The importance of cultural factors in international business

Topics: Nonverbal communication, Language, English language Pages: 5 (1511 words) Published: February 25, 2014
Topic THE IMPORTANCE OF CULTURAL FACTORS IN INTERNATION BUSINESS In the process of globalization, the world is getting smaller. The connections and interactions between countries or international companies are easier by cultural integration. For example, Google’s company was a small company in California before 2000. They then expanded their company in other countries such as Germany, Japan and they has boosted many different language versions of the site. Google has been considered as the largest search engine in the world from June 2000 and they was available in 100 different languages in 2004. Nowadays, the word "google” seems to become a memorable word in human mind. However, every coin has two sides. According to BBC News, Google also had some problems with Microsoft over the Window phone Youtube App. Google explained the reason that leads to conflicts is different ideal and technology development between Microsoft and other communication companies. They claimed that Microsoft had not upgraded the new version to connect to Google's product. Hans Magnus Enzensberger described “Culture is a little like dropping an Alka- Seltzer into a glass - you don’t see it, but somehow it does something”. It is correct in case of Google’s company, cultural factor plays an essential role to be success. It has brought a tremendous opportunity but itself is also a challenge. Cultural factors can be described as invisible barriers in business cooperation. This essay will analyze how considerable culture is in international business. Culture is considered as a complex concept that is very difficult to define and understand. There are variety of different cultural definitions in each aspect of research. In international business’s research, culture is indicated by Geert Hofstede, “Culture is a collective phenomenon that is shared with people who live or lived within the same social environment, which is where it was learned. It is the collective programming of the mind which distinguishes the members of one group or category of people from another”. Culture is a program of collecting, connecting and sharing human mind in the same environment, but there must be an alternative to people in each group. Cultural factor has a significant effect on both living life and business success. Nissan is a typical example for interaction and cooperation between the UK and Japan. It is believed that, Western and Eastern countries have a lot of difference in cultural styles. For an Eastern company, to be successful in a Western country is a burdensome task and they have to face with plenty of cultural challenges. However, Nissan, a Japanese company, expanded their market to the UK and they has got a lot of achievement. They firstly have established close relationships with local in order to approach UK culture effortlessly. Nowadays, they become a biggest car manufactory in the UK. Nissan is investing $200 million (£126 million) to build its new Invitation model in Sunderland (BBC News) and their project is also supporting by a £9.3 million loan from the UK Government. Language is pointed out as the reflection of culture. It is the key in interaction between human. It has directly influence on international business. Language is used to gather and evaluate information or provides an access to connect to other partners. It is also important in company communications. It is said that up to 7,000 different languages are spoken around the world. According to The Lance (The student news site of Linganore High School) “the world’s most widely spoken language by number of native speaker are Mandarin Chinese, Spanish, English, Arabic, Hindi, Bengali, Portuguese, Russian, Japanese and German”.

Sources: lhslance.org
Although Chinese is the most popularly spoken language in the world, a majority of countries chooses English as the second language because it is becoming more and more fundamental and effective in international business communication. In...

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BBC News Technology (16th August 2013) Microsoft attacks Google in YouTube App row
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Schumpeter (16th June 2011) Fast food and cultural sensitivity: McDonald’s the innovator. Retrieved 16th August 2013 from http://www.economist.com/node/21521988
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