Case Summary

The performance of a firm legally depends on human behavior. Human behavior, in turn depends
on socio culture and ethical environment. If the environment is similar between home country
and host country, the manager endeavors to reap maximum advantage from the similarity. On the
other hand culture involves a whole set of social norms that shape human behavior. The elements
of culture are language, religion, education, attitudes and values, social institution etc. there is
wide diversity among nations and regions as far as these elements are concerned. Cultural
diversity should first be accessed and then be managed. At last we can say that ethics and social
responsibilities are very much related to culture. As far as international business is concerned
like medical industry or pharmaceutical industry, there is a long debate regarding whether
pharmaceutical industry should stick to their home country ethics or if they should adopt host
country ethics.

Question Answer from Case

Question no1: What is the impact on international pharmaceutical companies of having to
make product and sold in different markets?
Answer: Too late, too fast, and too overconfident: The sorry list of mistakes that international
pharmaceutical companies have made in emerging markets is long, and the resultant squandering
of resources has been great. As one manager stated, One of our biggest mistakes was to treat
emerging markets like mature markets. We were wrong. Pharmaceutical strategies have to fit a
countrys individual needs and its development.
This clear mea culpa on behalf of the pharmaceutical industry demonstrates the need to create
new, individualized approaches that exploit opportunities while avoiding pitfalls. A growing
number of executives, having learned the hard way, now share this view
Over the past five years, sales generated in emerging markets have doubled, totaling US$191
billion in 2011, and representing approximately 20 percent of the global market volume
Emerging markets are beginning to deliver on their expected potential. However, threats to that
potential need to be taken into consideration.
The International Monetary Fund has recently revised expected GDP growth in emerging
markets slightly downward. However, it should be noted that, in comparison to expected growth
in mature markets, emerging markets still represent a very attractive proposition.

This is an indisputable stumbling block: Pharmaceutical companies must build up-front

strategies to circumvent this hurdle in emerging markets.
Currently, only 1 percent of respondents generate at least 45 percent of their revenues in
emerging markets, while 76 percent stated that the portion of their revenues from emerging
markets is less than 30 percent.
Every second respondent anticipates that by 2018 more than 30 percent of their companys
global sales will originate in emerging markets. Fifteen percent of respondents even believe that
by that time emerging markets will account for more than 45 percent of their sales.
Question no 2: What methods of medicine taking are most common in different part of the
world? Why may new methods, like patches, become more acceptable?
Answer: Traditional medicine (also known as indigenous or folk medicine) comprises medical
aspects of that developed over generations within various societies before the era of modern
defines traditional medicine as "the sum total of the knowledge, skills, and practices based on the
theories, beliefs, and experiences indigenous to different cultures, whether explicable or not,
used in the maintenance of health as well as in the prevention, diagnosis, improvement or
treatment of physical and mental illness."
In some Asian and African countries, up to 80% of the population relies on traditional medicine
for their primary health care needs. When adopted outside of its traditional culture, traditional
medicine is often called alternative medicine. Practices known as traditional medicines
include Ayurveda,
Siddha
medicine, Unani, ancient
Iranian
medicine, Irani, Islamic
medicine, traditional Chinese medicine, traditional Korean medicine, acupuncture, Muti, If,

