Question

Discuss one cultural practice that may be regarded as a constraint to international business. How might a multinational corporation address that constraint?

Answer 1

Answer:- Culture refers to the ideas, beliefs and values of a person in a society. In the context of business, it can be defined as the commonly accepted behaviour of an employee in an organisation.

International business involves working with people belonging to different cultures which influences the behaviour of people, language and their thinking. Difference in national culture lead to lack of shared norms and values which lead to reduced effective communication, trust and shared knowledge in the business. It could also have a significant impact on the performance of international business.

Therefore, we can say language barrier can be one such cultural constraint that can affect the working of a business. Effective and transparent communication is very necessary for succesfully running any business operation.

Language barrier can be addressed or we can overcome it by:-

• Arranging an interpreter
• Learning new languages
• Narrowing down the market
• Using technology to understand the words of other person etc.