Establishing Cross-Cultural Business
Throughout history, various political theories – Socialism, Utilitarianism, Capitalism, Communism, Marxism, etc. – are implemented in each country across the globe. These political views have great impact on every country as aspects of its society conform to these political constructs. In economy, for instance, socialism’s virtue of making every individual more equal affects the society itself; it simply makes [almost] everyone equally poor (Brinkerhoff, White & Ortega, 2007). In fact, consideration of these political constructs is very important in establishing business entities – especially cross-cultural business making.
It is very important that when one puts a business in other country, he/she should conform to the social, cultural, and political structure of that particular county. In the case with the “New Capitalism in China”, people who desire to acquire more wealth would have to make strong relationships with the communist leaders. Language, for instance, is a great factor in making a business suit to a certain environment. Perhaps, since peoples have different languages, it would be hard to market products and others services. Impediments in communication occur when people from different country and culture interact with one another; high risk of miscommunication is very likely to happen. It is a problem that lies at the core of cross- cultural interactions (Maude, 2011). At first, doing business in another country requires that either the owner of the business learns the new language or he/she finds someone who can interpret for him/her. Language will be the bridge that connects the owner to the political, social, and cultural realm of a particular country. Nevertheless, it is more important that the one who manages the business [abroad] – that is, someone who hires and trains workers, market the products, etc. – knows how to interact fluently and excellently with the community. Otherwise, the failure in social interaction will eventually lead to the failure of the business.
Another thing that a cross-cultural business should have is its conformity to the cultural and social system within the country. Morality, for instance, differs from one culture to another. And business practices are considered right or wrong based on the culture to which they belong (Ferell, Fraedrich & Ferell, 2009). A business should strive to make its services conform to the moral system of the country. Otherwise, people will certainly refrain from coming to it.
Another cultural consideration is upon the social, religious, and cultural norms observed within the country. Norms also differ from one country to another. A business owner/manager may consider providing discounts during national holidays. Customers are very well-pleased when their favorite goods and services cost less. Moreover, people are more likely to be drawn to products that are appropriate in a particular event. During Christmas, for instance, an international store should consider selling foods that suit to that season. Likewise, business products and services should also adapt to any cultural and social norms of the country.
Furthermore, in establishing an international business, one should consider the country’s political system. Laws in other countries are also different to some extent; a business establishment should adhere to the legal processes within the country. In US, for instance, human rights include the issue of discrimination among workers and customers. Owners and managers, therefore, should strive to understand such issues of each and every country in which they conduct business (Ferell, Fraedrich & Ferell, 2009).
In conclusion, the aforementioned issues are the common problems people have in establishing international business ventures. Ethnocentrism is one of the greatest threats a particular company faces (Chenurilam, 2010). An effective business practice in one country may not be effective in other countries. Thus, cultural relativism should be implemented.
Brinkerhoff, D., White, L., & Ortega, S. (2007). Essentials of sociology. Belmont, CA:
Chenurilam, F. (2010). International business. New Delhi, IND: PHI Learning Private, Ltd.
Ferell, O., Fraedrich, J., & Ferell, L. (2009). Business ethics: Ethical decision making and cases.
Mason, OH: Cengage Learning.
Maude, B. (2011). Managing cross-cultural communication. New York, NY: Palgrave