1.

IMPACT OF CULTURE ON INTERNATIONAL BUSINESS

A business cannot simply rely on its current method of conducting business
when it decides to take its business at international level. Every country has
a set of different variables which can be new for an offshore company e.g.
rules and regulation, taxation, different currency, different holiday periods
etc. Most important consideration in this regards is the difference in culture
Knowledge of organizational culture is vital for managers and should be
considered in the process of feedback, intrinsic and extrinsic rewards etc.
E.g. the relation between level of pay and job satisfaction is strong in the US
but weak in Japan, so an international manager will find it hard to motivate
staff through increments in Japan (Money & Graham, 1999).
The importance of cultural understanding in successful international
companies is reflected from their marketing strategies which are grounded in
the cultures of the target industries. Alternatively, a company with weak
understanding of the target companys local culture can commit disastrous
mistakes in developing the marketing strategy through designing
advertisements which offend people because of culturally unacceptable
content.
Companies which do not completely understand the culture of target regions
culture often devise marketing strategies which do not attract consumers
attraction and fail right from the start. There are many past examples of
culturally incompatible marketing content e.g. using an owl in an
advertisement in India where it is thought to be a bad luck symbol and
animals wearing prescription and sun glasses in an advertisement designed
for Thailand market where animals are thought to be lower forms of life. (Win
Translation, 2014)

a. Holidays
Holidays are actually quite important as they vary considerably from culture
to culture. It is advisable to recognize some of the most widely celebrated
holidays in the countries where you do business in order to better appreciate
what people in different markets deem important in their lives, as well as to
avoid scheduling an important meeting on a day when no one in your target
market is in the office!

b. The Business of Relationships

Due to the importance of relationships in many countries, an appreciation
and understanding of the culture of the person you are developing a
relationship with is critical. It is also suggested that you learn at least a few
of the common words and phrases in the language of your target market as
this will be taken as a sign of respect and an indicator that you wish to
pursue a long-term business relationship with their company.