Describe some ways in which social, cultural, economic differences among nations effect international business

Question

Describe some ways in which social, cultural, economic differences among nations effect international business

Answer 1

I heard that in some arabian countries (and maybe more) if you don't look somebody in the eyes while he's talking to you it's a sign of respect. In my country it's a sign of disrespect and of being not interested if you don't look somebody in the eyes while he's talking to you.

So you might be sending the wrong message without knowing it. And ruin your businness.

It the fascinating part of studying cultures: how can you interprete behaviour in the right way?

Answer 2

I can give you a first hand example for some of this. I work for an international company with colleagues all over the world.

Social

In some countries women are expected to do duties that men are not. For instance I have a woman colleague in China who is expected to carry things (like notebook or computer) for her male peers. This is a traditional duty of a woman in China and it has been transferred into the business world.

Cultural

In the US we are very blunt in our communication. I might say 'I disagree' to someone at my company who has much more authority than I do. And I can choose to argue my point of view with that executive in an effort to make my case. This is not something that my Japanese colleagues do. There is much more respect for authority in Japan. There is very little disagreeing with management. In fact, there is very little disagreeing at all.

In the US I am sometimes frustrated with our Japanese colleagues when I disagree over a point. I make my case and my Japanese colleague will nod and say yes. I go back to the US and a week later the problem is still there...the solution that I thought we had all agreed to has not been implemented. This can sometime be due to the fact that for a Japanese person saying 'yes' can mean several things.

Sometimes it means "yes, I understand and agree with you - I could support this idea to my management chain" (this is a big win if you get this yes.  

Sometimes it means, "yes, I understand." This doesn't mean that he agrees. It just means he has understand my language; but isn't comfortable enough with the ideas to support them.

Sometimes yes simply means, "yes, I see you are moving your mouth." This sort of yes means I should ask my Japanese colleague his opinion on this matter and let him study both your idea and his when he has time to really evaluate the implications of the situation.

In the US we put a lot of value on the ability of immediate persuasiveness of an argument. The Japanese do not.

Economically

This is a biggie. Each country is competing against all the others for the same resources....the same oil and natural gas, the same iron and steel supplies, the same customer bases. China has a huge population and a fast growing economy. Their need for steel, oil, gas is quickly eating into the US's supply lines making it harder for US companies to get the steel and oil they want.