International Business: Culture Issues

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Introduction Due to the increasing globalization, national corporate cultures are under heavy
pressure to adapt regional thinking in to their management strategies. The current activity of international exports and imports gives a glimpse in to future what the form of business organizations will be where globalization will affect even in to small national import company’s strategies. One of the biggest challenges when operating business globally is understand and benefit from cultural differences.

Culture clashCulture can be seen as the sum of the beliefs, rules, techniques, institutions and artifacts that characterize different populations. In other terms culture is a very big deal to every country or group and cultural awareness is critical in the business re-lationship in every level. (Rugman 2006,150)

Corporations planning internationalization might face many legal and cultural bar-riers when planning their market entry strategies. Those barriers are quite am-biguous as cultural differences stem from many different cultural variables such as material culture, social organization, religion, language, aesthetics and popular culture. These factors need to be successfully implied to local corporate culture. Culture affects in many business practices from day-to-day operational processes like negotiations, management, hiring, communication and performance evalua-tions and even to implementation of the product, price, promotion and distribution strategies. Many failed attempts to enter foreign market without respect to domi-nant culture, show that cultural understanding is crucial for every corporation to avoid misunderstandings, bad relationships, inefficiency or cost. (Hawkes)

Traditionally culture can be viewed from two different levels, psychological level of individuals from particular culture and culture at institutional or organizational level. (Rugman 2006, 134) Although many other views and models of cultural dimen-sions should also take in...
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