International Business & Culture Experience Project Report - INB 4500

This report, prepared for INB 4500, provides a comprehensive analysis of international business and cultural influences, focusing on the distinct business environments of India and the United Kingdom. The report begins with an introduction to culture, defining its characteristics and impact on global business strategies. It explores the cultural dimensions, including collectivism, individualism, and communication styles, and their effects on business operations. The main body delves into the economic backgrounds of India and the UK, highlighting the key differences in their business cultures, etiquette, and practices. The report also provides strategic recommendations for effective cross-cultural communication. Furthermore, it discusses the importance of corporate social responsibility in the UK context. The report concludes with a summary of key findings and recommendations for businesses operating in these diverse cultural landscapes.

INB 4500 INTERNATIONAL BUSINESS
& CULTURE EXPERINCE PROJECT

ACKNOWLEDEMENT
This was the big time opportunity for me to explore my personal and professional
knowledge for which I am thankful to my mentor ______, as he\she supported me in entire
project with remarkable guidance and monitoring. The learning and assistance form tutor helped
me in exploring different aspect of cultures of two economies. Moreover, I will thank my
parents and friends who helped me in completing assessment within time constraints.
INTRODUCTION 4
MAIN BODY 8
Culture and characteristics of culture 8
Impact of differences in culture on international business 13
Economic Background of India and United Kingdom 19
Various dimensions of culture with reference to India and United Kingdom 24
Strategic recommendation of effective communication across boundaries and cultures 38
CONCLUSION 41
REFERENCES 46
BIBLIOGRPAHY 53

