1. Effects of cultural
differences on
international business

2. INDEX
1.INTRODUCTION
2. Attitudes towards culture
3. National culture
4. Cultural Differences
5. Making business in foreign culture
6. Conclusion.

3. INTRODUCTION
• The number of companies operating internationally is growing constantly.
• he world is opening up for foreign firms and new destinations in the
company´ business are increasing.
• Because of high competition the companies operating abroad are faced with
a much larger task then before.
• Obstacles the firm never faced before are becoming crucial in the everyday
work.
• Culture is one of these obstacles and can affect the entire co-operation.
• Culture can influence the business in different ways such as: (Language
problems, pricing difficulties and cultural collisions)
• The company must be able to handle these difficulties in a way that is
satisfying also for the other part.
• It is important, even before entering the foreign country, to inform the
personal about the manners and customs in that new culture.

4. INTRODUCTION
• Culture can be both a positive and negative influence and many companies
are struggling in the new and foreign environment.
• The important thing to always have in mind is that the foreign culture is not
as we are used to at home and to be prepared before starting the new
foreign operation.
• Respecting and understanding the new culture without forcing our own
beliefs on people, are things that can be extremely helpful to consider.
• By learning the host country’s language, can respect and trust more easily
be won, and competitive advantages can arise.

5. INDEX
1. INTRODUCTION
2.Attitudes towards culture
3. National culture
4. Cultural Differences
5. Making business in foreign culture
6. Conclusion.

6. Attitudes towards culture
1-Parochialism – “our way is the only way”
2-Cultural Blindness - People do not recognize cultural differences in order to
be just and to treat everybody equally.
3-Ethocentrism – “our way is the best way”
4-Synergy – Cultural diversity is recognized and can lead to both advantages
and disadvantages.

7. Attitudes towards culture
And when we have Synergy attitude toward the culture we can solve any
problem by:
1.Recognition of the problem
2.Analysis from different perspectives
3.Solution appropriate for all cultures
Advantages: Achieving the results at possibly higher potency, more flexible,
creative and open to new ideas
Disadvantages: Control, side-affects on products, fear of unknown

8. INDEX
1. INTRODUCTION
2. Attitudes towards culture
3.National culture
4. Cultural Differences
5. Making business in foreign culture
6. Conclusion.

9. National culture
 The set of norms, behaviors, beliefs and customs that exist within the
population of a sovereign nation.
 International companies develop management and other practices in
accordance with the national culture they are operating in.
 The dimensions of national culture are:
1. Power Distance
2. Uncertainty Avoidance
3. Individualism
4. Relation to nature

10. INDEX
1. INTRODUCTION
2. Attitudes towards culture
3. National culture
4.Cultural Differences
5. Making business in foreign culture
6. Conclusion.

11. Cultural Differences
• In order to do business with differing cultures, much market
research is needed to help companies understand various
similarities and differences even when dealing with everyday cultural
norms dealing with people such as:
1. Punctuality
2. Greetings
3. Nonverbal communication signals
4. Good Manners
5. Decision making

12. INDEX
1. INTRODUCTION
2. Attitudes towards culture
3. National culture
4. Cultural Differences
5.Making business in foreign culture
6. Conclusion.

13. Making business in foreign culture
You have to make sure that what you’re selling is what the people expect and
what they want.
And we have 4 Steps to Understand Customers in a Foreign:
1- Study the Region:
• It's critical to analyze everything about the region where their customers
reside.
2-Consider the Cultural Differences
To get the full picture, a company must also familiarize itself with the local
culture of its target customer base.
3-Understand the Local Language
it's also important for business owners to understand the local language spoken
by their customer base to avoid linguistic snafus.

14. Making business in foreign culture
4- Follow Local Trends and Modify as Needed
A company may consider surveying target customer groups or offering samples
of its products to determine if its customer base wants a product as is, or if they
would prefer an altered version to fit local tastes.
Such as the Japanese people.
Product-design for Japan
•Prefer quality and are willing to pay premium prices
•Different taste: less sugar and salt
•Smaller servings
•Different body shape
Japanese television advertising
•Length: 15 seconds or less
•Mood advertising: - non-verbally or with few words

15. INDEX
1. INTRODUCTION
2. Attitudes towards culture
3. National culture
4. Cultural Differences
5. Making business in foreign culture
6.Conclusion.

16. Conclusion
 Culture has a very important impact on business, but not everything can be explained
by it
 Other influences: individual character, situation, legal system etc.
 Culture in each country have many factors , The foreign company must analyze this
factors to know how to deal with culture of each community
 The foreign company must analyze and deal with these cultural differences and
remove the tension to bring about reconciliation between these countries.
 Learning about and accepting diversity can improve your interpersonal effectiveness
and increase your personal and professional opportunities.

17. The end
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