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Effect of Culture in International Business

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Effect of Culture in International Business

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  • Feb. 2011
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Introduction
Culture is an important part of International Business. Culture is defining the collection of values, beliefs, behaviours, customs and attitudes of the member in the society. Culture is the behaviour that people act in the community. The characteristic of culture is also reflects learned behaviour that is transmitted from one member to another in society. There are also basic elements cultures such as social structure, language and religious. So the foreigner who wants to operate the business at the overseas market have to understand the culture at the local market to become successful. In this report also compare between the similarities of culture between two countries such as Thailand-Malaysia and different in culture between China and United States.

DEFINITIONS
The term ‘Culture’ can be can be defined in more than 160 ways. According to (Terpstra and David 1985) they proposed the meaning of culture in international Management context based on Hostede’s definition is refers to the group of people in the society of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe, and material objects. Culture is symbolic communication. Some of its symbols include a group's skills, knowledge, attitudes, values, and motives. The meanings of the symbols are learned and deliberately from the generation to generation. Culture is also the collective programming of communication for people in the community to understand such as language and behaviour and also to make the connection by communication with other community. Culture is one of the important parts of International business undertaking Importing and Exporting in foreign markets. So the organisation that operating international have to understand the differences in values and ethical behaviour for the organisation to work efficient in the international markets. Many organisations lost the...

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