Culture and Cross Cultural Risks Effect on Business Practices

This has far-fetching impact on what persons in different cultures perceive and how these particular cultural values impact business affairs in a totally diverse setting. In essence, organizational practices are dependent on culture and most companies avoid cultural risks to handle their businesses. Capabilities, skills, technology, knowledge and experiences are better enhanced by cross-cultural approach, especially in geo-centric establishments. This paper, therefore, discusses the spectacle as a global model, with the inference of its effect on business practices. In a globalized economy, cultural understanding is vital. Language barriers not only relate to persons speaking diverse languages, but also to the diverse tone used while speaking those languages. For instance, in Countries like Saudi Arabia, it is normal for persons to speak stridently and be more emphatic when sharing views amongst coworkers.

However, in nations like Japan persons classically speak more softly and use a more passive tone while making suggestions to co-workers. Other elements to consider are the basic mannerisms, customers and gestures that are universally accepted in that particular culture. Behavior that may be ordinary in one culture could be uncommon or even possibly offensive to an individual or market overseas. , L. , L. B. , O’Brien, & Mokrova, 2018). The interaction between managerial values and corporate culture institutes cross-cultural practices reaping real strategic options, serving to accomplish a set of task efficaciously. , O’Brien & Mokrova, 2018). This serves as a great hindrance to the success of global businesses, or would at times impose an extra cost to non-Muslims, since they find themselves paying for translators.

Cross-cultural communication plays a significant role in business. When people from different cultural backgrounds come together for the purpose of doing business, a common means of communication is required (Hamer, K. , McFarland, S. Causes of Cross-Cultural Risks Cross-cultural risks, therefore entails a condition or event where a cultural miscommunication places some human values at stake (Renn, Ortwin & Rohrmann, Bernd, 2000). Culture impacts a number of interpersonal exchanges in addition to value-chain operations including service and product design, sales and marketing. Some of the factors that aggravate culture and cross-cultural risks globally and in Saudi Arabia include: Polycentric orientation: this is whereby managers from host country, for instance Saudi Arabia, have a mindset, developing an affinity with the nation in which he or she does business (Wattanapokasin, Watcharee & Rivepiboon, Wanchai, 2009).

This impairs business in many ways, since it would be difficult relating with managers or employees from another nation. Ethnocentric orientation: this is a major factor that aggravates the cross-cultural risks. , Czarnecka, B. , Golińska, A. , Cadena, L. M. , Łużniak-Piecha, M. References Best, D. L. Off to Great Places! Celebrating 50 Years of the Journal of Cross-Cultural Psychology.  Journal of Cross-Cultural Psychology, 50(1), 3–4.  https://doi.  Cross-Cultural Research.  https://doi. org/10. 1177/1069397118816939 Hofstede, G. , & McCrae, R. B. , O’Brien, L. , & Mokrova, I. L. Methods for Studying the Virtue of Gratitude Cross-Culturally. X. Unpacking Structure-Oriented Cultural Differences Through a Mediated Moderation Model: A Tutorial With an Empirical Illustration.  Journal of Cross-Cultural Psychology.  https://doi. org/10. org/10. 1177/1069397117736517 Mendonça, S. E. , Merçon-Vargas, E. A. Retrived from https://www.