Notesale: Turn your study into money

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P7 unit 5 - Explain how products and
processes have to be
markets

P7: Explore the cultural differences affecting international businesses

As companies continue to expand across borders and the global marketplace becomes
increasingly more accessible for small and large businesses alike, 2017 brings ever more
opportunities to work internationally
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However, along with the benefits of insight and expertise,
global organizations also face potential stumbling blocks when it comes to culture and
international business
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But in an international business context, what is common
and accepted for a professional from one country, could be very different for a colleague from
overseas
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Language
When countries trade internationally, it is important that the business must be able to
communicate in the different language spoken in that company
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This is good as it will allow business groups that will allow teams to be mixed up of people from
different backgrounds and cultures
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One cultural factor that can affect Sainsburys
to trade in China is the language barrier
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This is because
Sainsburys must employ people that speak fluent Chinese, this means people will need to put in
place to recruit Chinese speaking workers
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Sainsburys would need to find recruiters that are speaking both
languages
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This is because of the fact that people in turkey speak one of the
most common languages in the world being Arabic
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Religion
Religion can also affect how international business is handled
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So, this can affect international business because if a country is a Muslim country,
companies in the country may need to operate their business under religious beliefs
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This is because of the that drinking alcohol is forbidden in the Islamic
religion
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Even if they were
allowed to sell the items as the country are mostly under the Islamic belief they are less likely to

make a number of sales needed to make profit of a particular category of products being
alcoholic drinks
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Attitudes to work
In different countries there are different attitudes work when it comes to management
relafionships
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For example, in the UK it is more common for a business to have a
democratic management style
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In China, the management styles in
businesses are normally autocratic where workers should do what they are told without asking
questions
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This
might make a UK business decide not to trade in that country, or if it still wants to, it has systems
in place to ensure that its employees do not get involved in it
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For example, If Sainsburys wanted to
trade in China
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At the moment, China are suffering issues with pollution and If Sainsburys decide
to trade in China using non- environmentally friendly form of energy, people in China may not
want to use Sainsburys services
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For Sainsburys
to overcome this they man need to find an environmentally friendly energy supply
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There values may affect the way they
view the advertising of products that they sell in the country
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This may
not be accepted as Muslim believe in covering up your body

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