What is Substantive Interaction? ?The School of Business is committed to the collaborative learning model. In this course, c

Key Term and Why You are Interested in It

            The key term of “Business Manners and Customs” is one that I am drawn to because of how impactful the respect and understanding of another’s culture can translate into trust between both cultures. In particular with international business matters, trust can be a challenge to obtain. A business executive’s understanding of a foreign nation’s culture, customs, and etiquette can help to generate and enforce that sense of trust, which helps to promote favorable business transactions. Instead of viewing cultural differences as a barrier or weakness in business dealings, business executives could view these cultural differences as potentially advantageous to achieving success. Because of how advantageous this knowledge could be for a business executive, it only deepens my intrigue as a future business executive to research the topic further. 

Explanation of the Key Term

            A business executive’s understanding of cultural diversity is a critical factor for the success of a global business professional. When engaging in business dealings with another nation, it would be prudent that a global business professional understand and respect the following information: the language, population, cultural heritage, religion, the do’s and don’ts involving dress, clothing, gestures, body language, behavior related to dining, gift giving, negotiations, customs, and communications regarding greetings, introductions, and conversational guidelines (Satterlee, 2019). Failing to understand and respect the other business person’s culture and customs can potentially cause a business deal to fall through. An example can be explained referencing the Eastern Indian culture and customs. When at a business dinner in the country of India, it is a prudent decision for an American business professional to refrain from eating a steak or hamburger during the dinner. This is because the cow is held in high regard in Indian culture as a sacred animal and ordering any beef dish could be considered as a sign of disrespect.

Major Article Summary

            The article to be discussed is entitled “International business negotiations in Brazil”. This article discusses how Brazil’s complex culture and ambiguous business manners, customs, and behaviors have made it difficult for other nations to gain their trust and engage in business negotiations. As previously discussed, while trust is essential to obtain when engaging in national business matters, obtaining that trust can be easier said than done when the country’s customs and preferences in negotiations are more vague than they are transparent. Brazil, along with the countries of Russia, India, China, and South Africa have been regarded by global business person’s as the most difficult nations for foreign nations to engage in business with (Fang, Schaumburg, Fjellström, 2017).

            Since the liberation of its economy in the 1990s, it has been discussed that the ambiguity of the Brazilian culture is a “means of survival” and that the secret of correct interpretation of Brazilian culture lies in studying “what is between things”. In this context, a correct understanding of the Brazilian negotiation style is both fundamental and timely. The article attributed the complexities regarding the customs and behaviors of individual Brazilian business negotiators due to the multiple overlapping cultural influences. The three major cultural influences in Brazil are Portuguese, indigenous Indian, and African. It was found through the research that each individual Brazilian business negotiator had contrasting and individual negotiating styles. Those styles were identified as “The African Capoeirista” style, “The Portuguese Bureaucrat” style, and “The Indigenous Warrior” style of negotiating. Each style was starkly different and difficult to predict in advance what the negotiating style a Brazilian business person will use in international business discussions. Unlike other nations where their culture, customs, and behaviors have been more clearly identified, Brazil’s melting pot of contrasting cultural influences have made it more difficult to pinpoint what exact business manners, customs and behaviors will be correct in relaying cultural respect and obtaining the trust of individual Brazilian business leaders (Fang, Schaumburg, Fjellström, 2017).

Discussion

            This article was chosen to specifically highlight that there can actually be many complexities and barriers to understanding a culture’s business manners and customs, which could be an underlying contribution as to why many international business dealings do not generate successful business outcomes. The article relates to the assigned module of “Business Manners and Customs” because it takes a less literal approach to the topic, such as with examples of common manners and customs in business negotiations for other countries. Instead it highlights the complexities and barriers to actually being a successful global business person. Understanding a country’s business manners and customs may not be as simple and easy as one would like to believe.

           While it was mentioned that the understanding of these business manners and customs can be advantageous, it is a lot easier said than done. While any American business person can study the stereotypical do’s and don’ts regarding their appearances and general behaviors when engaging with foreign business persons, culture is far more complex than it is sometimes credited. In cultures like Brazil where they host a diverse populous of backgrounds, it can be considered impossible for a global business person to thoroughly prepare for business negotiations when different Brazilians have different cultural backgrounds and views on social customs related to it.

           Additional research articles that were studied related less to literal examples of individual countries’ business manners and customs and more on the topic of how more complex pinpointing these business manners and customs are in culturally diverse nations. For example, one of the articles that was researched discussed the importance of religiosity in Indian global business and that many Indian business persons’ choose to make ethical business decisions based on their religious values. The point that was emphasized in this article was that India is culturally rich with a diverse populous that adhere to multiple religions, such as Buddhism, Hinduism, Jainism, Sikhism, and Christianity (Chan & Ananthram, 2019).

