Religion Impact on International Business Practices

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Religion Impact on International Business Practices

Summary

Religion is defined as a system of morals and practices. Many studies have been carried out to ascertain the interrelationship between religion and business. As the world’s economy is developing, trade between countries is also growing at a fast rate. There is an increased exchange of goods and services both economically and culturally. The paper will describe the different ways that religion influences international business practices. I have used help of a professional writing service to perform it (read essay writer review). The primary focus will be on the five dominant religions practiced in the world: Christianity, Hinduism, Islam, Buddhism, and Judaism. The main issue will be how religion influences business management. For example, how the managers practice their business, the rules they follow, how business ethics and guidelines can be attributed to their religious beliefs and practices. Language is an essential part of commercial transactions and religion too. It is needed for negotiation and sharing of ideas. It affects payment, delivery of goods, and prices. Sharing of a religious culture may facilitate the formation of trade networks. Personnel contacting business should be informed about the religious beliefs that specifically affect operations. Religious heterogeneity is considered a primary factor that impacts on the stability of international business transactions. Religion affects the political structure of a country and, therefore, people intending to participate in international trade and business should consider the impact of religion as part of political risk analysis. No particular religion is deemed to affect productivity better than the other, and, thus, it depends on how the particular belief influences the social aspect of life. It is evident that religious sharing and openness improve business performance among countries.

Introduction

The exchange of goods and services is not an independent activity but always takes place through the interaction of many factors such as culture. It is true to say that the more trade occurs between countries, the more inter-cultural interactions between the states are necessary[ CITATION LiN08 \p 774 \l 1033 ]. Culture can be defined as behavior of humans that determines the way they live and interact with others. It includes ideas, language, beliefs, customs, rituals, and ceremonies that are a characteristic of religion. Language is not only mean of communication, but it also carries feelings and expression of ideas. It is the primary element that separates people into groups such as the religious groups in the world. It is due to this fact they share different beliefs on the supernatural beings. They, therefore, hold their particular belief and practices that have been seen to influence the buying and selling capacity together with the consumption patterns[ CITATION Raw06 \p 65 \l 1033 ]. Religion matters in business as it is more influential and determines the humans’ behavior. Religious beliefs carry the rules that guide one living, for example, the Islam religion forbids the consumption of pork, and thus one cannot export pork to Muslim countries. They also influence institution and business setups and; therefore, and it is logical to conclude that religious beliefs impact economic exchange[ CITATION Dra07 \p 94 \l 1033 ]. No particular religion is trade-promoting than the other. In analyzing the implications, one has to consider which products religion has more part to play than the other groups, the entrepreneurs’ response on the role of the faith, and the influence on the economic development[ CITATION Bra07 \p 332 \l 1033 ].

Impact on the Trading Behavior

Having the same religious beliefs and culture implies sharing similar values and thus facilitates the formation of trade networks. A universal religion enhances trust between the trading partners and the ultimate goal is a reduction in the transaction costs. Once the international markets build a rapport and trust with one another, the trade patterns are made easy, and trade barriers are removed from the markets. The costs of imports and exports are subsidized. As a result, the business volume between traders of the same religion is higher than transactions between different faiths. Christian’s economic thinking recognizes the market systems but sets up Christian ethics that places constraints on it. Business practices such as trade are considered as a contribution to the economic well-being but not a necessity. They only make an international trade with countries where there is no likelihood of practicing illegal business activities that compromise their religion. The trading partners are guided and governed by Christian ethics and codes of practice[ CITATION Gia03 \p 87 \l 1033 ]. Islam holds a trade-friendly belief. The business transaction is viewed as welfare enhancing for both parties. They do not consider equity in business relations as it is the case with the Christians[ CITATION Bra07 \p 335 \l 1033 ]. Moreover, the Buddhists are flexible and diversified. The trust effect is reduced. It is true that the aspect of international business practices is not embraced neither is it taken positively, therefore, Buddhist countries may be reluctant to engage in foreign trade[ CITATION McG12 \p 645 \l 1033 ]. Judaism provides an appropriate framework for the economic exchange, an incentive to build up international trade relations without discrimination of Jews and non- Jews. It is evident that their religious beliefs impact positively on business practices[ CITATION Fer06 \p 23 \l 1033 ]. Lastly, the Hinduism has an ambiguous stand towards international trade. Trade is limited to a reserved caste. As a consequence, there are high transaction costs experienced that make it difficult for other religions to find an appropriate Hindu business partner[ CITATION Raw06 \p 68 \l 1033 ].

