a) HOW DO CULTURAL DIFFERENCES IMPACT ON BUSINESS RELATION?
Firstly as a student of business administration I will likely to start with definition of intercultural management. It is all about culture. Basically human races came with different background. Such as: (Religion, customs, and language). This assignment is divided into 3 chapters; how do cultural differences impact on business relationships, Explanations of Hofstede theory how different management style differ in each of these selected countries Japan, Germany, South Korea andLatin America, and the final chapter is Cross-cultural business negotiation. And the Description of the characteristic of the following negotiators: American negotiator, Indian negotiator, Italian negotiator with example. Each chapter is provided with good and vital information as well as Introduction, content, conclusion and references.
Consequently the first chapter defined as cultural differences which is the way people think and beliefs. Therefore cultural differences can cause harms in the interpreting what the other person is doing. For examples: In the US, a firm, short handshake indicates self-confidence and (heterosexual) masculinity. A limp handshake by a man can be interpreted (usually wrongly) as a sign of homosexuality or wimpiness. But in most parts of Africa, a limp handshake is the correct way to do it. Furthermore, it is common in Africa for the handshake to last several minutes, while in the US a handshake that is even a few seconds too long is interpreted as familiarity, warmth and possibly sexual attraction. (Analytictech.com Online)
1.1DEFINITION OF CULTURAL DIFFERENCES
Cultural differences refer to the way of doing things in one culture may not be the way in other culture. What is good in one culture may be bad in other culture. Some time the activities are all the same in two different cultures, but two different meanings, two different interpretations. When people from one cultural background, meet, interact with, understand and deal with person from other cultural background that is cultural differences. 1.2 THE IMPACT OF CULTURAL DIFFERENCES ON BUSINESS RELATIONSHIP Culture differences are all about of beliefs, attitude and communication that a group of people share. The following are impact of cultural difference that may affect business relationship. Religion: the religion can impact international business in several ways. First, religion is a cultural institution that directly guides human behavior. For example, In Islamic law, interest on loans cannot be charged as it is regarded as usury, so banks have to set up special Islamic loans where no interest is charged. There is however an arrangement fee for setting up such loans, which by a strange coincidence is exactly the same amount as the interest which would be charged on a normal loan. Secondly eating dog meat and pig meat is prohibited islamically. Consequently religion plays vital rules in our life today doing business in Islam countries will definitely affect those businesses Customs: When doing business with an associate from another country, consider the cultural differences that may be presented. This includes basic customs, mannerisms and gestures. For example, if a salesperson approaches a meeting with knowledge of a customer’s cultural background, then his words, body language and actions can all be adapted to better suit those of the customers. This in turn may lead to being better liked by the customer, ultimately increasing the salesperson's opportunity to close the deal. Language Barriers: In some countries, like the United States and Germany, it is common for people to speak loudly and be more assertive or aggressive when sharing ideas or giving direction. In countries like Japan, people typically speak softly and are more passive about sharing ideas or making suggestions. When interacting with people from different cultures, speaking in a neutral tone and making a...
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