INTRODUCTION
Culture demonstrates the social behaviour customs, ideas and norms of humans which
reflect their society and life style. It is implied in communication, way of living and working
(Cruickshank, 2016). Culture plays a crucial role while doing international business as in this,
the management aims at exploring its products and services among people of different cultures.
Indian culture is known as the mixture of different values, beliefs, norms and religions.
Thousands of distinct cultures and communities are the part of India (Discuss Culture and
Personal Culture, 2016). It is the birthplace of various religions like Sikhism, Jainism, Hinduism,
Buddhism, etc. However, Indian culture was highly influenced by invasion rulers who emerged
with different philosophies like Turkish, Arabic and Persian.
Culture is a social behaviour of people which represents one human population that is
people with similar beliefs, values and norms. It can be considered as influence, learning and
interaction of different people which promotes learning. Further, it can be said that it is a
symbolic communication which promotes individual behaviour and ethics towards different
people in society. It can be argued that culture is shared and has significant facts which
represents one group of society. For example Christmas tree is ceremonial objects Christians
across the globe. However, the major cultural differences is seen in people of different countries
like the assessment is based on two countries that is UK and India. As per historical beliefs and
practices culture is as a high degree of taste, knowledge and interest in literature, arts and other
scholarly fields.
India is a developing mixed economy and is ranked as the sixth largest by nominal GDP
and 3rd largest with regard to purchase power parity. The economy was ranked at 139th position
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with $2,134 per capita GDP and 127 with $7,783. The present Gross Domestic Product rate of
India is 7.36 % and it is expected to rise in 2019 by 7.79 %. The country has most favourable
economy among Brazil, Russia, India, China and South Africa.
However, the country is considered as culturally diverse and rich in varied factors like,
religion, caste, language, etc. The business approach of Indian people is based on behaviour,
etiquette and professional changes. The country is multilingual and everyone follows their
official languages but the business culture of India prefers English and therefore it is followed
religiously in every sector. Further, meetings, courtesies and greetings are crucial part of Indian
culture where the people greet each other by saying Namaste but in business people introduce
themselves by handshake and slight nodding.
Apart from this, the business relationship of people in India completely depends on their
trust and relationship with other person. Moreover, the best part of Indian business culture is
value of customers where the management and enterprise are focused on producing and
manufacturing goods according to needs and wants of customers. In addition, the motive of
Indian organisation is to gain trust of buyers by serving them best services. Likewise,
organisational meetings are organised in advance and confirmed by writing mail or by phonic
conversation (India Business Culture, 2018). The best practice followed by Indian industries is
avoiding work and meetings on national holidays that is independence and republic day, Gandhi
birthday and also on festive like Diwali, Raksha Bandhan, etc. Value of time is priority for
Indian people and families are given are considered on top of priority list.
United Kingdom is an island nation located in north Western Europe and comprise
Scotland, England and Northern Ireland. The culture of UK is influenced by ancestors where the
country owns great power and liberal democracy. The country is predominantly based on
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Christianity where people have different customers, norms, cultures and symbols. Some of the
popular trends of UK are, Christmas, New Year’s Eve, Boxing Day, Guy Fawkes Night, etc. The
country is famous for its educational institutions. In addition, it can be said that British culture
has its own roots and it is amongst the richest culture across globe.
Country is the most influential centre of world in culture, politics and finance. The two
official languages of country are Welsh and English and more than 90% of population speaks
English. The people of UK fear embarrassment because of which individuals are unable to share
feelings which leads to misunderstanding and business offences. The British culture is focused
on privacy requirement of people which limits communication among people and therefore
country lacks informal interaction especially at workplaces. The best part of Britain culture is
polite behaviour and honest opinion which reduces risk and errors.
In UK business culture, it is important for professional people to share clear messages
because the workplaces do not entertain assumption and hidden meetings. The focus of
organisation is on maintaining transparency at workplace (British business culture, 2018).
Further, the enterprises organised business trips where informal relationships are encouraged
with the motive of maintaining positive workplace environment. The motive of Britain business
culture is to maintain long term relationship with employee and therefore the management aim at
valuing politeness, privacy and interest of workers with an organisation.
On the other hand, educations standards of country are very high which help enterprise in
managing recruitment of qualified candidates. Cultural prohibitions in UK are very strict and
mandatory to be followed in order to begin profession relationship. Some taboos are, greeting
unknown person with kiss, spiting at public places, basic gestures like, greeting unknown person
or backstabbing people. Likewise, it is important for the people to avoid discussion over religion,
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partisan politics, race, children, age, weight, appearance, historical conflict in Northern Ireland
and many more issues.
Corporate social responsibility is the crucial part of business organisations in UK, as it
helps the enterprises in managing stable growth and sustainability in business performance. CSR
polices help entities in effective management of workplace issue like, human rights,
employment, work life balance, etc. The procedure helps the firms of UK in community
contribution which denotes efforts of business in economic contribution. Implying CSR
objectives and places assist the firm in gaining governmental support and attaining public
support to accomplish business goals and objectives(Cruickshank, 2016). Thus, on the basis of
introduction, it is evaluated that both the countries have completely different economic
environment. Like the growth of Indian economy is limited to few sectors whereas industry of
UK grows as whole to contribute in economic growth and development.
Cultural diversity is the quality of various cultures, as opposed to monoculture, the global
monoculture, or a homogenization of cultures, related to cultural decay. The expression cultural
variety can also refer to having different cultures respect each other's differences.
The study will outline concept of culture and its characteristics which will help in
differentiating between culture of two different countries that is home and host country while
doing international business. The assessment will help in understanding impact of culture on
foreign business as it is influence by diverse language, beliefs, values, norms and cultures. In
addition, it will identify various dimensions of cultures that is collectivism, individualism, short
term and long term orientation, tolerance to inequality, differences in languages, etc. The
discussion is focused on two countries that is India and United Kingdom for which it will outline
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economic background of both the economies. Thus, it will provide strategic recommendation
which be helpful for the business person for international communication.
MAIN BODY
Culture and characteristics of culture
Culture is a set of beliefs, myths, norms, regions and values followed by each individual.
Every person in world have own distinct identify which is reflected by their culture. Group of
people working together follows different culture and is used by person in different ways. It is
the concept which is passed from one person to another via learning or heredity (Valentine,
2017). Culture comprise non material values which is represented in one’s beliefs, norms,
morals, values and languages while physical evidence of philosophy are architecture, object
which are made by ancestors. It is considered as total of beliefs, artefacts, rules and norms which
represents specific human population.
Culture is wide range of social habits, language, arts, music, language and religion of
people which depicts individual unique identity (Schech, 2014). Culture is an aspect which helps
in differentiating among people of two families countries or regions. It gives society own identity
with the help of its characteristic symbol that is learned, shared, symbolic, integrated, and
dynamic.
Definition of Culture by different authors
As per the views of Edward Burnett Tylor, culture is a complex philosophy which
comprise law, custom, morals, arts, belief, habits and other capabilities of man in one particular
society (Various definitions of culture, 2007).
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According to A.L. Kroeber and Clyde Kluckhohn statistical fiction, learned behaviour,
ideas, physic defence mechanism and logical construct of one demonstrates culture of that
person.
Damen, L. stated that culture is learning of person which is adopted by person in shared
human patterns of day to day life.
According to Bierstedt, Culture is the complex whole that consists of everything we think
and do and have as members of society.
In accordance with discussion over concept of culture, it can be said that culture is
behavioural patter of one person which is denoted in human action and is inherited. it is passed
from generation to generation is ongoing which can be transformed but cannot be completely
changed. Every culture, norms, values seems to change with time but cannot be completely
eliminated. It defines number of ways of human interaction but is considered as shared and
learned behaviour (Schneider, Ehrhart and Macey, 2013). However, it can be argued that this is
the concept which helps in differentiating identity of two people. It is a consisting primarily of
the ideational, intangible and symbolic, aspects of human civilizations.
Characteristics of cultures
Cultures are shared
The concept culture is shared reflects common beliefs of two people which is reflected in
their communication, values and norms. It is possible that two people follows same beliefs but in
two distinct ways. Moreover, there are numerous people across globe who share same religion
but follows different practices (Cox and Soobiah, 2018). Shared culture characteristics helps in
managing innovation, correspondence and social dynamism. Shared culture concept
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demonstrates use of same symbols, tradition, practices which are influenced by each other. It
promotes communication an interaction of two different people.
Participation of people in festivals ad rituals of society indicates characteristics that
culture is shred. In this situation people from different cultures aim at exploring ritual,
ceremonies and practices of different people where the people of society shares each others
values which, is the best way that promotes equality and sense of belongingness among people of
different cultures (Cruickshank, 2016).
Culture is learned
Transmission of culture from one person to another implies learning. This occurs when
people with distinct culture lives in one society. The interaction of two people for any purpose
that is friendship business, etc. promotes cultural learning (Smith, 2017). Likewise, it can be said
that cultural learning is beneficial for economic development as it promotes innovation and
grouping of diverse people for one specific purpose. One of the best example of culture is
learning is demonstrated by recruitment if immigrants in an organisation. In addition, expansion
of business across international boundaries also encourages cultural learning which is beneficial
for host country as well as home country (Dealing with Cultural Differences in International
Business, 2015).
Sharing and involving with people of different cultures reflects learning characteristics of
culture. For example, when the people gets involved with each other fr the purpose of something
like, friendship, business, relationship then it promotes learning over different cultures. Learning
is the characteristics which do not harm any person values and beliefs but helps in exploring
different way to thinking and act ethically. Learning of culture is reflected when the people
works together with the motive of accomplishing something. The learning is not exception is
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followed with regular involvement of people with different culture like, international business,
education, etc.
Culture is cumulative
Culture is based on one particular ideal pattern which is followed by generations to
generations. However, addition of new situation, norms, knowledge and skills to enhance value
of culture by people denotes cumulative culture (7 Major Characteristics of Culture That Are
Essential for Life, 2018). It is normal according to changing behavioural pattern of society. It
helps in understanding changes according to modern era where people add own touch according
to changing mentality and by learning from different cultural philosophies. According to Sarala
and Vaara, 2010, culture is cumulative because every human has potential to discover new things
and own thinking to values, beliefs, rituals, etc. The term represents learning, modification, and
accumulation of improved cultural beliefs and practices.
Cumulative characteristic of culture reflects inheritance which is continuous. Like the
family is continuous has follows same norms and values. However, there are some minor
changes which are added generation to generation. The changes are modification and added new
touch to cultural values but it does not change entire beliefs and norm of one culture. Like
instantly Diwali was a festival of welcoming, lights and crackers. Now there are various changes
which have been added by Indian society like, exchange of gifts, incentives and bonus at
workplace, less of crackers and more of peace, etc. Thus, it can be said that cumulative culture
denotes chances where cultural practices, and rituals of society are constant.
Culture is integrated
Integration is a process of exchange of beliefs and values. It is inspired by learning where
the one sacrifices own culture to practice beliefs and norms of other culture. The integration
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concept of culture leads to diversity in society which is most beneficial approach of managing
stability of people and improving standard of living. Integration values and beliefs helps people
in exploring different cultural rituals which demonstrates unique meaning of every basic day to
day activities. Integration of culture is majorly reflected while doing international business where
the enterprise focuses on expanding business functions with the motive of integrating different
concept to enhance value of firm and its organisational functions. Similarly, as per the views of
Martin and Nakayama, 2013, integration culture is a characteristic which helps in eliminating
discrimination in society and promotes equality for all humans.
Integration of culture is supported by learning and sharing. It denotes individual interest
to involve and practice different cultural practices and values. This is done with own willingness
where person aim at exploring and adopting different cultural practices. It is the characteristic
which promotes cross cultural participation and involvement of people (Cruickshank, 2016). In
this people can even sacrifice own culture with own willingness which depends on ability to
think in terms of symbols. Thus, it is effective approach because helps in exploring uniqueness
of different cultures.
Culture is symbolic
Transmission of culture in form of symbols is denoted in generations. It presents beliefs
and rituals followed by specific group of family member. In this the individual lives same type of
dance, music, fest, artistic activities which is the symbol of culture. However, as per the views of
Lee and Sukoco, 2010, symbolic characteristics of culture is an evidence which reflects older
generations and cultural belief followed by ancestor of particular culture. Moreover, the scholar
discussed about symbolic culture which is studied and evident by sociologists, archaeologists
and social anthropologists. It is considered as ability of generations to transmit and learn
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traditions of customs of culture. Apart from this, basic cultural symbol is reflected one’s
behavioural pattern and gestures towards society.
It denotes individual ability to learn and adapt different cultural values and beliefs. It is
the leaning and transmission of behavioural traditions from one generation to the next by the
invention of things that exist entirely in the symbolic realm (Savage, Barlow and Fielding,
2014). It is commonly followed across the globe because symbolism is when something
represents abstract ideas or concepts. Thus, it can be said that symbol culture helps in
developing clear understanding over concept of different cultural beliefs, norms and values.
Culture is social
Culture denotes collaboration of people and their values and beliefs. It related to people
of same culture and other culture but at the end it integrates society together. Socialising culture
encourages norms and values of different people as one community (Ardichvili and et.al., 2012).
Moreover, socialising culture characteristics is the basic practice which empowers innovation
and generation of unique ideas. In this, humans with different beliefs socialise together with one
common motive which is change for society as a whole.
Social characteristics of culture promotes sense of belongingness among people from
different countries and cultural backgrounds. This helps the people in managing positive
relationship with different kinds of people. The place which denotes social characteristics of
symbol is business, educational institutions, public place, etc.
Impact of differences in culture on international business
International business is concept of cross border commerce where the goods and services
are traded beyond domestic market in order to explore markets across the globe. It is done to
expand business with the motive of increasing market share and consumer base. The key
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economic benefits of foreign business are, decrease in market fluctuation, cost effectiveness,
long term investment, innovation, increase in production efficiency and variety of commodities
(Frank, Kessler and Fink, 2010). Foreign commerce is important for an organisation because it
helps in diversifying and expanding services. In this the management is able to produce high
quality of good and services at low price which assist in managing cost effectiveness.
There are various factors which defines impact of cultural differences in international
business. The foremost factor of difference is communication which denotes linguistic barriers
among people of two different countries. Cross cultural interactional leads to challenges like,
sensitivity, openness and curiosity. Further, there is huge difference is workplace etiquette
because every culture offers different way of professional interaction (Hollins, 2015). The major
difference which will impact international business ability of India and UK is scheduling of
activities because of differences in time. Further, there are huge differences in working hours,
work life balance, policies and other employees rules and regulations.
Organisational hierarchy is another difference when impact international business
because the role of management differs between cultures (Cruickshank, 2016). For example in
India hierarchy is positioned when employees lack communication with management which
leads to conflict among supervisors and workers. In accordance with the tall structure of
organisation leads to biased decision making which hamper employee productivity. On the other
hand, the business organisation of UK have formed flat division structure where departments are
divided according to functional units but employees are placed at equal level which promotes
communication, information management and increase in workers productivity. This structural
distribution in organisation promotes supportive growth which helps in easy management of
differences.
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International business is majorly impacted by differences in culture, where the
management needs to focus on meeting demands and wants of diverse population group. The
most challenging part international commerce in matching up with the needs of distinct cultural
groups. It is necessary for the enterprise to innovate products and services for society as whole.
According to Salacuse, 2005, when doing commerce at international level then the firm is not
just limited to cross borders instead it has to manage cross cultures. Culture is the concept which
influences thinking, interaction and behaviour of every individual which impacts transactions
and way of negotiation. Cultures leads to great diversity which makes it extreme difficult for
business to coordinate and negotiate with people of different countries. Therefore, when doing
international commerce, it is necessary for the firm to have experienced negotiator who holds
critical understanding over different cultures. At the time of international business, it is necessary
for a firm to value beliefs, values and religious concern of particular country because not
complying with cultural norms can lead to unethical business practices.
Differences in culture leads to various challenges when doing international business like,
goal of negotiation that is relationship or contract. On the basis of survey of 400 people it is
analysed that as per 74 % of Spanish participants their negotiating goal is focused on contract, to
which only 33 percent of Indian agreed (Dealing with Cultural Differences in International
Business, 2015). This denotes that as per Indian culture negotiation goals is not just a contract
but is relationship and contract is way to present the association. Further, the difference in
culture affect negotiation attitude which depends on two situations that is win-win or win lose. In
this the focus of negotiator is on collaborating opinion of two people with distinct cultures
(Keller, 2014). It is the problem solving process where the focus of negotiator is on making both
parties understanding the importance of partnership and agreeing to term and condition.
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Considering cultural beliefs and value of both parties is the only solution which helps negotiator
in successful negotiating.
Cultural differences majorly impact international business because home country is
completely different from host. For example the population of India is diverged towards
masculinity compass whereas people of Britain focus on proving equivalent opportunity to all
people. Culture plays a crucial role in international expansion of business and has positive and
negative impact of business. On of the biggest example of internation expansion and influence of
culture is Amazon which is multinational internet retailer which has adopted various changes in
products and services according to Indian market and cultural trends. Initially the products and
departments of company comprise only western clothing and products according to market and
requirements of UK. However, at the time of expansion the company conducted market research
about Indian wears and adapted to different cultural products in different departments. Now the
firm offers wide range of commodities according to different shoppers. The focus of firm is on
meeting customer expectation by diversifying its product range (Lawton, 2012). In addition, the
discounts, offers, sales and product schemes are also organised and offered by company
according to festivals of different culture. This is the strategy which helped the business in
boosting sales when expanding internationally. Hence, it can be said that it was the step which
helped the business sin growth in different market with consumer acceptance.
As per the views of Nicholson and Salaber, 2013, communication affect international
business because way of interacting varies according to cultures across the globe.
Communication is based on two forms that is indirect and direct. People with distinct culture
have different opinion of interaction way. For example, according to Japanese indirect way of
communication is disapproval. Moreover, sensitivity to time is another variable of difference in
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culture which impact international business. Like Latins people are always late and slow in
making decision where Germans are extremely punctual. However, Americans are very quick in
making deal while Japanese take time to confirm and finalising associations.
Sarala and Vaara, 2010, has discussed about positive impact of differences in culture on
foreign business, with the help of which firms are able to manage innovation in services. The
author discussed about collaboration and coordination of efforts of distinct cultures altogether.
The cooperation of different culture helps the entity in understand consumer requirement while
doing business across international boundaries. It is an effective approach because exploring
different cultures helps enterprise in determining common differences and interests which can be
managed to address gap while doing international commerce. On the other hand, Nicholson and
Salaber, 2013, discussed about mutual understanding among people of different culture to attain
success while doing international business. The scholars stated that understanding over distinct
cultural norms, philosophies and values helps the firm in attaining competitive advantage. Also,
it becomes easy for the consumers to accept products of internal organisation when it values their
beliefs and norms.
In accordance with internal business, it can be said that culture is the basic factor which
hinder foreign commerce for which it is necessary for the enterprise to acquire 5 basic skills that
is communication, innovation, self-awareness, collaboration and resilience. Naor, Linderman
and Schroeder, 2010, has stated that cultural differences are common as individual differences
which can be managed via effective interaction and integration. While managing international
commerce the foremost responsibility of management is to bridge gap of individual differences
by accepting and recognizing differences. This strategy helps in overcoming cultural differences
and managing successful international business operations. In addition, it can be said that it is
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important for the business to be focused on task and success of international commerce which
can help the enterprise in gaining different ways to overcome differences. It is important for an
organisation to focus on dives recruitment when doing business across foreign boundaries. This
strategy of staffing can help the firm in managing employees of varied culture who can assist in
dealing with challenges which arise due to cultural differences.
Differences in cultures is the basic factor which hinder international trade. For example,
business of India when expanding in UK need to focus on demands of Britain society and their
way of developing professional relationship. Likewise, HR manager of particular firm will be
responsible for hiring staff from UK in order to insights over market trends and fluctuations. In
accordance with this, it is necessary for the enterprise to make use of unique market strategy in
order to grab attention of citizens. However, when selling and marketing products and services, it
is essential for management to comply with legislation, cultural values, norms and religious
concerns of people (Vaara and et.al., 2012). Hence, as per the discussion, it can be outlined that
market research of host country plays a vital role when doing international business.
The major cultural difference in home and host country occurs at the time of acceptance
where negotiation plays vital role where two parties of different cultures focuses on agreeing on
one condition with mutual interest. In accordance with this situation, it is important for the
people from different countries to value each others' opinion and cultural differences. When
doing business across domestic boundaries it is necessary for the organisation and people to
focus on equality and diversity. It is the concept which promotes respects and value of individual
rights and beliefs. It helps in protecting human rights and values of different people working
together. Thus, it can be said that promoting equality diversity when doing foreign business helps
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the company in managing ethical practices which aid in protecting individuals beliefs, norms and
values.
Economic Background of India and United Kingdom
Developing understanding over economy of home and host country plays a significant role
in managing cultural differences and determining growth of foreign commerce. Studying
economy of two country helps in analysing key determinants of success and future advantages to
firm. Economic condition of UK and India are completely different from each other and
therefore managing business across UK will be beneficial for the entity in remarking success.
Indian economy
The basic features of Indian economy are low per capita income, high rate of population
growth, lack of technology, unequal distribution of wealth and income, poor rate of capital
formation, chronic under employment and unemployment, poverty, increasing health concerns,
dependence on agriculture industry and poor education standards. The economy has low er
capital income if compared to developed economies (What are the main features of India's
economy?, 2018). However, only 14. 2% people are dependent on every other sector of economy
whereas 53 % of total Indian population is dependent on agriculture industry.
Further, ever decade there is increase in Indian population by 20 %. For example, in the
period of 2001 to 2011 the Indian population increased by 17.6 %. In addition, the income
disparity among people denotes uneven distribution of wealth like, 1 % rich people of country
owns 53 % wealth of whole country. Further, in 1993-94 domestic capital formation was 23.3 %
which increased to 23.3 % to 2008 and till 2013, it raised up to 34.8 %. Apart from this, it is
determined that 97 million people do not have safe drinking water and approximately 840
million do not have proper sanitation and are suffering from chronic health concerns. The
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economy has outdated technology because of which the people are not aware about technological
changes and up gradation. Thus, it can be outlined that the major case of declining or moderate
growth of economy is lack of individual interest in economic and business activities. Society is
focused own benefits and interest regardless of managing changes in society as a whole.
Economy of India is known as developing mixed economy and it analysed from success of
trading and agricultural society. The accomplishment of economic condition of India is reflected
in its urban development and trading activity. However, growth of India has been unbalanced
across all areas that is rural and urban nut still known as fastest growing economy because the
country had rapid growth. Apparently, there was slow decline in poverty, inclined inflation, large
number of unemployed people and also there is socio political instability. As per unbalanced
growth of country, it has been outlined that in 2008 there was difference of 9.8 fold between the
poorest state that is Bihar and richest state that is Goa. Further, in India there are no political
barriers to migration which promotes free trade just by complying to set of federal policies,
governance and institution.
The service sector of India is largest in entire country with low level of development. The
size of service sector is comparable to service sector of developed economies. Moreover, the
decline in agriculture has been managed by the growth of service sector where manufacturing
sector of India reflects no growth and is on same graph since 25 years. In addition, the
remarkable growth of service sector has contributed to tax revenues. Regardless of decline in
agriculture industry, the sector still employs half of the Indian population which is approximately
600 million. On the basis of fluctuation, it can be said that first and major challenge for Indian
economy is to overcome inflation by managing productivity of different sectors. Like, low
productivity and high wages in agriculture sector is the reason behind inflationary changes. In
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addition, the country is facing fiscal deficit where expenses have increases regardless of revenues
and accumulation of debt year by year can lead to major decline in economic growth.
Apart from this Ghate, 2013, outlined about corruption which is also a reason behind low
economic growth. For example, 10 % PDS money that is public distribution system reached to
target people and remaining amount got leaked which influenced effectiveness of tax revenues,
anti-poverty, etc. However, recent developments in India economy is reflected from some figures
that is, manufacturing and agricultural activity of country has increased by 53.3 % that is 77.6
billion US$ and exports have increased by 221.83 billion US$ that is almost 20.7 %. Likewise,
merger and acquisition for economy has stretched to 74.8 billion US$ and collection of income
tax is approximately 137.75 billion US$.
On the other hand, the empowerment of Indian economy is reflected in its increased
foreign direct investment which reached to 389.60 billion US $. Moreover, there is increase in
employment rate and there were 10.8 million new jobs which were created to generate income
and mange inflation. In addition, top 100 companies of India have states contributing to
corporate social responsibility to improve working condition and economic contribution (About
Indian Economy Growth Rate & Statistics, 2018). The central system of Indian economy is
focused on doubling income of farmers and almost 196.94 US $ is contributed to improve
standard of living and create better living environment for people in rural areas. In accordance
with recent development, it has been determined that India will be on Top 5 list of the largest
consumer economy because of changing expenditure pattern and consumer behaviour.
United Kingdom Economy
The country is market oriented and has highly developed economy of world. As per
measurement of nominal domestic product it is 5th amongst the largest national economy of
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globe. Economy of UK struggled in start of 2018 because of heavy snow but right after
improvement in whether the economic growth improved at very fast pace. The recession of 1920
collapsed the economy of UK but still the country managed downturn with positive changes till
the second quarter of 2013 (The Economy of the UK: An Overview, 2018). The country is able to
borrow money to clear the record of labour cost whereas gilt of yields was low regardless
decision of Bank of England which was hike in interest rate by November 2017.
Unemployment rate of UK is the biggest success for the country which was initiated by
start-ups and part timers. The youth population of country is focused on doing something new
and innovative which acted as biggest job ad wealth creating opportunity or the economy. Un
employment rate in country is 4 % whereas employment rate is 75.5 %. I accordance with this, it
can be stated that regular 3 months’ earnings growth to August is 3.1 % which denotes the
recovery of economy from financial crisis.
Apart from this, there is exceptionally low inflation which is largely driven by prices of
super markets, oils and imports whereas interest rates have been increased by 0.5 %. On the basis
of sales volume, mortgage approvals and consumer confidence, it has been determined that
consumer spending is the driver of growth of UK economy. Retail sales of September were
changed by 3 % while approved mortgage in August were 66.44 K. In addition, service sector of
UK is known as power house of economy as it is accountable of 80 percent of total GDP.
Apparently, manufacturing industry of Britain has declined over past few years which has
also led to led in employment. On the other hand, technological advancement is of great
advantage and has boosted the productivity of sector which increased its economic contribution
as well as flow of high quality of goods. Till August 2018, recorded output of industrial
production was at 1.3 %. Construction sector contributes 6 % to UK economy but was greatly
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impacted by recession (The UK economy at a glance, 2016). Lending’s by bank for business s
purpose has been increased since 2016 due to government pressure which was created to
improve access to fiancé specially for business purpose. On the basis of UK balance of
payments, it is evaluated that current account deficit deteriorated sharply in 2016, because of a
fall in receipts from investments overseas and increases in outflows from the UK to foreign
financiers (Fethi and Katircioglu, 2015).
The growth of UK economy is modest whereas per the condition it can be said consumer
spending plays vital role in managing growth of UK economy. The wealth distribution in
economy of UK is equal which promotes growth of society as a whole. The business
organisation have started incorporating technologies in organisation in order to reduce manual
handling and to improving effectiveness of business operations. Further, there is manageable
increase economy in comparison to its pre downturn peak which was at 9.7 % which denotes
annual change of 2.3 %.
It is outlined that the financial crisis led to huge fluctuation due to which there was low
growth of economy but its was anagen by low prices, business contribution and financial
investment of business. For example, selling bonds via Debt Management Office is the way by
which UK government borrows money to fund gap between spendings and money it receives. IN
accordance with discussion, it can be outlined that growth of UK economy is moderate and
increasing because the citizens are supportive to economic contribution and are focused on
coordinating their spending power as per fluctuating situation of country. Like the crisis led to
unemployment and major fluctuation in process of daily good but the support of domestic
individuals like business, youth start-ups, etc. helps in managing successful growth of UK.
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Various dimensions of culture with reference to India and United Kingdom
Comparison of similarity and differences of two countries is done on the basis of 6 basic
dimensions that is power distance, individualism, masculinity, long term orientation, indulgence
and uncertainty avoidance. Hofstede cultural theory play a crucial role in determining differences
in environment of two countries. It is especially based on business environment of countries
which is regulated by individual cultural beliefs, values and norms. Hofstede cultural dimension
theory is based on different types of dimension which helps in analysing and understanding
different among people of two different countries that is power distance, collectivism,
individualism, masculinity, femininity, uncertainty avoidance and orientation that is long termed
and short term. It is important to focus on these factors to derives difference in thinking and
working ability of people with different cultures.
Individualism v\s Collectivism
Individualism is termed as political philosophy of nation which reflects its social outlook,
ideology, moral worth and stance. This helps in determining degree of interdependence a society
maintains among its adherents. It is an analysed by self-image that is I or We which represents
individualist concept where the people of country are focused on welfare of themselves and their
family. However, collectivism concept is related to cultural value which represents society as
whole where group is on priority rather than individual. In this people belongs to one specific
group which denotes their beliefs values, norms, cultural practices and religion.
On the basis of graphical presentation of Indian cultural compass, intermediate score of
individualist is 48, from where it is clear that society owns both traits that is collectivism as well
as Individualism. It can be said that the individual concept of Indian society is result of its
dominant religion perspectives which are based on Hinduism (Malhotra, 2014). The religion
24