Impact on Trade Networks

Religion creates networks that facilitate sophisticated international trade practices. This applies in the situation where other supportive governments and social institutions are missing. Trade networks play a significant role in economic transactions. For example, Ensminger discusses how the Islamic businessmen created systems in the Mediterranean and North Africa regions. The religious sects and groups provide a social guarantee that substitutes the formal government institutions to enforce contracts[ CITATION McG12 \p 650 \l 1033 ]. The networks might minimize or maximize the international transactions; they can create or divert trade because of their exclusive nature. Systems that encourage sharing of religious beliefs and values may discriminate against non-believers or people of different religious background. This is a potential danger to international trade because it may divert away partners with highest trade benefits[ CITATION Gia03 \p 90 \l 1033 ]. The sharing forums have been increased due to the advancement of technology with the availability of the internet that has made the world a global village. The networks have been made inclusive, and this has caused a significant positive effect on internal business practices[ CITATION LiN08 \p 780 \l 1033 ].

Impact on Consumption Patterns

Religion has an enormous influence on the consumer utilization of goods and services. International trade practices involve imports and exports from one country to another. The commodities must be readily acceptable and used in the partner country. Project personnel employed to perform international assignments must be aware of the religious beliefs and details that may affect their business operations[ CITATION LiN08 \p 781 \l 1033 ]. For example, religious holidays may change the product schedule. In Israel and when it is the period of Passover, no commodity with yeast should be supplied. Also, during the fasting period of Muslims, foods and especially perishable one cannot be traded because the consumption is small. The Muslims do not consume pork; therefore, one cannot engage in international practices of exporting pork to Muslim countries[ CITATION Con04 \p 390 \l 1033 ]. Religious leaders can organize social movements that may change a company’s activity. Centralization may be a factor contributing to political activism[ CITATION Gia03 \p 93 \l 1033 ]. The partner country should consider the political stability of a country before engaging in international trade. Instability causes wars and conflict and thus reduced economic growth. No country will be willing to invest in a state that is under constant attacks because the consequence of taking such a risk is financial losses and property destruction[ CITATION Fer06 \p 25 \l 1033 ].

Impact on Political Institutions and Law

The government is the primary organization that determines business interactions and the association between countries. The political institutions stipulate laws and regulations of trade. It gives incentives and subsidies that help promote international transactions[ CITATION Dra07 \p 100 \l 1033 ]. The government works together with the religious personnel to make laws that are in line with their religious practices. For instance, Sharia law is predominant in Islamic countries. These laws regulate their private and public aspects of their life. The law prohibits collection and payment of interest, usury, gambling or trading in financial risk. Moreover, it does not approve investing or engaging in businesses that are considered unlawful such as those selling pork, pornographic dealers, drug and alcohol trafficking. The same applies to the Christian laws. These prohibitions limit the international businesses from venturing in such countries[ CITATION Fer06 \p 27 \l 1033 ]. There is a need to overcome these limitations since business transactions should not be restricted by laws rather than the needs and preferences of the consumers. Many government institutions have shown greater concern in hosting and accommodating a variety of religions[ CITATION Dra07 \p 101 \l 1033 ]. In countries where there are minority religious groups, they should not be discriminated in their influence on the international trade. The religious societies should be integrated into the world economy where they should be encouraged to share their beliefs that may foster international networking. International agencies should include religious aspects in their development plan and approaches. Tolerance and religious openness should be incorporated in the development goals of the international business units and organizations[ CITATION McG12 \p 670 \l 1033 ]. The government and the religious groups should reinforce a dialogue to improve the mutual understanding between the trade partners.

