In: Finance
In your opinion, what part does culture play in internation trade or on the global scence?
Differences in culture and different languages have created barriers in international trade by creating challenging situations for international companies. The managers are left with the task of developing strategies which will work in different cultures. Besides differences in cultures of people there are distinct differences in organisational culture which managers need to understand to develop suitable strategies. This also has a direct impact on values which have to be understood to succeed in a globalised environment.
Understanding of different cultures can help managers to create the right marketing strategies which are based on the cultures of target segments. This allows them to attract customer attention and succeed in an alien market. The slightest cultural blunder can destroy the company's image and create problems for the business in a new and unknown business environment. It can lead to loss of goodwill and public outrage and destroy the chances of success of the business on the global scene.