The Global Business Environment

Essay by ppsrnlrCollege, UndergraduateA+, May 2004

download word file, 3 pages 3.0

The Global Business Environment


When a company decides to take their business abroad there are several things that must be considered. Social, cultural, economic, legal and political differences will have an effect on the success of an international business. This paper will provide examples of how these differences can affect international business and ways to deal with some of these differences.

Cultural differences can play a major role in the success of an international business. The company would need to know if there is a market for their products in the desired country. In India for example 85 percent of the population is Hindu. The Hindu religion believes the cow is sacred therefore they do not eat beef, use beef products or use leather. In the United States McDonalds serves beef in most of their entrée's, but "the company has developed a menu especially for India that gives consideration to Indian cultural and religious sentiments".

( They have excluded the beef and added vegetarian entrée's along with chicken and fish.

Social and cultural differences like public contact between men and women can be a barrier if you do not know what is acceptable. Public contact between members of the opposite sex is not appropriate in India. Most Indians avoid all public contact between men and women and western women should not initiate a handshake with an Indian man, it could be considered insulting. ( Language can be another social barrier to international business. It is best to speak the language of the country or have a translator present at business meetings so there are no misunderstandings. It could be disastrous if neither party understands completely what is being said and what is being agreed upon.

India's economy plays a vital role in the Information Technology industry. The United States...