Culture is the set of values, beliefs and institutions of a specific group of People. It includes attitudes, manners and customs, social structure, religion etc.
Managers working directly in international business should develop Cultural literacy. Understanding the contextual differences. High context society accept message on contextual cues. They reach to the decisions quickly. Avoid confrontation and debate. Whereas low context society emphasis on written. They accept open disagreement.
Nation’s dominant in language, race, lifestyle, values, attitudes, or other characteristics. It is important to develop cross-cultural literacy to respect Values people are emotionally attached. It helps to understand Attitudes towards toward objects or concepts.
Example: in Japan people are punctual for conferences, and keep tight schedules. Whereas in Brazil people are casual about time.
When doing business abroad, Developing Cultural Literacy in international business enables a person to function effectively within the organization. Cultural literacy brings a company closer to customer needs and desires and improves competitiveness. Avoiding Ethnocentrism eliminates staff’s unresponsive to cultural distinctions.
Culture can force companies to adjust business policies and practices to suit local culture. It is important to understand manners and customs to avoid mistakes. Cultural knowledge improves the ability to negotiate, market the products effectively, and manage international operations.
e.g., conducting business during meals in US is acceptable but not in Japan.