CULTURAL DIMENSIONS IN INTERNATIONAL ECONOMIC ENVIRONMENT: DETERMINANTS OF SUCCESSFUL MARKETING LOCALISATION IN FOREIGN MARKETS
Abstract
The article explores the key aspects of how cultural dimensions impact international economic relations (IER). It mainly focuses on the concept of the BANI world and its effects on elements of the IER environment. The authors analyse the role of culture in the international economy, reviewing various models for assessing cultural differences, including the models by H. Hofstede, F. Trompenaars, GLOBE, the Cultural Map by E. Meyer, and the mental templates model by H. Wursten. Each of the five models studied has unique characteristics and areas of most effective application. However, they all emphasise the importance of considering cultural differences when conducting international business. Compared to others, the advantages of the Hofstede model are that it operates with the largest updated database among all models of cultural research and provides access to historical data for analysing changes. It is easier to use for the primary analysis of foreign markets, as it allows the researcher to assess cultural differences according to several parameters quickly. The limitations of its application are the failure to take into account such an element of national culture as religion, the simplification of the cultural landscape within the country, and the ignoring of intracultural differentiation. The article then analyses the experience of companies entering foreign markets in several countries, including Coca-Cola, McDonald's, and Starbucks. The product portfolios of these companies are culturally sensitive, which is why the authors selected them for analysis. The markets of Japan, China, and India were also chosen for analysis, given that the mentioned countries are different from the countries of origin of the studied companies in terms of language, social norms, religion, economic customs, traditions, values, and forms of social organisation. The paper then discusses the localisation of consumer value for companies in different markets, highlighting the necessity of adapting localisation strategies to fit cultural contexts. The study's findings confirm that cultural competence is a critical factor for the successful integration of companies into foreign markets.
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