The Cultural Challenges of Doing Business Overseas

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Running Head: THE CULTURAL CHALLENGES OF DOING BUSINESS OVERSEAS Cross Cultural Investment Name of student: Name of University: Course: Date: Introduction Businesses and incompatibles in the US and Czech and the effects on Steve’s Business Citizens from USA and Czech have significant levels of social preservation and will only socialize with people they are close to. Hence Steve will have to win the trust of the Czech people. Consequently, Steve will be facing a lot of challenge from Czech business partners who are oriented in the kind of business he is venturing in. To gain a competitive edge he will need to capture a loyal market (Schmitz, 2000). The way of doing business in Czech is very different from the way of doing business in the US. Usually when writing formal letters for business transactions one is supposed to address the letter to the company as opposed to addressing the letter to a person (CIA World Fact Book, 2008). In this light, starting a business in Czech is challenging since a successful business deal is sealed after a series of meetings meant to win trust of prospective business partners. Comparative advantages in Czech Intriguingly Czech is rated by the CIA world fact book as having the most stable economy in the post communist states of eastern and central Europe (CIA World Fact Book, 2008). Domestic demand is on the increase and the population living below poverty line is nil (CIA World Fact Book, 2008). Steve’s business has a lot of potential since there is a ready and available market for his products. Czech has a well developed road network, telephone, radio, TV and internet infrastructure (CIA World Fact Book, 2008). Steve stands to benefit greatly from the well developed communication and transport infrastructure since he can be able to market and deliver goods to his target market

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