Impact of Culture on Products and Services

Question 1

MPACT OF CULTURE IN BUSINESS

Answer 1

• Culture’s role in business can be as important as the influence of tariffs, legal regulations, and competition.
• Failure to consider that influence could ruin a negotiation, derail a marketing campaign, and cause labour unrest!

Question 2

CULTURAL IMPACT ON PRODUCTS

Answer 2

• Whether they will be successful or not.
• It is important to consider factors such as climate and religious beliefs when considering entering a foreign market.
• Have a very low impact on the sale of Canada’s raw materials.

Question 3

CULTURAL IMPACT ON SERVICES

Answer 3

Canada’s financial service industry has successfully entered foreign markets.
- Banks
- Venture capital companies
- Life insurance firms
Attitudes towards money are often culturally determined, Canadian banks in foreign countries must understand their clients’ culture to meet their savings goals.

Question 4

THE IMPACT OF CULTURE ON INTERNATIONAL BUSINESS

Answer 4

The Canadian government, influenced by labour unions and cultural values, regulates the labour force:
- Provides minimum wage
- Mandates workplace safety
- Prevents discrimination
legislates holidays and hours of work

Question 5

Rationalization

Answer 5

Any attempt to increase a company’s effectiveness or efficiency including:
- Downsizing
- Cutbacks
- Layoffs
- Relocating corporate functions and activities to countries that have cheaper labour and few or no union problems.

Question 6

Canadian business people may encounter differences in the following areas:

Answer 6

• Child labour
• Discrimination
• Wages
• Standards and practices
• Indigenous cultures