believes that life revolves around death and rebirth where re birth is completely depends of one’s
own action entire life. On the other hand, collectivist society in India is limited to employee
employer relationship, neighbours and social networks. These are particular growth which form
collective society as their decisions are somehow related to each other. The compass denotes
dominant score of individualism from where it can be said that people are focused on improving
own lives but, still are attached have concern for own relatives and families which leads to
diversion in compass score. The society is supportive but in good circumstance or when the
output of situation is positive. The individual are influence with rebirth concept where society
feels that involving in wrong deed of some person can hamper their rebirth.
As per cultural compass of UK, it is indicated that intermediate score is 89 which clearly
reflects shift of dimension towards individualist from where it is analysed that people of Britain
are highly private people. The society is focused on own benefits and own practices and no one
even tries to enter into each other’s space. From the growth stage of development children are
taught to think about oneself by deriving unique way of living and contributing to society. The
individuals are focused on fulfilling own happiness and personal fulfilments. Thu, it can be said
that society is focused on promoting and empowering ME culture. The diversion of cultural
compass clearly denotes behaviours of people of UK where the individual are bothered about on
self and are least bothered abut changes and their surrounding, Every person in society aim at
improving one self by one or the other way. The focus of people is on owing and celebrating on
success.
In accordance with discussion, it can be said that there is similarity between host country
and host country in individualism concept but the countries think in two different ways which
represents their cultural norms, values and religious beliefs. Like for example according to
25

