Unit 5 International
Business – External
factors and Cultural
differences – By
William Axelby
Task 2
, Speaker Notes:
As a result of Globalisation, there has been an increase between close interactions
of firms from different countries. Therefore many different ideas are beginning to
have major influences on International business such as Culture which is also seen
in behavioural changes and different assumptions different countries make. There
are eight main ways in which culture influences international business and how they
operate.
Slide 4 Language
Language is one of the Key factors that influences international business. It is the
main way of communication between all aspects of business from suppliers to
shareholders and consumers. Although many people would believe that as English is
spoken worldwide this is okay to only communicate in. Successful businesses that
trade internationally have found that for success translation is necessary. It is also
very important how you communicate your message and therefore with translation
you have to make sure you are correct. Finland respect directness when dealing with
business however India have a more passive approach and therefore researching
the language and culture can help to effectively communicate internationally. For
example, Nodding your head in India means now which is the complete opposite to
the UK where nodding your head means yes and therefore these can get confusing if
not researched correctly. (5 Confusing Gestures from Around the World (aswetravel.com)
[Online] 2011)
Slide 5 Ethnical Make-up
Ethnicity can have significant effect on whether or not a product is likely to be
successful. For example selling dairy products would not be successful within Africa
as they have a high amount of the population which are lactose intolerant with it
being estimated that South Africa has 11.03% of its population known to be lactose
intolerant. (7 things nobody ever tells you about lactose intolerance | Health24 (news24.com)
[Online] by Jemima Lewis 29/08/18) If a business does not do research on the ethnical
make-up of a country and how this effects there consumer trends then they may fail.
Slide 6 Social Structures
Countries have different class systems which can have many different influences
such as Wealth, Religion or Politics. One example of social structure that is
controlled by Politics is China. China have a powerful communist system which has
extremely large influences on business activity and how international trade is
handled. The Chinese social structure is grouped based on working status with
Government officials at the top and Merchants at the bottom. (Chinese Social
Business – External
factors and Cultural
differences – By
William Axelby
Task 2
, Speaker Notes:
As a result of Globalisation, there has been an increase between close interactions
of firms from different countries. Therefore many different ideas are beginning to
have major influences on International business such as Culture which is also seen
in behavioural changes and different assumptions different countries make. There
are eight main ways in which culture influences international business and how they
operate.
Slide 4 Language
Language is one of the Key factors that influences international business. It is the
main way of communication between all aspects of business from suppliers to
shareholders and consumers. Although many people would believe that as English is
spoken worldwide this is okay to only communicate in. Successful businesses that
trade internationally have found that for success translation is necessary. It is also
very important how you communicate your message and therefore with translation
you have to make sure you are correct. Finland respect directness when dealing with
business however India have a more passive approach and therefore researching
the language and culture can help to effectively communicate internationally. For
example, Nodding your head in India means now which is the complete opposite to
the UK where nodding your head means yes and therefore these can get confusing if
not researched correctly. (5 Confusing Gestures from Around the World (aswetravel.com)
[Online] 2011)
Slide 5 Ethnical Make-up
Ethnicity can have significant effect on whether or not a product is likely to be
successful. For example selling dairy products would not be successful within Africa
as they have a high amount of the population which are lactose intolerant with it
being estimated that South Africa has 11.03% of its population known to be lactose
intolerant. (7 things nobody ever tells you about lactose intolerance | Health24 (news24.com)
[Online] by Jemima Lewis 29/08/18) If a business does not do research on the ethnical
make-up of a country and how this effects there consumer trends then they may fail.
Slide 6 Social Structures
Countries have different class systems which can have many different influences
such as Wealth, Religion or Politics. One example of social structure that is
controlled by Politics is China. China have a powerful communist system which has
extremely large influences on business activity and how international trade is
handled. The Chinese social structure is grouped based on working status with
Government officials at the top and Merchants at the bottom. (Chinese Social
