Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

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Culture Effects on Business
When business transactions are conducted internationally, cultural differences must be taken into consideration. Geert Hofstede is a leading researcher on how cultural variables can affect such international arrangements. Hofstede has a website where he is quoted as saying:
For those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that "deep inside" all people are the same-but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country-the chances are we'll make some very bad decisions.
Go to Hofstede's website ( www.geert-hofstede.com ) look under "national culture" and use the "applications" tab to find an example of how business dealings can be hindered by a lack of understanding of cultural differences.