Case 4

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Read the following case and answer the questions given.

With the world getting more like a single marketplace, the cultural barrier has become one of the most
talked-about problems in doing business worldwide. It is, however, very interesting to note that cross-
border transmission of culture is very rampant.
Many politicians, sociologists and others are highly critical of the invasion of the Western culture in
developing countries. The export of American culture is interpreted as means to spread American
imperialism. The Coca Cola culture or the corn flakes culture or the pop culture the term which has come
to be very broadly used to include, besides pop music and associated thing, western products and styles
such as foreign jeans, cola drinks, fast foods, Hollywood movies and the like for which the youth
particularly are crazy about, has fast spread to the developing countries. The emergence of culture as
economic goods that can be traded in crafts, music, films, TV programs, software, books, tourism, etc. -
has contributed very substantially to the globalization of culture. A UNESCO study shows that world
trade in goods with cultural content-printed matter, literature, music, visual arts, and cinema and
photographic, radio and television equipment- has grown tremendously. For the United States, the largest
single export industry is not aircraft, computers or automobiles - it is entertainment, in films and
television programmes. Hollywood films grossed more than $30 billion worldwide in 1997, and in 1998 a
single movie, Titanic, grossed more than $1.8 billion.
As the Human Development Report 1999 points out, the vehicles for this trade in cultural goods are the
new technologies. Satellite communications technology from the mid-1980s gave rise to a powerful new
medium with a global reach and to such global media networks as CNN. The development of the Internet
is also spreading the culture around the world through an expanded telecommunications infrastructure of
fibre optics and parabolic antennas. The report points out that the global market for cultural products is
becoming concentrated, driving out small and local industries. At the core of the entertainment industry-
film, music and television there is a growing dominance of US products, and many countries are seeing
their local industries wither.
Questions:
1. What could be the reasons for the adoption- particularly by the youth of the 'pop culture?
Substantiate your answer with examples from the case.
2. Based on the above account, explain how difficult a barrier the culture is in managing the
business as the world has increasingly become a single marketplace.
3. What are the implications of the spread of 'pop culture business worldwide? Explain.
4. Discuss the specific environmental changes that the 'pop culture' has bought about in Nepal's
socio-economic business circuit.

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