Indian people thinking about one self is important because action of present lives is related to re
birth. However, people of UK believes that own growth and personality are the crucial factor for
living stable life. The diversion over collectivism is more of Indian economy because their
cultural norms and values of people encourage them to maintain positive relationship with
society (Hofstede, 2011). Moreover, the individuals are socially active and have different social
groups which helps them in exploring characteristic of culture that is integration, learning and
social. Hence, the discussion over dimension can be summarized by stating that both the
countries encourages contribution to society which is beneficial of economic development and
building personal and professional relationships.
Uncertainty avoidance v\s Risk taking in business
Uncertainty avoidance is a situation which is related to uncertain situation that is the
circumstances which cannot be predicted. The consequences can be positive or negative and
therefore it is related to risk taking of business which can be predicted. Further, the dimension
also determines the ability of both countries to handle certain situation like, there are people to
avoid taking action and there are some who action according to condition regardless of end
results. Apparently, it can be said that this dimension is completely related to cultural learning
and perspective of people.
On the basis of intermediate score of UK, which is 35 it is clear the people are no worried
about future and what it can come up with. The individual lives up to present moments and enjoy
life to fullest. The society do not hesitate to change plan s according to changing situation instead
they plan changes on the spot according to uncertainty of condition. The instant decision making
attitude of people make count avoidance to uncertainty. The Britishers do not make decision on
the basis of rules and regulation but are focused on playing fair by keeping interests of all people
26

