International Business for Services and Managerial Knowledge

Question: Discuss about theInternational Business for Services and Managerial Knowledge. Answer: Introduction International business conducts the business transactions in different countries. These transactions deal with the transfer of technology, services, managerial knowledge, goods, and business capitals. The cultural differences in the international countries are considered as the major determinants due to which the foreign business marketers sometimes face the considerable challenges (Samaha, Beck Palmatier, 2014). In this study, the cultural market of USA will be discussed. The study would provide the fruitful insights on the culture of the host country. The analysis of the different cultural components would also be presented in this study. In addition to this, the study would discuss the business culture of the host country. The use of Hofstedes Dimension Model would consider the business operations of the foreign countries within the different cultural scenario. Rationale for Selecting USA Cultural Market USA cultural market has been dominating the economic zone of the country. US market consists of 300 million consumers due to which it is considered as the largest market in the world (Mazaheri et al., 2014). The business opportunities and the favorable business markets are attracting many foreign countries to establish their businesses. Even though the country contains only 4% of the global populations, it has captured almost 25% of the global economic output. USA is one of the richest countries in the world that is quite opportune for the foreign business marketers to earn more profits (Keywords.nyupress.org, 2017). USA culture is comparatively homogenous. It is considered as one of the most diverse countries with the presence of huge number of ethnicities and languages. English is the international language for the foreign businesses. It has been observed that 97% of the populations are fluent in English, which is much beneficial for the business dealings. Therefore, the study woul d focus on the exploration of USA cultural market. Cultural Analysis of USA United States of America, widely known as the Land of the Free and Home of the Brave, is much diverse in the cultural parameter. The immense landscape is much luxurious and sophisticated, which is much opportune for the business marketers to select the potential consumers. The cultures of the country are transmitted in variety of ways starting from migration and recruitment. American culture is diverse in nature and consists of people from different ethnicity, religions, and political background. The group of the indigenous people is also visible within America (Bakir et al., 2015). The favorable magnitude is also a considerable factor for the existence of numerous subcultures in America. The cultural analysis of America depends on three major levels, such as the observable artifacts, enacted values, and espoused values. The observable artifacts comprise of the ceremonies, symbols, social spectacles, and linguistic values. The espoused values include goals, strategies and philosophie s that differ from the other cultures. The enacted values, on the other hand, depict the apparent influences on the US cultures. The combination of the artifacts, enacted values, and espoused values together formulate the cultural diversification in America. Business Cultures in America Appropriate etiquette and cultures are the most important factors to be considered in the business scenario. The American business cultures are different to the etiquettes maintained in other countries (Ferraro Briody, 2017). It is notable that America is the melting pot of cultures and there are no accepted rules followed. People in America are much concerned about their personal attributes and conscious about others personal spaces. Therefore, American companies do not encounter much conflict. On the contrary, in the Asian culture, people are more likely to work together and indulge with others works as well. The conflicting scenario is more visible in Asia than America (Mazanec et al., 2015). The seriousness among the business associates in America is also much favorable for the development of organisations. Americans greet people with more commendable manner than the other countries. The informal behaviour outside the corporate environment is much visible in American culture. Ab ove all, the greeting and the acceptability of the other cultures for the business dealings are remarkable enough to establish the business in America. Hofstedes Cultural Model Working in the foreign country requires gathering the insightful knowledge about the cultural traits. It is essential to identify the cultural suitability before establishing any business for a longer time. The analysis of the Hofstedes cultural dimensions would be much preferable to identify the major considerations for establishing the foreign business in USA. Figure 1: Hofstedes Cultural Dimension (Source: Hofstede-insights.com, 2017) Power Distance The power distance is the dimension, which determines the inequality between the people within a society. It also expresses the measurement of the power for understanding the business requirements. America scores 40 in this dimension, which is moderate for the foreign business. It indicates that the foreign businesses need to consider the power of the societies inequalities, which are endorsed mostly by the followers than the leaders (Stahl Tung, 2015). Individualism The individualism dimension determines the degree of the interdependence maintained by the members of the society. America score 91 in this dimension, which is quite higher. It depicts that the Americans follow the idea of liberty and justice for all. They value the people more, which is quite favorable for developing the business atmosphere and achieving success. Masculinity The high score in the masculinity dimension indicates that the society is much driven by the competition, success and achievement. It is noticed the score of America in this dimension is 62, which is quite higher. Therefore, the foreign business has the favorable chances to make progress in their businesses. Uncertainty Avoidance This uncertainty avoidance dimension considers the fact that the society often requires dealing with uncertain situations in future. America scores 46, which is below the average that creates impacts on the cultures (Hofstede-insights.com, 2017). Hence, the foreign business would ensure the success in establishing the business in America. Long Term Orientation The long-term orientation determines the maintenance of the links with the past while dealing with the challenges in present and future. America scores 26 in this dimension, which considers that the country is much fond of generating ideas from the new information. The innovative thinking is the major strength for the country that is much favorable for the business expansion of the foreign countries as well. Indulgence This dimension defines the extent to which people try to control the impulses and desires. In this dimension, USA scores 68, which is the combination of the normative score. The country believes in working hard to achieve their desires. Hence, it can be implied that the contradictory attitudes and behaviour are much visible in Americans. Conclusion The study explores the cultural analysis of America. It is notable that America is one of the largest countries that as developed the cultural diversification. American culture is diverse in nature and consists of people from different ethnicity, religions, and political background. The group of the indigenous people is also visible within America. The favorable magnitude is also a considerable factor for the existence of numerous subcultures in America. The proper and favorable cultural traits along with the sophisticated business scenario are much favorable for the foreign countries to establish business in America. References Bakir, A., Blodgett, J. G., Vitell, S. J., Rose, G. M. (2015). A preliminary investigation of the reliability and validity of Hofstedes cross cultural dimensions. InProceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference(pp. 226-232). Springer, Cham. Ferraro, G. P., Briody, E. K. (2017).The cultural dimension of global business. Taylor Francis. Hofstede-insights.com, (2017).Country Comparison - Hofstede Insights. [online] Hofstede Insights. 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