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Cross cultural issues - Essay Example

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According to Hofstede, culture can be defined as “a system of values and norms that are shared among a group of people and that when taken together constitute a design for living.”(Maitah, n.d, p4). Adam Smith, famously known as the modern economics founder, is quoted in his…
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Download file to see previous pages Cultural diversity exists between the United States and Europe. Citizens of the two countries differ in culture, beliefs, faith practices and economic inclination. These differences make business management practices in various parts and organizations different. U.S’s proven management systems and practices may not work appropriately in Europe. For instance, a U.S based Multinational Corporation; the effectiveness of her management control system and practices would evidently differ from one country to another or even from one branch with diverse cultural inclination to another in the same country. Therefore, our study intends to compare cultural inclinations of the two countries; the U.S and Europe and understand the implications of the differences to the expansion of a U.S based organization intending to establish a branch in Europe by purchasing an already existing firm in the same line of production.
Global trade has tremendously increased in the recent past. This has probed the multinational corporations or individuals who intend to venture into the international trade to learn about international business. Therefore, it is very important to learn and understand the different cultures of the world before enrolling in doing business in foreign countries. This would reduce the risks involved in business transactions. Understanding other countries’ negotiation tactics, greetings, communication styles, body language, meeting and dress, and social events are keys to have good business relationships with other partner countries. For instance, the United States and Europe are nations that regularly interact in business relations. Although they share similarities, the two countries share a lot of differences.
In the United States, the first impression matters a lot and is basic to the success of every business relationship. The Americans appreciate eye contacts and a firm hand shake with business partners (Bowie, n.d, p.1-12).
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