The role of culture in international business

The role of culture in international business

Jahongir Orzuyev

Due to the active development of processes such

Due to the active development of processes such

as globalization and internationalization of the

world market over the past decades, entering

foreign markets is becoming an integral part of

doing business. The success of a company on an

international scale is determined by a combination

of various factors, among which cultural differences

play an important role when doing business in different

countries. In addition to economic and political factors,

important cultural differences, including, but not limited

to, values, religious beliefs and negotiating behavior,

and language, must also be explored and taken

into account in advance.

• First of all, the values that constitute cultural differences influence the conduct of business internationally. The values that develop in a particular cultural environment determine what exactly is preferable within a particular culture. As an example of the importance of taking into account values when doing business in foreign markets, we can use the example of the failure of the social network “ Facebook ” to enter the Japanese market. Representatives of this culture do not like to flaunt their personal lives, so most Japanese limit themselves to registering on the social network Facebook without further use. This example demonstrates how important it is to learn about the values and beliefs of different cultures before starting a business in another country. Otherwise the results will be unsatisfactory.

Secondly, religion, as one of the most important elements of culture, has a significant impact on business strategy in a particular country. “The influence of religion on the activities of international companies has its own specifics in each country, depending on its legal system, the homogeneity of religious beliefs of citizens, as well as tolerance for other religious views.” If we talk about buyers as one of the components of their immediate environment, then religion influences the preferences of the population when choosing a particular product. For example, “in the city of Amritsar, located in northern India, a McDonald’s opened, where it is impossible to taste meat products, because for most of the local population, the cow is a sacred animal. As for the Muslim minority, according to their faith, people cannot eat pork.”

• Secondly, religion, as one of the most important elements of culture, has a significant impact on business strategy in a particular country. “The influence of religion on the activities of international companies has its own specifics in each country, depending on its legal system, the homogeneity of religious beliefs of citizens, as well as tolerance for other religious views.” If we talk about buyers as one of the components of their immediate environment, then religion influences the preferences of the population when choosing a particular product. For example, “in the city of Amritsar, located in northern India, a McDonald’s opened, where it is impossible to taste meat products, because for most of the local population, the cow is a sacred animal. As for the Muslim minority, according to their faith, people cannot eat pork.”