Cultural Issues Affecting International Trade/Activities

Unit 1.2-Cultural Issues Affecting International Trade

Introduction | Culture Defined | Culture Applied | Summary | Resources | Activities | Assessment Go to Unit 1.1 | Unit 1.2 | Unit 1.3 Return to Trade Finance Module 1: Political and Economic Risk

Activity

Assign each student a country. Have them research the cultural aspects of the country including:

1. religion
2. language
3. social norms
4. Hofstede’s Dimensions – www.geert-hofstede.com
5. Corruption Perception Index – www.transparency.org

Once the students have completed their research, appoint each either as an importer or exporter. Pair the students and have them discuss the following issues from their countries’ perspective:

1. language
2. religion and government
3. timely payment
4. government involvement in business
5. presence of corruption and the need for bribes
6. possible affects on profitability of business between the countries.

Once the discussions are complete, have each group present their findings to the class with a decision as to whether it makes financial sense to conduct business between the countries.

This research and the discussions can be divided between individuals or in small groups, depending on the size of the class. This assignment would also work well in an on-line environment.

To make the assignment more specific each group could also be assigned a product or service to trade.