This is one of the biggest dangers confronting a company that goes abroad for the first time is the danger of being ill-informed. International businesses that are ill-informed about the practices of another culture are likely to fail. It is necessary to run a good business in any country that the company should study the value systems and norms of that culture. Adaptation can embrace all aspects of an international firm's operations in a foreign country. The way in which deals are negotiated, the appropriate incentive pay systems for salespeople, the structure of the organization, the name of product, the tenor of relations between management and labor and the manner in which a product is promoted.
To protect from the danger of being ill-informed international businesses should consider employing local citizens to help them do business in particular culture. They must also ensure that home country executives are cosmopolitan enough to understand how differences in culture affect the practice of international business. Transferring executives overseas at regular intervals to expose them to different cultures will help to build a cadre of cosmopolitan executives. An international business must also constantly on guard against the dangers of ethnocentric behavior. So people have beliefs on their groups.
To protect from the danger of being ill-informed international businesses should consider employing local citizens to help them do business in particular culture. They must also ensure that home country executives are cosmopolitan enough to understand how differences in culture affect the practice of international business. Transferring executives overseas at regular intervals to expose them to different cultures will help to build a cadre of cosmopolitan executives. An international business must also constantly on guard against the dangers of ethnocentric behavior. So people have beliefs on their groups.