and traditional African medicine. Core disciplines which study traditional medicine
include herbalism, ethno medicine, ethnobotany, and medical.
The WHO notes, however, that "inappropriate use of traditional medicines or practices can have
negative or dangerous effects" and that "further research is needed to ascertain the efficacy and
safety" of several of the practices and medicinal plants used by traditional medicine systems. The
line between alternative medicine and quackery is a contentious subject.
Traditional medicine may include formalized aspects of folk medicine, that is to say
longstanding remedies passed on and practiced by lay people. Folk medicine consists of
the healing practices and ideas of body physiology and health preservation known to some in a
culture, transmitted informally as general knowledge, and practiced or applied by anyone in the
culture having prior experience. Folk medicine may also be referred to as traditional
medicine, alternative medicine, indigenous medicine, or natural medicine. These terms are often
considered interchangeable, even though some authors may prefer one or the other because of
certain overtones they may wish to highlight. In fact, out of these terms perhaps only indigenous
medicine and traditional medicine have the same meaning as folk medicine, while the others
should be understood rather in a modern or modernized context.
Similarly, a home remedy is a treatment to cure a disease or ailment that employs certain spices,
vegetables, or other common items. Home remedies may or may not have medicinal
properties that treat or cure the disease or ailment in question, as they are typically passed along
by lay people (a practice that has been facilitated in recent years by the Internet).
Any sociological question is likely going to have a complex answer with many variables that are
not easy to tease apart. We should therefore resist the temptation to make simplistic statements
about X being the cause of Y. We can still, however, identify correlations that will at least inform
our thinking. Sometimes correlations can be triangulated to fairly reliable conclusions.
When the data is complex and difficult to interpret, however, evidence tends to be overwhelmed
by narrative. The recent Sandy Hook tragedy is an excellent example. No one knows exactly why
the shooter did what he did, so it is easy to insert your own preferred narrative as the explanation.
Another example is the phenomenon of so-called complementary and alternative medicine
(CAM). Why has it been increasing in popularity (and is it, really?). Is it slick marketing, relaxed
regulations, scientific illiteracy, a gullible media, or the failures of mainstream medicine? You
can probably guess I think its all of these things to some degree. The most common narrative I
hear by far, however, is the latter if people are turning to CAM it must be because mainstream
medicine has failed them. This version of reality is often promoted by CAM marketing.

The evidence that we have, however, simply does not support this narrative. Studies show
that satisfaction with mainstream medicine is not an important factor in deciding to use CAM,
that CAM users are generally satisfied with their mainstream care, and they use CAM because
it aligns with their philosophy, and they simply want to expand their options.
None of this is to imply that mainstream medicine has no problems or failings it does. We
should, however, be working toward keeping and improving what works and fixing what doesnt,
not discarding science and reason to embrace fantasy as an alternative. This is often the false
choice presented by CAM proponents, and is analogous to creationists pointing out alleged
weaknesses in the theory of evolution as an argument for creationism as an alternative.
We have to acknowledge how deeply the narrative has penetrated and resonated with the public.
Even among those who are generally skeptical, pro-science, and scientifically literate, this is the
default narrative. Further, many people have personal experiences with illness and health care,
and personal experience can have a powerful influence on our beliefs (even if we are generally
science and evidence-based in our thinking). We are apparently hard-wired to find anecdotes
compelling, and nothing is more compelling than our own personal anecdotes.
I recently received an e-mail from a person generally skeptical of alternative medicine. The email begins:
I am a skeptic; have been an active Randi reader for over a decade. I dont believe in
acupuncture, homeopathy, chiropractic, energy healing or virtually any form of snake oil.
But I have had personal experience with alternative medicine.
Thats a powerful but. He then goes on to describe his 20 year experience with back pain. He
was told that he needed surgery for a herniated disc, but was skeptical of this option. I should add
this occurred 20 years ago, and much has changed since then. The e-mailer concludes that the
recommendation was based on the surgeons greed, which certainly may be the case, but even
well-meaning and honest surgeons doing their best to practice according to the evidence were
probably performing too many back surgeries 20 years ago. In the last two decades published
studies have narrowed the range of patients in whom such surgery is deemed appropriate. Like
many such questions in medicine, when to do surgery is complicated and the subject of intense
research.
The e-mailer decided to forgo surgery and opted instead for John Sarnos book onHealing Back
Pain:
I followed his treatment program, which involved completely foregoing standard treatment
(throw away the meds, do serious back exercises etc; because those mainstream treatments

