When the two aspects of the society, culture and business, interact with each other, it leads to the development of interesting conditions or situations.
If some cultures meet each other with business like a base, there are often conflicts. But fortunately, this situation allows us to adapt and learn to respond fairly in all situations.
Different communities or countries in theworld have different mannerisms and behaviour. The way to perceive and resolve a problem can change from country to country, around the world.
Firstly we will define the culture and the international business and their link.
Then, we will determine how culture impacts on business at a micro level.
Finally, we will notice how some aspects of culture at the macro level can influence theinternational business.
I. Culture and the International Business are bound.
The word “culture” comes from the Latin, which is related to cult or worship. In a broadest sense, culture is the result of human interaction. We call culture what people use to interpret situations and create social attitude. This knowledge forms values and influences behaviour. According todifferent theorists in culture we can list the following characteristics of culture.
1. Learned. Culture is not inherited based; it is done by learning and experience.
2. Shared. In a group or a society people share culture; it is not specific to single individual
3. Transgenerational. Culture can be transmitted from one generation to the next.
4. Symbolic. Culture is based on the humancapacity to symbolize or use one thing to represent another.
5. Patterned. Culture has structure; a change in one part will bring changes in another.
6. Adaptive. Culture is based on the human capacity to change or adapt.
The “Culture” is a category of norms and values, beliefs, customs, behaviour and attitudes. Culture varies and changes according to different countries, for instance thelanguage or how to greet people and the gestures are different. Moreover, the religion, the food and drink habits are also part of the definition of the culture.
In a broad sense, culture includes the concepts of education system, art, sports, the material culture and life-style.
Finally, the behaviour in a company is adapted to the different cultures. That can concern the role of employee orthe relation between partners.
IT IS NECESSARY TO UNDERSTAND THE CULTURE
There are many different cultures in the world, that’s why it is critical to understand the impact of culture on behaviour to do international business. If international managers ignore everything about culture of the countries they deal with, the aim can be difficult to reach.
Companies today have to deal with thecultural diversity not just on the international business level but also within their organizations. Moreover, if they want to use the opportunities and benefits provided by the global economy, they have to make sure that their employees have enough intercultural competence.
However, current research indicates that many businesses have not been successful in this respect. Indeed, there are toomany companies that still persist in considering the cultural aspects. For instance, IKEA, wanted to open its shops in United States but Americans consider that the furniture were too small and the concept synonym of low quality, so the implementation was quite a disaster.
It is therefore very important to understand that culture impacts international business more than domestic business.2) International Business
The International business describes all the commercial transactions (private and governmental, sales, investments, logistics, and transportation) that occur between two or more nations.
Usually, private companies undertake such transactions to make profit; the governments undertake them for profit and for political reasons.