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Culture Effecting the Efficiency of Business

Culture Effecting the Efficiency of


Business

Submitted To:

Madam Ayesha Shahbaz

Submitted By:

Nabeel Riasat Nabeelriasat.ali@gmail.com

Azeem shoukat Azeem.ali.1122@gmail.com


Shan ali Shan99691@gmail.com

Sheharyar yousaf Miansubhan8682@gmail.com

Group: 04
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Culture Effecting the Efficiency of Business

Name of students Roll# Material divided

Nabeel Riasat S2F18BSEN0029


Azeem shoukat S2F18BSEN0025
Shan ali S2F18BSEN0008
Sheharyar yousaf S2F18BSEN0017

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Culture Effecting the Efficiency of Business

DECLARATION

A research project submitted in partial fulfillment of the requirements for the degree of BS
(English) by coursework and Research Report in the Faculty of Psychology, University of
Central Punjab.

I declare that this research is my own, unaided work. It has not been submitted before for any
other degree, part of degree or examination at this or any other university.

Signature ………… Date ……….

Nabeel Riasat

This research project has been submitted for examination with my approval as
University of Central Punjab supervisor.

Signature …………… Date …………………

Madam Ayesha Shahbaz

University of central Punjab

Acknowledgements
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Culture Effecting the Efficiency of Business

Many persons have supported me in my quest to finish this research. Firstly thanks to my
heavenly father for giving me the strength the courage and determination to complete this
project. Countless thanks to my entire family for their understanding and support throughout this
entire journey. Thanks to my friends and colleagues from special education for their concern and
encouragement. Many thanks to the administrator and staff of my university for their unwavering
support throughout this research and finally thanks to Madam Ayesha for introducing this
special education program. It is hoped that through this research administration and staff will be
made aware of the challenges teachers experience in teaching students with difficulties in
learning.

God bless you all.

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Culture Effecting the Efficiency of Business

TABLE OF CONTENTS

DECLARATION……………………………………………………03

Acknowledge...................................................................................04

Table of contents……………………………………………………….5-6

DEDICATION.............................................................................................07
Introduction …………………………………………………………………08

Literature Review……………………………………………………………

Culture…………………………………………………………………

Globalization…………………………………………………………………

Culture’s effect on business…………………………………………………………………

Research Hypothesises…………………………………………………………………

Mental distance…………………………………………………………………

Language…………………………………………………………………

Color…………………………………………………………………

Religion…………………………………………………………………

Negotiation…………………………………………………………………

The relationship between culture and business ethics…………………………………………

Culture Creates People…………………………………………………………………

Culture performs at least four functions……………………………………………………………

Culture and Globalisatiion…………………………………………………………………

Attitude to Business…………………………………………………………………

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Culture Effecting the Efficiency of Business

Attitude to Work…………………………………………………………………

Culture Determines Goods & Services………………………………………………………

Ambitions…………………………………………………………………

Education…………………………………………………………………

Family…………………………………………………………………

Ethics in Business…………………………………………………………………

Ethics is important because…………………………………………………………………

Time Dimension…………………………………………………………………

Religion and Business…………………………………………………………………

Marriage…………………………………………………………………

Cultural Resources…………………………………………………………………

Research Method…………………………………………………………………

Definition of research methodology………………………………………………………………


Quantitative research…………………………………………………………………
Qualitative research…………………………………………………………………
Questionnaire…………………………………………………………………
Result analysis…………………………………………………………………

Conclusion …………………………………………………………………….

References ……………………………………………………………………

Appendix …………………………………………………………………..

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Culture Effecting the Efficiency of Business

DEDICATION

I heart fully dedicate this research project first and foremost to the Almighty God for giving me
the strength, health and resources to come this far. Secondly I dedicate it to my loving teachers
and friends for their moral support during the period of study.

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Culture Effecting the Efficiency of Business

INTRODUCTION

The trend of globalization has made the different culture walk onto a worldwide stage (Marcelo
and Deslree 2004). In the business world, culture is treated as an important contribution to
success. Based on the literature review and personal experiences as international students, my
partner and I consider the cultural trend in business to be unquestionably a research priority.
Through the focuses on how culture influences business, we make efforts to unveil the students’
ignorance of cultural backgrounds and to come up with some proper solutions. Most importantly,
calling awareness of the actions to embrace different cultures outweighs all the rest.

