The Effects of Cultural Differences in International Business;

Topics: Geert Hofstede, Negotiation, Chile Pages: 8 (2868 words) Published: January 9, 2013
The Effects of cultural differences in International Business; through the analysis manners and customs of a country: Chile. Selene E. De León Basurto.
National American University Online

Author Note
Selene E. De León Basurto, International Business, National American University. Selene De León is now at Online Courses of Composition II, NAU Online.

Culture can influence business in different ways, and culture is one of these obstacles that can affect the entire cooperation between two countries. Language problems and culture collisions are not uncommon, especially in the beginning. A negotiator must be able to handle these difficulties in a way that is satisfying also for the other part. Mistakes can be difficult to correct and can destroy the entire operation of negotiation. For this reason this paper aims to dig a little deeper into the subject, but in this case study Chilean culture and investigate about how Chilean do business, for that is necessary to learn about the profile of the country which is all the general details like official language, type of government, principal industry, population, etc., also in this essay are going to analyze the 12 negotiation variables of this country, the Hofstede´s dimensions, its context communication and its culture and traditions. The Essay points out some general advices that a negotiator always must have in mind before and during a negotiation on the international market; about the manners and customs in that new culture. If the first impression becomes negative, this can be hard to erase.

The Effects of cultural differences in International Business; trough the analysis manners and customs of country: Chile. The official name of this country is Republic of Chile and the official language of this country is Spanish the type of government is a Representative Democracy, Presidential Regime. In Chile, as in all third world countries, the industry has had a late development, and its economy has traditionally been based on exploiting its natural resources: agriculture, livestock and mining, mainly. And it was not until the early 90's that Chile implemented a model to reform its economy, and now exports and international trade account for over a quarter of GDP. His current industry is based on copper, lithium, other minerals, foodstuffs, fish processing, iron and steel, wood and wood products, transport equipment, cement and textiles. Chile has a population of 17.3 mn. The per capita income US$13,338 dollars. Their exports range US$ mn 5921.2 Copper …US$4.1 billion (42.7% of Chilean to U.S. exports, up 144.7% from 2005). Fruits & preparations (e.g. frozen juices) … $1.3 billion (14%, up 17.9%). Fish & shellfish … $957 million (10%, up 26.1%). Imports US$ mn 4748.2. Other petroleum products …US$659.6 million (9.7% of Chilean to U.S. exports, up 53.3% from 2005). Civilian aircraft … $577 million (8.5%, up 91.7%). Religion that is practiced Roman Catholic 70%, Evangelical 15.1%, Jehovah's Witness 1.1%, other Christian 1%, other 4.6%, none 8.3%. Implemented the 12 basic trading variables is firstly the basic concept of negotiation in Chile’s culture is generally group-oriented and often prefers a straightforward and cooperative negotiation style, since if during the process there is going to be a mutual benefit. According with Lothar (2008) to Chileans, negotiating is usually a joint problem-solving process. They expect long-term commitments from their business partners and will focus mostly on long-term benefits. Chileans use the social criteria’s to select the negotiators; the negotiator is selected based in his capacity to establish relations and his experience. Business relationships in this country exist between people, not necessarily between companies. Because for them it is important to get to know in depth the person that will establish future treatment. Establishing personal...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Cultural Differences Related to International Business
  • International business Research Paper
  • international business Essay
  • Culture and International Business Essay
  • Essay about Cultural Differences
  • Essay about Cultural Problems in International Business
  • The Cultural Differences Effects Essay
  • Cultural Differences in Doing Business in Sweden and Austria Essay

Become a StudyMode Member

Sign Up - It's Free