In a short essay, explain the cross-cultural risk faced by internationalizing firms. What causes this type of risk? Why might it pose a problem for internationalizing firms?
What will be an ideal response?
Cross-cultural risk is posed by differences in language, lifestyles, mindsets, customs, and religion. Values unique to a culture tend to be long-lasting and transmitted from one generation to the next. These values influence the mindset and work style of employees and the shopping patterns of buyers. Foreign customer characteristics differ significantly from those of buyers in the home market.
Language is a window on people's value systems and living conditions. Miscommunication due to cultural differences gives rise to inappropriate business strategies and ineffective relations with customers.
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Differences between countries’ dialects, accents, and linguistic nuance reflect how _________ one of the major barriers to effective communication through advertising.
A. advertising budgets are B. legal challenges are C. the Internet is D. location is E. language is
In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion,__________represents the degree of difficulty involved in understanding and using a new product
Fill in the blanks with correct word.