Tuesday, September 03, 2013

1


a.
• Using of a common language – unifying force
• Language diversity may undermine a firm’s ability to do business on a national scale
• Countries may use language as an integral part of their culture
• Develop a stronger form of values and beliefs
• A major source of both cultural imperatives and taboo
• Attempt to forge the practice of same religion or even tolerant of other religions
b. Any cultural attribute can influence the cost of doing business, so this question is wide and
open-ended. When basic norms between people of different countries differ, probably the
basic assumptions they make differ as well. So business people will grappling with new and
unfamiliar patterns, and they will need to figure out how these differences affect doing
business. For example, while in the US we may get down to business, not wanting to waste
our and our customer’s time. We may get to know each other socially later, or maybe not at
all. In many Asian and South American countries developing a good social relationship that
can be a cornerstone for trust is necessary. And the person from one of these cultures will
take more time to get to know you than you will need. Different class structures and social
mobility also raise the costs of doing business, for if there are inhibitions against working
with people from different classes, then the efficiency with which information can flow may
be limited and the cost of running a business increased. A country's religion can also affect
the costs of business, as religious values affect attitudes towards work, entrepreneurship,
honesty, fairness, and social responsibility. In Hindu societies, where the pursuit of material
well-being can be viewed as making spiritual well-being less likely, worker productivity may
be lower than in nations with other religious beliefs. Finally, a country's education system
can have important implications for the costs of business. In countries where workers
receive excellent training and are highly literate, the need for specific worker training
programs is decreased and an educated workforce is available for hire.

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