have more religious-based legislation than
others. For example, in some countries that are Muslim, Sharia Law operates, and this
affects the ability of businesses to borrow money or to have mortgages.
