Question

In: Economics

How does culture affect the way people do business? You need to make it clear what...

How does culture affect the way people do business?

You need to make it clear what culture means to you before you start to discuss the question.

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Expert Solution

Cultural sensitivity is essential in a globalised economy. Comprehension and knowledge of cultural differences is a crucial skill for success in business. Understanding differences in language nuances, etiquette and cultural time management can help you navigate many complex interactions

Consider cultural differences which may be presented when doing business with an affiliate from another country. This encompasses basic customs, manners and gestures. For instance, if a salesperson approaches a meeting with knowledge of the cultural background of a customer, then his words, body language and actions can all be adapted to better suit the customer's. This in turn can lead to the customer becoming better liked, ultimately increasing the opportunity for the salesperson to close the deal.

In some countries, such as the United States and Germany, it is common for people to speak loudly when sharing ideas or giving direction and be more assertive or aggressive. People typically speak softly in countries like Japan, and are more passive in sharing ideas or making suggestions. If you interact with people from different cultures, speak in a neutral tone and make a conscious effort to be considerate of the input of others, even if it is given in a way you are not accustomed to, it can help to foster effective business communication.

When launching a marketing campaign or advertising to members of another culture, always research the target market before the campaign begins. Conservative levels, gender views, and ideologies can vary greatly from one culture to another. Presenting a campaign that does not conform to specific cultural norms can insult the target audience and significantly hamper the campaign. Being aware of cultural norms can also help narrow down the target audience in your business.

Men are usually in control of decision-making in Japan and Austria for example, but women make the majority of purchase decisions in Sweden.


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