International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
When business firms operate in different nations, different cultures
come together to do business. More than anything else they have to respect
the cultural sentiments of each other. Often, businesses fail not because of
logistical shortcomings, but due to the erroneous evaluation or total lack of
understanding of the other party’s cultural values.
As stated above the culture determines an individual’s actions or
behaviour. The society that people grow up in shapes their basic beliefs,
values and norms. They absorb, almost unconsciously, a world view that
defines their relationship to themselves, to others, to nature and to the
universe. A society’s beliefs, values and norms are influenced by their
family and by the social, educational, and religious systems of a country.
What people buy, why they buy, when they buy and how much they buy, are
all primarily determined by the typical culture of each country. Cultural
attitudes vary considerably among countries, so it is difficult to find general
patterns amongst them. For examples, despite the fact that their economic
levels are similar, the French and Germans are culturally quite different. The
French are somewhat hostile to frozen food, but the Germans welcome it.
Thus, for a frozen food exporter, both these countries hold different
importance.
GENERAL CHARACTERISTICS OF CULTURE
Culture is a distinctly human capacity for adapting to circumstances and
transmitting these coping skills and knowledge to subsequent generations.
Culture gives people a sense of belonging and shapes their behavioural
pattern. Culture impacts behaviour morals and productivity at work and
includes values and patterns that influence company operations and actions.
Corporate culture affects the way in which an organization copes with
competition and change, whether in technology, economies or people.
The way people do business is different in different countries. In
Japan employees are extremely loyal to their employers and will not easily
leave their jobs. The Japanese have great respect for protocol and even the
way a person presents his visiting card may determines his compatibility to
initiate business discussions. The Indian business community strongly
believes in the concept of a family business, with the line passing from
father to son. In France it is usual to work five days week, starting early in
the morning. In Germany, serious business discussions do not call for
humour. Delaying, often for weeks, to get a better bargaining strength, is an
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