Unit 5 : International business
Aim D – Investigate the cultural factors that influence international
businesses
D.P7 – Explore the cultural differences affecting international businesses
Culture is the way that things work in a particular business, country, or group of countries. Culture is
created and based on the history of individuals/the country, how people work, religious beliefs and
attitudes. Example of these key cultural factors are:
- Attitudes to business
- Attitudes to work
- Social structure
- Openness to change
- Religion
- Ethnic population make up
- Languages
- Values
D.M4 – Analyse how cultural differences affect international businesses
These cultural factors affect international business in many ways, such as:
Attitudes to business : Business is conducted in different ways in different countries. For example,
some countries view men and women with the same level of respect whereas men are respected
more than women in other places. Another example would be in some places business is conducted
in a very formal and professional manner, whereas other places conduct business in a more laid
back, expressive and engaging way. Businesses need to identify how to conduct business with
potential partners in order to be successful.
Attitudes to work : Different countries around the world have attitudes towards work, this includes
things such as average working hours, holiday days given, and the way negotiations are given out. It
is important for businesses to understand the way their business partners attitudes towards work, in
order to build a relationship or partnership with them.
Social Structure : This factor relates to class within a country on a scale from the lower working class
to the wealthy higher class. In business it is important to know who to approach, how to work with
different people, how to develop better marketing strategies to better cater for different audiences.
Openness to change : Businesses now need to constantly adapt to change with society, trends, and
technology in order to be successful. If businesses fail to adapt to change and current trends, then
they are at risk of losing revenue, profit and getting substituted by a competitor.
Languages : With there being over 7000 languages in the world, being able to communicate in the
correct language is very important. In some cases, even countries that share the same language does
not equal to them fully understanding each other – this relates to both type of language spoken, and
the phrases used in the different cultures. Overall, this factor is important for reasons such as
building trust, making business happen efficiently and effectively and avoiding misunderstandings.
Aim D – Investigate the cultural factors that influence international
businesses
D.P7 – Explore the cultural differences affecting international businesses
Culture is the way that things work in a particular business, country, or group of countries. Culture is
created and based on the history of individuals/the country, how people work, religious beliefs and
attitudes. Example of these key cultural factors are:
- Attitudes to business
- Attitudes to work
- Social structure
- Openness to change
- Religion
- Ethnic population make up
- Languages
- Values
D.M4 – Analyse how cultural differences affect international businesses
These cultural factors affect international business in many ways, such as:
Attitudes to business : Business is conducted in different ways in different countries. For example,
some countries view men and women with the same level of respect whereas men are respected
more than women in other places. Another example would be in some places business is conducted
in a very formal and professional manner, whereas other places conduct business in a more laid
back, expressive and engaging way. Businesses need to identify how to conduct business with
potential partners in order to be successful.
Attitudes to work : Different countries around the world have attitudes towards work, this includes
things such as average working hours, holiday days given, and the way negotiations are given out. It
is important for businesses to understand the way their business partners attitudes towards work, in
order to build a relationship or partnership with them.
Social Structure : This factor relates to class within a country on a scale from the lower working class
to the wealthy higher class. In business it is important to know who to approach, how to work with
different people, how to develop better marketing strategies to better cater for different audiences.
Openness to change : Businesses now need to constantly adapt to change with society, trends, and
technology in order to be successful. If businesses fail to adapt to change and current trends, then
they are at risk of losing revenue, profit and getting substituted by a competitor.
Languages : With there being over 7000 languages in the world, being able to communicate in the
correct language is very important. In some cases, even countries that share the same language does
not equal to them fully understanding each other – this relates to both type of language spoken, and
the phrases used in the different cultures. Overall, this factor is important for reasons such as
building trust, making business happen efficiently and effectively and avoiding misunderstandings.
