Culture Case

International business activity is the economy system of exchanging products and services undertaken by individuals and business in various countries and it entails a set of complicated relationships which have implications for business dealings around the world. Culture is most often perceived as the language or religion of a country, but there is more to culture than these two things. Understanding the role of culture boosts our understanding of the procedure at work in the globalization of business. In order for businesses to be able to communicate clearly and efficiently and of course to avoid misunderstandings in their international business activity, it is necessary that they understand the cultural background of decision-making and economic behaviour. This will enable businesses to have a prolific business relationships and survival of their companies and economy when they decide to extend they operation internationally.

In this essay we will look at the relationship between business and culture and examine how culture has a negative influence on international business activity if ignored. The purpose of this essay is to analyse and understand that if any business engaging in international business activity without do not take into account the importance of culture do so at their own risk.

Local businesses are more and more being challenged by external competition inside their own domestic markets. Due to the challenges faced in the domestic market local business activities level can no longer be considered as different or separate from the global environment in which they operate. Globalization has effectively (diminished) the world causing national borders to lose their significance as boundaries for people and economic relations. In order to succeed and most of all to survive in this dynamic and challenging environment, businesses need to look for better alternative outside their local and national borders.

Conducting international business around the globe it involves complex affairs that have impact on the global business interactions. The article called "The Globalisation of the Market" by Levitt (1983) supports this dispute based on the supposition that consumer behaviour is rational. Often businesses do not change the way they do things but they rather standardise and consolidate their processes or operations which leads them to a decrease in productivity and as result of the decrease in profitability it also negatively affect thei...