Importance of Understanding another Country’s Culture

The pride of any business is to succeed in the community of its clients. For international organizations and businesses, the essence of business is to succeed internationally. This means that the business should be able to assimilate into the society it expands to. Each society has its own culture and traditions. For a business to be considered relevant in a particular society, it must be able to identify itself with the community.

The only way for a business to identify itself with the community it serves is to understand the culture of the community. The importance of this understanding is that the business establishes a successful relationship with the community. This helps the community to feel itself valued and respected when foreigners seek to understand their way of living. Therefore, the business enjoys a positive relationship that will enhance its growth. Understanding the culture of a community where an entrepreneur intends to establish a business helps to cover the challenges experienced while expanding the business.

When the culture becomes familiar, the business can present itself to people and prospective clients in a way that they accept and recognize. The people’s culture also contains the tips about what products and services and in what forms the community will be ready to buy. This helps the business to provide exact products and services that are relevant to the community. The language as an element of culture is important to understand. For a company establishing itself in a new market, communication is important. The best way to communicate in a new environment is to use the native language. This enhances acceptance and is a show of respect. Therefore, it is important for any business seeking to expand to different cultural region to understand the people’s culture.

Main Elements of Culture and how they Impact Business in China

Culture has seven basic elements. The first one is its social organization, which refers to the way the society creates groups formed due to the functions they perform for a specific purpose. The groups and organizations in Chinese culture are based on age. There are various age groups, which use the language and the ways of interactions differently. Customs and traditions are the next elements of culture. They represent what the people consider as social rules and acceptable behaviors in the community. In the Chinese culture, the rules are unwritten, and their learning requires close relationships with the community members to avoid acting or doing something abnormal. Acting against these norms carries a kind of punishment from the community.
Religion is also an element of culture. Religion determines what people think about life, its origin, and existence mysteries. People tend to hold on their religion with greater importance than on any other element. The Chinese people profess different religion. However, the dominant religion is Buddhism, and anyone who wants a relationship with these people must show respect to their religion. The language of the people is an important element of culture.

For any business, it is important to learn and respect the language of the people. The Chinese language is important to the Chinese people and must be respected. The national arts and literature are also important to consider as they determine the way foreigners can efficiently interact with the community. The governance and the economic system of the people are also important elements of culture. They show the way the people are governed and the written laws they follow. All the above have to be considered if a business is to establish in this community. The trade rules and bylaws of China are supposed to be followed by businesses.

About the Author

Nancy Bauman is a financial analyst and accounting expert. She is also an expert on business ethics and is constantly participating in university conferences as a member of the Educated Youth Movement. She regularly contributes articles related to business and loans at