Culture defines the unique lifestyle for a nation or region. Since businesses locate their factories, call centers, warehouses, and offices around the world, operations managers need to be sensitive and understand the local culture. Notions of authority, time, color, value, respect, humor, work ethic, manners, and social status may be quite different from one's own cultural norms. Some companies employ global sourcing agents to assist with identifying these cultural differences.

Why it is important for operations managers to understand the local culture and practices of the countries in which a firm does business.

What are some of the potential consequences if they do not?