           This cultural and religious diverseness parallels the central principle of the primary article in that culturally diverse countries may be more difficult to narrow down their business manners and social customs because each of how culturally diverse different countries can be. This may also be one of the reasons why India is considered one of the more difficult countries to engage in international business with, as previously mentioned. Furthermore, additional research found that religious diversity can add complexity to behavioral uncertainty and information asymmetry between foreign business matters and local target firms (Kwow, Meschi, & Bertrand, 2020). This further reinforces the main point that culturally diverse nations can create confusion on what social customs and etiquette is appropriate for global business negotiations.

           Further research has focused on cultural differences and how those differences can act as barriers to successful international business. The Journal of International Business Studies shared the perspective that cultural differences between allianced business partners can challenge the development of successful relationships. These challenges stem partially from the lack of shared norms and values, which can impair effective communication and knowledge sharing in joint ventures. These problems, in turn, have been found to lead to higher alliance problems (Stahl & Tung, 2015). This perspective is considered to be a negative in tone when compared to the original idea that another country’s culture and social customs can be considered advantageous to the global business professional when it is understood and applied appropriately.

           Related to this content, additional research was made regarding the importance of communication, which was cited as a major point of knowledge for the global business professional to understand. According to the article, it was expressed that communication is considered to be at the core of most international business operations. Organizations are created, managed, led, and dissolved through communication, which plays a major role in the exchange of knowledge, the development and maintenance of relationships, the negotiation of deals, and the establishment and preservation of partnerships. It is considered to be a critical factor in all multinational corporations (Szkudlarek, 2020). This final article was selected as summation to the greater point that without the use of effective communication and a clear understanding of another culture’s social customs, the likelihood of successful business outcomes is almost nonexistent.

References

Chan, C., & Ananthram, S. (2019). Religion-based decision making in indian multinationals: A multi-faith study of ethical virtues and mindsets. Journal of Business Ethics, 156(3), 651-677. http://dx.doi.org/10.1007/s10551-017-3558-7

Fang, T., Schaumburg, J., Fjellström, D. (2017). International business negotiations in Brazil. The Journal of Business & Industrial Marketing, 32(4), 591-605. http://dx.doi.org/10.1108/JBIM-11-2016-0257

Kwok, D. W. P., Meschi, P. X., & Bertrand, O. (2020). In CEOs we trust. When religion matters in cross-border acquisitions. The case of a multifaith country. International Business Review, 29(4), 1-13. https://doi.org/10.1016/j.ibusrev.2020.101705

Satterlee, B. (2019). International Business with Biblical Worldview. McGraw-Hill. 

Stahl, G. K., & Tung, R. L. (2015). Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship. Journal of International Business Studies, 46(4), 391-414. http://dx.doi.org/10.1057/jibs.2014.68

Szkudlarek, B., Osland, J. S., Nardon, L., & Zander, L. (2020). Communication and culture in International business – Moving the field forward. Journal of World Business, 55(6), 1-9. https://doi.org/10.1016/j.jwb.2020.101126

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Key Term – Communication – High-context vs. Low-context cultures

            Communication is one of the most important aspects of any relationship and it is also one of the most challenging. Communication encompasses so much more than words and often it can be misinterpreted.  Cultural differences can impact how one communicates and without proper research and understanding, misunderstandings, embarrassment, and even hostility can be a result of failure to communicate effectively.  Even non-verbal communication can have negative results and tone can also come into play when one believes they said everything correctly, but it is perceived negatively.  The context in which one communicates, especially across cultural lines can have devastating effects on a business relationship.

High context vs. Low Context.  Communication in high context cultures focus primarily on cues that are nonverbal or more subtle.  Communication in low context cultures rely more on words to express meanings.  Those groups that have close relationships or who have worked with one another for extended periods of time are more often to communicate with high context communication while those groups that are not familiar with others tend to communicate more in low context. It is possible for those that communicate in a low context to develop a high context communication style.  And one context style of communication is not necessarily more effective than the other context style.

            In the article, Communicating in a proper way: How people from high-/low-context culture choose their media for communication, the relationship between one’s cultural influence and their choices in media are studied.  Participants from both China and the United States were surveyed about culture content, media richness and their daily media choices and the findings from these surveys resulted in the belief that the Chinese participants have a high context culture while those from the United States have a low context culture. These varying context styles can cause challenges in communication as well as how the participants feel connected to one another. The study was geared to international students in the United States and found that the Chinese international students may experience barriers in communication with their professors or classmates due to the low context communication styles that are more often utilized in the United States. The article also investigated the though patterns that vary by culture and determined that in low context cultures more emphasis is placed on logic and rationality while appropriateness and formality are valued in high context cultures.

            The article explains that differences in communication are a global challenge and how you put context into the vernacular can have consequences that may not have been recognized before. That is why research on different cultures that one may be doing business with is paramount to success.

