Cross-Cultural And Cultural Challenges In International Business

company should not make any promises it cannot meet and provide a realistic picture of the job and living conditions.

Cross-cultural and language training prior to departure featured high on the respondents ' list of actions a company could take to assist their adjustment on arrival in the new environment and their on-the-job effectiveness. This feeling of utter confusion and helplessness experienced by the expatriate illustrates how a simple investment in improving an understanding of the culture through specialist country-specific training could make the difference between a successful, profitable overseas assignment and an ineffective, long term struggle.

The cultural nuances that affect international business obviously go far beyond the

The impacts of cultural differences extend beyond CSR to include the business behavior of local management and employees, as well as the preferences of consumers. For the MNE, there are advantages in creating a globally consistent set of organizational structures and incentives and a unified marketing program. For example, cultures differ in regard to the weight they place on attributes such as quality, privacy, service reliability, the introduction of breakthrough services, and the means of consumer communication with the firm. The retail MNE in particular must create an international expansion strategy on a country-by-country basis, focusing on differences in consumer preferences and the need for market

While some of this bribery can simply expedite decisions and actions, other situations may involve a distortion of business outcomes. Meanwhile, government officials in positions to alter the firm’s overall profitability may receive substantial payments. Funds that rightfully belong to the public may be diverted into private hands. Firms that would have paid fees to the government may be able to reduce their financial obligations. Corruption distorts free market outcomes, resulting in business and government decisions that reduce efficiency and so reduce a nation’s aggregate production. Some investors may reject potential business dealings in certain cultures because of the presence of corruption. Recent years have witnessed global attempts to reduce corruption, and many nations now treat corruption as a crime. In this context, management encounters issues that challenge ethical positions and that involve risks of legal prosecution, as well as impacting potential