Conclusion

Religion and business are interrelated disciplines that are critical to international trade practices. One cannot do without the other. Religion impacts business a lot from management level to ways of operations. The business managers and the entrepreneurs have shown to be practicing their business operations and activities by being guided by their religious values, morals, and ethics. The trading patterns are influenced by the different practices and religious beliefs the people hold. The networks created especially when people have similar religious views have created trust and openness in business that has boosted the international trade operations. The laws and regulations governing the religious groups have helped them to operate and sell within the government jurisdiction. This has built political and economic stability which are the main factors that favor international business practices.

Cross Cultural differences and Advertisement

Cross_Cultural_differences_and_AdvertisementCross_Cultural_differences_and_Advertisement

According to Usunier and Lee (2013, p. 77): “Language in advertising is not only used to communicate the literal meaning; it is also used to convey a very rapid understanding or evoke a mood or emotion”. Bearing this quotation in mind, provide three examples of products/services that may not be appropriate to advertise and explain why this is the case

People converse through language, which is dependent on culture and believes. Linguistics is used by a society to keep and preserve secrets. New generations in every community are taught the norms through a common language for easier understanding and assimilation. However, due to the differences in culture, the language used by communities in communication differs. Some words used in one community have a different meaning in another. Cultural practices accepted in one religion may be deemed immoral in other religions (Diamond, 2011, p. 43). For instance, Christianity may accept some conducts from believers such as women dressing in trousers, which is strictly considered as male clothing. Due to diversity in culture across the world, companies marketing their products should understand the way of life of people in different regions before embarking on distribution and selling of products. The words they use as brand names may have a negative impact to potential buyers in the community. In addition, the information contained on the seal to illustrate the product use and attract people into purchasing the product may elicit positive and negative reactions in different communities. The pictures on products should also be used intelligently after research to ensure they are morally and culturally acceptable in the communities of interest. The pictures are subject to interpretation in different languages, which evoke different meaning, emotion or mood. Language shapes the culture of a community (Usunier, & Lee, 2013, p. 78). Therefore, it is important to analyze research from scholars and illustrate examples of goods whose advertisement should not be carried out in some parts of the world due to cross cultural differences characterized in linguistics.

Literature Review

The director of sales in Ethnic Technologies Organization that is based in the U.K. argues that products should be advertised with the name of manufacture in the country of origin. However, at expansion of the business to reach external markets, the brand should be given different names in relation to the cultural norms of the country of interest (Burgos & Burgos, 2014, p. 177). The director, Karen Sinisi adds that many products that use one brand name across the globe are prone to reduced sales in the long run. The marketing managers of every firm should study the local community and realize the accepted norms before choosing a new name or advertising image of a product.

Dr. Cesar Tavelas, the multicultural marketing manager in ADCOLOUR industry presented an argument in 2013 that manufacturers should have global employees in the marketing field. The marketing team should comprise of people from varied religious and cultural backgrounds to provide the company with the appropriate names for brand products and pictures for the product cover. This could reduce poor reception of products in certain regions. According to him, a product can have a single name, which is acceptable in most cultures globally (Toffoletti, 2015, p. 126). His argument is based on the possible ways of reducing expenditure on finding new brand names in every community for a single product.

Scott Ehrlich, who also writes for a popular essay writing service, presented an argument in the 3rd multicultural health marketing forum that manufacturers experience low sales from particular regions in the globe due to poor advertising strategies and the brand names. The companies should consider conducting prior research on brand name before engaging in advertisement. According to him, the products that are locally manufactured tend to have more sales and attract the attention of buyers with minimal advertisement (Hornikx, Meurs & Starren, 2007, p. 54). Therefore, international manufactures distributing their products in new regions should have knowledge on the language of the people in the region, which reflects their cultural beliefs.

