The Importance or Otherwise Understanding Cultural Issues for Business Firms Operating Internationally
Contemporary Issues in Business
Topic 4:
The importance or otherwise understanding cultural issues for business firms operating internationally.
Contents
Introduction 3 Why firms want to do business internationally? 3
1. Main problems of doing business internationally 4 1.1. What is culture? 5 1.2. Which factor had company look at when it arrives to another county? 5 1.2.1 The employees are doing business internationally 6 1.2.2. The company is developing its product or service internationally 6
2. Do we need to adapt the product to each culture or we can do global product? 7 2.1. Theory: globalisation, global product 7 2.2. Glocalization 9 2.3. Example McDonald’s : « good example » 11
3. What happen if a company doesn’t respect culture? 12
Conclusion 14 BIBLIOGRAPHY 15 Appendix 17
Introduction
Why firms want to do business internationally?
This report investigates importance of understanding cultural differences between countries for business firms operating internationally. There will be examples of firms that understand different cultures and are able to use this knowledge for successful business.
International trade includes all the various kind of exchanges as importation and exportation, as well as goods and services, etc. across nations. It grew over the last half of the twentieth century due to many reasons, as the liberalization of both trade and investment or as the opening of the borders. But, why firms want to do business internationally? What is the goal of this international trade?
Indeed, there are various advantages to develop exchanges aboard.
1. First, go to others countries permits to open new market and become larger. The aim is typically company expansion. Operations in two or more nations always results in huge benefits. Thus, firms have new opportunities in terms of technologies, consumer behaviours, knowledge’s, etc. Moreover, aboard, companies can find solutions about
Topic 4:
The importance or otherwise understanding cultural issues for business firms operating internationally.
Contents
Introduction 3 Why firms want to do business internationally? 3
1. Main problems of doing business internationally 4 1.1. What is culture? 5 1.2. Which factor had company look at when it arrives to another county? 5 1.2.1 The employees are doing business internationally 6 1.2.2. The company is developing its product or service internationally 6
2. Do we need to adapt the product to each culture or we can do global product? 7 2.1. Theory: globalisation, global product 7 2.2. Glocalization 9 2.3. Example McDonald’s : « good example » 11
3. What happen if a company doesn’t respect culture? 12
Conclusion 14 BIBLIOGRAPHY 15 Appendix 17
Introduction
Why firms want to do business internationally?
This report investigates importance of understanding cultural differences between countries for business firms operating internationally. There will be examples of firms that understand different cultures and are able to use this knowledge for successful business.
International trade includes all the various kind of exchanges as importation and exportation, as well as goods and services, etc. across nations. It grew over the last half of the twentieth century due to many reasons, as the liberalization of both trade and investment or as the opening of the borders. But, why firms want to do business internationally? What is the goal of this international trade?
Indeed, there are various advantages to develop exchanges aboard.
1. First, go to others countries permits to open new market and become larger. The aim is typically company expansion. Operations in two or more nations always results in huge benefits. Thus, firms have new opportunities in terms of technologies, consumer behaviours, knowledge’s, etc. Moreover, aboard, companies can find solutions about
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