Differences in the dominant religion of a country affects relationships and attitudes towards business. First off, there needs to be an established cultural sensitivity as to not upset a countries relationship toward that firm. Next,
religious beliefs can greatly affect a country's relationship with a firm. For example, if a company is beating its competitor it's usually seen as an achievement in the US, but in a different country with a different religious background, this may be seen as showing a lack of compassion or disrupting the society. What are the implications for international business of differences in the dominant religion or ethical system of a country?
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What implications do religion have on international business?
Effects of Religion on Trade
First, a shared religious belief may enhance trust and therefore reduce transaction costs between trading partners. This effect should be particularly important for goods that are sensitive to trust.
How does religion affect business ethics?
Religious ethics form a major part of broader understandings of ethical issues. Many religions and denominations apply both an ethical screen to investment and also advocate specific ethical approaches to business. Both of these approaches can be relevant to investment banking.
What is the relation of religion to international business?
In global business, religion is a key factor in how global teams work together, schedule meetings and more. Worldwide, religion is one of the key factors in workplace cultural diversity.
What are the business and economic implications of differences in culture?
What are the business and economic implications of differences in culture? Cultural change is dynamic, meaning it is constantly changing. Economic advancement and globalization could therefore contribute to societal change → moving us towards a world with more equal cultural values, known as the Convergence hypothesis.