INTERNATIONAL BUSINESS AND CULTURE Executive Summary International Business is an objective, process as well as outcome of the amazing phenomenon

known as globalization. Globalization requires essentially the breaking of conventional boundaries which had geo-political considerations. International business in very simple terms is the exchange of goods, services, people and knowledge between two countries for commercial consideration. It perhaps does not require any great analysis to understand that this exchange has ramifications from various aspects. However, the most critical and of course interesting implication of international business are with regard to people, more specifically the culture element of people. As per Smith and Bond, Culture, like globalization is an amazing element of our life. (Baron & Byrne, 2003) state that while culture has innumerable definitions for the purpose of a basic understanding it would suffice to understand it as referring to the system of shared meanings, perceptions and beliefs held by persons belonging to some group. If we juxtapose the concepts of international business and culture, firstly a new group of people gets formed and thereafter a new pattern of shared meanings, perceptions and beliefs held by this new group gets evolved. From a very positive perspective it is hoped that international business would in the creation of a more peaceful world through contributing to the making of a global culture and through that a global civil society. (Berger, 1997) The changed set of shared meanings, perceptions and beliefs triggers off a new perspective of thoughts and deeds which as a result has a direct impact on human

Page 1 of 10

behavior and ultimately on human life. Let us take an example to understand this. The Middle East has witnessed unimaginable impact to its culture due to the international business now dominating its economy. As per Islam, money has been always given the status of a medium for exchange and profits have always been seen to be only as a reasonable return for the effort put in. International business has changed this all together. Money is now a commodity of profit and no more remains as a medium of exchange. The value base of business has changed and this value base is nothing but a strong element of culture. In the quest of earning wealth and quickly too, people have taken up to practices of speculation and gambling, practices which were shunned till the recent past. (Chandra Muzaffar, 2002) While this example has negative shades, there certainly are examples which have positives. With the change of culture in every society the dimensions of culture have undergone a change. Individualism and collectivism for example are viewed in the context of a global culture and therefore have a new meaning. Similarly, other dimensions like high/low power distance and masculinity/femininity achieve newer focus and definitions. It is however to be understood that the transition for a local culture context to a global culture context is not an easy path as unless new shared meanings, perceptions and beliefs are accepted by the group concerned the tensions within the group would remain. International business therefore not only involves an economic globalization, but along with it has the very intangible cultural globalization evolving (Berger, 1997). The major issues that confront international business from the perspective of culture are in relation to communication, religion, ethnicity, common living habits, individual as well as family values to name a few. The element of values is extremely critical especially as it guides the way business ethics are practiced and promoted in an international environment.

Page 2 of 10

All in all, International business today has triggered off the path to a global culture being established. For a businessperson it is very important to understand the business culture and the culture that is related to the country in order to establish global business and run it profitably. This can also be referred to as international culture in doing business according to their style and winning contracts and customers. Many businesspersons do businesses international and management as the individual must be focused in various points and objectivities before traveling for the trip as it is more than just traveling and closing the deal. It is about planning and winning the deal. It is also a great opportunity as a learning process about knowledge, ideas, and culture differences in the globalization and sharing all around the world. When knowing about one culture to another then its easier to merge with others. For example Indian cultures are similar to the Sri Lankan cultures. While working in Multinational Corporation it develops more an individual to cope up and build presentation skills to meet their cultural differences. Globalization and cultural impacts can be positively and also negatively. During this project about international business and culture the discussion is listed below in its various aspects and influences including its importance and reasons: General aspects For a businessperson doing business globally the understandings about meetings, gifts, etiquette, and manners are the basis. Accordingly a detailed discussion is mentioned below:

Page 3 of 10

1) Meetings: A businessperson must understand the styles, methods, and process for conducting meetings from opening until the closing of the meeting. This all is dependent upon the meeting culture in that particular country for the business meetings will be carried on. It is suggested that the businessperson seek the support of a professional or consultant within that country. Understanding their business meeting culture will lead into closing better deals in the international businesses. 2) Gifts: A manager must also consider taking gifts during informal or formal meetings. A search on their culture is important as some countries businessperson might take it as bribery or not respectful act. In the meanwhile other businessperson will not accept gifts except for their family members. 3) Etiquette: A businessperson must be responsible to be aware of their good manners during meetings, dinning, personal visiting, etc. Bad manner might lead to affect the individual opinion and also might affect the image of the company. A successful learning of etiquette will lead to appreciation and respect with profitable outcome. In order to understand the above it is suggested to meet with professional and take advice from them, read articles about their business culture, study their country culture, and also attending seminars, workshops, seminars, or trainings might also be useful. There are also resources online that helps businessperson to learn about certain lectures as examples below: http://www.businessculture.com/

Page 4 of 10

http://www.worldroom.com/pages/shelves/offshlvjul24.phtml http://www.via-web.de/271.html Culture and international business globally diversification The unknown culture and adjustments are made by the employees, companies, partners, supplier participating in different branch, and other individuals involved in the business to bring it together. The causes of the new culture in international business can be in terms of confusion, few business gains, frustrations, anger, discomfort, etc. Diversity It is the differentiation of people and individuals in various means and forms. The organization and Multinational Corporation must understand it very clearly and respected their culture from people to country level. The elements of the diversity in terms of culture and international business are: 1) Business Culture: It is not necessary that a company in a country is having the same business culture as compared with another country within the same country. Business Culture is developed by the individuals within that company from management to the subordinates. 2) Values and Practices: As per the cultural concern the values are the core reasons of culture and comparatively practices might change in course of time period. The values of the culture remain the same and do not change and also maintained in each country. The practices are adopted completely or may be partially and accordingly it might exist or vanish from culture. Page 5 of 10

