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The Cultural Challenges of Doing Business Overseas
The Cultural Challenges of Doing Business Overseas
Steve Kafka, an American born citizen and a franchisor of Chicago Style Pizza, has decided to expand his business overseas. Steve wants to set-up business in the Czech Republic, a place where he has friends and family. Steve can speak the language fluently and knows the people and culture. Steve must ensure he is aware of the cultural differences between operating a business in another country, determine the comparative advantages, and evaluate the mitigating risks. Economically, Steve needs to research trade barriers, investigate demand, prices, and income elasticity. The United States and the Czech Republic have some major differences in their cultures: values, beliefs, and behaviors. The Czech culture is not as faced paced as the United States and they tend not to eat out as much as Americans. Lunch is the biggest meal of the day whereas in the United States dinner is. This is a potential risk for Steve because pizza is considered a snack in the Czech Republic, whereas in the United States pizza is considered a meal. Czechs do not usually converse during meals. Czechs are very private people and tend not to speak to strangers, smile, or make eye contact. The Czech citizens have become standoffish because they do not easily trust people not of their culture because of the history of their country experiencing invasions. The Czech culture is not time-oriented when doing business they are extremely methodical when making decisions and will ponder on possible options before making a decision. They are extremely formal in their everyday routines and even more so in a business environment. Education is highly regarded and different ethical backgrounds are treated equal.
The Czech Republic and the United States have a

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