Culture in a global economy

Messenger There is growing international interest in the potential of the cultural and creative industries to drive sustainable development and create inclusive job opportunities.

Culture in a global economy

Understanding the Importance of Culture in Global Business The companies that will see growth in the coming decades are mastering how to do business across cultures. The list of fast-growing emerging markets goes on and on. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures.

What is possible is developing the mindset of a globalist — or, in other words, mastering cross-cultural core competency. If I tell you that when you engage in a sales call in the United States, the acceptable spatial proximity between you and your prospect is 2. If I demonstrate to you, instead, how uncomfortable you feel when I say hello and proceed to shake your hand while standing 6 inches from your face, I have accomplished the equivalent of teaching you to fish.

You now know that every culture has a specific, acceptable space proximity. By sheer observation, you have added this to your cross-cultural tool belt. The next time you get off the plane anywhere in the world, you will look around and observe how far apart people are standing, log that information somewhere in your busy brain, and proceed to your next meeting armed with information that will avoid instant discomfort and a potential disconnect that may jeopardize business with your international counterpart.

Now imagine if you could augment this simplistic metaphor incrementally, to every aspect in which culture impacts business. A Framework for Understanding Culture has many definitions.

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My own definition is that culture is our collective experience as a society, and its impact on our reaction and decision-making relative to every-day facts and circumstances.

Why is cross-cultural competence critical to your professional future and the viability of your company? According to a May Accenture study, optimizing this process through training can increase productivity by 30 percent. It is possible, however, to incorporate a cross-cultural framework that improves cross-cultural understanding and interactions.

Let us examine some examples of American executives interacting with Chinese executives to illustrate how a few of these comprehension lenses impact business. Chinese cultural themes are rooted in folk belief and Confucian values, including filial piety, thrift, endurance, and trustworthiness.

These values are deeply engrained in the Chinese psyche. The Confucian value of endurance has a profound impact on the business process.

The total disconnect causes a loss of business opportunity, or alternatively, leaves dollars on the table as the exhausted Westerner, unprepared for the duration of the exchange, makes price concessions way too early. Communication An understanding of the subtle challenges in the use of English with non-native speakers, as well as the nuances of non-verbal communication, is critical to achieving business objectives when operating across cultures.

In East Asian cultures, communication is very subtle and indirect. Thus, the direct style of Western communication can easily create serious offense, despite the best of intentions. Failure to understand simple but subtle issues in communication may also cause both you and your counterpart to lose face.

Creating a loss of face for your Chinese counterpart is devastating to the business relationship and often unrecoverable — leading once again to loss of opportunity. Group Dynamics This comprehension lens involves the understanding of how individuals from certain cultures interact in groups.

An understanding of group dynamics in the target culture significantly impacts the sales process.

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In individualistic cultures, such as the United States, customers make most of their buying decisions individually, whereas in collectivistic cultures, decisions are significantly influenced by the group family, extended family, network of friends and colleagues, and the community at large.A gift economy, gift culture, or gift exchange is a mode of exchange where valuables are not traded or sold, but rather given without an explicit agreement for immediate or future rewards.

This exchange contrasts with a barter economy or a market economy, where goods and services are primarily exchanged for value received.

Culture in a global economy

Social norms and custom govern gift exchange. The Culture of Collaboration: Maximizing Time, Talent and Tools to Create Value in the Global Economy [Evan Rosen] on *FREE* shipping on qualifying offers. Book by Evan Rosen. Guide to culture, customs, social, business, & study abroad etiquette for every country in the world.

Daily online magazine on the global economy, politics and culture. Sep 04,  · 6 factors shaping the global economy in 23 Dec Anders Borg Minister of Finance of Sweden () will be a challenging and difficult year for the global economy.

Global growth is picking up somewhat after a number of weak years. A global GDP growth rate of %, the latest IMF forecast, is lower than the % average. While the true impact of cultural differences in the workplace is challenging to measure, it is clear that the drivers of the global workforce will and can lead to a breakdown in corporate homogeneity.

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