reinforce to the mind that the problem is physical and not psychosomatic, and this perpetuates
the process). Within a couple weeks, I was completely pain free and have been for the past 20
years. I do not accept some of Sarnos hypothesis (that the pain acts as a distraction from
repressed tension) but I am 100% convinced in the underlying cause in my own case; there is
simply no other explanation for the evolution of my pain and how it reacted to treatment (the
pain switching locations, and a number of sensory symptoms that would be impossible for me to
verbally describe to you).
It is clear from above how powerful the experience was for the e-mailer, who is 100%
convinced of his current narrative. There are other possible explanations, however. The e-mail
admits to engaging in back exercises as part of the program. In my opinion, that alone is likely
what resulted in his improvement. In fact that is perhaps the most effective long-term treatment
of chronic back pain, and what I recommend to almost every patient with back pain. The
surgeons I refer to when needed want patients to undergo an exercise regimen before they will
consider surgery (this does not include those with certain neurological complications that require
immediate treatment).
In other words, the e-mailer undertook what is now standard therapy for chronic back pain and it
worked. Everything else is likely incidental and not important. It is the equivalent of telling
someone who wants to lose weight, eat less, exercise, and say my magic phrase once a day, and
you will lose weight because of the magic phrase. This is why we do studies that properly control
for variables. Regarding Sarnos book, my impression is that it takes one possible factor in the
etiology of chronic back pain (psychological stress) and raises that to the cause of back pain.
The e-mailer goes beyond just interpreting his one personal anecdotal experience to make some
broad conclusions about medicine and illness:
Psychological stress. Stress that did not exist 50, 100 or 200 years ago because our society has
become so altered in recent years due to the internet, increased communications and technology.
We as a species see not only the very worst actions of our species on a daily basis, we also are
presented with the very best or most lucky individuals (we see the lottery winner on tv; we dont
see the 100,000,000 individuals who lost) as if it is expected of us. Hence the rise of fame
obsession seen in social media and mainstream media. Be extremely wealthy/famous, or be a
loser There has been no time for our human psyche to evolve to adapt to this stress.
It is very difficult to measure, especially historically, something as vague as stress. What the
psychological literature shows is that stress is relative. We tend to adapt and normalize to our
situation, and find happiness and stress relative to our norm. I think its naive, however, to argue
that people living one or two centuries ago were under less stress that today. They had to deal
with problems that are much greater than our own the death of many of their children, many
more untreatable and common illnesses, harder and longer working conditions, etc. We have it

comparatively easy today, but obviously many people do not realize how relatively brutal life
was in prior centuries (and likely future centuries will look back at how brutal our lives are).
Toxins. You heard me right! Sorry, but if you read the labels of most of the food this nation
consumes (not to mention how it is produced, processed etc) you cannot tell me with a straight
face that it is as healthy as the food of 100 or 200 years ago. Add the water we drink, the air we
breathe that in most cases is worse than in generations past, and there is definitely a problem.
The toxin meme has penetrated far. In terms of industrial pollution, that peaked in the middle
of the 20th century. We have much less pollution today (at least in many developed countries
developing countries are still reaching their peak). Yes, I can say with a straight face that there is
no compelling evidence that the modern diet is less healthy than in previous centuries. In fact,
the modern diet is better in many ways. We have access to fresh fruits and vegetable year round.
We have refrigeration. We have a more varied and nutritious diet. Our problem is one of excess
mainly excess calories. Our food and water supplies are generally safe, safer than in the past.
New York city water is famously pure and good tasting, for example. Water supplies are tested
and treated not so in the past.
He concludes:
I believe one if not the main reason snake oil is so popular with the masses is that there is a
recognition that medical science has failed us. We have wondrous technology, especially the
computerized devices that dazzle us all. Yet, we have no good explanation for the most common
maladies, such as acne, back pain, allergies etc. We have no complete understanding of some of
the most dangerous and common ailments such as cancer or the common cold. That is why, when
you go to a mainstream doctor (and Ive seen my share!) there are dubious diagnoses, and either
more dubious treatments (the ever-so-common prescription for antibiotic comes to mind) It is
sad, but It explains why the public is so gullible when it comes to alternative treatments.
As I pointed out above this is simply not true. The evidence shows that it does not explain
gullibility to CAM treatments. Further, the e-mailer makes the mistake of listing the limitations
of modern medical science and its application as if that implies that it has failed. We certainly
lack a complete understanding of many diseases and symptoms, just as science in general lacks
a complete understanding of just about everything. Our understanding is always partial and
tentative, but can still be quite powerful and predictive. Some things in medicine are understood
very well, and the application is so standardized and effective that people no longer even think
about it. It is the complex and difficult problems that people focus on when discussing the
failures of modern medicine.

