Explain culture and cross-cultural risks, as well as explain culture’s effect on international business. Provide at least one example from the Kingdom of Saudi Arabia where cultural values have been affected by international business.
Culture is a word for the ‘way of life’ of groups of people, meaning the way they do things. Excellence of taste in the fine arts and humanities, also known as high culture. An integrated pattern of human knowledge, belief, and behavior. The outlook, attitudes, values, morals, goals, and customs shared by a society. Cultural risk refers to the potential for a company’s operations in a country to struggle because of differences in language, customs, norms, and customer preferences. Culture has several effects on international trade as some products are not marketable in certain geographical locations, for example pork may not be exported to Muslim states.