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Cultural Barries in Global Business - Research Paper Example

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Cultural Barriers in Global Business Name Institution Cultural Barriers in Global Business Companies in the contemporary business environment characterized by globalization face the challenge of ensuring profitability, which is the greatest challenge in an ever-increasing competitive world…
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Cultural Barries in Global Business
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Download file to see previous pages Such reasons include an enabling business environment, which is a prerequisite for any business startup or venture. On the other hand, a business will face challenges related to the culture, which may act as a barrier on business. Furthermore, there are other challenges like leadership barriers, which affect business operations. Nevertheless, it is incumbent upon the business to deal with these challenges and use the best leadership methods. The United States is one of the countries that appeal to business ventures for obvious reasons. In this regard, a business will succeed in an environment that is politically stable and not volatile. In effect, the United States offers such an environment for business. Known as the free world, the United States is a model of democracy that is free from autocratic rule, which makes business operations conducive. As a result, a democratic state is one of the main reasons the United States appeals to setting up of businesses since the political climate ensures effective economic legislations, which are essential for business. In effect, the lack of economic uncertainties such as unexpected takeovers due to lack of clear economic policies and legislations is important for business. Despite the creation of an environment whereby there is economic regulation of businesses in the United States, the country is the largest economy in the world in terms of GDP. In effect, it is common knowledge that economic strength translates to a higher per capita income amongst the citizens. Therefore, there is an available market for goods and services a business will produce for since the consumers have a high marginal propensity to purchase and consume. In effect, this feature of the economy of the United States appeals to businesses since the average consumer has a high purchasing power. The contemporary business world witnesses business increasingly committed to reaching global markets. Barkema, Bell, and Pennings (1996) noted, “Globalization confers access to foreign markets, cheap labor, and other advantages” (p. 151). Nevertheless, a few firms do not realize the existent of these cultural differences. Nevertheless, businesses that identify cultural barriers will find approaches of dealing with the barriers in order to establish a competitive edge over their competitors. According to Leung, Bhagat, Buchan, Erez, and Gibson (2005), broadly defined as “values, beliefs, norms, and behavior patterns of a national group,” established cultures have an effect on the business activities and performance of individuals (p. 357). In the American society, one cultural belief that may affect business is the individuality amongst the Americans. According to E. Hall and M. Hall (1990), the American culture's biggest concern is “their own careers and their personal success than about the welfare of the organization or group” (p. 147). Americans will often come out as individuals who like to “handle their own problems and chafe at authority” (E. Hall & M. Hall, 1990, p. 148). As a result, this character trait may pose a big challenge to the leadership of a business since they may think that the average American worker was rebellious to the leadership in a firm. On the other hand, individualism, which is one of the most important aspects in the American culture, is a barrier to leadership. In this case, individualism works against teamwork in a business entity. In this case, since success in a business is a team task, the ...Download file to see next pagesRead More
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