Global Business Environment
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Chapter 9 : Social and Cultural Environment in Developing Countries
Social and cultural environment in
China
Population and Income disparities
Health and education
system
Aging population
Unemployment rate
Society and Social Class in China
Hofstede’s Analysis for China
Influence of Culture
on the Communication Process in Business
Social and Cultural
Environment in Brazil
Demographic Issues
Health and Mortality
Women
Language, Religion
Business Culture
Influence of Culture on Consumption
Hofstede’s Cultural Factors
Social and Cultural
Environment in Russia
Demographic Issues
Other Cultural Issues in
Russia
Influence of Culture on Consumption
Social and Cultural
Environment in India
Society and Social Class in India
Demographic
Trends and Influence on Consumption
Religion
Hofstede's Analysis
for India
Chapter Summary
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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. |
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It has had its share of demographic changes,
with more and more women joining the workforce. Marketers should
understand these and other changes in society and look for
opportunities. In Brazilian business, quality is given high
importance and companies with ISO 9000 certification are highly
respected.
High long-term orientation ranking signifies that Brazil has respect
for tradition and supports a strong work ethic, where long- term
rewards are expected. The next country discussed was Russia, which
has undergone major changes after the fall of the Soviet Union and
ensuing political turmoil. In Russia, punctuality is always
appreciated in business meetings. The most important positive sign
during 2000 in Russia was the recovery in consumption and
investment.
As purchasing power among Russia’s various consumer segments has
started going up, a preference for domestically produced items
(Russian brands) has also increased. Finally, in the context of
India, the caste system, though not much visible in urban areas,
still plays an important role in the rural areas. India is
considered as a country with high power distance.
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