How Culture Affects Doing Business in the Global Economy

While several studies have examined the effects of culture on economic growth,
economic development, foreign direct investment, and the formation of joint ventures, few if any have analyzed the effects of culture on specific aspects of doing business such as starting a business, dealing with construction permits, registering property, obtaining credit, enforcing contracts, and resolving insolvency. Using different cultural variables, this study found that the emphasize individuals placed on religion, leisure time, family, the environment, nationality, prostitution, gender roles, power distance, individualism, and uncertainty avoidance, had significant effects on different business activities. Due to the complex nature of culture, however, some business procedures and practices were improved upon while others were not when different values and beliefs were considered.