Effect of Culture in International Business

Topics: Malaysia, Thailand, Southeast Asia Pages: 5 (1483 words) Published: February 5, 2011
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.

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 opportunities due to the lack of understanding of international markets.

Characteristics of Culture
Culture is the set of values, attitudes, beliefs, behaviour. The society culture are describes the behaviour and rules which determine the way of how the organisation operate in the community. Culture is also reflects learned behaviour that is transmitted from one member to another in society. Culture is also the adaptive because the effect from the external environment such as multinational international business, technology and tourism. Also the improvement of communication such as mobile phone and internet with the low cost which allow people and organisations developed greater cross cultural exchange between the organisations.

The basic elements of Culture in international business are:   • Social Structure
• Language
• Religion
The Social structure is the culture’s beliefs about the role in community. The organisation’s predominately how to work with each other in the organisation. Social attitude is reflected in the importance of how to work together in the organisations.

Language is a primary cultural in the society because it is very important for society’s members to communicate between members. There are over 3,000 languages and as many as 10,000 in worldwide.  

Religion is also the important part of society. Religion influences the attitudes members in the community towards work, investment, consumption and responsibility. For example: Thailand
Languages in Thailand
The Thai language is the main language in Thailand also there is several regional languages spoke as well.  Other languages spoken in Thailand are Chinese, Lao, Malay and Mon-Khmer, while English is later becoming more predominate in commerce of international. I Thailand, English is also now becoming the second language in secondary school and universities. Thai Society & Culture

Hierarchical Society
. Thailand organisation is respect hierarchical...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Culture and International Business Essay
  • International business Research Paper
  • international business Essay
  • Essay about culture
  • International Business Essay
  • International Business Essay
  • Cultures effect on international business Essay

Become a StudyMode Member

Sign Up - It's Free