Table of Contents
Introduction
International Business /Trade is a common phenomena that is cropping up in this day and error, most things are taking place in this field as it has brought forth a variety of openings and opportunities to the manufacturers and the consumers who are getting goods worth their money. However, a major challenge that affects this form of business is the diverse cultural differences that exist between the trading communities or the trading parties.
The term culture means a set of norms and values that are shared by a group of people who takes in what they practice and combine it to be part of there normal way of living, this is eventually constitutes the practices and beliefs of these group of people (Leung Et al 2005). Culture has contributed a lot in international trade / business, as it has influenced the form in which the business is being conducted, this includes issues like Religion, language, education, political and economic philosophy and social structures among other components of culture that affects the way we relate and trade today.
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Culture Characteristics
These of varied characteristics of culture have played a major role in today’s international trade therefore resulting to the current state of international trade that is believed to be affected with the following ways ranging from the varied aspects that affects the normal way of trade.
Religion being one aspect of culture affects international trade because of the different forms of religious believes. Including Christianity, Islam, Hinduism, Judaism, Buddhism amongst other religious beliefs, with each of these religious beliefs having its own customs and beliefs that govern the way they trade and associate with the person that doesn’t belong to their religious category, an example is when the Hinduism doesn’t encourage trade between/ with people who don’t belong to there same caste as them, while the Islam has set aside three days of the week for conducting business activities, while Christians view business as a form of work that is given by God. These differences in religious practices have made it difficult for international trade to be realized in the entire world.
Different Languages
Language is another aspect that affects international trade; this is because of the different dialects and difference in the verbal and nonverbal communication meanings, these aspects in some way affects the ways in which an individual from one region of the world communicates with another individual (Miatah, 2005). This is because they don’t have the same understanding therefore making it very difficult to understand each other that easily, because of the varied in understanding the other persons form of communication, another way that language affects international trade is the lack of understanding of the other person this to some extent reduces the interaction between these two individuals. An example is the trade between a Japanese trader trying to make an order from British, the Japanese who are adamant and would not prefer to learn some English and at the same time discourage others from learning their language, it would be come difficult for the person to book for some orders from Britain as their will be communication breakdown between these two people from different countries.
Political and Economical philosophies
Political and Economical philosophies are other aspects that affects of hinder the smooth operation of international business, this is because of the diverse or different needs of the participating countries (Maule, 2005). These makes the international trade to be mere complicated as some countries will feel that they are being molested by the other countries as some countries will determine how a commodity that doesn’t come belong to it is supposed to be trades in the world market, therefore discouraging other countries from this form of trade as they aren’t receiving the expected returns that they were expecting this is because of the influence as a result of political and economical of some of the trading countries.
Social Structure
The social structure is another factor that affects international business; this is mainly because of the influence of the people who live in the country, the peoples status in the country are the key determinant of the status of the country in which to trade with. If the social status of the people in this country is seen to be of higher status as compared to the others of the other country this will determine the form in which a country can trade with the other, an example of the way social status affects is the form of trade that exists between the developed countries and the third world countries (Slideboom, 2010). The form of trade between these two countries is affected with the way that the developed world will want to exploit the third world countries by taking the raw materials from the third world and go process these products before selling the finished products at a very costly price.
Conclusion
From the paper it has become apparently clear that international trade is very important as it provides greater avenues for the business men and the agriculturists and the manufactures who have got a wide spectrum of the vast supply of there materials to lots of the customers out-there (Slideboom, 2010). However, on the other hand been used by other countries and individuals as a way of exploiting and enriching oneself by infringing and exploiting the other countries therefore making it difficult for thus kind of trade to become popular and trusted by the many from the other countries as this will to some extent result to fair competition and at the same time increase the trade amongst the trading countries.
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