Managing Challenges of Cross Cultural Differences in International Essay

Managing Challenges of Cross Cultural Differences in International Business - Essay Example Overview of National Culture & Cross Cultural Differences Culture is a key factor in gaining an insight in to how people behave in different countries, their preferences, attitudes, values and beliefs (Cundiff & Hilger 1988). Their can be implicit and explicit elements of culture embodied in rituals, symbols, gestures, traditions and mannerisms which results in diversity in communication and interaction process within a cross cultural setting (Trompenaar, F. & Hamden-Turner, C. 1998). It is therefore important to understand the underlying national cultures which shape each nation’s interrelations including business dealings (Ohmae, K. 1982). As per Hofstede, culture is â€Å"collective programming of the mind which distinguishes the members of one human group from another† (Hofstede, G. 1984. Page 21). While there are various models and theories, which attempts to explain cross cultural differences, some well established explanations of national culture can be found in Fons Trompenaar & Charles Hampden-Turner’s model of Seven Dimensions of Culture; Geert Hofstede’s Indices of Work Related Values and The theory of Silent Languages of Culture proposed by Hall. 3. Overview of the Countries in Context United States Of America As a forerunner in business and trade, political affairs and social change, United States of America is a country which has a diverse and multicultural social environment.Driven by cultural values such as innovation, independence and individualism, (Hill 2003) American society allowes for social mobility depicted by the â€Å"American Dream.† ... Analysis of Cross Cultural Similarities & Differences While there may exist certain cultural similarities between nations, the implications it carries for business may vary. The analysis focuses on identifying cultural similarities and differences, which exists between USA, Japan and India. 4.1 Treatment of Agreements and Legal process This can be assessed within the dimension of Universalism vs. Particularism, where universalism places greater importance upon the rules in the society while the particularism focus on the circumstances involved when making decisions about what is right and wrong (Trompenaars and Hampden-Turner 1998). USA, which is a highly universalistic culture, places greater emphasis upon business contracts, rules and regulations but in contrast, Japan and India which are more particularistic cultures considers circumstances and relationships more in making decisions. Halls language of friendship can also be used in assessing this cross-cultural aspect. The Americans tend to make friends easily and quickly but these are of transient nature. The Japanese tend to take time in forming relationships but their commitment to the relationship is high. Even if disputes arise, Japanese try reconciliation process while Americans resort quickly to litigation process (Weiss 2001). Indians too choose more in formal means of resolving issues than litigation but are generally quick in establishing relationships.