Question

Our course text tells us that understanding cultural differences is critical to the success of firms engaging in international business. We have learned that Hall and Hall developed the low-context-high-context classification scheme, which focuses on the importance of context within a culture.

Based on what you have read, please describe the difference between high-context and low-context cultures and explain why understanding this difference is important for managers who are trying to develop business opportunities internationally.

Answer 1

A high context culture refers to a culture that either societies or people have made close connections over an extend period of time. In this culture members often know what to do or how to act due to previous interaction with others .Low context culture refers to people or societies where people still have connections but have been together for shorted period of times. In these cases cultural beliefs and actions may need to be communicated to people as they do not know how to behave within that culture.

In terms of understanding the importance of low and high context cultures for international business the manger must understand the culture has either high or low to get an understanding of the needs, and how the people may use their product or service. In a high context culture the manger or company may not need to explain how to use a product, what the product is used for, or how it can meet the needs of those using the product. In a low context culture managers or the company may need to educate those within the culture on what the product is, why they need it, or how to use it. At end of the day the context of culture will tell management how to promote the product in international markets and what they may need or may not need to do to successfully launch that product.