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Literature Review/ - Dissertation Example

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Running Head: The Impact of Cultural Factors on International Marketing The Impact of Cultural Factors on International Marketing [The [The Name of the Institution] The Impact of Cultural Factors on International Marketing Introduction When doing business in global markets, it is indispensable to be acquainted with this fact that cultures are going to vary from country to country…
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Download file to see previous pages If an example is reviewed, it would transpire that meals are taken/ served at very unusual times of the day in Greece and are absolutely dissimilar from that of U.S. First, the Greeks do not consider breakfast. In lieu of light breakfast, heavy lunch is taken everywhere from two o'clock to four o'clock in the afternoon. In the same way, dinner is taken from ten o'clock to midnight. Another glaring example of cultural effect on international marketing is the reality that throughout Greece, all the business centres remain closed from two o'clock to five o'clock in the afternoon. During these hours, people take their lunch and take a short nap. Noticeably, these are poles apart if compared to standards and values of other countries and it intensifies when tourists criticize their culture and the way they live their lives. Indulging in international business, many companies opt to have a joint venture which is like an international partnership with some foreign company. This is very successful because there are many benefits such as escaping of tariffs, improved communication with foreign government, pooling of resources, and abridged financial investment. The prime gain is that reality that it is a long term tactic and it shows promise to the foreign market. (Doole & Lowe, 1999, 76) A dominant principle of achievement in an International Market is the Management of Political Risk. The use of multifarious technology in daily operations not only lets the employees discover something new and highly developed, but if the company gets seized by the government, they won't know how to use or fix the machinery. In addition, it is imperative for a company to be socially responsible by having visible projects to the public. These are all good causes and lets the public know that they are doing everything they can not only to sell their products and make them successful, but also make the world a better place to live in. It is also important to use local materials to run the company because your presence will then enrich the people's lives in that economy. Trompenaars’ and Hofstede’s Approach about Cultural Effects It is of enormous significance for an international organization to recognize cultural variations and make excellent use of them in the global perspective. National culture may be considered as the beliefs, values, perceptual orientations, and ethical values and norms emblematic to the members of a specific society (Trompenaars, 1997, 33). On the other hand, according to Hofstede's work, "based high in every country except USA, Americans working in countries such as Italy, Greece or Brazil are very entrepreneurial and risk taking but their capabilities are limited because these countries are risk averse" (Gooderham, 2006, web source). However, this problem is alleviated when work groups are formed between Americans and other nationalities due to risky shift phenomenon. Other nationalities working in America will face problems when their employers expect them to be effective rather than efficient. Hofstede Theory of Culture Hofstede defined culture as "the collective programming of the mind which distinguishes the members of one human group from another." (Krishnamurthy & Dejan 2003, 96) Culture is a progressing set of predetermined shared values, ideas, thoughts, approaches, attitudes, and a logical process that affords cognitive maps for people ...Download file to see next pagesRead More
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Literature review
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