This is partly a glass half full or empty issue. There is no question that modern medicine has
many effective treatments that prolong and improve the quality of life. There is also no question
that there remains much we do not know and cannot fix.
The way forward is with science-based medicine, not abandoning science for a fantasy (I know
the e-mail is not suggesting this, only that others follow this logic). While some may commit this
fallacy, most people still respect the role of evidence in medicine and want their treatments to be
evidence-based. In my opinion the big problem with CAM is that its proponents are telling the
public that their treatments are based on evidence, when they arent. They are distorting the
process and findings of science to meet their ideological agenda, and supporting that further will
propaganda meant to confuse the public about the nature of medicine itself. Unfortunately they
have been somewhat successful in causing precisely the kind of confusion they need to sell
implausible treatments that dont work as if they were a viable alternative.
CONTRACEPTIVE PATCH
The contraceptive patch is a lightweight, thin, flexible, beige-colored patch. It has three layers:
the outer, protective, polyester layer; the medicated, adhesive layer; and a protective liner which
is removed prior to applying the patch. The patch can be applied to the skin of the buttock,
abdomen, upper torso (but not the breasts), or the outside of the upper arm. Each patch lasts
seven days. Women replace the patch each week for three weeks, then have a seven-day patchfree week, during which time they begin their menstrual bleeding. During a year of typical use,
eight women will experience pregnancy; with perfect use, only three in 1,000 women will
experience pregnancy. For protection against sexually transmitted diseases, use condoms as well.
Complete information about the patch is available through a clinician or the package insert
accompanying this contraceptive method.
THE ADVANTAGES OF CHOOSING THE CONTRACEPTIVE PATCH
Used properly and consistently, the patch is highly effective at preventing unintended
pregnancy.
It is easy to use, since it needs to be applied only once a week. In addition, the user can
easily verify that her patch is still in place.
It is rapidly reversible, should you decide that you wish to conceive a child.
Because the hormonal mechanisms of action are similar to that of birth control pills,
experts believe the patch may provide many of the same advantages and noncontraceptive health benefits of contraceptive pills, although hard data about long-term
health benefits may not be available for decades.
THE DISADVANTAGES
The patch provides no protection against HIV or sexually transmitted infections. For
protection against HIV or STIs, a woman should use condoms.

Women must remember to change the patch once a week for three weeks and then to
resume the patch after seven patch-free days.
It is difficult to hide and thus offers less privacy than many other contraceptive methods.
The patch is expensive.
The patch must be stored carefully in a clean, cool, dark placenot in a purse or the
glove compartment of a car.
If a patch becomes dislodged and cannot be firmly reattached with ten seconds of
continuous pressure, then it must be removed and replaced.
Women who use the patch are vulnerable to the same health issues that arise with birth
control pills, including increased risk of heart attack and stroke. Women who smoke
should not use the patch.
The patch can cause skin irritation, redness, or rash.
The patch can cause breast tenderness, vaginal spotting, and/or temporary interruption of
menses. These side effects usually disappear within the first two cycles of patch use.
The patch is less effective in preventing pregnancy among women who weigh more than
198 pounds.
For that reason in some region new methods of medicine like Patches are most acceptable.
Question no 3: Access the importance of multidisciplinary teams in design and delivery of
pharmaceutical product.
Answer: The delivery of healthcare in the UK is a complex process. Often a number of HCPs
will be involved in the care of groups of patients or individuals - each making a contribution
commensurate with his/her competence. Pilot work has shown that the multidisciplinary team
(MDT) can mean different things to different people. For some the team is defined by its purpose
(e.g. patient specific, where the MDT consists only of those directly involved with a certain
patient), for others the team is context-based (e.g. all HCPs who work in a particular practice).
While hospital pharmacists will tend to have relatively stable MDTs and a clear role directly
working with other HCPs on regular ward rounds and specialising in a particular clinical area
community pharmacists are likely to be working remotely and may not have a clearly defined
team to call upon.
Quinlan and Robertson (2010) suggest that in most industrialized countries healthcare has been
delivered according to the solo practice model where boundaries between the knowledge and
skills of different HCPs are acknowledged and maintained. They suggest that the
multidisciplinary model of healthcare delivery may disrupt those boundaries and lead to role
ambiguity. In a national research project of team effectiveness in the NHS, Borrill and colleagues
concluded that effective teamwork is dependent on the full involvement of all team members:
they must all understand how the team works and be committed to common goals. Quinlan and
Robertson (2010) further proposed that mutual understanding is an essential element of MDT
working but that this only comes with time and that mutual understanding ebbs and flows
during the course of the team members interactions. Inherent in what Quinlan and Robertson
(2010) describe is the notion of support both for the team itself, by the organisation in which it
functions, and for the individual members of the team, giving mutual support to each other. It is
only when this is achieved that each individual can function as an effective member of the team,

with their unique skills and knowledge being recognised and respected by other team members.
This links to Bryant et als suggestion that understanding of the CPs capabilities and role is
required in order to support the extension of the CP role.
It seems possible therefore that integration of the CP into the primary care MDT may act as a
support mechanism for the extension of the CPs role. In an effective MDT all team members
will understand their own and others capabilities and roles and thus be better able to share
information effectively, refer patients to the most appropriate HCP and recognize when and how
other team members may need help

