13 Jul NEED FOLLOW-UP RESPONSE TO PEER STUDENTRESPONSE NEEDS TO BE 2 – 3

NEED FOLLOW-UP RESPONSE TO PEER STUDENTRESPONSE NEEDS TO BE 2 – 3 PARAGRAPHS WITH 1 REFERENCEORIGINAL TOPIC: Assignment 1: Discussion Questions—Culture and International TradeCulture and politics are important parts of the external environment and vary greatly, not only between, but also within each country… Research the impact of culture and politics on business using your textbook, Argosy University online library resources, and the Internet. Respond to the following: Why is understanding culture critical for successful international business? Give examples of how understanding culture has been important for an international business. Classify and describe at least four different types of political systems that an international business might encounter. What type of political system might have the greatest potential for imposing adverse political risk on an international business? Compare at least one other system to the one you selected and explain why it has less potential for imposing political risk. STUDENT RESPONSE: Culture is a pattern of value, belief, and customs shared by a member of organization or group. Culture plays significant roles in the success of any business which plan to venture into the global sector. An organization management should understand the complexities of culture in the global market and plan decisively in order to avoid making mistakes. Culture influences every activity conducted in the global market. For example, An American with European origin believes on making contract or negotiation in writing while other culture, for example, Chinese, Japanese, Korean, and Brazilian may prefer to create a friendship first before getting into a written contract (Hurn, 2007). To an Asian community, friendship is more important than a legal contract.Any firm planning to venture into Asian market should understand the essence of creating friendship above all other things. Also, some business cannot survive in some region which has a strict culture for example in Islamic state. Investors venturing in the Middle East countries cannot come up with morgue business and survive.  Also, while marketing in those countries some products such as perfume or lotion for women can only be sold by a ladies but not a man, greeting a lady by shaking hand is a taboo in this Islamic state. Therefore, companies should understand the culture of a particular region before planning to venture. Some companies which succeed in global business usually enter into a partnership with the local firm.For example, the success of General Motors in China was promoted by local partnership because the local firm understands the culture much better; understand the people needs and their ability to purchase. Furthermore, the local firms usually have employees who have necessary skills and their languages are compatible with the local community hence making it easy for any international business which gets into partnerships with a local firm to succeed. Finally understanding culture will help a firm blend it services to meets local target customer need, come up with a viable product and avoid conflicts. Some culture, for example, Japanese feels that whenever person speak in high tone is rude. Therefore, understanding small difference and value among culture will help a business meet its intended goal.There are several political systems in international business, for example; democracy, republic, dictatorship, and communism (Busse, & Hefeker, 2007). Democratic is based on valuing principle and values. This political ideology allows a citizen to have equal say in government operation and target in protecting individual rights. The republic ideology emphasizes on the notion that leaders are elected not appointed or inherited. Dictatorship political system is an authoritarian form of government with one individual holding power. The leader in this political system are elected through democratic mean but the later change the constitutional provision in order to remain in power.  Communism is the ideology of common ownership of the production, goods, and product.This political system may affects or influence internal business operation in one way or the other. For example, working or running a business in a country ruled by dictatorship government may harm the business economically. The user of the products may lack the power to afford the company products if the country is punished by other countries through trade sanctions. The dictatorial government most of the times do not like foreign investors because they assumed they funds opposition to fight the government. Countries with democratic political system, people are friendly, economy is booming and the government support of foreigner and foreign investments. This system poses less or no political risks if internal investors obey the country laws and regulation. ReferencesChang, L. C., Furner, C. P., & Zinko, R. (2010). A study of negotiations within the ethnic Chinese community between Taiwan and Hong Kong. Management Research and Practice, 2(4), 329-343.Hurn, B. J. (2007). The influence of culture on international business negotiations. Industrial and commercial training, 39(7), 354-360.Busse, M., & Hefeker, C. (2007). Political risk, institutions, and foreign direct investment. European journal of political economy, 23(2), 397-415.NEED FOLLOW-UP RESPONSE TO PEER STUDENTRESPONSE NEEDS TO BE 2 – 3 PARAGRAPHS WITH 1 REFERENCE