Doing Business Overseas

In: Business and Management

Submitted By wells83911
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The Cultural Challenges of Doing Business Overseas
Major differences and incompatibilities exist between the United States and the Czech Republic Culture. These differences create major business risks when doing business in the Czech Republic. Comparative advantages exist in the Czech Republic. Hofstede’s has four primary dimensions to evaluate the Czech business environment. Czech Republic has trade barriers that has to be followed.
Czech Republic is about 78,861 square kilometers in Central Europe. The Czech Republic is about the size of the state of Virginia with a population of 10.5 million. The Czech Republic operates with a Parliamentary republic type of government. “A parliamentary republic is a type of republic which operates under a parliamentary system of government”. (CountryWatch, 2011, p. 1) Czech Republic primary language Czech is spoken by 95 % of the population. English language is not widely used in the country. In a parliamentary republic there is no clear-cut separation of powers between the executive and legislative branches. The Czech Republic considers education important the literacy rate is 99.8 %. Student who attend a public university pay a small amount for tuition. Czechs are both formal and somewhat indirect in their communication. They try not to purposely offend and will often go out of their way to protect someone’s feelings. Czechs are non-confrontational and often take an indirect approach to business dealings. If they lower their eyes and become silent they are uncomfortable with something you have said. It will take several meetings for your Czech business associates to become familiar with you and appear comfortable and friendly. Business decision-making power is held at the top of the company and decisions are reached slowly. United States is in North America with a population of 301,139, 947 billion.…...

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