Discussion Questions:
1. How far are the key determinants of national culture likely to vary from one country to
another?
Answer: We know culture is the entire set of social norms shaping human behavior. Culture
varies from one country to another country. There are eight key determinants of national culture
that vary from one country to another. The eight key determinants are given below:

Language
Religion
Education
Attitudes and Values
Customs
Aesthetics
Social institutions
Material elements

Now i will discuss how these determinants of national culture likely to vary from one country to
another:
1. Language: Language is a system of words and symbols used to communicate with other
people. This includes full languages as we usually think of them, such as English, Spanish,
French, etc. But, it also includes body language, slang, and common phrases that are unique to
certain groups of people. For example, even though English is spoken fluently in both America
and Britain, we have slang and phrases that mean different things. American French fries are
British chips; American cookies are British biscuits, and so on.
Another example of how cultural languages differ beyond vocabulary is the fact that eye contact
represents different meanings in different cultures. In America, eye contact suggests that you are
paying attention and are interested in what a person has to say. In other cultures, eye contact may
be considered rude and to be a challenge of authority.

2. Religion: Religion sets the ideals of life and thereby the values and attitude of individuals
living in a society. Many international companies ignore the influence of religion. Most cultures
find in religion a reason for being. It is important to identify the difference between the shared
beliefs, for example, in Islam, Buddhism, or Christianity. An example of the effect of religious
beliefs on international marketing is the ban of pork products and alcoholic beverages in the
Middle East. The international market manager must be aware of religious division in the
countries of operation.
3. Education: It is significant for international firms are to know about the educational system of
a country. The level and nature of education can have a major impact on how receptive
consumers are to foreign marketing activities.
4. Attitudes and Values: Values and attitudes can affect reaction to a product or to its origins.
For example, a firm using yellow flowers in its logo or on the packaging of a product was well
accepted in the United States but was a disaster in Mexico, where a yellow flower symbolizes
death or disrespect. (Kotler and Armstrong, 1999) An international company needs to understand
the differences in values and attitudes within the country.
5. Customs: Customs and manners vary from one country to another. For example, in this case
we can see that Germans are like to use injection/vaccine, the British and Americans are like to
use tablet, and rest of the world in powder or liquid form.
6. Aesthetics: Aesthetics refer to the ideas in a culture concerning beauty and good taste as
expressed in the arts -music, art, drama and dancing and the particular appreciation of color and
form. African music is different in form to Western music. Aesthetic differences affect design,
colors, packaging, brand names and media messages. For example, unless explained, the brand
name FAVCO would mean nothing to Western importers; in Zimbabwe most people would
instantly recognize FAVCO as the brand of horticultural produce.
7. Social institutions: The social systems are different in every country, for example the family
relations, the social stratifications, the interest groups and the status in a community group.
Social organization also determines the roles of managers and subordinates and how they relate
to one another.
8. Material elements: Material culture refers to tools, artifacts and technology. Before
marketing in a foreign culture it is important to assess the material culture like transportation,
power, and communications and so on. If we see this case we can find that capsules are more
popular to those countries instead of Islamic and Jewish countries.
Question 2: What is the relevance of Hofstedes work on companies ability to do business
in different countries?
Answer: Hofstedes study surveys 117000 employees in 88 countries and suggests that cultural
diversity among nations has four dimensions. They are:
1

Individualism vs. collectivism (IDV): This index explores the degree to which people
in a society are integrated into groups. Individualistic societies have loose ties that often

