Sample Assignment on International Business (PDF)
Added on 2021-04-17
11 Pages2423 Words99 Views
Languages and CultureReligionEconomics
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International BusinessStudents NameInstitution
INTERNATIONAL BUSINESS1IntroductionUndoubtedly, the economic contribution of China to international trade cannot beignored. China global business reputation in the Brics and other regional and global economicblocs cannot be ignored which goes to show how countries can overcome cultural constrictionsto be successful. The existence of international transactions is sufficient proof that cultureimpacts trade between different countries (Soo-hoo, 2016).There are various cultural factors thatgreatly impact on international trade such as pragmatism, business etiquette, religion, languagebarriers, traditional practices, consumption habits based on traditions and customs. However,with the modern technology and globalization, most of these challenges can be overcome.Cultural Challenges Culture plays a vital role in business, local or international.This is attribute to the factthat business thrives on consumption of goods and services. International trade is affected by thedifferent cultural practices, customs and traditions of all its participating and non-participatingpartners thus the need to overcome these cultural prejudices, stereotypes, and customs to growinternational trade. The fact that a country’s traditions or customs forbid the consumption of acertain product such as meat, pornographic materials, and other products denies the countrywhose export product is restricted thereby hindering international business transactions.Additionally, Pragmatism can be a hindrance or setback to international trade. Forinstance, the existence of different managerial and office etiquette might seem disrespectful ormight be misconstrued by the other foreign party. Further, the variance of the punctualityconcept among different countries differ. What one country might consider early, another might
INTERNATIONAL BUSINESS2consider it late thus leading to unnecessary conflict and distrust.China‘s Pragmatism isconsidered one of the curtailers of international transactions (Sheer, n.d).Usually, each countryhas its own managerial structure and process which might be unique to it or a few othercountries. Currently, China trade practices are feared to be sabotaging the United States of Americabusinesses(Marshall,2018).The allegations against China are that China ‘s trade policy andpractices are infringing the intellectual property entitlements of the American based businessesthrough its technology transfer requirement for joint venture and compulsory source codedisclosure. According to the American government, this Chinese practice of trade is injurious toits industry. However, according to China and some opinions, this move by the United States ofAmerica is likely to hinder globalized trade between the two countries.In addition, mental distance distorts global trade. Simply mental distance refers toclassical elements emanating from one special foreign market and controls the flow ofinformation. This causes distrust among possible foreign countries (Kahlor et.al, 2014).In theevent that countries develop this mental distance, there will be no global trade or agreementsbetween them. Mental distance creates mistrust thereby discouraging investor confidence whichis very crucial for international trade to take place. For international transactions to take place,foreign countries require free information flow and trust in their prospective foreign tradingpartner without which there is a deadlock in trade. For instance, the American way of doing business and the Chinese way of doing businessare different which is attributed to the cultural disparities of the two economic large economiesthus the need to move past the cultural misconceptions (Xiao and Lili,2011)For Americans, theirideas are capitalistic whereas, for the Chinese, it all about the community thus the need to
INTERNATIONAL BUSINESS3understand the different cultures so as to foster rather than hinder global trade. Undoubtedly, theimportance of understanding one another is very key to any domestic or foreign transactionhence the importance of common language. Commonly, most countries use French, English, Spanish as the form of officialcommunication. For most Chinese people, Mandarin is their official language. However, thereare several languages spoken in China such as Cantonese, Wu Chinese among others(Sawe ,2017)thus creating possible miscommunication and mistrust among foreign tradingpartners. The fact that China is a major international trading partner for most countries in theworld raises the need for a common language for easier and effective communication. Lack of acommon dialect among international trading partners is possible to happen and generatesmistrust thereby curtailing international trading transactions and agreements. Unlike the ancient times, barter trade which thrived on nonverbal cues cannot survive inthis globalized world of today thus this has necessitated the involvement of translators andtranslation machines to bridge the communication gap between Chinese entrepreneurs and theirtrading partners thus easing global transactions.Religion.Primarily, religion is considered a cultural institution in most societies. Noteworthy,religion has the magnitude to affect international business transactions twofold. First, thelikelihood of two foreign countries sharing the same religious values boosts the chances offoreign trade transactions between them as the opposite is true. Largely, China is atheist in naturesupported by Buddhism, Confucianism, Taoism, and Folklore. Essentially, shared religiousbeliefs boost trust when it comes to foreign trading partners. Also, shared values and trading
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