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THE IMPACT OF CULTURE IN INTERNATIONAL BUSINESS


Culture as the core characteristic of each nation strongly influences the shaping of the identity of an individual, a group and society as a whole. In the business world, culture can be seen through the features of a unique and recognizable organizational culture. Contemporary society increasingly pays attention to culture, cultural values and understanding of cultural differences. Accordingly, a good knowledge of a nation's culture becomes the main prerequisite for business survival on the global market as well as a prerequisite for a successful business. The cultural influence on international business as a process of equal relationships is an optimistic assumption of merging of diversity and mutual approach through active interaction and mutual respect regardless of cultural diversity. There is an increasing need to strike a balance between cultural differences. Interculturalism as a dynamic process implies a relationship, i.e. interaction, exchange and perspectives characterized by meetings of culturally diverse individuals based on plurality of relations with pronounced openness and social dimension of dialogue between cultures. Particular emphasis should be placed on the need to understand the complexity of the cultural environment and the specificities arising from diversity in the global marketplace. The international environment is a place or an environment with cultural diversity and a multitude of cultural differences in language, customs, values and principles. Culture is, above all, a key player in business on the international scene. If a foreign investor "pauses" with the culture of the other community, he has succeeded in the business scene. In order to understand the importance of culture in various business co-operations and "games", one should first consider what culture is all about and what its core features are. The concept of culture is of great importance to any nation or people because it describes all the customs, habits and mentalities of a society that has existed for many decades. The Definition of Culture by (Haralambos, 1980) refers to culture as a way of life of members of society; a collection of ideas and habits that members of the society learn, share and convey from generation to generation.


Many societies and cultures have cultivated and preserved culture for years, decades or hundreds of years, and it has become an established tradition that has been cumulatively transmitted from the knee to the knee, from generation to generation. Culture implies the identity of a community, i.e. the identity of every individual living on a particular geographical destination. According to Haralambos (1980), culture is a "draft for life" that is adhered to by members of a given society. Haralambos, (1980) considers that culture has two essential characteristics; first it must be learned, and then it is common. Man has no instincts to manage his actions; its behavior must be based on the guidelines that have been learned. In order for society to function as effectively as possible, the learned guidelines must be shared. Without a common culture, members of a society would not be able to communicate or cooperate, and this would lead to chaos and anarchy. According to many authors, culture is the model of all adaptations: material or spiritual, which society accepted as a traditional way of solving the problems of its members. Culture encompasses all institutionalized ways such as beliefs, norms, values and cultural assumptions that regulate behavior. Culture determines how members of a particular society think and feel. It directs the actions and defines the worldview of the community. In 1871, Tylor defines culture as a complex entity that includes knowledge, beliefs, art, law, mood, custom, and every other ability and habit that man acquires as a member of a community (Haviland et al., 2005). From this definition it is evident that culture does not imply just one dimension of cultural essence, but culture is a set of dimensions or a set of elements that make that culture unique. Culture implies a collective consciousness of a nation or a nation. Collective consciousness therefore refers to mentality, way of thinking, decision making, behavioral rules in a sufficient situation. The concept of collective consciousness (Hofstede, 1996) is called a collective programming of consciousness that differentiates members of a human group from members of the other group. The concept of programming consciousness in this case signifies consciousness, that is, the knowledge that a community came to because of certain conditions thatÂ


preceded the perception and understanding of the world around it. Factors that most often affect collective awareness and awakening consciousness are natural factors. For example, the factors are: relief, geographic destination, or climate. In some cases, the risk factor can also affect the creation of a certain consciousness, that is, thought or culture. The mentioned characteristics refer to all cultures, not individual cultures of particular nations or peoples. According to the aforementioned statement (Hofstede, 1996) that culture is the collective programming of consciousness, it is understood that it is not the property of an individual but of a group. Therefore, the culture of society, not individual categories, and as such is divided into individual members of society. One of the basic functions of culture implies communication with the world, which contributes to greater closeness between the knowledge of a culture. Culture is a category that is not of a naughty category. Members of different cultures often have different perspectives and assumptions about the same thing (e.g. in India is the cattle of the sacred animal, while in the west the cow is only an animal). Culture implies durability. In other words, it is conveyed from generation to generation or from knee to knee. The culture is of a frame and an open character and is in a constant process of forming. Every generation adds and carries their own culture by changing its identity. The dynamics of culture are reflected in this, in gradual and evolutionary changes over time. The basic division of cultural dimensions includes explicit and implicit. Of course this is the basic model that has been accepted almost everywhere in the world with some minor exceptions. Thus, two important dimensions of culture pertaining to the observational level and the level of explanation of cultural values, forms, relationships and processes are explicit and implicit cultures. According to (Hofstede, 1996), we differentiate between explicit and implicit culture. Explicit culture is available for empirical and scientific scrutiny. It is a culture that is at the level of the general well-known, and implies certain norms or patterns of behavior such as respecting the rules of proper bargaining or some "business bon- ton".Â


Explicit culture implies a general pattern that is perceived as a common thread for all cultures of the business world. The implicit culture encompasses hidden, directly inexplicable cultural creations, most commonly on the level of symbolic relationships such as insights, values, behavioral models, norms, legends, myths, humor, etc. Implicit culture also includes some elements to be considered when getting to know us foreign culture. For example, knowledge and belief that are characteristic of a particular society and include all acquired knowledge, beliefs, superstitions and myths. Then there is also a system of evaluation, i.e. a decision on what is interpreted as good or bad in a particular culture. The system of values of a particular culture directs members of the same thing to be pursued, for which to fight. The fact is that in each society there are certain values as more or less dominant values. Generally accepted values represent social ideals that are set as a model and task in front of individual members of society. In addition to the values of the standards or the regulations and standards adopted by the members of the company or group. These are implicit or explicit rules that set up different groups to regulate the behavior of group members. Standards tell how to behave or how to behave in different situations. REFERENCES Hofstede, G. (1996). Cultures and Organizations: Software of the Mind, Intercultural Cooperation and Its Importance for Survival. New York: McGraw-Hill. Haralambos, M. (1980). Â Sociology: Themes and Perspectives, New Delhi: Oxford University Press. Haviland, W. A., Fedorak, S. A., Crawford, G. W., Lee, R. B., & Haviland, W. A. (2005). Cultural anthropology. Toronto: Nelson.

International Business Assignment Sample  

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International Business Assignment Sample  

Hello! This great international business assignment sample can help you with your assignment. If you want to know more, visit https://www.mb...

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