The trend of globalization accelerates the occurrence of international trades. More business
opportunities and profits are waiting to be discovered in other countries. Better understanding
and acceptance of different cultures can lead to more effective communication and , ultimately,
more success.

The researchers have noticed the passive acceptance of international students in universities and
limited education about other cultures. As international students from China, my partner and I
have noticed plenty of facts that block native people to understand people from different
backgrounds. We want to find out why it is happening and preferably a way to end the
unpleasant situation.

In order to keep pace with globalization, the researchers hope to explore it more deeply based on
personal interests and study fields.

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Culture Effecting the Efficiency of Business

LITERATURE REVIEW
Culture:

Kroeber and Kluckhohn (1952) in their Culture: A Critical Review of Concepts and Definitions
provide a definition of culture: Culture consists of patterns, explicit and implicit, of and for
behaviour acquired and transmitted by symbols, constituting the distinctive achievements of
human groups, including their embodiments in artifacts; the essential core of culture consists of
traditional ideas and especially their attached values; culture systems may on the one hand be
considered as products of action, on the other as conditioning elements of further action. This
definition is specific, but too long.

Culture’s Effect on Business:

In the business world, culture is always treated an important factor of success. There are two
widely accepted ways to classify cultures based on differences in characteristics such as values,
attitudes, social culture structure and so on. The two tools are: the Kluckhohn- Strodtbeck and
Hofstede frameworks. Kluckhohn- Strodtbeck framework is for studying cultural differences
along six dimensions, such as focus on past of future events and belief in individual or group
responsibility for personal well-being. Hofstede framework is for studying cultural differences
along four dimensions, such as individualism versus collectivism and equity versus inequality.
(John, Kenneth & Jerry, 2007) However, the research process proved that Hofstede framework
has five dimensions now.

Penny and Chris (2008) provided practical suggestions for communication in international
business. Anticipating and understanding cultural differences and being able to adapt the way
you communicate accordingly is the foundation of any successful international business. It raises
awareness of cross-culture differences, and serves as a reference for those who are seeking to
adapt their communication skills to the international arena. The cultural preference scales were
developed by Canning and have been refined, over the past10 years, with the help of their
international course participation. Some of the terminology they used was originally inspired by
the research and theories of Edward T Hall- high versus low context communication styles,

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Culture Effecting the Efficiency of Business

polychronic versus monochromic time system; Geert Hofstede- individualist versus collectivist
(i.e. group oriented) societies; and Fons Trompenaars- achievement versus ascription.

Hofstede’s definition of culture is:

“Culture to me is the collective programming of the

mind which distinguishes one group or category of

people from another. […] Culture is a construct,

that means it is “not directly accessible to

observation but inferable from verbal statements

and other behaviors and useful in predicting still

other observable and measurable verbal and non

verbal behavior.” It should not be reified; it is an

auxiliary concept that should be used as long as it

proves useful but bypassed where we can predict

behaviors without it.

How should people behave in an international business when facing culture shocks? Richard
(1999) answered this question in his book. Moving from one country to another almost
inevitably causes culture shock, and the severity of the shock is directly proportional to the
cultural distance between the two countries concerned. Repeated shocks and adjustments tend to
make you sensitive to cultural differences- initially of course mostly to the differences which
divide cultures. But they found that those repeated adjustments also made them aware of the
myriad similarities that bind them all together.

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Culture Effecting the Efficiency of Business

Research Question
1. Business students are lacking sensitivity towards the role that cultural differences play in the

business world.

2. Business students’ knowledge about different cultures is somehow limited unconsciously.

3. University education has a large impact on the way students react when confronted with

cross-cultural situations.

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Culture Effecting the Efficiency of Business

Different Layers of Culture

 The outer layer


 The middle layer
 The inner layer

The outer layer is what people primarily associate with culture: the visual reality of behavior,
clothes, food, language, housing, etc. This is the level of explicit culture.

The middle layer refers to the norms and values which a community holds: what is considered
right and wrong (norms) or good and bad (values). Norms are often external and reinforced by
social control. Values tend to be more internal than norms. Society doesn't have many means of
controlling their enforcement. Values and norms structure the way people in a particular culture
behave. But they are not visible, despite their influence on what happens at the observable
surface.