only relate an individual to his/her immediate family. They emphasize the I versus the
we. Its counterpart, collectivism, describes a society in which tightly-integrated
relationships tie extended families and others into in-groups. These in-groups are laced
with undoubted loyalty and support each other when a conflict arises with another ingroup.
Masculinity vs. femininity (MAS): In this dimension, masculinity is defined as a
preference in society for achievement, heroism, assertiveness and material rewards for
success. Its counterpart represents a preference for cooperation, modesty, caring for the
weak and quality of life. Women in the respective societies tend to display different
values. In feminine societies, they share modest and caring views equally with men. In
more masculine societies, women are more emphatic and competitive, but notably less
emphatic than the men. In other words, they still recognize a gap between male and
female values. This dimension is frequently viewed as taboo in highly masculine
societies.
Power distance index (PDI): The power distance index is defined as the extent to
which the less powerful members of organizations and institutions (like the family)
accept and expect that power is distributed unequally. In this dimension, inequality and
power is perceived from the followers, or the lower level. A higher degree of the Index
indicates that hierarchy is clearly established and executed in society, without doubt or
reason. A lower degree of the Index signifies that people question authority and attempt
to distribute power.
Uncertainty avoidance index (UAI): The uncertainty avoidance index is defined as a
society's tolerance for ambiguity, in which people embrace or avert an event of
something unexpected, unknown, or away from the status quo. Societies that score a high
degree in this index opt for stiff codes of behavior, guidelines, laws, and generally rely on
absolute Truth, or the belief that one lone Truth dictates everything and people know
what it is. A lower degree in this index shows more acceptances of differing
thoughts/ideas. Society tends to impose fewer regulations, ambiguity is more accustomed
to, and the environment is more free-flowing.

Question 3 How much do different religions affect commercial and business relationships?
Answers: Religion is another elements of culture. It sets the ideals of life and thereby the values
and attitude of individuals living in a society. Hinduism, Judaism, Buddhism, Christianity, and
Islam. All five of them are also referred to as world religions either because of their geographical
dispersion or the number of adherents. These religions affect commercial and business
relationships.

Hinduism
Hinduism proclaims four legitimate aims of life: dharma, artha, kama, and moksha. These
translate roughly into righteousness, economic wellbeing, pleasure, and salvation. Every Hindu
is free to pursue these aims as long as he or she also fulfills his or her dharma. The dharma is
comparable to the Ten Commandments and offers guidance for the religious as well as social life.
It is important to notice that the dharma changes from caste to caste and also during an
individuals life. The dharma gives everyone the right to pursue economic gains and therefore

every individual is also capable of achieving economic well-being. This market-oriented view of
Hinduism finds its limits when it comes to the caste system. Depending on the counting measure
one can count up to several thousand castes. Each caste preserves its identity by following a
strict and complex set of rules. A Hindu is born into a certain caste and changing caste is nearly
impossible. Castes are often defined by the profession of their members. Accordingly, there are
one or several castes (in the case of India mainly the castes of Agrawal and Aroras) responsible
for goods trade.
Buddhism
Buddhism does not include explicit guidelines for economic behavior. However, the social ethic
of Buddha touches several times on economic issues. For example, Buddha did not allow the
monks and nuns to take money as donation. All donations have to be given in kind and the
donors receive religious instruction in exchange. In his context, he also calls for direct economic
relations between men, without the intermediation of money. The total number of economic
relations should also be limited. Only if men are able to keep track of their economic relations is
the stability of the whole system guaranteed. An important principle of Buddhism is the principle
of interdependence. Life should be perceived as an inextricable web in which nothing can claim
separate or static existence. Humans form an integral part of this system, but are not supposed to
dominate nature (unlike the claims of Christianity). The resources should therefore be used
according to the principles of sustainability and provision of all species. Differences in ability
and wealth are respected as long as the interests of all participants are maintained. Buddha asks,
however, to restrict the acquisition of wealth to the necessary, otherwise the attainment of
enlightenment risks preclusion.
Christian
Christian economic thinking recognizes the market system, but places some constraints on it
which are defined by Christian ethical standards. Trade is not treated explicitly and probably
seen more as a necessity than a contribution to the economic well-being.

Islam
Concerning trade, the Islamic view differs substantially from the Christian one. Whereas for
Christians trade is a necessity that does not add value to the commodity traded, in Islam trading
is considered as important as producing. It is argued that without the exchange of goods,
production would be worth much less. This trade favoring position is pronounced explicitly in
several passages of the Koran. Sura 4:29 warns to keep exclusive control over personal property
and postulates let there be amongst you traffic and trade by mutual goodwill. However, trade is
not seen as beneficial per se. It has to obey rules, most importantly honesty. The Koran
condemns any attempt to deceive or to cheat in economic transactions. Furthermore, Muslims
should only get involved into trading when they are able to take responsibility for the quality of
the traded good. Islam is a very trade friendly belief. Trading is explicitly recognized as welfare
enhancing for both parties. In contrast to the Christian belief, concerns of equity in trade
relations are not addressed.

