The set of values, qualities, institutions, rules, and beliefs held by a given people is their culture. The development of cultural literacy in an individual enables them to tackle many issues with people of other cultures without much conflict. The components of culture play a big part in pointing out the points of interest to anyone dealing with a foreign culture. The components include manners and customs, personal communication, aesthetics, social culture, education, values and attitudes, religion, and physical and material environments. Cultural diffusion has occurred on a global scale with the integration of mannerisms from different cultures with predictions of cultureless individuals in the future.
Technology and the physical environment determine the forms of business people engage in besides their cultural progress. The classification of culture using different frameworks has enabled businesses operating on a global level avoid causing friction in new countries they take their operations to (Bartlett & Ghoshal, 1989). IBM utilized the principles stated above in entering the European and Asian markets. Although Europeans do not have many traditions and traditional beliefs, IBM faced an uphill task in entering the Asian market.
The Asian business landscape is heavily reliant on the oriental culture and its practices. The cities of Hong Kong, Tokyo, Mumbai, and Beijing have among the most culture-intensive business practices in the world (Buckley & Ghauri, 1999). The political and legal landscapes of various countries determine the course of global business by a large margin. Democracies and totalitarian states have different forms of political operations, which have a direct effect on global businesses. In investing in a foreign country, every business runs the political risk and, the more unstable the country, the higher the political risk (Greeley, 2014).
On the other hand, the laws and regulations in a given country define the legal system of a country. The most common legal systems are common law, civil law, and theocratic law.
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