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In 2 paragraphs, add a valuable response to the following Original Example. The

ID: 458627 • Letter: I

Question

In 2 paragraphs, add a valuable response to the following Original Example.

The article Culture Gap Impedes U.S. Business Efforts for Trade with Cuba by Victoria Burnett related directly to the module six concept of culture as an influential factor in international business and management. Module six defined globalization as "the process of increasing worldwide interdependence of suppliers, consumers, and competitors," and the article presents a recent example of this as the United States has begun to thaw its economic relations with Cuba. While the U.S. embargo on trade with Cuba still exists, in late January "the Obama administration...made the biggest breach yet in the embargo by permitting Americans to trade with state-owned companies" (Burnett). Prior to this move by the Obama administration "opening commerce had...targeted everyday Cubans" which was an extremely ineffectual matter of policy "with the island's trade apparatus controlled by the state" (Burnett). However, relaxing trade regulations with Cuba had not yielded the expected results as strict regulations on foreign investment from the Cuban government have remained unaltered and remain standard along with intense continued regulation from the United States government on trade. Yet this was only part of the problem regarding trade between the United States and Cuba. Another larger hindrance to expand trade and business between the United States and Cuba was the gap in culture between American and Cuban businesspeople. There have been "500 visits to Cuba by American businesspeople since December 2014 and more than 140 visits by United States representatives and officials" with precious few business deals reached as a result of those visits (Burnett). The most highly regarded and widespread complaint of Americans attempting such business deals was of "expecting swift business decisions and baffled by the time and meetings required to get answers from Cuban officials" (Burnett). In a country where "state-owned companies often ask for up to a year to pay for goods, not the customary 90 days," there is a huge cultural gap regarding time and urgency in business (Burnett). While the globalization of Cuba makes sense from the perspective of entering new markets to accrue a larger base of customers, it will not be a simple process to negotiate business deals with the Cuban state, or to manage the businesses which would result from those deals. Managers of the businesses will need to contend with a different concept of time and efficiency, as well as other differing cultural values. What would be some effective management strategies for bridging this cultural gap from the perspective of American managers working in businesses located in Cuba? Moreover, what would be some acceptable trade-offs between efficiency and adherence to Cuban cultural values? Contrastingly, is the combination of intensive government restrictions and differing cultural values too intense of a hurdle to overcome in expanding business into or starting businesses in Cuba, and if so why?

Explanation / Answer

The cultural issues are creating the conflicts due to the barriers which are created by the cultural differences in communication and coordination. All the different cultures have the different methods for the process modeling. In this example, the globalized firm USA has to transfer the business policies and cultures to work with the dispersed business teams across collaboration of the organizations, cultures and geography in CUBA. The team may face the possible issues of national culture and business culture.

While managing business in CUBA, managers tend to form a different et set of strategy. The managers should know that what cultural gaps they are dealing with because it will allow them to have the members adapt to other team members who have different culture and different culture upbringings. Thus, the managers must use the intervention methods to resolve the issues.

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