An Analysis Of Cultural Forces And Cultural Components In International Business

Intercultural Communication and International Business are two separate fields of studies. The former is carried out in three forms: interracial communication, interethnic communication and intracultural communication. In its most general sense, it occurs when a member of one culture produces a message for comprehension by a member of another culture. More precisely, intercultural communication is communication between people whose culture perceptions and symbol systems are distinct enough to alter the communication event. The latter is business whose activities involve the crossing of national borders. It includes not only international trade and foreign manufacturing but also comprises the growing service industry in areas such as transportation, tourism, banking, advertising, construction, retailing, wholesaling, and mass communications. The proposition of this thesis falls in the category of marginal subjects of studies.The thesis first takes a look from international economics perspective at the three different business environments, i.e. the domestic environment, foreign environment and international environment, analyzes all forces in the environments and states that there is a definite role of culture in international business. To go a step further, the thesis demonstrates through an international business model that cultural forces affect all functions of international business, production, finance, marketing and personnel just as the other forces do.The thesis then analyzes nine cultural components that are to the thesis author's mind very important in international business namely, (1) aesthetics, (2) attitudes and beliefs, (3) religion, (4) material culture, (5) education, (6) language, (7) social institutions (8) legal characteristics, and (9) political structure.Aesthetics is concerned with a culture's sense of beauty and good taste and is expressed in the arts, drama, music, folklore, and the dances. Examples have been given to illustrate their importance in business. Attitudes and beliefs, especially those which are concerned with time, achievement, work, and change, can be radically different from those to which the businesspeople are accustomed. Being aware of their differences can often decide the outcome of a business venture. A knowledge of the basic tenets of other religions will contribute to a better understanding of their followers' attitudes.Material culture, especially technology, is of great importance tomanagement contemplating overseas investments. Foreign governments are increasingly becoming involved in the sale and control of technical assistance. The education level will not only determine the kinds of people available to staff foreign operations but will also exert an important influence on the affiliate's marketing mix.Language is the key to culture and must be learned if a person is to understand its people. Generally, there will be as many as cultures in a country as there are languages. International businesspeople should learn both the spoken and unspoken language. A knowledge of how a society is organized is useful because it is the organization which defines and regulates the manner by which its members interface with each other. The extended family and responsibility of each member to it are especially significant.Etiquette refers to manners and behaviors considered acceptable in social and business situations. When conducting business around the world or with someone of anther culture, a knowledge of certain rules of business and social etiquettes is important. Five countries (1) Australia, (2) Japan, (3) Saudi Arabia, (4) Germany, United States are cited in this thesis to exemplify etiquette differences of various countries in the world.The seven cultural components mentioned in Chapter 3 and international business etiquettes mentioned in Chapter 4 of this thesis may serve as a helpful checklist and guidelines to managers who must make cultural assessments.