Chapter 13: Differences in Culture and Social Risk in International Trade
Chapter 13 Introduction
Learning Objectives
After reading this chapter, you should be able to
- Discuss what is meant by culture and social structure.
- Explain the business and economic implications of social structure.
- Discuss the importance of cross-cultural literacy.
- Discuss social risk in international business and identify strategies to mitigate the risk.
Think About It!
Video: Cross-Cultural Management
This video from International Hub describes the 3R approach to working effectively in a cross-cultural environment.
Source: InternationalHub (2017, May 24). Cross-cultural management [Video]. YouTube. https://youtu.be/rJ4IbhXrqnc?si=oBbqKiDpzW6HFIJw
Reflection Questions
Before we begin, we encourage you to reflect on the following questions:
- How does learning differences in culture improves communication and create positive atmosphere?
- What is the impact of cultural dimensions on the negotiation process?
Introduction
This chapter explains cultural differences within and across countries, which can impact a firm’s operations, business transactions and strategies while doing business in international markets. Understanding these differences – cross-cultural literacy – helps organizations adopt business practices that will create a common bond among people from different cultures.
A second theme in this chapter is the social risk associated with international markets. Understanding social risk and operating in a more socially, economically, and environmentally responsible manner make companies and their products more attractive to consumers and help companies be more competitive and sustainable.
