The Cultural Challenges Of Doing Business Overseas
Running head: CULTURAL CHALLENGES PAPER
Cultural Challenges Paper
University Of Phoenix
Abstract
The differences in the United States and Czech cultures are mainly due to how the Czech Republic was formed. Culture refers to the total way of life for a particular group of people. It includes everything that a group of people thinks, says, does, and also makes its customs, language, material artifacts and shared systems of attitudes and feelings. In shaping the business risks for Steve Kafka to start a Chicago- styled pizza shop there are a variety of complications. Doing business overseas can bring about numerous cultural differences. The primary focus in this paper will be the differences between the United States and Czech Cultures. I will also address the risks and opportunities that Steve will face in order to run a successful pizza business.
Cultural Challenges Paper
For many years the Czech economy was inactive, then in 1989 Czechoslovakia along with Poland and Hungary moved away from the socialist system. They opened up their markets to the capitalist system. According to some well-known economists, privatization, liberalization, and macro-economic stabilization are the initial phases of economic transformation in the Czech Republic. During privatization, state-owned enterprises are transferred to private hands, whereas the inefficient operations are shut down. Throughout liberalization, trade barriers are lowered, prices are flowing, and there are commercial laws enacted to aid ownership to the private sector. During macroeconomic stabilization, there is currency deflation, and interest rates are permitted and decided by market forces. Although the economic progress has slowed recently in the...
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