When people think of business, they may think of local businesses or perhaps even larger national businesses. In a world of globalization, international business continues to be the most important type of business in many sectors and is continually growing. Regional business is more familiar for many people and easier to understand in many ways. International business can be more complicated to understand. While local or national businesses all work under the same laws and everybody involved are on the same level as in being from the same country or such. There are many things that can affect international business unlike business that is conducted within a region. There are cultural and social differences among people and nations. Laws vary across the globe, making it more difficult to conduct business in certain situations. Economic and, of course, political differences between governments are other factors that can affect the way international business is able to be conducted.(Jain,1979)
Nations and regions vary from other regions of the world in their social and cultural practices. One major example would be religious differences. The United States is mostly a Christian country, while most of the Middle East is of Islamic tradition. Religion can affect international business in various ways. Holidays vary among religions and while Islamic countries celebrate Ramadan and have daily prayers that shut down business, businesses in the United States will continue to operate. Language is another obstacle to be overcome while conducting international business. While the use of interpreters can be common, it is often appreciated and even considered more “business like”, to make conscious efforts to learn and speak a little of the business partners' language. Lunchtimes can also vary among countries. In the United States, it is more common for a quick lunch, while business still goes on. Other countries, such as Mexico, lunchtimes can often run from 2:00 to 4:00, with many official building staying closed until 5.
Americans, for the most part, are more casual and informal when it comes to business. Germans, Japanese, and Latin's value more formality. Things such as putting hands on your waist while standing and talking with your hands in your pocket can be unappreciated more than it would be in America. Asians prefer less eye and physical contact, while Latin's are more prone to touching and to smaller personal space. Asians and Germans, on the other hand, enjoy more distance. A handshake is a very common introduction. If conducting business with a Japanese partner, it is considered to be polite to offer a short bow. Some cultures smoke more than others. An American business partner may have to deal with more smoking if working with Japanese or European partners. Education can differ from different regions. In America, a more technical background is the norm, while in Mexico, a more theoretical, worldwide and formal education system is used.(Bagozzi,1975)
Giving roses as a gift are considered to be romantic gestures in both American and Germany, but the presenting of ...