Question

How do cultural difference affect companies doing business internationally?

Given that cultures converge due to globalization, do you think culture still matters in international business?

Provide an example of how cultural difference can affect companies and how companies can deal with these differences (how they should respond)

Answer 1

ANS

Cultural differences provides a great positive impact for the international companies, each culture has its positiviity in it and which provides a great impact on the personality of people, if a company has heterogenous cultural population then it will have a benefit of diversity. The internatiional business is affected by the cultural differences as they have to work into different countries and it is very hard to have a perfect knowledge about the market and social behaviour of company by a foreigner, and cultural differnces solve these issues.

Yes, after cultural convergence dur to globalization the cultural differences still exists and those diifferences or cultural diversity can provide better results in long term. A homogenous population can create the issue of employee unions and which can affect the functioning of organization. The cultural diifferences may also inspire the workforce to induce the creativity in their tasks and also motivates the employees, it also provides more knowledge in the company as persons come from different backgrounds and cultures which frame their experience and knowledge about specific group of population and also about the different regions which provide better profitability in the organization or company. It also provides greater insights to local market which promotes expansion of company.

Cultural differences can sometimes adversely affect the companies as it is hard to manage the work force with diferent cultures and it can also cause difference in interests of the employees which may cause disparities in the end results. The cultural differences can also cause difference in working habits of the employees coming from different cultures. These problems can be solved by effecttive management and by training, also establishing acccurate reporting relationnships will have a great positive impact on the workforce.