in mind (Rao and Srinivasulu, 2013). The society is not bound with strict regulations because of
positive attitude of people towards changing situations. The rules which are framed for people
are mandatory to be followed and are also accepted by all citizens as all the framed on the basis
of cultural value that is fair play.
The extent to which Indian society fears to deal with uncertain or unknown situation
because of created beliefs and norms. On the basis of cultural compass home country scored 40
which denotes that the society fear to neglect uncertain situation and therefore focuses on
preplanning. Moreover, on the basis of score, it can be argued that India fluctuates between
unusual condition from where it can be sated that the people has acceptance to imperfections
where people tolerance for unexpected is high. People in Indian society do not take initiative and
just settle into routine and roles without any argument. The individual focuses on working
consistently and adjust in every possible situation (Gibbs and O’Neill, 2015). The score reflects
risk taking dimension which is not positive as the person manages innovation with blind eye with
regard to rules. As per Indian cultural beliefs nothing is impossible but the society understand the
motive and need of adjusting.
Thus, differences between unavoidable dimension of two countries, it can be outlined that
for people of UK end goals are clear for which they work on changes and uncertain situation
while on the other hand Indian society aim at consistent working without making changes in
regular routine function (Understanding the 6 Dimensions of UK Culture, 2018). Uncertainty
avoidance dimension of people of UK is reflected in their light and actual process which the
society adapts changes according to changing market environment. The adjustment of Britain
people is based on innovation, creativity, attractive and consumerism approach (Taras, Kirkman
27

and Steel, 2010). Thus, it can be said that there is huge difference in cultural perspective of India
and UK over risk taking and uncertain situation of daily personal and professional life.
Gender Differences v\s Gender Equality
Masculinity dimension of cultural compass by Hofstede perspective of people with
different cultures. High level of masculinity denotes competition, success and achievement of
society. However, low feminine score denotes quality of life and caring of society. The score
reflects level of motivation to do something new to explore culture characterizes that is
integration, learning, social, etc.
As per UK masculinity score which is 66, it is determined that masculine society is more
driven towards success but on the other hand society believes that performance and success of
society is completely based on their performance and ambition. The graph is more drifted
towards make society but there is no restriction for women who wants to follow their ambition.
This core states about inequality on the basis of Gender which is very less in UK but still have
strong place because if which innovative idea and talents is restricted (Country comparison.
2018). Gender differences and inequality is the common and increasing concern of society which
is also derived from cultural beliefs and values of people. In accordance with UK, it can be stated
the difference and inequality on the basis of gender is social, integrated and learned. For
example, entertainment industry of UK, where inequality among male and female is common
concern and is reflected by job role and opportunities given to learners.
On the basis Indian cultural compass score which is 56, it is clear that the society is very
masculine in terms of success and achievements. It is the country where the cultural values of
society aim at limiting feminine society to one basic living style which is one of the major reason
behind declining growth of Indian economy in comparison to host country. Moreover, India is
28

