Islam and Business free essay sample

Relationships are important to business either making or breaking a deal. Of one such example: In United States we see the shaking of hands as closing, solidifying, and making a deal. However, the Jewish culture has a tradition of gender in shaking hands. Men and women are not to touch unless they are betrothed to each other. This could become complex and minimize business transactions. Also, when we consider Islam it would be remiss to consider doing business during their month of Ramadan. This is a time of fasting with. their business hours greatly reduced. Cultural factors can sometimes raise the cost of doing business, in China, guanxi is a cultural reality, that is necessary for business relationships in Chinese culture, the great McDonalds corporation, had to pay dearly because it lacked the concept of Guanxi. 2. Do you think that business practices in an Islamic country are likely to differ from business practices in the United States? If so, how? I Do you think that business practices in an Islamic country are likely to differ from business practices in the United States. With some seemingly practical similarities in Islam to the U. S. ooking deeper we find much difference. Let’s look again at hand shaking. In the U. S. we shake hands differently by occasion and gender. We have many a stratum to hand shaking. If men in U. S. shake hands it’s a cultural rhythm of up and down with firm grip. In the Arabic and Islamic countries it may be considered rude to shake with a firm grip as their hand shake is somewhat weak in contact. Islamic’ also base their business transactions on relationships. They tend not to separate their business and personal relationships. Business relationships are built on trust, family ties, and honor. Our western culture is establishing individualism basing ones business associations on accomplishments creating loose business ties. A major difference between the two nations would be communication in language In order for successful business there must be learned and understanding of each language for business efforts to succeed. In the reading, an illustration of the cultural differences to time was given to explain the western business approach to time, and a society where the group dynamic dominates, folkways and mores. Such as the Arabic culture. . What are the implications for international business of differences in the dominant religion or ethical system of a country? Relationships are affected by dominate religion differences. Differences in religion require inter-cultural sensitivity. Things like knowing the holidays in ones religion that are kept, and understating the differences of interpersonal relationships how non believers and those that have strong beliefs may be tr eated differently in different nations. Religious differences can really have different play factors in business. Attitudes differ greatly when it comes to religion. Work ethics, when I think of China they have seemed to always have a rigorous learning practice. Yet, in ethics there has been corruption dealing with family members protecting family even when they know one of their members has broken an ethical standard. Western cultural still rests on individualism. The citizens of the United States will have caution but will decide with the law in signs of illegal practices even when it comes to turning a family member over to authorities. Cross Cultural Literacy, which means, an understanding of how cultural differences across and within nations can affect the way business is practiced 4. Choose two countries that appear to be culturally diverse. Compare the cultures of those countries and then indicate how cultural differences influence (a) the costs of doing business in each country, (b) the likely future economic development of that country, and (c) business practices. The United States and India, are two culturally diverse countries, one the United States, is described as not as rigid as India as it relates to degree of mobility, between social strata, in addition, the United States is described as a class system and India a caste system, in a caste system, that is the caste that you must remain in, in the United States, upward mobility is a possibility, it was said that in India things are changing for the Untouchables of India, The Dalit, who, are now being allowed to move into the urban areas, for better jobs and opportunities that were illegal for them until, the 70s and the 80s. . Can you see anything in the value of Islam that is hostile to business? a. The ritual nature of everyday life in a Muslim culture is striking to western vistors, Prayers 5 times a day, business meetings may be put on hold while Muslims engage in their daily prayer ritual. Women must be dressed in a certain manner. What does the experience of the region around Kayser i teach us about the realationship between Islam and business? b. The Anatolian tiger –many dismiss this poor largely agricultural region of Turkey as a non- European back water, it is a region where traditional Islamic values hold sway. Merchant honor- 91% of a Muslims life is devoted to work in order to put food on the table. Islamic Calvinism is a fusion of traditional Islamic values and work ethic often associated with Calvinism. Islam preaches equal opportunity in business. Globalization is at work. The weakness in the Islamic model is traditional attitudes toward women in the work place. . Given the Islamic Proclivity to favor market based systems, Muslims countries are likely to be receptive to international business as long as those businesses behave in a manner consistent with Islamic ethics. 6. Why do you think that it is so important to cultivate guanxi and guanxiwang in China? a. Guanxinang- relationship network with the right guanxi, legal rule can be bent. What does the experience of DMG tells us about the way things work in Ch ina? What would likely happen to a business that obeyed all of the rules and regulations, rather than trying to find a way around them as Dan Mintz apparently did? b. Guanxi versus contract law in the west, in China personal power relationships or connections. What are the ethical issues that might arise when drawing upon guanixiwang to get Things done in China? What does this suggest about the limits of using guanixwang for a Western business committed to high ethical standards? c. There is a fine line between relationship building and bribery. Cross cultural literacy and understanding of how cultural differences across and within nations can affect the way business is practiced. References L Minder, â€Å"McDonalds to close original Bejing store USA Today Dec 2, 1996, P 1A Hannah Selugson â€Å"For American Markets Workers in China a cultural Clash, New York Times, Dec 24, 2009 P B1 Cultural Differences , Iowa State University web site www. celtiastate. edu, March 25, 2010 All citations Global Business Today Charles W. L. Hill