Again Confucian thought believes in rigid organizational structure and unanswering reverence
for authority. Most of the Koreans believes that they do not question strict chains of command.
The application of this philosophy among Korean subsidiaries in western countries has led to
high-profile dispute. Yet again, Shinto, a native religion of many Japanese gives importance to
ethics, patriotism and loyalty. This is one of the reasons behind success of Japanese firms abroad.

Question 4 Does a World Culture exist? If so, what are its advantages and disadvantages?
Answer: It is not surprising that there are divergent views on the issue. In the light of this view, a
world culture refers to a culture whereby the symbols and relationships in the environment have
the same relevance and meaning for every person across the globe. It is apparent that there are
several limitations regarding the view that a world culture exists. A global culture is inexistent;
rather, the current state of culture can be viewed to be a form of interweave between various
cultures with each having its unique value systems and lifestyles. The very nature of a world
culture is that it promotes the development of individual cultures, which serves as the antithesis
of a world culture existing through homogeneity.
Advantages of World Culture
A Respect for Other Cultures: The biggest benefit that can be brought from the idea of cultural
relativism is the universal respect for different cultures and countries around the world. The
belief that one person knows what is right, and that is the only way it is, isolates and
discriminates against people who believe differently.
Excusable Actions: With cultural relativism, nearly any action that is made can be passed off as
a cultural difference. While this may seem like a con, there are certainly pros to it. There is an
overwhelming amount of ideals in this world, and with social and other types of media, even the
smallest action is made into a worldwide spectacle and debate. Understanding cultural relativism
will help to alleviate much of this unnecessary debate.
Preserves Cultures: Many times, culturally traditional things begin to shift and change in order
to appease the world view of said culture. With cultural relativism, these traditions can stay in
place. Tradition, of course, is the root of many cultures.
Disadvantages of World Culture
Some Actions Are Not Excusable: Many cultures use the theory as an excuse of appalling
actions. Things such as extreme violence, crimes against children, domestic abuse, and many
other things are overlooked and passed off as culturally acceptable, when in reality, they are
not.
No Judgment Is Still a Judgment: By saying that no moral judgment can be passed on any
culture is truly a bias in itself. People begin to feel hostile because even if they deeply disagree
with a cultural practice, there is seemingly nothing that they can do about it.
Good and Bad Is a Strange Concept: Determining what is deemed good and what is bad is an
impossible thing. Each individual person, and not culture, has a different opinion on that. There

is no one person who can deem morals to be correct or wrong. This is easily the biggest and most
argued flaw with the idea of cultural relativism.
Question 5 What benefits would a universal language have on International Business?
Answer: Benefits having a universal language like English. English is now the global
language of business. More and more multinational companies are mandating English as the
common corporate languageAirbus, Daimler-Chrysler, Fast Retailing, Nokia, Renault,
Samsung, SAP, Technicolor, and Microsoft in Beijing, to name a fewin an attempt to facilitate
communication and performance across geographically diverse functions and business
endeavors.
Competitive pressure:
If I want to buy or sell, you have to be able to communicate with a diverse range of customers,
suppliers, and other business partners. If youre lucky, theyll share your native languagebut
you cant count on it. Companies that fail to devise a language strategy are essentially limiting
their growth opportunities to the markets where their language is spoken, clearly putting
themselves at a disadvantage to competitors that have adopted English-only policies.
Globalization of tasks and resources:
Language differences can cause a bottlenecka Tower of Babel, as it werewhen
geographically dispersed employees have to work together to meet corporate goals. An employee
from Belgium may need input from an enterprise in Beirut or Mexico. Without common ground,
communication will suffer. Better language comprehension gives employees more firsthand
information, which is vital to good decision making. Swiss food giant Nestl saw great efficiency
improvements in purchasing and hiring thanks to its enforcement of English as a company
standard.
M&A integration across national boundaries.
Negotiations regarding a merger or acquisition are complicated enough when everybody speaks
the same language. But when they dont, nuances are easily lost, even in simple e-mail
exchanges. Also, cross-cultural integration is notoriously tricky; thats why when Germanys
Hoechst and Frances Rhne-Poulenc merged in 1998 to create Aventis, the fifth largest
worldwide pharmaceutical company, the new firm chose English as its operating language over
French or German to avoid playing favorites. A branding element can also come into play. In the
1990s, a relatively unknown, midsize Italian appliance maker, Merloni, adopted English to
further its international image, which gave it an edge when acquiring Russian and British
companies.