international business.topic 8
TRANSCRIPT
-
8/22/2019 International Business.topic 8
1/14
TOPIC #8
The Future ofInternational Business
-
8/22/2019 International Business.topic 8
2/14
The Future of International Business
1. Reduction of Protectionism
2. European Union
3. NAFTA
4. Impact of Cultural Differences
5. Global Dependency
-
8/22/2019 International Business.topic 8
3/14
The Future of International Trade
Protectionism
a term to describe when countries seek to protect theirindividual economic interests by imposing tariffs on othercountries or restricting external trade.
Economic experts agree that such practices will hurt theglobal economy as it is all interconnected.
APEC is the fastest growing trading group and largesttrading bloc in the world and engages in protectionismpractices by imposing tariffs and other trade barriers oncountries outside of APEC.
-
8/22/2019 International Business.topic 8
4/14
European Union (EU)
27 European countries represent a single market inEurope
All but the UK and Denmark have adopted a the euro asthe single currency to be used in member states
It has its own elected government
EU court rulings over rule individual country court rulings
and/or laws.
Citizens of member states may travel, move, and workfreely in each others countries.
Population is currently about 370 milion.
-
8/22/2019 International Business.topic 8
5/14
Evolution of NAFTA
Will NAFTA emerge into a union similar tothe EU where citizens of Canada, Mexico,and the US would be able to move freelyinto each others countries where onecurrency would be used for all threecountries?
-
8/22/2019 International Business.topic 8
6/14
Impact of Cultural Differences
Culture
the sum of a countrys way of life, beliefs,
customs
Influences how things are purchased, sold, Sets boundaries on what can or can not be done
Impacts preferences, style, values, and norms
May be represented by a specific language
-
8/22/2019 International Business.topic 8
7/14
Cultural Differences
In order to do business with differing cultures, muchmarket research is needed to help companiesunderstand various similarities and differences evenwhen dealing with everyday cultural norms dealing
with people such as:
1. Punctuality
2. Greetings
3. Nonverbal communication signals4. Good Manners
5. Decision making
-
8/22/2019 International Business.topic 8
8/14
Punctuality
Punctuality Norms in North America?
People are expected to be
on time
Rely on books, calendars and
even pay a fee sometimes
for missed appointments
Punctuality Norms in Other Countries
Time is considered flowing, flexible,beyonds people control
-
8/22/2019 International Business.topic 8
9/14
Greetings
Shaking hands differs from onecountry to the next
Eye contact made in somecountries, not in others
Bowing before an elderacquaintance versus not bowingat all
-
8/22/2019 International Business.topic 8
10/14
Nonverbal Communications Signals
Considered rude in Asian cultures to refuse someones
request, so an Asian business person may not give adirect no answer to a sales request
A nod means yes to North Americans but no to aBulgarian.
Shaking the head side to side means no to NorthAmericans but yes to Bulgarians.
The sign okay with ones hand is a symbol for moneyin Japan and is an offensive gesture in Brazil.
Personal space interpretations also differs from placeto place.
-
8/22/2019 International Business.topic 8
11/14
Good Manners
In North America, getting down tobusiness is the norm when tobusiness people meet.
In other Asian and Latin Americancountries it would be considered rude
not to discuss family, friends, andfavours first to establish a personalrelationship before business.
-
8/22/2019 International Business.topic 8
12/14
Decision Making
In some cultures, decisions are madefrom the top down approach, inothers, from the bottom up
approach.
-
8/22/2019 International Business.topic 8
13/14
Other Differences
North Americans read from right to left.
Israel and Egyptians read left to right.
This difference may impact the order in
which a sequential advertisement is laidout from one country to another.
-
8/22/2019 International Business.topic 8
14/14
Other Sources
Wilson Jack et al. The World ofBusiness, 5th Ed. Nelson EducationLtd., Canada, 2007