spiritual country where religious philosophies and values are priority for people. India is the
country where possession of male society is very clear. The practice in country is common and
was not also considered as difference or inequality because it is the place where work of male
and female society is completely different from each other (Misra and Puri, 2011). The score of
compass denotes control over possession but still reflect gender difference and inequality
practices followed in country.
Thus, from discussion over both the countries, it is clear that there is no major difference
in masculinity concept but it varies across different cultures and historical periods. India is one of
the ancient country with one of the longest surviving cultures which gives it sufficient lessons in
the significance of modesty and self-discipline. The society have been seen with drastic changes
in cultural, religious and spiritual belief but still there are region where difference among gender
is a common concern. On the other hand, UK is developed country which has experienced
changes with regard to social belief of gender discrimination. Thus, society and cultural beliefs
of both the countries that is UK and India have been driven by possession of masculinity but are
now changing to empower feminine society and to enable equality learning and growth
opportunities.
Tolerance to inequality v\s Lack of tolerance to inequality
Power distance is the dimension of cultural compass by Hofstede which is deals with
tolerance to inequality. It is the concept which defines less powerful associates of community
and firm within particular country accept or except that power is unequally distributed.
Inequality among society another cause of cultural beliefs and values where people are treated
exceptionally because of various cultural differences like, colour, cast, creed, religion, habits,
etc. Equality in society is basic practice which need to compelled in order to manage diversity,
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Further, tolerance to inequality or power distance can be argued keeping international business as
a base. Expansion of organisation across the globe is with the motive of managing equality and
diversity to promote innovation.
On the basis of dimension score on cultural compass of India which is 77, it can be
interpreted that society appreciate top down and hierarchical structure. Indian business attitude of
people depends on boss of the firm, decision maker, power holder or privileged and unequal
rights. The major reason behind lacking growth of Indian economy in comparison to developed
countries is lack of involvement of lower level of employees in decision making. In equality at
workplaces and professional relationship makes it difficult for the people to coordinate with
management and lead to conflicts which impact productivity and performance of business.
Further, to manage coordination with top management and lower level employee the Indian
business organisation have centralised power system which enable’s effective communication
but still do not deal with inequality.
The cultural compass score clearly depicts the inequality of Indian society from where it
can be outline that inequality in India is not only on the basis of gender but is on the basis of
wealth, status, cultural, beliefs, values and norms. There inadequate distribution of income
Indian society is the major cause why the country is the slowest growing economy. Thus, it can
be said that tolerance to inequality is the major reason behind lacking growth of country.
Britain is scored 35 on power distance dimension which clearly stated that society
believes and wants to reduce of inequality that is people have low tolerance to inequality. The
business organisation of UK promotes flat organisational structure where employees are given
complete freedom to involve in decision making process of management. Moreover, the workers
are given flexibility in working according to their condition which helps in encouraging equality
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and reducing inequality. Apparently, sense of fair play among people of Britain derives their
tolerance to inequality which is very less (Understanding the 6 Dimensions of UK Culture,
2018). Enterprise in UK are focused on empowering employees by giving them opportunity to
grow and grab own status. The freedom of society reflects their cultural practices which ensures
equality and focuses on minimizing discrimination practices. People of UK are modest and low
tolerance inequality. As per the beliefs of people, it is identified that the individual aim at
providing opportunity to all regardless of their differences. This is major factors which helps
society to grow and develop positive relationship with each other.
As per the discussion over tolerance to inequality, it is determined that cultural
perspective of India and UK are completely different where there is huge disparity see in
business environment of home country where host country aim at providing equal working status
and involvement to people. As per dimension score of India, control, psychological security and
bossy attitude of managers is formal and is encouraged. Top down and directive style interaction
is ladder for workers for communication which is hard to cross. On the other hand, employee is
UK are connected to top management and plays a key role in managing innovation in business
and its services.
Short term orientation v\s Long term orientation
Goal orientation plays a crucial role in managing success of business and is reflected by
individual cultural learning values and beliefs. In accordance with this dimension, society link s
future and past aspects with challenges which individual has faced and which the person will be
facing. In this the society plan changes and strategies according to uncertainty of situation. It is
important for the people to vision their goals according to time. In this people encourage thrift
and efforts in modern education system to predict future changes.
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On the basis of dimension score of UK, the country is at 51 which denotes the goals
determination process of society cannot be determined. The culture of people encourages them to
analyse situation according to challenges which the individuals have faced and will be facing. In
accordance with this, it can be said that understanding situation keeping in mind all the
experience and situation is effective strategy for managing successful plan or business project
(De Mooij and Hofstede, 2011). The culture of society avoids biased decision making and
practices of favouritism which sets a core for orientation difference. The people in Britain
promotes unified approach of managing situation which is generally short-term because
according to cultural values of society it is important for the people to react instantly instead of
preplanning.
However, dimension score of India is 51 from which it can be interpreted the culture of
country is dominant. Further, the religious beliefs of Indian people are based on “KARMA”
which is a philosophical thought according to which time is not linear. The people are stale to
changes and according to their cultural beliefs changes are part of life which ca not controlled
and neither changes. On the other hand, it can be argued that India culture is basically long term
oriented and the decision of society are based on forthcomings. Indian society lacks punctuality
and therefore changes in plan are done by people according to their comfort and changing
situation. Thus, it can be stated that people manage changes according to uncertainty of situation
and therefore never follow exact plan.
On the basis of discussion over host and home country, it can be summarized that time is
not linear for both the society but India is not typically following western culture of managing
goals and task and therefore way of approaching of Indian society swings both sides that is long
and short term. The dimensional scores reflect neutral behaviour of people towards time
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orientation (Understanding the 6 Dimensions of UK Culture, 2018). The society is not blindly
based on future changes but plan actions and strategies according to changing situation. Time
evaluation of both the countries is neutral which denotes their focus on cultural beliefs and
values. In addition, the society is hostile to changes and systematic to manage change for
managing current problems or hindrances. Hence, it can be outlined that in both countries
cultures appreciate modesty which helps in managing stability in changes of personal as well as
professional life.
Differences in languages
Language is basic difference which defines distinct cultures. The foremost thing which is
observed when doing internal business. It is important for business organisation to understand
difference in language when promoting diverse work environment. It is the key concern which
can boost and decline growth of business. It is related to interaction which reflects different
types of feelings and thoughts. Geographic situations and social background of two countries are
different and have more differences and less similarity. Influence of culture on language and
communication of people embodies differences in culture.
India is known for combination of languages and literacy. More than 300 languages are
spoken in country where Hindi is a nation language of country which is spoken by more than 40
% of people. The most common languages followed in India are Hindi, English, Bengali and
Telugu. Nevertheless, the business organisation promotes communication in specially two
languages that is Hindi and English. Using religious languages is not much allowed because it
impacts ethical concerns of HRM practices when managing diverse staffing. On the other hand,
it can be said that use of English in India is becoming which demonstrated drift of Indian culture
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to western practices. India is popularly known for its different language and has diverse cultures
with different languages.
People of UK shares common linguistic base but the major difference which is occurs is
among Brits and Americans. English is the common communication language which is spoken
by 98 % of UK population. Apart from this, there are some religious languages used in UK that
is Scottish, Welsh and Irish. The language which is used in business and every industry of UK is
English but there are various industries where use of diverse language is encouraged according to
field. For example, Entertainment and event industry where enterprise promote staffing of
diverse people and immigrants in order to encourage use of distinct language to increase
consumer base.
Thus, from the discussion over difference in language of host and home country, it is
clear that English is the common language which is encouraged and used by societies of both the
countries. Moreover, it can be said the English is basically used for business purpose and is the
based on international business expansion. For instance, if in case enterprise of India planned to
expand its boundaries across UK then it is essential for the firm to make use of proper language
for communication.
Differences in religious beliefs
Religious belief is the aspect based on supernatural, spiritual and mythological aspect of
one particular culture. It varies from country to country which present distinct identity of one
particular economy. Religious practices are base of culture and the reason behind different
behaviours of people. Further, it is a set of values, behaviours, and practice of people who
follows same culture. There is various type of culture followed in one country which represents
differentiation in religious beliefs of people in same country.
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As per Minko and Hofstede, 2012, Indian religious beliefs are distinct in their own way
like census 2011indicated that 79.8 % of Indian population follows Hinduism. However, 14.2 %
practice Islam whereas remaining 6 %follows religious concerns of Jainism, Christianity,
Buddhism and Sikhism. As per Indian religious beliefs, it is determined that the society believes
that Vedas are ultimate authority, souls of people are immortal, the ultimate goal of soul is
achieving moksha which depend on one’s action when he or she is alive. Further, the Indian
society is striving to attain dharma which promotes good in society. In addition, the religious
beliefs of Indian society states that truth is everlasting and therefore the person should focus on
doing good entire life which will depict individuals rebirth. In accordance with this, it can be
sated that religious beliefs of people are reflected in their work culture, business ethics and
environment.
The official religion followed by people of UK is Christianity and its denomination is
fount across the boundaries of UK. The religion is further divided into categories like, Baptist,
Protestant, catholic and Methodist. However, second largest religion of London, the unofficial
capital of UK is Islam. Approximately, 38 % of Muslims of England resides in London which
presents population of 12.4 %. Further, there is freedom of religion in UK, as per European
convention on human rights. Church of England is state Church but residents follows different
religious beliefs (Religious Beliefs in The United Kingdom (Great Britain), 2016). Further, it is
analysed that approximately 49 % of Britain population is irreligious. The religious beliefs of
UK are incorporated in working practices and business environment but not impact working
environment for diverse population. The staff is encouraged to value their own practices and
beliefs which helps host country in managing equality and diversity at workplace.
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In accordance with religious beliefs of home and host country, it is clear both the
countries have distinct cultural beliefs but operated business function in own ethical ways. It is
evaluated that business of countries is not impacted perception of religious concerns but the
belief is incorporated in business practices. Thus, it can be stated that success of international
business is based on basic values and ethical practices followed by firm which changes according
to religious belief of countries.
Differences in manners and greetings, exchange of greeting cards
Basic manners, greeting and exchanging grants is another basic cultural practice which is
different in every country and is based on individual cultural beliefs, values and norms (Bird,
2018). These are the basic business and living practices which needs to managed as it varies
from person to person. It is necessary for the host and home country to compel with basic
greeting habit as it denotes respect to towards people.
In India, the best of greeting people is by bowing head and saying Namaste. It is the most
honoured way and is practices across country. Some Westerners greets each other by shaking
hands. Greetings is termed as form of communication which individual presents to show respect
to other person. It consists of formal expression like in India generally people bow their head in
front of senior to show respect. Apart from this, grants are exchange with proper label and wraps
which say alt about human gesture to present gift.
In Britain people greets each other by handshake which is the most common way of
welcome among British people (Hofstede, 2011). Greeting is the basic ethical practices of British
religious concerns because it indicates value of other person. Further, exchanging Business cards
at the end of meetings is way of bidding bye with respect. Grants in Britain needs to be very
36

