Impacts of Culture for American Businesses Abroad

Research Paper (postgraduate) from the year 2012 in the subject Business economics - Economic and Social History, grade: 94.0, , language: English, abstract: U.S. firms that decide to go global experience unique challenges that are not particularly present in typical domestic businesses. Companies that have relations abroad are often met with significant cultural differences that can impact the business ¿ either positively or negatively. The importance of cultural intelligence has led to an increase in cross-cultural training; yet, some firms refuse to acknowledge the significant role that culture plays in their international business. A lack of cultural awareness inherently implies an arrogance that has been associated with American culture by other countries. By ignoring cultural differences, American companies reveal an underlying desire to make money without taking the time to know their partners or employees abroad. Such ignorance can be avoided at a relatively low cost; nevertheless, some businesses manage to fail miserably because of a lack of cultural understanding.