Question 2: Compare cultural differences between the United States and Saudi Ara

Question

Question 2: Compare cultural differences between the United States and Saudi Arabia, and then indicate how the cultural differences influence the costs of doing business and business practices in the two countries. Instructions: Each of the two questions must be answered directly and concisely and within 300 words, respectively (one page, doubt-spaced, 23 lines by using Time New Roman 12- point font, one-inch margin). To address the questions, you are required to use the knowledge you have learnt from the relevant chapters.

Explanation / Answer

When we see at two countries - Saudi Arabia and United States of America, there are lot of differences right from the smallest thing to the biggest aspect.And when there is a business connection between these two countries then certainly the cultural differences will have an impact on the business practices and economy.

Language
Arabic is the official language in Saudi Arabia and English in U.S. Communication is the vital aspect in any business. There is a huge difference in language here so alternatives should be found out which will not hinder the business activities. May be a bilingual people should be hired so that all the comunication can be easily passed on. This may become expensive but the end result will be fruitful.

Religion
Religion is the base of any culture. Many things are formed keeping in mind the respective religion. U.S. believes in more of individual faith while Saudi Arabia follows Islam. This is one of the difference which is totally the oposite. Thus, in business transactions it should be taken care that people involved in transactions are aware of this point and all the principles and celebrations of religion should be given importance equally.

Politics
Business activities on an international basis is always backed by the politics of the respective countries. Political influence is much much more and inevitable too. Without the involvement of the government things are not poosible. Saudi Arabia totally follows monarchy. Citizens do not have rights to decide government. Decisions are taken by Royal family whereas U.S. is totally opposite where citizens have the right to make or break the government by vote. Thus, business activities should be made keeping in mind and resepcting each others way.

Overall culture
Food habits, living way, standard of living, office hours, etc all are a part of the culture. In this case both countries' ways are different.Business meetings, conferences, meals all should be decided keeping in mind these differences. Just a little care and willingness to accept will take the business acitivities on a smooth ride.

Gender
U.S gives equal liberty to males as well as females whereas Saudi Arabia has restriction for the females in many areas. This thing has to be taken into account when business is done. Mutual decisions has to be respected for a smooth business.

Media
Media presence is very strong in the U.S while they are not well established in Saudi Arabia. U.S gives liberty of expression and Saudi are conservative. The actual level of information may not be same in both countries due to this. So while dealing in business activities, proper information should be passed on through proper channel so that communciation is done completely and relevant information is given.

Having said this, but the fact is that Saudi Arabia is into the process of changing and accpeting few changes in the last couple of months. Which can be very beneficial from the business point of view and this can open may avenues.

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