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Cultural Biases in Multinational Companies Essay

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Updated: Jun 3rd, 2021

Introduction

It is evident that executives of multinational companies should be aware of differences in culture and perception that may impact the operations of their establishments in a particular state. In this regard, cultural biases may obstruct one from having a clear understanding of the actual events. This paper aims to review these biases using the example of an unauthorized plant in Latin America when compared to illegal manufacturing in the US.

Main body

When dealing with an unauthorized plant in Latin America, the negotiating style should be adjusted to the specific cultural and social environment, however, with consideration for the standards of a multinational company. An active multinational enterprise that operates in several countries must be accountable for its operations in all states. According to Ogliastri and Quintanilla (2016), two negotiating styles are used by US managers, distributive and integrative.

The authors state that no research indicates a specific type of business communication used in Latin America, however, the use of emotions is predominant in the state. Additionally, the environment in the US, both social and political subjects companies to more responsibility in regards to their production facilities that will affect attitudes towards unauthorized production.

Conclusion

Differences in cultural biases are connected to making decisions differ between North American and European managers. It is related to negotiation style and approaches to business. According to Friedman (2017), the current political climate in the US significantly impacts the bias that Americans may have towards other nations that is not present in Europe, which is substantiated by Wilcock (n.d.). Therefore, the current events in the US contribute to specific biases.

Ogliastri and Quintanilla (2016) argue that approaches to negotiations vary significantly among the US and German individuals, which may suggest that the former are more subjected to cultural bias. Overall, one can conclude that it is crucial to consider both possible cultural bias and negotiation styles prevalent in the country.

References

Friedman, S. (2017). Culture, bias, and understanding: We can do better. Journal of the American Academy of Psychiatry and the Law Online, 45(2), 136-139.

Ogliastri, E., & Quintanilla, C. (2016). Building cross-cultural negotiation prototypes in Latin American contexts from foreign executives’ perceptions. Journal of Business Research, 69(2), 452–458. Web.

Wilcock, C. (n.d.). . Web.

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IvyPanda. (2021, June 3). Cultural Biases in Multinational Companies. Retrieved from https://ivypanda.com/essays/cultural-biases-in-multinational-companies/

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"Cultural Biases in Multinational Companies." IvyPanda, 3 June 2021, ivypanda.com/essays/cultural-biases-in-multinational-companies/.

1. IvyPanda. "Cultural Biases in Multinational Companies." June 3, 2021. https://ivypanda.com/essays/cultural-biases-in-multinational-companies/.


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IvyPanda. "Cultural Biases in Multinational Companies." June 3, 2021. https://ivypanda.com/essays/cultural-biases-in-multinational-companies/.

References

IvyPanda. 2021. "Cultural Biases in Multinational Companies." June 3, 2021. https://ivypanda.com/essays/cultural-biases-in-multinational-companies/.

References

IvyPanda. (2021) 'Cultural Biases in Multinational Companies'. 3 June.

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