3) Adaptation: It might be difficult for new business professionals Developments Accordingly culture and international business brought great developments for businesses globally. The developments are closing better deals, doing profitable business globally, business relationship in technology advancement and telecommunications, organizational reengineering, increasing jobs and opportunities, developing the economic system of the country, and attracting highly income investors. Decrease in Developments Being not aware of the culture it may be lead to many frustrations and business loss. It will not be possible to compete globally and establish businesses internationally. Sometimes it might be successful to establish and win deals but to keep the growth and prospering in the business is not possible without knowing the culture of the country or the business partners. Dimensions In order to compare cultures and understand the concepts and differences between cultures are: 1) High-versus low-context cultures: in this the low context is not much complicated as it is about pattern and style in communication but in the high context it is about the implicit mode of communication. 2) Monochronic versus polychronic time: that is M-time does at a time and P-time does many things at a time. Including the communication we have to take into consideration

Page 6 of 10

that communications are clear in cultural terms as miscommunication may lead to misunderstanding and unclear facts. 3) Silent language: is the nonverbal communication that is related to the culture other areas indirectly. They are time, space, material possessions, friendship, and business agreements. 4) Hofstede's five cultural dimensions: includes power distance, uncertainty avoidance, individualism vs. collectivism, masculinity versus femininity, and confusion dynamics. 5) Maruyama's epistemological types: are due to misunderstanding with the conflicts between tow different culture people working together and communications are not interpreted in the right form, style, or pattern. International Business and Competitiveness Besides establishing business it is also important for maintaining the business growth to have better relationships with home, supplier, customer, partner, and awareness about competitor countries. Awareness about different culture will help to keep contacts with the main branch, better prices and supplies from the supplier, maintain the customers and attract similar customers, gain many partners in the business, and finally compete successfully. Role of Training and Development While accepting international assignments and establishing businesses training and development plays an important role by helping and developing the skills and understandings of team. This is to ensure the relationship, success of business, better presentation, and profitable business establishment. Page 7 of 10

It is also recommended that international companies appoint national representative to support, develop, and train the staff members to cope with the new business culture. Also successful international business hires almost 50% of nationals and retains them to have a better place in the community and society of that country. Conclusion During this research it is understood that in order to maintain and establish business globally having knowledge about the culture and their values, beliefs, and common attitudes or behavior shared among group of people during business transaction results in opportunities in growth, development, knowledge, high profit, and better relationships. Bibliography Books Social Psychology, Robert A Baron & Donn Byrne, Social Psychology, 2003 Peter L. Berger, Four Faces of Global Culture, National Interest, Fall97 Issue 49, p23, 7p. Item Number: 9710121738 Online Resources and Web sites Globalization and Religion, November 19, 2007, <http://www.islamonline.net/english/Views/2002/03/article16.shtml>. International Business Culture - Global Culture, December 1, 2007, <www.international-business-center.com/international_culture.html>.

Page 8 of 10

Globalization: Who benefits from it? - International Business, December 1, 2007, <www.helium.com/tm/252816/commerce-technology-define-modern>. Culture and International Business, December 1, 2007, <www.cbe.wwu.edu/cib/papers/tung.PDF>. Introduction to International Business Strategy, December 1, 2007, <www.cup.cam.ac.uk/resources/0521880815/4748_2.%20Analytical %20Frameworks.ppt>.

Page 9 of 10

Noora Al Shehhi, Miss Project (Writing Services / Projects or Assignments) For Students, Employees and Employers Salaam 3alaykoom, My Services for Employees/Employers: Presentation, Translation (English Arabic), Training Material / Courseware, CV Writing & Editing, CV Distribution within UAE, e-Books, TOEFL iBT Registration, Online Marketing or E-Marketing, Fax Marketing, Procedures, Policies, Manuals, Forms, Web Designing, Job Description, Job Specification, Business Plan, Feasibility Study, Project Management Documentation, Monthly or Yearly Tasks Report, Career Consultation, etc. anything that has to do for fulfilling your job/business needs My Services for Students: Project, Assignment, Essay / Homework, Graduation Project, PHD Proposal, Dissertation, Research, Presentation, Translation (English Arabic), CV Writing & Editing, CV Distribution within UAE, e-Books, TOEFL iBT Registration, Contents or Layout Editing and Correction of Reports, Plagiarism or Grammar Checking, Web Designing, Work Placement, Internship / Training Report, etc. anything that has to do with writing/typing I can help in projects: Management, Business, Marketing, HRM, Economics, OB, PM, Database, Networking, Quality, Accounting, Mathematics, Statistics, Finance, Science, Law/Legal, Engineering, Web Design (Html/FrontPage), IS, IT, and many others etc All the projects & work will be free from plagiarism. You will be getting free of charge plagiarism report from TURNITIN. It will not show 100% copy pastes or matching when you submit using your University ID information. I use TURNITIN database just to check/review plagiarism not to submit it. Payment method Al Ansari Exchange / Western Union / Banks and I will process from time of payment. The price is depending on requirements, details and submission duration. Thanks! Noora Al Shehhi Writing Services I am your ultimate choice for plagiarism free and excellent writing services with report showing plagiarism low rate from TURNITIN. | Email: miss.projects@gmail.com | Website: http://missprojects.wordpress.com/ | Project Samples: http://www.scribd.com/nshehhi

Page 10 of 10