Executive Summary
This report outlines the main factors of culture affecting costs. It begins with introducing culture as a whole and mentions the problems like ethnocentricity, which are faced by globalization and also solutions that are put forward like cultural literacy to gain a better understanding of the culture.
Hofstede’s theory is the central reference used in this report. It links issues like personal communication, physical environment, the attitude towards bribery, manners and customs considered the norm in a certain culture and the values and behavior of different cultures. There are several examples that emphasize the theories and are supported with arguments for and against these issues.
Furthermore, the report discusses the aesthetics to be considered before entering a market. Legal implications of different regions that would be applicable are discussed. Religious factors are also considered according to the restrictions they pose in different regions.
The arguments presented and results found can be used as a guideline for investors or companies planning on entering a new market.
Introduction
This report discusses the affects of culture in relation to costs. Companies entering a new market have to research the local customs and attitudes people have towards concepts like change, the traditional hierarchy model and even different perceptions to different colors and art forms. Culture can be defined as a set of values, beliefs, rules and institutions held by a specific group of people (Wild et al, 2007). Culture is usually intertwined with things like religion, politics, law and economics. It is a complex set of traits, which are closely related to all people of that particular country or region.
A perception that ...