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The culture of a country can have a great influence on the cost of doing business in that country. The

cost of doing business plays the major part for the companies to establish competitive advantage.

For example if a country has a class oriented or caste oriented culture, the employees of the

organization may not be able to intermingle with one another due to this biasness, working in teams

would be difficult for them, the organization would not be able to achieve targets efficiently, hence thecost would increase.

In Islamic Laws, interest payments are not allowed, it can increase the cost of business in the Islamic

countries. The Japanese have the culture of collectivism, loyalty and honesty, this encourages the

employees to identify strongly with the companies they belong to. This attitude increases the

atmosphere of hard work and trust between the management and employees of the company, hence

proving good for the company.

Answer

Yes, the business practices in the Islamic countries and UAE are likely to be very different. Firstly, the

people of Islamic countries stress on developing relationship at the start, after that they prefer to start

doing business. Islamic countries prefer to have long term business partners, so many times they stick to

the old supplier/customer even if they can get a better margin by doing business with other

customer/supplier.

On the other hand, the people of USA have the business practices in which they prefer the competitive

bidding from their customers/suppliers. The establishment of long term relationship is not in their

priority, they are happy to switch to a new customer/supplier if they are getting a little better margin.

So, they business partnerships with the customer/suppliers are very short term.

Answer:

The countries I have decided are India and UAE. Both have highly diverse cultures but both are different

from each other as well. Indian culture is diversed because it has communities belonging to a many

religions including Hindu, Muslim, Chirstians, Sikh, Budhism, etc. They have been living here for

thousands of year, practicing their beliefs, interacting with each other, sharing and arespecting their

traditions and hence creating created a society containing a lot of societies within. The people in India

are not so liberal in terms of caste, class, family background, etc, a prejudice and discrimination is

frequently found in their practices.

UAE is diverse because more than 50% of its population consists of foregners who come from

worldwide countries. People come here with different geographic, religious and professional

backgrounds, work with people the most of whom are different from them. UAE culture is quite liberal

and open minded that accommodates people from any background, people understand and respect the

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differences and the growth opportunities are not limited to the people of a certain background, caste of

class.

The cost of doing business in India is higher than the cost of doing business in India. There can be many

reasons behind this assumption including the fact that tariff and duties in India are higher, the system is

corrupt, the security issues, etc.

However, the availability of skilled and low cost labor makes it a very good place for starting an

international business. The awareness of the People has increased and they are putting much more

efforts in educating their children and making them skillful resource for their country. Thats one of the

reasons that India has become the hub of IT industry and the economical growth is expected to boost

further with this momentum remains consistent.

Indian people are very casual in terms of business practices where they prefer long term relationship to

the profits. You need to befriend and become a brother with them to get your first business.

On the other hand, UAE has very soft tariff and duty structure, it is a free trade zone where import andexport is so easy and the rules and regulations are so transparent and easy to understand and follow.

Highly skilled workers for any post are available very easily in UAE, the people are welcoming and the

political stableness adds more into the attractives to do business in India.

The consistent developments in the infrastructure, freedom of investment and low tariff duties and

simple rules and regulations are playing a very big role in the economical growth of UAE and this is

expected to carry on. The business practices of UAE people are not so prominent as the companies of

different countries are operating there and the culture of that specific country is prominent in that

company.