Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
By study their viewpoint of business, this can give value to international business. Every business as part of its economic objectives always wants to grow. Domestic market is likely to saturate after a limit and ...
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...tract, some cultures view the negotiation process as being about building a relationship, not getting a signed contract. In this type of negotiations the culture who is more concerned about a contract must work at building a relationship, rather than just stating the positive facts of the contract for both companies. Such misunderstandings could result in the negotiations leading to the loss of a contract. If business people do not know more than just the cultural tendencies of the people they are negotiating with, then they will have a much harder time to relate, connect, and ultimately to get a contract. Not knowing more than just cultural tendencies of people that you are working with can create frustrations and misunderstandings for others and yourself, and worst of all, it can lead to a breakdown in communication and the relationship between two companies.
Firstly, we can analyze that Canadians are individualism while Chinese are collectivism. Canada negotiators are more concerned with their sales over establish relationship with Chinese negotiators. They care ab...
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
A country's economic environment plays a significant role in the success of businesses operating within that country. Countries with struggling or shrinking economies were not included in the top ten ranking. Economic indicators and trends selected for this analysis:
In life we sometimes experience cultural differences. In The Joy Luck Club Amy Tan shows how mother daughter relationships are affected by these cultural differences. Therefore each of the mothers and daughters has a different view on their Chinese culture.
Cross-cultural differences have a significant effect on the output of business negotiations across borderline. Failure to understand and appreciate these differences can render hard work and preparation unfruitful, and result in serious consequences for negotiations. During the meetings between the executives of Canwell and their Chinese customers, both parties demonstrated their willingness to cooperate. Yet due to the lack of acknowledgement in cultural discrepancies, every one behaved only in accordance to the code of their own culture, therefore failed to reach an agreement. In total, the Canadians neglected 3 major points of cultural differences: goal of negotiations, risk preferences
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. He knows it is a risky decision; when he became a franchisor, he had to overcome a lot of difficulties. Steve anticipates he will face some of these difficulties again at the new location in Prague, Czech Republic. Although he was born in the United States, he has family and friends in the Czech Republic, speaks Czech fluently, and has visited the country of his origin several times. He knows the people and the culture. In this paper, I will analyze the cross-cultural differences between the United States and Czech Republic, determine comparative advantages in this country, and recommend ways to minimize the risks of establishing a franchise overseas.
Zhang, Jian-Dong; Liu, Leigh Anne; Liu, Wu. “Trust and Decption in Negotiation: Culturally Divergent Effects.” Management and Organization Review, [early view].
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Everyone contributes in the diversity management of cultural diversity in both every aspect of globalization and in the world add the cultural diversity introduction with regard to the page numbers demonstrate it and on the topic of cultural diversity just the diverse peoples issues they are resolved before and by the world's most fundamental strategies and so forth the secret of this is cultural dominance cultural avoidance and the secret of childcare success would be cultural compromise what do a wide cultural synergy provide it would be just as buckland's on plastic building pieces and strawberry cakes have in common these apparently unique things alongside some more other things can be found in the classes of your nearby child care center
Payne, Neil. (Feb 2006)International affairs: in today's global market, knowing how to conduct cross-cultural meetings is essential.(Motivation). In Kitchen & Bath Business, 53, p30(1). Retrieved April 03, 2006, from InfoTrac OneFile
Understand and heed cultural differences - cultural variables in transacting international business. (1991, January 28). Business America. FindArticles.com., Retrieved March 20, 2009, from http://findarticles.com/p/articles/mi_m1052/is_n2_v112/ai_10412261/pg_4?tag=content;col1
There is an argument that proposes that culture is inconsequential to cross cultural negotiation. It maintains that as long as a proposal is financially attractive it will succeed. However, this is a naïve way of approaching international business.
There are many differences among cultures in the modern world. Certain cultures hold high regard for specific values and distaste for other values. This difference in values can effect international business positively.
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.