Examples of Products that may not be Appropriate to Advertise

In the market, there are products that are subject to reduced sales in case of advertising with the initial brand names (Grin, 2011, p. 270). The products may have a positive impact to the lives of the people globally both health and economically, but the difference in cultures affect its reception and peoples willingness to use it.

  1. Gerber Baby Food

For instance, Gerber, which is a type of baby food produced in the U.S., should not be advertised globally due to the brand name and word explanations used on the cover. The words are in English and can only be read by illiterate people to interpret the product use and its name. If the product is sold in Africa, which is a continent comprising of many illiterate people, there will be poor reception and thus low sales (Lum, 2013, p. 39). Illiterate people will not be able to read the word descriptions on the cover of the product in order to buy and use it effectively. Advertising the product with an intention of increasing awareness may have low impact on potential buyers since only a limited number of customers will be reached. Instead, the company should incorporate a more appealing and easier to interpret cover information. A picture in this case will be appropriate to illustrate the use of the product and its benefits to the baby’s body.

Traditionally, the Africans preferred breastfeeding their young children as the major stable food. Thus, majority of the African communities may disagree with the new product that seems to substitute breast feeding (Johnson, Elliott & Grier, 2010, p. 194). Illiteracy is proportional to the economic background of a country. Therefore, with the high rate of illiteracy in the African continent, the people may have a negative attitude towards certain substances that are mare comforts in their lives. They tend to believe that products that have lengthy explanation in words without illustrator pictures are meant for the high social class in the community. Therefore, they ignore the products having the notion that there are right buyers irrespective of its use and benefits.

In some communities, the name Gerber may have a different meaning from that in English. Therefore, the product will substantially be used wrongly by the few buyers that will give a negative feedback (Kelly-Holmes & Atkinson, 2007, p. 38). In other situations, the name may lack a sensible meaning. Thus, the people from such a community ignore the product. Advertisements meant to improve the sales and awareness of the product may not be productive due to a senseless brand name and most people may not give attention to the adverts. For instance, in Arabic communities, the name Garber does not have a meaning. Thus, the people will not be interested in listening to the adverts for the product nor will they be willing to try the product. There are substitutes for the product that are manufactured locally in the Arabic countries with meaningful brand names. Thus, they will be glad to choose their common brand over the new product that does not have a meaningful name (Korzenny, 2001, 173). Advertising the Garber baby food in search for a new market in some regions may attract negative feedback and low sales. Thus, the company should invest in finding acceptable and common names in every community before they invest in advertising the product.

  1. Mist Stick

Clairol Company deals with hair products, which have been branded different names. For instance, the Mist stick that was introduced for curling hair may not be appropriate for advertising globally (Rothlauf, 2013, p. 12). The name has a different meaning across the diverse cultures in the world and lacks one in other communities. In Germany, the product may not have a positive reception despite its beneficial use in rolling hair. The Germany culture interprets the word ‘mist’ as manure, which substantially lacks use to many people. Therefore, potential clients will not buy the product due to the wrong interpretation that it is mare manure. People with a use for manure in Germany may end up tasting the product with their crops and give a negative feedback due to inappropriate use.

English speaking countries may have a different interpretation on the meaning of the brand name. To them mist simply means fog. Thus, they will associate the use of the mist stick to the fog, which does not make sense (Johnson & Grier, 2013, p. 233). The product will have low sales in the English speaking nations. In the Muslim culture, women are not supposed to show their hair in public. Therefore, having a picture on the product brand with a woman showing her curled hair may elicit negative reaction. The women will not be willing to forsake their culture in the name of a product (Williams, 2004, p. 207). It may be ignored in the Middle East communities due to the many Islamic believers that consider showing hair in public as immoral.

