How Cultural Differences Between Parent and Host Country Can Affect Essay

How Cultural Differences Between Parent and Host Country Can Affect Business Communication Process of an Organization - Essay Example The Western companies have shown tremendous interest regarding the expansion of business in the Middle East and the Eastern countries because of the emerging market. The international business that the companies have emphasized in the modern world can have strong effects. A bad choice of a country can increase the risks associated with the financial losses and it can also reduce the opportunities for success. There are many reasons due to which the risks associated with businesses arise in host countries. Issues related to the political factor, economic factor, social factor, technological factor and legal factor have the severe impact on business. The differences in the culture with respect to business between a parent country and the host country are the essential reason behind the risks and lack of opportunities. The market entry decisions made by the companies play the very crucial role against the risks associated with cultural differences. This essay illustrates the effects of cultural differences between parent and host country on business communication. Cultural aspects of different countries have the significant impact on the sustainability as well as the profitability of business corporations. The business culture in the western countries is significantly different from that of the eastern world. The major growing business markets such as India and China have several different approaches with respect to business culture. The business practices and culture of China differ greatly from other countries, such as Canada, USA, Australia and UK. In order to initiate a business in China, the essential factor is to understand the business etiquette. Understand the business etiquette and the socio-economic culture can lead organizations to success. There are several challenges that the managers of the Australian companies had to face based on managing employees.