The inner layer is the deepest: the level of implicit culture. Understanding the core of the
culture onion is the key to successfully working with other cultures. The core consists of basic
assumptions, series of rules and methods to deal with the regular problems that it faces. These
methods of problem-solving have become so basic that, like breathing, we no longer think about
how we do it. For an outsider these basic assumptions are very difficult to recognize

ROLE OF CULTURE IN INTERNATIONAL MARKETING

Culture grows over time and is evolved permanently and slowly. For example, negative
tendencies to material culture in some societies may disrupt commercial activities. Gandhi
believed in negative effects of material culture and declared that western technology and
industrialization removed human values and converted human into machine. If his thought
continued in India, it would prevent this country from industrialization. Therefore, familiarity
with culture of foreign countries is of special importance for international commerce and
whatever we move toward international markets from local environment and markets, role and
sensitivity of cultural factors will increase.

Specifications of international markets:

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Culture Effecting the Efficiency of Business

Differences among the transacting parties and their international markets are characterized by
difference in social, cultural, political, technical and economic environments. The differences
such as time of the region and language in exchange of methods and management pattern models
cause problems and create considerable effects on legal management of cross -border relations.
In study of international distribution channels, concepts of mental distance and environmental
uncertainty have attracted many attentions. Cultural factors affecting international markets.
Attention to cultural factors in international commerce is very important because language,
lifestyle and values change from a society to another society. Cultures include two parts: local
culture or manufacturer and foreign culture or target market. Some cases such as product
packaging, label, quality, services, place and time of purchase, price and advertisement all are
affected by culture of societies and people and relate to culture of target culture. Study and
research in this regard lead to conformity of product or service in that market and success in the
related commerce in international level.

Mental distance:

A key factor in description of internationalization process is concept of mental distance. Mental


distance is a class of elements which come from a special foreign market and control information
flow. Based on work of Russ and Klein in 1990, mental distance is suggested as different
perception of the importer with operational environments of the exchange parties, lower degree
of dissimilarity and lower level of mental distance in relations of importer and exporter.

Language:

Language is the most important communication means between people and one of the most
important factors which should be considered in international commerce. All large commercial
companies have their own brands but they should consider some points at time of export such as
meaning of trade name in target language, conveyance of meaning of form and symbol applied in
product advertisement for the people of target market.

Color:

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Culture Effecting the Efficiency of Business

Colors in different cultures convey different symbolic concepts and a company which wants
international commerce should be familiar to these cultural patterns in the field of colors to make
desirable planning in the field of packaging and advertisement of products.

Religion:

A company with target of international commerce should know that religion has considerable
effect on economy of a society and marketing activities. Religion creates attitudes and values
among people which are effective on their consumption and purchase patterns.

Negotiation:

Negotiation is a process which is made between two parties and attempt is made to make an
agreement on the interesting subjects of the parties. When negotiation is made with between
people of two countries with different cultural history, failure to pay attention to this difference
can be effective on negotiation process and converted into a barrier to success.

The relationship between culture and business ethics

Culture characteristics are very important in formulation of business strategies. The cost of
ignoring customs, traditions, taboos, tastes and preferences etc. can be very high.

The interface between business and culture can be understood from the following points:
1. Culture Creates People:
It is the culture which generally determines the ethos of people. It tends to train people along
particular lines which put a personality stamp on them like Indians, Americans, Britishers, and
Japanese etc. There are sub cultures within a culture. When people with different cultural
backgrounds promote, own and manage organisations then the organisations themselves tend to
acquire distinct cultures like culture of ‘Tata’ group of companies is different from that of
‘Birlas’.

Culture performs at least four functions:


(i) Culture distinguishes between one organisation and another.

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Culture Effecting the Efficiency of Business

(ii) It conveys a sense of identity for organisation members.

(iii) It helps in creating a sense of commitment to do something nobler than one’s own interest.

(iv) It enhances social system stability.

So culture acts like social glue that helps hold the organisation together by providing appropriate
standards for behaviour of members of organisation.

2. Culture and Globalisatiion:


As one moves from one country to another there comes an element of ‘Cultural shock’ i.e.
confusion, disorientation and emotional upheaval e.g. an executive transferred from India to
Japan will require lot of adjustment to make. So to overcome ‘Cultural shock’ there is need for
understanding and appreciating cultural differences across the countries.

