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The Effect of Culture on International Trade

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Why is an international country's culture important when considering how to expand into that country's marketplace? What additional plans must a U.S. based company consider before taking their product or service to global markets? Please be specific.

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Solution Summary

This essay discusses and evaluates the importance of considering the culture of a foreign country when a US business plans to market there. It also outlines the additional plans that a US based company must consider before taking their product or service to the foreign country's market.

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If a US business wants to take their product or service to global markets, its executive planners must learn about and adjust to differences in each target country's culture. These are some of the reasons why, and how to avoid most problems:

1. Marketing is an important part of making one's product or service desirable to the potential customers in a country. Marketing has to do with presenting what a company is selling in the best possible light for the most likely customers, and as often as possible. However, something a simple as body language when approaching a foreign business executive could make the difference between acceptance and rejection. In some countries, looking a person in the eye means honesty and openness, while in another country the same action could be interpreted as aggressiveness, or even an insult. On the other ...

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