Culture of a Country Influences the Cost of Doing Business

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Culture of a Country Influences the Cost of Doing Business

By | March 2011
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An important aspect of any business is to be able to analyze and evaluate the environment, both internally and externally, in which the business is to operate (Plunkett, Attner, & Allen, 2008). The cost of doing business overseas is a concept that is related to evaluating the external environment, where a manager or business owner must consider such elements as “the strengths and weaknesses of suppliers and partners, the availability of additional labor and technology, and the needs of external customers” (Plunkett, Attner, & Allen, 2008). Applying this general notion to international business, particularly to the prospects of working in a different country, the cost of doing business refers to the existing situation or situations in the potential country which will have an effect on the company. The analysis is created by stating limitations and available resources in order to develop an idea of the costs and benefits (Plunkett, Attner, & Allen, 2008). Culture refers to the system of values and norms which a society shares; it includes beliefs, laws, knowledge, art, and customs (Hill, 2010). Values are a set of beliefs about, or attitudes towards, concepts concerning a society, while norms are unwritten, but accepted, rules and laws about society members’ behaviors. Values and norms are influenced by a number of factors within society such as “social structure, religion, language, education, economic philosophy, and political philosophy” (Hill, 2010). The differences in these factors across the globe provide the diverse societies, which must be viewed individually so as to comprehend the implications they have for international business. An example of potential implications would be a society that values collective achievement. That value alone has the potential to affect the political system of that country to adopt certain socialist principles, or to cause the employees of a firm to work well only in a team environment. The cost of doing business...