Understanding the Cultural Environment

  1. Objective 4-4 Explain the role and importance of the cultural environment in international business.

A major factor in the success—or failure—of international business activity is having a deep understanding of the cultural environment and how it affects business. As mentioned earlier, Disney’s Hong Kong theme park struggled after it first opened, in large part because Disney made the mistake of minimizing all elements of Chinese culture in the park—essentially making it a generic miniature reproduction of the original Disneyland in California. Disney also confused potential visitors with ads showing a father, mother, and two children walking hand-in-hand toward the theme park, overlooking China’s laws ...

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