Question

Chapter 1 underscores the value of studying international business as a student or a domestic business. However, every student or business manager doesn't see the international business the same. We found that proclaiming or documenting your international experience may help international firms find valuable human capital capable of helping achieve objectives in a foreign country. Recognizing there are motivational differences in both of these types of interest groups. You have to at least create a self-reference criterion. This criterion is much like a default function and helps explain unconscious activities that ascribe to their own preferences and reactions.

Explain in your own words a hypothetical situation where a student and then a business are faced with using the self-reference criterion after making blunders due to not carefully examining problems in terms of the local cultural traits, as well as their own. Please answer in complete sentences and paragraphs. Minimum words 150 words.

Answer 1

Due to globalization, the products manufactured in a single country can reach to all the various countries worldwide. But the culture followed in a country would make the products manufactured in other countries unacceptable. This is because of the fact that the culture in a country is very different from other countries. Self reference criterion would allow the people to take decisions based on experience, values and knowledge of one's own culture. A situation is explained as :

A restaurant firm in US offering hamburgers of various flavors is planning to enter in Indian market. In US the ham burgers are only of beef and pork. But in India, people worship cows and thus dont prefer to eat beef. As a result before entering in India, the firm makes changes in its menu and start offering burgers made of potatoes and other veggies under the name Mc Aloo Tikki. Thus the product was very successful in the Indian. This is how a firm was successful after using self reference criterion and understanding the culture and values of the various countries.