3. Attitude to Business:
Businessmen must have some basic set of philosophies to guide their actions. Beliefs value
systems, concerning what is right and what is wrong, are basic to business activity. Attitude of
people towards business is largely determined by their culture.

4. Attitude to Work:
Now a worker looks at his work depends on his culture. Motivation, morale and other related
aspects of human resource management are based on worker’s attitude to work. Japanese have
achieved progress because of their commitment to work.

5. Culture Determines Goods & Services:


The type of clothes people wear, the food they eat, the building material they use to construct
houses vary from culture to culture and time to time within same culture. Business should realise
these cultural differences and bring out products accordingly.

6. Ambitions:

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Culture Effecting the Efficiency of Business

An ambitious person is highly motivated, has a strong urge to excel and is prepared to change the
organisation. Economy also becomes vibrant if a major portion of population is of ambitious
persons.

7. Education:
In traditional society, education was a preserve of Brahmins. Things have changed over the
passage of time. Education institutions have come up now in all corners of the country and now
we have more number of primary schools than U. S. S. R and U. S. A. put together. Education
benefits business. Business in turn has responded and started supporting education. This support
is manifested in starting and maintaining educational institutions, sponsoring employees for
continuing education and bearing the cost of the education of employee’s children.

8. Family:
The family is one of the chief agencies of social life. The family is important for various reasons
such as inheritance, property rights, protection, morality, care of sick and aged and the
transmission of cultural values, nuclear families have become common now in our society in
place of joint family system. With big families being broken up, family business is slowly
turning into limited companies. All these developments are important to business.

9. Ethics in Business:
Ethics refers to the code of conduct that guides an individual in dealing with others.

Ethics is important because:


(i) It corresponds to basic human needs.

(ii) Values create credibility with the public.

(iii) Values give management credibility with employees.

(iv)Values help better decision making.

(v) Ethics and profit go together.


10. Time Dimension:
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Culture Effecting the Efficiency of Business

It refers to people’s orientation—past, present and future. Time dimension is another aspect of
culture that influences business. Societies which are oriented towards past tend to preserve past
heritage. Our society is a good example of past and future orientation.

11. Religion and Business:


Religion plays an important role in one’s life. It disciplines an individual to lead an orderly life.
The major religion across the world is Hinduism, Christianity, Islam and Buddhism. Every
person has religious feelings and beliefs. Every religion is subject to further stratification, like in
our society it has been stratified into four major castes and those are Brahmins, Kshatriyas,
Vaishyas and Sudras. Religion influences business to a great extent. In business boss-subordinate
relationship, attitudes of people towards business and many other issues depend upon religious
beliefs.

There are some religions which prohibit consumption of alcohol and non-vegetarian food. That is
one of reasons Birlas being Jains have not entered into hoteliering, catering and leather
industries.

Marwaris own majority of companies as their entrepreneurial traits are influenced by religions
and castes.

Decisions of astrologers also influence the business decisions of many businessmen in our
society. Even big business tycoons Birla and Ambanis consult their personal astrologers before
taking important business decisions. Also ‘Chandi Puja’ is performed for prosperity of business.
‘Vastu Shashtra’ has also become a very important part in construction business. To nullify the
effect of ‘bad stars’ or promote the ‘good’ ones, advice is taken from astrologers for gemstones.

The religion of a country may affect the country negatively also as it has happened in Burma
because every citizen is bound to become monk for one year at least which has affected the
economy of the country badly as their services could have been used for productive purposes.

Conflicts between religions can go against interest of business at times as it is evident from
‘Ayodhya incident’ when communal clashes broke out.

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Culture Effecting the Efficiency of Business

Religion also plays a role in deciding the weekly holidays, other holidays and working hours.
Festival times are peak business times as people go shopping for new clothes, gifts household
items etc. and discounts and incentives are offered by the companies. Auspicious days are
considered for starting new business. ‘Shubha Muhurat’ is considered right time for starting new
venture.

Marriage ceremony, naming of child etc. also affect jewellery, textiles & catering business.

In a number of countries religion and government are inseparable.

12. Marriage:
Marriage is a social institution which results in settled life, systematised and organised activities
and multiplication of people. Though traditional objectives of marriage are prevalent even today
but institution of marriage can affect the economy. A career oriented well settled career woman
may have to leave her job after marriage for change of place or otherwise which is a great loss to
the society and ultimately to the economy.

