Introduction
Culture is one of the most important aspects of international business, because the study of culture accentuates the differences among peoples in various countries. These differences have a major impact on what business is conducted, how it is conducted and when it is conducted. Culture addresses social, health-related and philosophical aspects. It influences a country’s political, legal, regulatory and economic systems. Culture is intricately entwined throughout all systems within a country.
We will first begin by defining culture. Without a thorough understanding of what culture is, we cannot appreciate and value the inherent differences that make up other cultures. If we do not understand these differences, we will not appreciate, learn from or make the most of these differences in enhancing our own values, knowledge and creativity.
We will only “touch-on” some of the main aspects of culture such as language, education, religion, and aesthetics as each of these are addressed in-depth within the text. Selected aspects will be explained including their impact and importance to international business. We will also acknowledge two cultural value studies, Hofstede’s Classification of National Culture and Schwartz’s 10 Cultural Values.
After completing this lesson, you will be able to:
- Define and understand culture including major aspects of language, education, religion and aesthetics.
- Be keenly aware of cross-cultural risk.
- Understand various cross-cultural value studies.
- Be cognizant of the effect and implications of culture on international business.
- Have knowledge of the in-depth importance of culture on international business.