specific according to occasion. For example, business gift comprises, greeting cards, books,
diaries, alcohol, pens and flowers.
In accordance with different greeting practices of home and host country it is determined
that cultural and religious beliefs of both the countries are focused on presenting respect to
society. It is core of managing stability in economy and managing internal business practices. On
the basis of similarities among greeting of UK and India, it can be outlined that culture of both
the countries values greetings and exchange of grants for which individuals focuses on their own
way of showing respect to other person.
Differences in perception and customs and many other dimensions of culture
Customs and perceptions of two different culture are distinct and are analysed on the
basis of Indulgence which derives socialization, humanity, impulses, desires, etc. In accordance
with perception and involvement of people over culture socialisation plays a crucial role in
developing human (Dhir, Mital and Chaurasia, 2014). Indulgence is the dimension which
denotes extent to which the person has control over their impulses and desires. For example,
strong control over indulgence is termed as restraints whereas weak control is known as
indulgence.
According dimension score of India which is 26, it can be interpreted that the Indian
society has strong control over perception, values and beliefs which indicates restraints. There
the country has chance to pessimism and cynicism. As per this it can be outlined that societies do
not spend leisure time and also aim at controlling their desires for the sake of future ( Okihiro,
2014). This dimension also related to long term orientation perception of country where the
society do not live the present situation (Gupta, 2013). As per the situation, it can be stated that
these people have strong hold over social norms and customs.
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As per dimensional score of UK which is 69, British culture is considered as indulgent
because the society focuses on exploring desires and willingness to enjoy life. The casual
approach of British culture indicates their way of living life and adaptability to different
perception and customs. The people have positive attitude towards changes and are optimist
Further, the people believe in exploring and discovering life by spending leisure time. The
society is not bothered about restricting life and perception are encouraged to socialise their life.
In accordance with difference in dimension score of United Kingdom and India over
differences in perception and customs, it can be argued that society of both the countries are
different from each other in comparison to indulgence but the views and changes in perception of
these people work according to their cultural values and norms (Greene and McMenemy, 2012).
However, it can be stated that distinct perception helps the people in managing innovation and
changes according to dynamic environment. For example, Home country when planning
expansion in UK need to face big time struggles in changing beliefs, customs and perceptions
when doing UK. Restraining socialisation can hamper growth and success of business expansion.
Hence, score of different dimension of two countries assisted in understating difference
and similarities between two cultures and their perceptions. Hofstede cultural compass of
difference is the best tool for solving organisational culture and intercultural framework of two
distinct cultures.
Strategic recommendation of effective communication across boundaries and cultures
Effective communication is the key for interaction across international boundaries and is
important for to manage in order to promote diverse work culture, society and building
relationships. Communication between people of two countries helps in understanding individual
perception over different scenarios. However, it is important or the people of two countries to
38

implement different communication strategies when interacting with people of different cultural
groups.
In accordance with this, it can be suggested that for effective communication across
boundaries and cultures, it is essential for society to be open minded in order to indulge with
society following different norms and perceptions (Grant, Hackney and Edgar, 2010). Indulgence
is the key to interaction of people with two distinct identities and therefore people from diverse
culture should practice active listening. Restraining is the biggest limitation which impact cross
boundaries interaction an acceptance.
On the basis entire discussion over cultures of two countries, it can be recommended that
it is important for the societies to have some basic knowledge over people’s cultural
backgrounds. It gives understanding over one way of thinking and perception of handling
different situation. For instance, when doing international business home country should be
understanding the basic moral and working practices of host country (Binder, 2016). This is the
base for managing success business. In this the person can gain knowledge over language,
business ethics, HRM practices and values. These are basic constraints which encourages
effective communication across cultures and boundaries.
Apart from this, cross cultural communication plays an important role in managing
growth of global business project. It promotes interaction of diverse workforce which is
necessary for the business to encourage interaction. Effective communication with people from
distinct culture cause various challenges like, personal distance, time constraints, degree of
assertiveness and cultural misunderstanding. In accordance with, it can be suggested that when
promoting communication between two distinct cultures, it is necessary for people to value each
39