Yang, X., Hou, J., & Arth, Z. W. (2021). Communicating in a proper way: How people from high-/low-context culture choose their media for communication. International Communication Gazette, 83(3), 238–259. https://doi.org/10.1177/1748048520902617

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Subject: Globalization

1. Key Term and Why You Are Interested in It

I chose globalization because I want to learn more about the ways countries can integrate and learn from one another. My husband is currently living in Okinawa, Japan, and we have learned a lot about how things are similar and different between Japan and the United States.  This prompted my academic curiosity and made me want to research and learn more about how globalization works. I am hoping to see both the benefits and the negatives associated with globalization to help deepen my understanding of the topic. The relationship with the citizens in Japan and the military can be tense at times but is a mutually beneficial relationship for the citizens in Japan and military members.

2. Explanation of the Key Term

Globalization is a term that describes the relationships between multiple nations and how their cultures cross in a business sense. Globalization “creates interdependencies among nations” which is a controversial topic as some critics feel this makes a country weaker, not stronger (Satterlee, 2018). It is important to create relationships where each country is reliant on the other to build better working relationships between them. An important part of creating a relationship to foster business is to include both cultures and to show mutual respect for each other’s cultures. The goal of globalization is to build a mutually beneficial business relationship.

3. Major Article Summary

The article, “Globalization, de-globalization, and re-globalization: Some historical context and the impact of the COVID pandemic” reviews the impact the COVID pandemic has had on globalization. The author gives a brief review on how globalization had come to be in the world at the time the pandemic hit and how the world has had to adjust since the impacts of the pandemic have started to be felt. One major point the author makes is the problem the United States had when COVID slowed production in China and the United States was unable to receive the items they depended on China to produce. The author feels hyper globalization has not benefited the United States and COVID was a good example of why. There was a large amount of reliance on China, but due to an illness that spread across the world, Americans were not able to access everything they were used to getting at the grocery store. The author recommends less globalization of products to prevent widely spread shortages that can occur when the majority of your goods are coming from another country on the opposite end of the world. The author did not feel continuing with the level of globalization the country was operating at when the pandemic hit is a sustainable way to continue doing global business.

4. Discussion

5. The articles I reviewed helped me to deepen my understands of globalization by learning more about the way the “integration between multiple countries a key piece of globalization. I also learned globalization can be tied to environmental pollution and in some countries depending on what products they are manufacturing. Government spending is impacted by globalization and what amount of money may be allotted to specific parts of a government budget. “According to the compensation hypothesis, greater exposure to international trade implies higher external exposure to external risk and volatility, which in turn generates demands for higher spending” (Anderson & Obeng, 2020).

6. Globalization is presented by the class text in a nice broad overview of the topic. The“Inequality and Globalization: A Review Essay” article goes into more detail about a lot of the ways countries can experience unequal relationships when participating in globalization. One country may benefit more than the other causing feelings of discontent. In the Unites States there are citizens who would like to see less globalization and more manufacturing to take place in their own country. Some of these people have concerns with the quality of the product being created through global partnerships. The authors in this article feel the slowing in global trade has largely to so with the inequality that is created when one country is benefitting more than the other.

7. References

Anderson, E., & Obeng, S. (2020). Globalisation and government spending: Evidence for the

‘hyper-globalisation’ of the 1990s and 2000s. The World Economy, 1144-1176.

https://onlinelibrary-wiley-com.ezproxy.liberty.edu/doi/full/10.1111/twec.13035

Antras, P., Gortari, A. d., & Itskhoki, O. (2017). Globalization, inequality and welfare. Journal of

International Economics, 387-412.

https://www-sciencedirect-com.ezproxy.liberty.edu/science/article/pii/S0022199617300958?via%3Dihub

Madhok, A. (2021). Globalization, de-globalization, and re-globalization: Some historical

context and the impact of the COVID pandemic. BRQ Business Research Quarterly.

https://journals.sagepub.com/doi/full/10.1177/23409444211008904?utm_source=summon&utm_medium=discovery-provider&

Ravallion, M. (2018). Inequality and Globalization: A Review Essay. Journal of Economic

Literature, 620-642.

https://www-jstor-org.ezproxy.liberty.edu/stable/26494197?pq-origsite=summon&seq=7#metadata_info_tab_contents

Satterlee, B. C. (2018). International Business with Biblical Worldview. United States: McGraw-

Hill Education.

Sun, C., Ma, T., Ouyang, X., & Wang, R. (2019). Does Service Trade Globalization

Promote Trade and Low-Carbon Globalization? Evidence from 30 Countries. Emerging

Markets Finance and Trade, 1455-1473.

https://www-tandfonline-com.ezproxy.liberty.edu/doi/full/10.1080/1540496X.2019.1627517

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