Culture Culture and cost of doing business Establishing a business in a foreign country takes into considerations several factors. Among these factors is culture. Culture refers to the way of behaving and doing things of a specific group of people. When a business is being established, the cost of establishment is affected by what the people regard as important and what they would accept as part of their life. To convince people to adopt a new product or service, promotion is necessary. This promotion has a cost implication for the establishing business.
For example, to convince people who have not been using a beauty product to embrace it, a lot of promotions has to be done (Alon 2003). Further, a foreign culture and country is always associated with increased taxes and compliance cost. This means that for a business to be established in a foreign country he business has to consider the taxation cost. For example, foreign industries in China are forced to pay almost twice as many taxes as the local industries (Alon 2003). 2. Business and culture in America and China The cost of doing business vary from one culture to another.
America and China have largely diverse cultures and practices as well as their environments. In America, the people are largely westernized with modernity being the culture of choice. Businesses are established to run as entities for economic competition and individual growth. In China, the business environment is based on communism. This means that there is a link between businesses that largely makes businesses connected (Alon 2003). This makes competition between businesses not based on enmity and opposition. These differences make all the differences in the cost of doing business.
Besides having higher operational cost, America has a higher general cost of doing business. This is because the competition is based on opposition and, therefore, each business has to maintain an information vacuum between itself and the rest. This trend is expected to continue and eventually worsen (Taylor 2012). This is different from China business where communism is experienced even in businesses and sharing makes the cost considerably lower. However, due to globalization and emergence of multinational corporations, China is also slowly adopting a capitalistic system of business and hence the cost of doing business is slowly increasing (Alon 2003). 3.
Culture Changes in the World Globalization has brought about changes in people’s lives. The reason behind this is the constant sharing of ideas and interactions which slowly bring about social change. The people’s ways of dressing, eating and relating with one another (Taylor 2012). People have access to all the information regarding other cultures. In addition, traveling and interacting with one another makes life a great sharing that creates neutral points and new cultures are developed.
People from one culture adopt new ways of life and new feeding styles that are not originally theirs (Naylor 1996). This mix or cultures eventually create a new culture that many people can relate to and this appears to be the origin of our current eating and dressing styles. References Alon, I. (2003). Chinese culture, organizational behavior, and international business management. Westport, CT, Quorum Books. http: //www. lib. sfu. ca/cgi-bin/validate/books24x7.cgi? isbn=1567205461. Naylor, L. L. (1996). Culture and change: an introduction. Westport, Conn [u. a.], Bergin & Garvey.
Taylor, S. D. (2012). Globalization and the cultures of business in Africa: from patrimonialism to profit. Bloomington, Indiana University Press.