their perception and cultural beliefs. It is the foremost concern which will help individual of two
different countries in effective interaction.
Effective communication for international business management is important for which it is
necessary for firms to value, beliefs and perception of host country (Leeuwis and Aarts, 2011).
For instance, when expanding, the management can focus on expert or trainer from host country.
This individual will be supporting interaction of diverse staff and will aim at reducing cultural
gaps. This strategy will also help in training employee and will encourage innovation according
to dynamic market situations of host country.
Communication at workplace is the foremost concern which helps in developing sense of
belongingness with culturally diverse people. It is necessary for two business to manage effective
interaction to order boosting business relationship for which the individuals should focus on one
to one interaction as it reduces the risk of mis understanding or mislead of information.
However, English is the most common language across the globe and also in home and host
country, so when expanding business management can focus on making English language as
priority in order to reduce linguistic barrier. Moreover, the people should focus on making use
of simple works when interacting as because its is the best way to make people clearly
understand you words and feelings over certain thing. Business communication cross
international boundaries needs to be started with simple language because it indicates sense of
respect and value among two culturally diversed people.
On the other hand, intercultural communication is another strategy which can be
recommended to promote effective interaction across cultures and boundaries. It is study of
interaction across different cultures on the basis of social and perception of different groups of
society. It is classified into two types that is verbal and non-verbal where verbal is based on
40

exchange of words for which language plays an important role. For managing verbal;
communication across boundaries it is important or the societies to learn language of particular
country or culture. Likewise, nonverbal communication where the person should have
knowledge over gestures and body language which is used for communicating certain message.
Confidence and seriousness during interaction of culturally diverse people play a crucial role
as it depicts respect for other person. In addition, it is also necessary because it helps in
developing positive work relationship regardless of any difference. It is important for the home
and host country to focus on linguistic training in order to get knowledge over some basic words
which are general a part of business conversation. Culture is learning and social is the
characteristic which promotes effectiveness communication across international boundaries.
CONCLUSION
The assessment summarized about culture of two countries where one is home country and
other one is host country that is Indian and United Kingdom. Cultures of both the countries are
distinct form each other, where Indian society is based amalgamation of various cultural
philosophies, religions, languages and beliefs while people of UK are living predominantly
Christian religious life. Further, it discovered that economy of UK is market-oriented and highly
developed where India is developing mixed economy. In addition, it analysed that history of UK
as a developed state, a liberal democracy and a great power while culture of India is based on
prehistoric settlements and societies subcontinent of India. In accordance with introduction, it is
outlined that Indian economy is the slowest growing economy and has unequal distribution of
wealth, have lack of educational standards and technology but on the other hand UK is
moderately growing economy where participation youth start-ups and leading business helps the
41

economy in managing successful growth and stability regardless of recession which leads to
major financial crisis.
The introduction phased of project helped in developing understanding over cultures of UK
and India which assisted in evaluation of entire assessment. From the Indian cultural discussion,
it has been outlined that the country is culturally diverse and various languages, religions and
caste across country. It denotes cooperation of society with each other and with diverse
perception. It evaluated that the National language of India is Hindi but English is common
language which help in reducing communication barriers which arise due to linguistic
differences. Moreover, the introduction outlined about business values of Indian companies
where customers are first priority of business. The Indian business organisation focuses on
producing goods after studying market needs. This helps the enterprise of India in serving
consumer satisfaction.
On the other hand, assessment summarized culture of UK, from which it is evaluated that
the country is predominately following Christian beliefs and education is prompted to high
standard in order to boost learning of people for managing diverse economic environment. It
stated about confidentiality which is the foremost concern of UK culture to which no person
interrupts. The lack of personal interaction hamper informal relationship and effective
communication among society. It analysed the most beneficial strategic norm of culture like,
transparency, sharing of clear messages, etc. which assist the economy in managing growth
regardless of recession and increasing inflation. Thus, it also demonstrated that CSR is the big
time opportunity which helped industry of UK in managing sustainable business performance.
Assessment concluded by deriving culture which is a belief, myths, norms, regions and
values which are followed by group of people and distinct their identity across boundaries and
42

cultures. Human population I analysed differently according to their practices and religious
perception. It outlined specific terms by different authors like, according to Edward Burnett
Tylor cultural philosophy is a sequence of customs, values, laws, habits, etc. which present
capability of one specific society or human population. On the other hand, one author
summarized that culture is based on characteristics which indicates that it is learned, shared, and
adopted. In accordance with this outline it can be said that culture is common perspective which
can be restrained or influenced and these facts are completely based on one’s view point and
perception.
The study summarized about differences of culture in international commerce of goods and
services. The study stated about advantages of managing business across international
boundaries like, decline in market fluctuations, long term investment, cost effectiveness and
innovation management. Further, the study summarized about barriers because of differences in
culture that is negotiation where language and same business perception plays a crucial role but
is major setback of differences in culture. However, to develop critical understanding over this
phase scholar outlined example n of business expansion in UK where India the home country
will have to learn about way of managing processional relationship n according to Britain
culture.
Apart from this, the report outlined economic background of home country and host
country that is India and UK. This economic analysis of two countries helped in evaluating
incline and decline in growth of over all industries and economic contribution. On the basis of
Evaluation of Indian economy, it is determined that the success of India was based on its
agriculture and trading industry otherwise growth of every sector is majorly in balanced.
Moreover, it stated about slow decline in poverty which restricts overall development of country.
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However, UK economy faced a huge downturn after collapse of 1920 were the focus of economy
was to clear the records of labour cost. Moreover, the study outlined the un employment rate of
UK is the crucial factor which boosted economic contribution. The country is focused on
promoting youth population which is major contributor of innovation and wealth creation.
The assessment summarized various dimension of UK and India with the help of
Hofstede cultural dimension compass. The dimensional compass score indicates cultural
practices and involvement of people in certain beliefs ad philosophies. Individualism and
collectivism dimension indicated that Indian society owns traits of both dimension collectivism
as well as Individualism where UK population is based on individualism where people are
focused on own benefits, growth and success. As per Uncertainty avoidance it is determined that
Indian society lacks risk taking where people of UK are focused on living present situation and
manages changes according to fluctuation in situation. The comparison of home and host country
helped in determining that India is the slowest growing economy became of tolerance to
inequality where UK is moderately growing economy where people ons lack of tolerance to
unequal practices and focuses on socialising and learning from culturally diverse people.
However, as per Gender Differences v\s Gender Equality it is concluded that both the
countries have gender differences but in comparison Indian society is more incline towards
masculine graph which leads to gender differences. Similarly, the power distance dimension of
cultural compass summarized that UK has very tolerance to equality and every person is
provided opportunity and growth according to their Working ability, qualification and skills.
However, India promotes inequality and the major reason behind inequality is gender. Hence,
the study concluded by recommending effective communication strategies which can be
implemented to promote interaction across boundaries and cultures. The study the needs of
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effective communication strategies in order to protect interest of two parties to work with each
other. The study outlined the need of using simple words during cross cultural communication. It
also discussed about importance of two characteristics of communication which play vita role in
effective interaction cross international boundaries that is social and learning. Henceforth, the
assessment concluded deriving clear understanding over culture, cultural differences, differences
in UK and India with the help of cultural dimension and by proving strategic recommendation.
45

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