Global Business Environment

SUMMARY: Most international business firms are finding developing countries a good choice for investment because of cheap labour and resources available. When operating in countries like China, Brazil, Russia and India, firms have to take care of the cultural and social issues that impact the functioning of any business. This chapter has brought to light the various cultural and social factors that influence the functioning of firms in these countries. China, which offers lucrative business opportunities, has unique customs and traditions. Business in China is fundamentally about building relationships. Effective communication is critical to business success. While most Western cultures treat communication as an exchange of information, Chinese consider it an inseparable part of building and maintaining relationships. Another emerging country that has been discussed in this chapter is Brazil.