Significance of Culture for International Business

Significance of Culture for International Business

  • Submitted By: araminyo
  • Date Submitted: 11/07/2009 10:37 AM
  • Category: Business
  • Words: 2725
  • Page: 11
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Significance of Culture for International Business
Aram Keryan
American University of Armenia

Course: English 100
Instructor: Rubina Gasparyan
September 2009


The increasingly high trend of globalization has lead to a fast changing environment of doing business. Day by day diminishing boundaries perform lucrative prospects for companies to expand internationally. However, to be successful and achieve desired results on foreign markets, a number of new factors have to be taken into account. Recently considered as waste of time, and nowadays – as one of the most essential factors, influencing crucially the development of company overseas - is a bunch of social peculiarities and features, such as language, religion, behavioral patterns, values and norms, which in one word is defined as Culture. Is cultural aspect significant for international business?
Significance of Culture for International Business
Particularly during the last century, the increasingly high pace of development in quite all spheres of human activity has brought about tremendous changes not only in domestic scale but internationally as well. Improvements in transportation, technology and information systems allow businesses to operate far beyond local boundaries, penetrating into international markets. At this stage companies, competing on international level, meet not only marketing challenges but cultural as well, as behavioral patterns, values and national traditions in many countries and societies differ essentially. Firms expanding internationally acquire foreign clients as well as foreign personnel, with whom regular communication is necessary and significant cross-cultural competence is indispensible. Furthermore, cultural incompetence, however, can easily jeopardize vast sums of money in wasted negotiations, potential purchases, sales and contracts as well as customer relations.
The intent of this project is first to analyze the concept of culture and...

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