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Essay / The Importance of Culture in International Business
Doing business in a country where the political policies are at odds with those of the United States could cause a company to lose business on the domestic front. People who strongly oppose or disagree with the country's policies could lead them to boycott or protest the company's product or service. For example, getting involved in a country accused of human rights violations may result in bad publicity by association. There are also political risks to consider, such as war, revolution, terrorism and strikes, all of which could impact the success of an international business. Companies should carefully monitor and plan for political risks that may arise from doing business in a foreign country. Being able to speak the local language when a business is setting up in a foreign country is important for several reasons, the first being communication. Being able to negotiate agreements and understand the details first-hand, without interpretation, is important for negotiating the best terms for both parties. Having direct knowledge of the language and culture will help make acquisitions and the creation of a new startup go smoother and faster (Barrow,