The business world is moving rapidly from a world in which national economies were relatively self-contained entities, isolated from each other by barriers to cross-border trade and investment; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems. The moving of the business world into an interdependent global economic system is referred to as globalization.
Globalization has a particular definition for each country. May be, for western countries globalization opens special possibilities of successful development, and for other countries there is a choice between dependence and isolation.
The principal goal of a globalization strategy is successful economic development in different countries, but we see also the influence of the globalization process on social, political and culture life. One of most difficult barriers for this process are cultural values and norms of civilisations. Even if there is no reason to think, that these differences bring to conflict between civilisations in future, it is necessary to know, that making contact between various cultural societies demands great effort.
Despite of process of market and production globalization and as of world modernisation that could guide to universal civilisation, the countries are different, because their evolution process and culture are different.
With what purpose we try to determine the phenomenon of culture and to consider the process of culture changing, when we are studying only international business? Why it is so necessary to know, what kind of religion, tradition, and social structure is proper in one country, or another, if our goal is to increase the success of the enterprise we are working for?
To increase the success of enterprise means representing of product on the world market and also conquering interest of a foreign customer. Consequently, it is necessary to acquire contact to different people. Is it possible to have a successful business in different countries? For example, will it be worth to product great amount of woman cloth (ex. miniskirt) in the Islamic countries?
People from different culture have different values and beliefs - deeply ingrained ideas about what is right, good, normal or wrong - and these values and beliefs determine how those individuals behave and what they are supposed to do or to say, as well as not to do or not to say.
Contents
1. Introduction
2. Definition of culture
2.1. Determinants of culture
2.1.1. Social culture
2.1.2. Religion
2.1.3. Language
2.1.4. Education
2.2. Change of Culture
3. Conclusion
Research Objectives and Key Themes
This paper examines the fundamental phenomenon of culture within the context of international business, aiming to understand how varying cultural determinants influence global economic interactions and enterprise success. It explores the necessity of cultural awareness for companies operating across diverse national borders.
- The impact of globalization on national cultural identities
- Core determinants of culture including social structure, religion, and education
- The relationship between cultural values, norms, and business practices
- Analysis of how cultural change occurs through modernization and external influences
- The role of individual and social perceptions in cross-cultural business success
Excerpt from the Book
2. 1. 1 Social structure
Social structure determines an order and principles of the society, and certainly, reflects culture of this society. Differences of social structure help explain cultural differences.
According to Hofstede, differences in culture vary along four dimensions – collectivism / individualism, large / small power distance, strong / weak uncertainty avoidance and masculinity / femininity. But we will describe only two fundamental dimensions, which are the basic building of social organisation: individualism and collectivism.
Collectivism describes societies, where people are integrated into strong, cohesive and loyal groups. (Japan, Russia).
Individualism is the opposite of collectivism and describes societies, where the ties between individuals are lost. Their culture values individual needs and interests out of the group. Individualism is built on two central tenets. The first is an emphasis on the importance of guaranteeing individual freedom and self-expression. The second tenet of individualism is that welfare of society is best served by letting people pursue their own economic self-interest, as opposed to some collective body dictating what is in society’s best interest. (USA, Germany).
Under social structure we understand also class distinctions. The class system determines position of the person in a society, but it can change also.
Summary of Chapters
1. Introduction: This chapter provides an overview of how globalization forces economies to become interdependent and highlights why understanding cultural differences is essential for international business success.
2. Definition of culture: This section explores the abstract nature of culture, presenting various scholarly definitions and analyzing key determinants like social structure, religion, language, and education.
2.1. Determinants of culture: This sub-chapter breaks down the essential factors that shape societal norms and values, providing a framework for analyzing cultural characteristics.
2.1.1. Social culture: This section focuses on how social structure, specifically individualism versus collectivism, defines societal interactions and principles.
2.1.2. Religion: This part examines how religious systems provide moral codes and influence attitudes toward work, ethics, and business costs.
2.1.3. Language: This sub-chapter discusses language as both a communication tool and a critical determinant that segments people into different cultures.
2.1.4. Education: This section analyzes how formal education systems transmit societal values and contribute to national competitive advantage.
2.2. Change of Culture: This chapter discusses how modernization and global influences cause cultures to evolve, noting both positive adoption and defensive reactions.
3. Conclusion: The concluding chapter synthesizes the arguments, asserting that despite modernization, culture remains deeply rooted and will not become uniform on a global scale.
Keywords
Globalization, International Business, Cultural Determinants, Social Structure, Individualism, Collectivism, Religion, Language, Education, Cultural Change, Modernization, National Culture, Business Ethics, Corporate Success, Cultural Norms
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the definition of culture and its influence on international business practices, emphasizing the necessity for companies to understand cultural differences to succeed in global markets.
What are the central themes discussed in the work?
The central themes include the impact of globalization, the determinants of culture (religion, social structure, etc.), the nature of cultural change, and the role of cultural awareness in maintaining competitive advantages.
What is the main research objective?
The primary goal is to characterize the phenomenon of culture and its determinants to illustrate why international business strategies must be adapted to local cultural contexts.
Which methodology is applied in this research?
The author utilizes a qualitative, literature-based analysis, synthesizing theories from established scholars like Hofstede, Tylor, and Porter to explain cultural dynamics.
What aspects of culture are covered in the main body?
The main body examines the components of social structure, the influence of religious values on work ethics, the importance of language in cultural identity, and the role of education in national development.
Which keywords characterize this paper?
Keywords such as Globalization, Individualism, Collectivism, Cultural Determinants, and International Business best characterize the scope of this research.
How does the author define the relationship between individualism and collectivism?
The author describes them as opposite ends of a spectrum: collectivism integrates individuals into strong, cohesive groups, while individualism prioritizes personal freedom and economic self-interest.
What is the author's stance on the possibility of a "universal culture" emerging from globalization?
The author concludes that a universal culture is unlikely, arguing that cultural cores—such as religion and social structure—remain resilient despite modernization and cross-cultural exchange.
- Quote paper
- Lena Schmidtmann (Author), Olena Schmidtmann (Author), 2003, Differences of culture, Munich, GRIN Verlag, https://www.grin.com/document/65369
