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IBO001 International Business Environment Assignments Solution
Trade and transactions between two global boundaries or between two companies from different nations can be termed as execution of international business (Internationalrelationsedu 2013). Global business comprise of the commercial learning activities that are executed for exchanging the goods, services, people, ideas etc. across national boundaries. The below presented analysis is focused on the impact of South Korean religion on entrepreneurs.
Impact of religion in South Korea
A change in region brings changes to the culture and this is due to the influence from the religions, custom, tradition and norms. In a country like South Korea, a lot of significance is given to culture which is very unique; people practice their culture in their daily live and in fact in their business behavior, especially when the deal is with foreign companies. On the basis of the research conducted it has been noted that South Korean markets are found to be the most favorite places for making foreign direct investors (Lee 2012). There are some more factors that make the markets more appealing such as the country’s flourishing economy, liberalizing market-place and wide-spread use of English language in business. But still there are some vital cultural alterations and challenges that are required to be considered while thinking of business. Maltbie Babcock has said, “Business is religion, and religion is business. The man who does not make a business of his religion has a religious life of no force, and the man who does not make a religion of his business has a business life of no character.”
So for any international company, it becomes very important to understand that cultural significance, respect it and moreover use it in a very careful manner to work there in South Korea. This makes it very easy for them work well with Koreans as business partners. The main factors which influence it are below;
• The power of distance and hierarchy
• Business etiquette in Korea
All these factors affect the Korean business in a great manner. Like Koreans gives a great deal of importance to personal relationships. Thus these people are driven by their culture to a greater aspect. Like, they give a lot of importance to business card exchange, how people are communicating, these things matters a lot. They have made their religion the way of leading their lives (Southkorea 2018). Without actually understanding these things properly, it is not possible for any international company to run the business successfully over there. Religious factor greatly influence how they do business in South Korea.
Two issues faced by entrepreneurs in South Korea
It is not so easy for foreign entrepreneurs to work in South Korea. The main concentration of Korean business entrepreneurs is low income, minority areas, so they have to face various problems like; armed robberies (which are very frequent), shoplifting, strikes, boycotts and lot many other hurdles in their way of doing business (Shenkar, Luo and Chi, 2014). Korean entrepreneurs' long hours of work are detrimental to their physical development and psychological well-being. The entrepreneurs there are very vulnerable because of these exploitations. For the supply of merchandise, they are dependent on various out groups. For leases of their store buildings, they are dependent on the landlords. In fact most of the entrepreneurs who migrate to Korea, they are mainly involved in low level and blue collar businesses. They continuously face the problem of status inconsistency. While enhancing ethnic attachment and ethnic solidarity, the foreign entrepreneurs hinders cultural and social assimilation. For any foreign tech company to start their business in Korea; they are hindered by deep language and cultural barriers. They hinder the companies from coming in. The Korean government has started various startup support programs to tackle these programs; but these programs also have their own limitations. So far there have been language and cultural hurdles, there are also bureaucratic hurdles. And the draconian labor laws have burdened businesses of all sizes. Thus the entrepreneurs in the Korean region face several issues.
Main stakeholders that are affected
There are a number of co-operatives who are coming voluntarily to South Korea; they are increasingly attracting the network of various local stake holders (Southkorea 2018). The stake holders are the major key players in various regions of South Korea. There has been a significant rise in the Korean stake holder which further affects the betterment in inter-Korean relations. They play a prominent role in the further future of these inter-Korean relationships which are very necessary for in future to draw various amenities, useful in the fields of advocacy, service delivery and grassroots exchange (Cavusgil, Knight, Riesenberger, Rammal and Rose, 2014). During the previous ten years, the major attention has been diverted to the fact that these cooperatives they have contributed significant amounts to the socio-economic needs of the South Korean regions. The example of Wonju and Ansung cities; how the stake holder involvement with these approaching co-operatives has been successful to meet the socio economic needs; this can be very easy seen by this case study. In the Korean co-operatives are greatly influenced and aided by the involvement of stakeholders in it. This can give us a brief overview of the development of social economy in the South Korean region. The stake holders in South Korea are benefited by their involvement with co-operatives (Neelankavil, 2015). The stake holders they have played an important role in bridging the public and private life, they have benefited the non-profit organizations, and in fact have facilitated the social innovation.
In the limelight of the above executed analysis it has been inferred that South Korean culture and religion have impacts on business that are varied in nature still the region is counted as a favorite market place due to various attributes.
1. Cavusgil,S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L. (2014) International business. Pearson Australia.
2. Internationalrelationsedu, (2013) What is international relation, [Online]. Available at: https://www.internationalrelationsedu.org/what-is-international-business/. [Accessed on 28th September 2018].
3. Lee, C. Y, (2012) Korean culture and its influence on business practice in in South Korea, [Online]. Available at: http://www.jimsjournal.org/21%20Choong%20Y.%20Lee.pdf. [Accessed on 28th September 2018].
4. Neelankavil, J.P. (2015) International business research method. New York: Routledge.
5. Shenkar, O., Luo, Y. and Chi, T. (2014). International business. New York: Routledge.
6. Southkorea, (2018) Doing business in South Korea,, [Online]. Available at: http://www.southkorea.doingbusinessguide.co.uk/the-guide/south-korean-culture/. [Accessed on 28th September 2018].