13. Cultural Resources:


Cultural resources means heritage and our country is rich in cultural heritage. South East Asia
and Central Asia received culture from India along with other things like rice, cotton, sugarcane,
spices and even game of chess (Shatranj). Even decimal system is the invention of Indian
mathematician. Sanskrit literature is one of the greatest contributions India has made to the
culture of mankind.

RESEARCH METHODLOGY:

Methodology is the systematic, theoretical analysis of the methods applied to a field of study. It
comprises the theoretical analysis of the body of methods and principles associated with a branch
of knowledge. Typically, it encompasses concepts such as theoretical model phases and
quantitative or qualitative techniques.

It has been defined also as follows:

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Culture Effecting the Efficiency of Business

1. "the analysis of the principles of methods, rules, and postulates employed by a


discipline";
2. "the systematic study of methods that are, can be, or have been applied within a
discipline";
3. The study or description of methods".

Definition of research methodology:

The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interviews, surveys and other research
techniques, and could include both present and historical information.

There are two types of research Methodology

1. Quantitative research
2. Qualitative research

We use Quantitative research for this purpose. The tools used to conduct is qualitative research is
questionnaire.

Questionnaire:

Questionnaire is a set of printer or written questions with a choice of answer devised for the
purpose of a survey of statistical study.

We complete our research with the help of 100 sample papers of questionnaire.

We survey different employees from different organization in the purpose of research paper in
Pakistan.

Qualitative research:

Is a scientific method of observation to gather non-numerical data? This type of research "refers


to the meanings, concepts definitions, characteristics, metaphors, symbols, and description of
things" and not to their "counts or measures

."] Qualitative research approaches are employed across many academic disciplines, focusing
particularly on the human elements of the social and natural sciences in less academic contexts,

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Culture Effecting the Efficiency of Business

areas of application include qualitative market research, business, service demonstrations by


non-profits, and journalism.

Quantitative research:

Is the systematic empirical investigation of observable phenomena via statistical, mathematical


or computational techniques. The objective of quantitative research is to develop and
employ mathematical models, theories and hypotheses
models, theories and hypotheses pertaining to phenomena. The process of measurement is central
to quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships. Quantitative data is any
data that is in numerical form such as statistics, percentages, etc

The researcher analyses the data with the help of statistics and hopes the numbers will yield
an unbiased result that can be generalized to some larger population.

Result analysis

1.1 personal information

Junior Senior Supervisor Managers

Position Level 29 29 28 13

29% 29% 28% 13%

Highest Matric Inter Graduation Masters Level

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Culture Effecting the Efficiency of Business

13 15 37 35
qualification.
13% 15% 37% 35%

Less than 1

Years’ experience year 1 - 5 years 6 - 10 years 10+ years

in employment. 14 38 31 17

14% 38% 31% 17%

Male Female

Gender 71 28

78% 28%

Between 41 –
Below 30 Between 31 - 40 50 Over 50

Age 49 37 9 5

49% 37% 9% 5%
According to our research 71% were male and 29% female. Gender status was important as it is
a variable that shows the extent of an individual’s social commitment in relation when it comes
to interaction with others and it was also analyzed in order to check whether both sexes were
given chances to participate in the study.

71%

29%

1 2

Furthermore, our research need to know the age distribution of the employees get balanced views
because the organization a lot of workers of different sorts. In our research 5% were aged over
50, 9% between 41 and 50, 37% between 31 and 40 and the remaining 49% were aged below 30
years.

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Culture Effecting the Efficiency of Business

4
3
2
1

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

In our research Academically, 35% were having Master’s Degree, 37% Graduation, 15% Inter
Education, and 13% Matric Education.

40%
30%
20%
10%
0%
1 2 3 4

In our research, 13% employees were heaving Manager/director post, 28% supervisor, 29%
senior, 29% junior.

28%

29% 4
13%
29%
1 2 3 4

1.2 Occupational Classification

Engineers Accountants Administrators Labors


9 43 30 18
9% 43% 30% 18%

Source: Field Survey

In above table tell about the occupational classification. In our research, 9% employees are
Engineers, 43% are Accountants, 30% are Administrators, and 18% are Labors.

