Cultural Environment and its Impact on International Business ,Regional Economic Integration

  According to Terpstran (1987)

"Integrated sum of learned behavioural traits revealed and shared by members of society"

Diseases such as corona, and other problems like terrorism, ethnic violence, gender inequality, poverty have made societies uncertain about their future. International trade deals not only cross borders, they also cross cultures.

Trading on a global basis requires a good understanding of different cultures. The method that works in our country may not work properly in another country, and it can also be understood as an insult! 

As an international business professional, raising awareness of cultural issues within our organization is important to ensure effectiveness and acceptance.

Business culture refers to the beliefs, norms, and behaviours that determine how a company's employees and management conduct business activities inside and outside the organization. It also includes how they are affected by it.

The major elements of culture for the business world are: language, religion, values, customs, and history and each of them is equally important.

The basic elements of cultures are:

The values and attitudes (मान र दृष्टिकोण)

The manners and customs (शिष्टाचार र चलनहरू)

The law and politic (कानून और राजनीति)

The technology and material culture (प्रविधि र भौतिक संस्कृति{भौतिकवाद})

The aesthetic (aesthetic art, heritage, rituals, language, resources) {सौंदर्यबोध-सौन्दर्य (सौन्दर्य कला, विरासत, अनुष्ठान, भाषा, स्रोतहरू)}

                 Regional Economic Integration - Types, leading Economic Blocs

क्षेत्रीय आर्थिक एकीकरण 

Economic integration is an agreement between different nations that includes the reduction or elimination of trade barriers (tariffs or non-tariff) and the coordination of monetary and fiscal policies.

Regional economic integration occurs when countries come to the formation of free trade arrangements or customs unions, giving members preferential trade access to each other's markets.

Regional economic integration has enabled countries to focus on issues that are important for their development as well as to encourage trade relations between neighbouring countries.

Reasons for Regional Economic Integration

Geographic Proximity (भौगोलिक निकटता)

Similar Consumer's Taste, Needs and Preferences 

Easy Distribution Channels (सजिलो वितरण च्यानलहरू)

Common History and Interests

Common Economic Opportunities

Common Economic Problems and Challenges

Types (Stages - Phases) of Regional Economic Integration

1. PTA - Preferential Trading Area :(Reduces only tariffs rates for member nation{SAPTA- South Asian Preferential Trading Agreements})
2. FTA - Free trade Area :(Eliminating all tariffs and non-tariff barriers {SAFTA - South Asia Free Trade Area, NAFTA - North American Free Trade Area, BIMSTEC-FTA} 
3. Custom Union :(Common tariff and non-tariff barriers on imports from non member countries)
4. Economic Union ::(Greater economic harmonisation, Single currency like Euro for European Union (EU),Uniform Monetary System, Union of regulation authorities)
5. Political-Economic Union: Single Economic Political Identity- UAE (United Arab Emirates, and EU to emerge as the one soon)