Cultural Impact on International Trade

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Introduction

Cultural impact on international trade is the effects and repercussions of doing business in diverse communities. Cultural impact on international trade mainly occurs when businesses are organized in an international structure. Managing international cultures means handling both national and organizational cultures. Organizational cultures are manageable while national cultures are given facts for management.

One of the most renowned beverage companies in the world is Coca-Cola. It has branches and network all over the world making it serve different people from diverse communities and practicing different cultures. Two of the countries that Coca-Cola sells its products are Dubai and China. Dubai is in the Middle East and the religion practiced there is Islamic. It is ruled by a king from the royal family. The people of Dubai are governed using strict Islamic rules which take Islamic as a religion very seriously. China is in Asia where the majority of its citizens are Christians. China’s traditional values are derived from various versions of Confucianism but a number of more authoritarian sprains of thoughts have also been influential.

Dubai and China are two different countries with different sets of cultures. Thus the people of these countries are differently programmed in their mind hence their backgrounds from which the current and future practices can be predicted are totally different. With Coca-Cola serving these two markets, proper marketing strategies should be put in place to ensure that the consumers are satisfied. The cultural differences affect international businesses in one way or another. Here are some of the cultural impacts on international business such as Coca Cola on varied cultures in Duba...

... middle of paper ...

...easy to penetrate the market because of the religious believes which prohibits some practices. Hence a company like Coca Cola should invest more in informing and educating the people on advantages of time efficiency (Lueng, 2005).

Conclusion

It is evident that for any international company which wishes to have a successful marketing the issue of culture must be considered. This is because different markets react according to the cultural practices. Coca-Cola being a multinational company is one of those who apply the market segmentation according to cultures. Also China and Dubai are different countries with different cultural practices and hence gives perfect examples of cultural impacts on international trade.

Works Cited

Lueng K, (2005). Culture and International Business. Retrieved from:

http://ie.technion.ac.il/~merez/papers/jibs_culture_Intern_B.pdf

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