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Culture Effecting the Efficiency of Business

18% 9%

43%
30%

1.3 Has culture any influence on employee performance in your organization

Yes No
60 40
60% 40%
Source: Field Survey

In above table tell about that culture has any effect on in employee’s performance in your
organization. When we visit an industry I meet different people who belong to different religion,
norms, values and language. When these people work in a group the organization give same
respect and value. In our research out of the total 100 employees, said “yes” representing 60 of
employees who agreed that culture has influence on employee performance while 40 said “no”
representing 40%.

40% 1
60% 2

1.4 Organizational culture is important to the performance of the


organization.

Strongly Agree Agree Neutral Disagree


39 48 12 01

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Culture Effecting the Efficiency of Business

39% 48% 12% 1%

Source: Field Survey

This question is totally inverse to the 1.3. In this question tell about that the organization has any
effect on employee’s performance. In our research out of total 100 employees, that 39 %
Strongly agree, 48% Strong, 12% Natural and only 1% disagree.

60%
50%
40%
30%
20%
10%
0%
1 2 3 4

1.5Does culture create opportunity to improve the performance of employees


in your organization?

Yes No
69 31
69% 31%
Source: Field Survey

In above table tell about that the organization give to the employees that they improve their
performance. In our research 69% employee’s said Yes, and 31% employee’s said No.

1200%
1000%
800%
600%
400%
200%
0%
0 2 4 6 8 10 12

1.6 Do needs of employees from different cultural background fit into the
overall objectives of your organization?

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Culture Effecting the Efficiency of Business

Yes No

66 34

66% 34%

Source: Field Survey

Table 1.6 shows that 66 representing 66% agreed that the needs of employees from different
cultural background fit into the overall objectives 34 representing 34% says no.

2 34%

1 66%

0% 10% 20% 30% 40% 50% 60% 70%

1,7 Management and employees alike maintain a high level of respects for one
another.

Yes No

71 29

71% 29%

Source: Field Survey

In our research 71% employees said that “yes” management and employees maintain a high level
of respect for one another and 29% said “no”.

80%
60%
40%
20%
0%
1

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Culture Effecting the Efficiency of Business

1.7 In your organization is management team open in sharing information


(both positive and negative) throughout all levels of the organization?

Yes No
51 49

51% 49%
Source: Field Survey

In our research 51% employees said “yes” management team in sharing information (both
positive and negative) throughout all levels of employees but 49% said “no”.

49% 51%

CONCLUSION

The main purpose of this paper was to understand the importance of socio-cultural factors’
influence on the performance of multinational companies. Society and culture have an impact on
every aspect of the overseas business of multinational companies. Analogously, the socio-
cultural environment is significant for multinational companies. The key socio-cultural factors
that have a major impact on the operation of the multinational companies are

1) Culture;

2) Language;

3) Religion;

4) Level of education,

5) Customer preferences, and

6) The attitude of the society towards foreign goods and services.

The influence of culture on multinational companies is real and widespread. Multinational


companies are affected by more than one culture at a time. Through their subsidiaries located in

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Culture Effecting the Efficiency of Business

various countries, they are exposed to different national cultures. Culture in particular country
directly, or indirectly, reflect on the achieved performance of multinational companies. On the
basis of the results obtained from various surveys, it can be concluded that successful
multinational companies develop acceptance and understanding of cultural differences among
various country and learn how to take advantage of opportunities, and cope with disadvantages
that arise from different national cultures. Religion is an important social factor that should take
in consideration when some company decides to operate in a given country. Religion, through its
effects on people, affects a multinational company and its operations. Consequently, it can be
concluded that an appropriate understanding and respecting of religion is extremely important for
the efficient FUNCTIONING of multinational companies. From the perspective of the
multinational companies, it is very notable to have good knowledge of the local language. The
lack of knowledge of a local language is reflected on the performance of foreign subsidiaries and
their managers. Consequently, the languages difficulties can be reduced by appointing
expatriates on the top managerial positions in the local subsidiary or nationals that have good
knowledge of parent company’s language and corporate culture. Education has notably impact
on international business. In a country where the level of education of local population is higher,
it is considered that expectations from multinational companies are proportionally higher. Buyers
with a higher level of education require more quality products and services, a better price-quality
ratio (a better VALUE-for-MONEY RATIO) and know their right as customers. Also, well-
educated local workforce requires better working conditions, more stable work, and greater
opportunities for further improvement as the business environment changes.

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