When business transactions are conducted internationally, cultural differences must be taken into consideration. Geert Hofstede is a leading researcher on how cultural variables can affect such international arrangements. Hofstede has a Web site where he is quoted as saying:
For those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that “deep inside” all people are the same—but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country—the chances are we’ll make some very bad decisions.
Go to Hofstede’s Web site (www.geert-hofstede.com) and find an example of how business dealings can be hindered by a lack of understanding of cultural differences.