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Role Of Culture In International Business

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Culture is a system of shared beliefs, customs, values that all the members of the society use to cope with their world and with one another, and that are transmitted from generation to generation through learning. Culture is learned by values and behaviors shared by a group of people that are dynamic in nature .Culture is about the human need for meaning. Culture is a knowledge shared by large group of people.
Culture is vast and dynamic. Every country differs in culture due to their heritage or the various types of individuals that reside within the country. Countries have various forms of individuals and societies some are immigrants and some are nationals every individual or a group of society showcase a different type of culture. These …show more content…

The differences a business leader faces while conducting business in his home country and host country and what are the challenges he faces while being exposed to a new culture in the host country and how he tries to solve it by understanding the various cultural differences among both the host and the home country.
What is Culture?
It is the total of knowledge, beliefs, behaviour, values, attitudes, etc. and is present in countries, companies and also within societies. Culture is a heritage and also a way of living life that keeps people together. Without culture, no society can exist. A person is born in the environment of culture. Understanding the role of culture in international business is very important as it influences how people think, speak and behave. For a business deal to be successful in an international country, knowing that particular country 's culture is necessary.
What are the characteristics of Culture?
Culture is shared: Culture cannot be kept by one single person, it has to be shared between people who belong to a group. It is commonly shared and practiced by a large group or some population for e.g. Christianity, languages, traditions, etc. Culture should also be believed by people to be shared. For example, the idea that marriage involves only one woman and one man is a culture in our society that we …show more content…

The culture of every society is unique in its own way and is not same for e.g. the traditions and values in USA are not the same as the traditions and values in China.
How does Culture affect International Business?
It is important to understand the culture of a country as it influences how people within that country interact with each other. It guides decision making, values, thinking patterns and behaviour in the business world. Every country is different from one another and has unique regional and national characteristics. If any future foreign business deal or partnership were to be a success, it would centre on the awareness and respect for those characteristics of culture.
When culture is addressed properly it can aggressively build magnificent cross cultural business relations but if they are ignored and not thought of as being anything important, the lack of cultural awareness can lead to a breakdown in the communication process and thus hampering business relationships.
Cultural differences will have a direct impact on the chance to succeed at International Business and improving the level of knowledge of international cultural difference in business can help in building international competencies as well as enabling competitive

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