EUNICE F.

ORTILE
BSA-IIIX

CULTURE AND INTERNATIONAL BUSINESS REACTION PAPER

Cultural sensitivity is very essential in the global context of international business. It is

one of the factors that affects the flow of transactions in international market. Culture is the basis
that provides acceptability for shares of beliefs, values and norms within a society, or a business
set up. And there are different dynamics that define culture within international markets. Also,
different countries have different rules and laws pertaining to how businesses should be
undertaken. Different countries also have varying practices that they uphold when doing
business. It is important to measure the corporate strategy of the host country for example, the
economic performance is measured through diverse currencies. In terms of international
marketing, companies need to be competitive against technical standards. Furthermore, culture
relates to what behavior is common and accepted professionally in one place compared to
another. There are practices that are acceptable in one country that can be different from ither
countries. That is why it is very important to recognize the culture and how does it affect the
international business setting. There are three types of customs. These are cultural imperatives,
cultural electives, and cultural exclusives. Cultural imperatives refer to the business customs and
expectations that must be met to conduct successful business transactions in other countries.
Cultural electives are the business and expectations that are optional, in which business
executives may participate or conform in, but is not required. It may help to establish rapport and
respect when participation occurs. Then, cultural exclusive refers to custom that may be reserved
for the locals but not for foreigners.

Global marketers face a lot of challenges in the international business environment it is

therefore necessary for them to be aware of the culture, for example religion, education, customs
and values of the environment. Communication plays a particularly important role in
international business. Effective communication is a must because sometimes the lack of it can
cause misunderstanding which could affect the success of the transactions between countries.
There are several things that needs to be considered when looking at how effective our business’
communication at international level. Language barriers must be solved and look into because
most often it can hinder the communication between you and the new market you are dealing
with. Sometimes, language barriers are not literally just about the language used but also on how
the message was conveyed. It can also be the tones and the way you delivered the message that
can cause misunderstanding. Another thing to consider are the basic customs, mannerisms and
gestures that are commonly accepted in that culture. Behavior that might be commonplace in one
culture could be unusual or potentially offensive to a client or colleague overseas. There is also a
need to be aware that different cultures have different attitudes towards the business. For
example, Sweden companies emphasize social equality, and they tend to have a relatively flat
organizational hierarchy. This relates to their informal approach to communication and
cooperation normally at the heart of their organizations. Another example is the Japan culture
when it comes to valuing status and respect for seniority are reflected in their organizations and
they also have a very clear organizational structure. Workplace etiquette must always be
reflected especially in dealing with international business. The formality of address is one aspect
to consider when transacting with clients coming from different cultures. We must know if they
are comfortable of being approached in surnames, first-name or do they prefer for titles. Things
such as formality of address may not seem that important, but if you get off on the wrong foot
with a potential foreign client then that could ruin your chances of ever working with them in the
future. Therefore, it is important for businesses to know that their level of formality will differ
depending on the culture of the person they are communicating with.

Culture plays a huge role in international business. It profoundly influences how people
think, communicate, and behave. Culture is a key component in business and has an impact on the
strategic direction of business. Understanding the cultures of different countries enables the
business to enhance on the positive while avoiding on the negative aspect negotiations are easier
to make when you know the culture and customs of the people. It is also important that
international companies study the political culture of a country they have interest in transacting
with. International companies identify and utilize cultural differences for their gain. They should
consider people’s values, beliefs, and norms in their planning and decision-making processes.
Policies that are culturally sensitive are likely to bear a better result. Companies need to integrate
culture sensitivity in their undertakings to ensure their sustainability in the market.