Effects of cultural differences on international

business

INTRODUCTION

• The number of companies operating internationally is growing constantly.

• he world is opening up for foreign firms and new destinations in the company´ business are increasing.

• Because of high competition the companies operating abroad are faced with a much larger task then before.

• Obstacles the firm never faced before are becoming crucial in the everyday work.

• Culture is one of these obstacles and can affect the entire co-operation.

• Culture can influence the business in different ways such as: (Language problems, pricing difficulties and cultural collisions)

• The company must be able to handle these difficulties in a way that is satisfying also for the other part.

• It is important, even before entering the foreign country, to inform the personal about the manners and customs in that new culture.

INTRODUCTION

• Culture can be both a positive and negative influence and many companies are struggling in the new and foreign environment.

• The important thing to always have in mind is that the foreign culture is not as we are used to at home and to be prepared before starting the new foreign operation.

• Respecting and understanding the new culture without forcing our own beliefs on people, are things that can be extremely helpful to consider.

• By learning the host country’s language, can respect and trust more easily be won, and competitive advantages can arise.

Cas

e st

udy

Effects of cultural differences in international business and price negotiations

BY: Professor Anders PehrssonA case study of a Swedish company with operating in e.g. south America.

•Culture is the integrated sum totalof learned behavioral traits that are shared by members

of a society”. (Terpstra, 1994)

•In order to understand and influence

consumers’ wants and needs, foreign companies

must understand the different cultures.

•Culture has been defined in many different ways,

reflecting the variety of cultural phenomena that

can be observed.

Cas

e st

udy

Effects of cultural differences in international business and price negotiations

BY: Professor Anders PehrssonA case study of a Swedish company with operating in e.g. south America.

Business culture:

is the behavior of humans who are part of an organization and the meanings that the people react to their actions.

•If we see broadly on Brazil culture we can discover that it is a combination of European, American and Asian culture

•Culture in each country is meditated through three factors: cultural forces, cultural messages and consumer decision process.