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Culture, risk analysis, and strategy formulation in global b

What is the study of culture and why is so important to global business? Please give examples of important areas of cultural study, which organizations must focus upon when deciding to go global.

Why is a risk analysis so important? In your opinion, which factors of the risk analysis carry more weight than others?

In comparison to the domestic environment, how is strategy formulation different in the global business environment? Why?

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What is the study of culture and why is so important to global business? Please give examples of important areas of cultural study, which organizations must focus upon when deciding to go global?

The study of culture is the complete analysis of socio-cultural situation in a particular country, along with other cultural issues such as local business practices and customs, issues pertaining to cultural sensitivities, consumer tastes, preferences and choices,pitfalls to avoid etc.

It is very important to global business in the sense that a company which wish to expand into foreign territories must have complete knowledge of the cultural issues in that particular country. In order to face the competition from local companies in that country,who have definite strategic advantage over foreign companies, one should know about the prevailing market and business practices, local tastes and customs. This helps a multinational organization to better serve the foreign markets and fully explore it without committing any blunders. The study of culture is also necessary to avoid any pitfalls which ...

Solution Summary

The study of culture is the complete analysis of socio-cultural situation in a particular country, along with other cultural issues such as local business practices and customs, issues pertaining to cultural sensitivities, consumer tastes, preferences and choices,pitfalls to avoid etc.

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