Advertising the product in the African countries may generate mixed reactions due to varied cultures that may be determined by other factors such as economic standards. Most Africans range in the mid and low income levels (Kim, & Chung, 2001, p. 68). Therefore, making their hair is a secondary want, which may result to unwanted expenses. Many people will avoid the product due to low economic standards. Advertising the product in the African continent may receive a negative feedback on the sales due to the fact that Africans will regard the promotional language out of context (Villamora, & Basch, 2003, p. 87). It may be regarded to have more impact to the high social class people with extra income or resources to spend on beauty. Clairol Company should consider using another name for the product while advertising the product in Germany and cease its promotional activities in countries that are populated by Islamic believers.

  1. Vicks

Cough drops have a name Vicks, which was manufactured to help in rubricating the troth and stop coughs (Swiger, 2010, p. 79). However, the name ‘Vicks’ may not be used in Germany due to its associated meaning. The letter V is pronounced as F, which makes the word to have a new meaning of ‘sexual penetration.’ Many people cannot morally accept to be associated with such a product due to the name. According to the Germans, the product is associated to sexual intercourse and others may think it is a contraceptive or a family planning tablet.

With associated meaning, the product elicits a mood that Vicks is meant for prostitutes just like other contraceptives (Stern, 2014, p. 5). In case an individual is having a sour troth and referred to buy Vicks, they may be irritated as it will be a form of insult. The product also lacks a picture from the outside to illustrate the specific use. Therefore, getting rid of the people’s literal interpretation on the product use will be difficult. Other people may know the actual meaning and intended use as per the manufacturer, but will not be willing to purchase a drug with a name that literally means ‘sexual penetration.’

The Germans comprise of Christians that regard sexual activity as sacred and should not be pronounced in public (Precourt, 2010, p. 252). Therefore, in case one is having a cough and the shop is filled with customers, he or she will not be able to pass the message to the seller in relation to type of drug he/she needs. The other customers may scold or have an immoral interpretation on the individual’s social conduct. Sellers in the country may also be unwilling to avail the product in their shops due to the negative impact it may have on the sale of other products. They need to protect the image of their businesses in the society in order to be able to have more customers.

The description on the Vicks product is written in English, which can only be read from the left to right. However, this does not take into consideration of the Arabic speaking communities who read from the right to left (Martin, 2014, p. 170). In this regard, the Arabs may construct a wrong meaning on the product description since it is written in English and from left to right. It may also elicit emotions of inter-religious interests. This is due to the fact that majorities of Arab speaking communities are Muslims. They may consider this as a discriminatory product in terms of religion and thus avoid it at all cost.

Other communities that do not speak English may also lack interest on the product due to their lack of knowledge on the product use and meaning of brand name. For instance, the French speaking communities may ignore the product (Mueller, 2009, p. 68). They may regard it as a product meant for the English speaking communities. Advertising the product in such communities may result to negative feedback on sales since they regard the product as an English speaking community product. They will opt for substitute products in their country with a brand name and description in a language of their context.

Conclusion

Language shapes the culture of a community. In order to understand new cultures, one should be ready to learn the language of the community of interest. In advertisement, marketers should consider the diverse cultures across the globe before they embark on launching products in new regions. Some products may not be appropriate for advertisement due to the emotion, mood or rapid understanding they may evoke. For instance, products that are unacceptable in the Muslim culture may be accepted in communities that embrace Christianity.

Incorporating employees from different cultural backgrounds to assist in choosing a brand name for a product is crucial. The marketing and blending teams should collaborate in designing the cover of products with minimal interference from the management. Products with a use that may undermine the culture of a community should not be advertised in certain communities (Taylor, 2002, p. 88). For instance, the Mist Stick cannot be appropriate to advertise in the Middle East Countries due to the majority Islamic communities that regard public showing of women hair immoral. Therefore, language should be considered as an important aspect in product advertisement and used effectively in determining areas of potential market globally.

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