Cultural Risks and Comparative & Competitive Advantages in Global Business Environment

Global Business Environment

Table of Contents
Global Business Environment.........................................................................................................3
REFERENCES................................................................................................................................1

Global Business Environment
Entering into an international market leads to major cultural risks that an organization has
to face, but there are comparative and competitive advantages that helps an organization in
ensuring its success in international market. Ford Motor Company is an American multinational
automobile manufacturer, which is headquartered in Dearborn, Michigan, United States. It was
founded by Henry Ford and establish on June 16, 1903. The company deals in automobiles and
commercial vehicles. The report includes the cultural risks that are faced by an organization,
while entering into an international market. The report also includes the roles and benefits of
comparative and competitive advantages that helps in ensuring the success in international
market. The contribution of industrial policies, factor conditions and related supporting
industries is also included in the report.
Culture of a country represent their beliefs, language, values,etc. Cultural risk refers to
the problem faced by a company to understand language of the country and beliefs which may
lead to the failure of the project. Chinese culture have 56 ethnic groups amongst them the most
important or largest one is Han Chinese. There are many other groups who were combined with
Han Community while continuing their own culture and languages. Every group has its own
culture of clothes or festivals or beliefs or languages, etc. They follow joint family system as in
their culture families or their ancestors have priority. Korea's culture is shaped based on Chinese
and Japanese cultures (Mandorino, and et. al 2022). They are bifurcated in two parts i.e. North
Korea & South Korea. Where there is one lingo in North Korea and 5 Lingos in South Korea.
For Koreans also family is important part of their life where every young member should respect
their elders. Korean culture have various Code of Conduct which is compulsory to be followed
whenever they at social gathering which shows their loyalty towards their culture. Buddhism if
followed by large population as the beliefs of Buddhism religion projects a huge effect on
Korean lifestyle.
Risks:
Cultural understanding
The cultural Understanding is a very important risk as there are various difference in the
culture of USA & China and Korea. USA's language is very different from the Chinese and