International Business Environment in terms of Globalisation Essay

International Business Environment in terms of Globalisation - Essay Example Globalisation also made labour globally mobile, because the new environment greatly assisted nations to do business jointly with overseas countries and hire skilled foreign workers (Jaumotte & Tytell, n.d.). It is obvious that cultural aspects and consumer behaviour vary from country to country and hence organisations face numerous cultural barriers while operating in a foreign country. Studies show that cultural aspects can have a great influence on an individual’s physical and psychological levels of personality, which plays a notable role in developing an organisation’s worksite culture. As Siadat et al (2012) argue, cultural integrity is necessary for an organisation to improve its productivity because a culturally diverse worksite would not promote worksite coordination. In addition, the issue of general acceptability of other cultures may come into play in a culturally diverse worksite. Under such circumstances, there will be conflict among workers and it will adv ersely affect the efficiency of the worksite environment as a whole. Under a culturally diverse worksite, employees may react differently to different events and therefore it would be difficult for the management to frame a common operational policy for such a workplace. Likewise, consumer behaviour is greatly related to culture; therefore, an international company cannot effectively influence consumer behaviour if it practices same marketing and business strategies in all countries (Univrsity of Minho 2004). In other words, an organisation would not succeed in a foreign country unless the organisation accurately understands the country’s cultural and social norms. In short, cultural multiplicity is turning out to be a growth impediment to multinational organisations as they are forced to spend more on cultural diversity management. Each organisation has a unique culture and this element is of considerable importance in determining the organisation’s market position. L owe (2012) points out that the concept of organisational culture is of a great value as it directly impacts an organisation’s unity, loyalty, competition, direction, and identity. While evaluating the impact of culture on western countries and china, it seems that both these regions have totally different views on culture. In case of western countries, they have a more socially developed or liberalised culture whereas China still follows traditional cultural views and norms in terms of business structure and operations. Therefore, impact of culture is more evident in China as compared to western countries. To illustrate, the Chinese culture has notable impact on product design, supply chain activities, and marketing campaigns. This paper will discuss various cultural difficulties likely to be encountered when a multinational company from a western economy contemplates a joint venture with a foreign partner in China. Importance of national cultures The Western society, especia lly Europe and the US, is an agglomeration of different cultures mainly because these countries constitute the ultimate destination for job migrants. Hence, a unique culture is not visible in the Western world. Cultures of the majority of the Western counties have been