ABSTRACT
This chapter begins by describing several situations where cultural mishaps occur. Such mistakes can be costly to multinational companies (MNCs) and, therefore, MNCs must realize the importance of subtle cultural differences. This chapter provides a basic understanding of national cultures and explains how to prepare for cultural differences when operating on a global scale. Emerging markets provide promising growth opportunities for MNCs. However, they are especially difficult to penetrate and, by properly preparing for cultural differences, an international manager can be more successful by behaving in ways consistent with local expectations. The chapter introduces some of the major reasons why cultural differences need to be understood. It considers two of the most important frameworks for understanding culture. It also explores some of the ways national cultures affect business through a special emphasis on business cultures. The chapter examines some ways MNCs and their employees can prepare for cultural differences. Finally, it also examines some of the popular types of cross-cultural training and some of the best practices regarding design, delivery, and evaluation of such programs. The readers will learn about various real world cases showing the potential implications and consequences of cultural differences on MNCs international business operations.
