Social cultural factors in the IB

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The major culture determinants to be taken into account are political philosophy, religion, stratification, language, economic philosophy and education. Such cultural conflicts frequently become a serious obstacle in performing international business; however, there is also a vast array of possible solutions to such conflict situations. Pic. 4. The determinants of the U. S. culture The major issue to be resolved is the islamization of the Pakistani economy and the obstacles in direct economic relations with other conventional economies created by the Islamic religion limitations.

(Mehmood, 2002) The research conducted in the subject of islamization has concluded that an absolutely new strategy of economic cooperation should be developed to effectively work with the Pakistani enterprises and investments. On the one hand, the construction of the hotel in the U. S. should go in line with the requirements of the American conventional market and consumer needs; but it should also be performed in accordance with the basic Pakistani requirements towards Islamic banking and financial operations. (Mehmood, 2002)

The possible resolution of these issues is in closely working with the U. S. affiliates of the Pakistani banking institutions; this will provide transparency and conformity of financial operations to the U. S. legislation with the account of Islamic religion requirements. The differences between the U. S. and Pakistani cultures are so drastic, that difficulties may be faced even at the initial stages of Pakistani-U. S. investors’ communication. These issues, though, can easily be resolved as long as both parties possess sufficient knowledge about both cultures and basic rules of conducting negotiations.

The major determining feature is connected with Islam involved into all spheres of social and economic life of Pakistan. The issues of gender disparity (with 77. 44 percent of Pakistani students being represented by males – Mehmood, 2002) are eliminated in the U. S. Equality of gender rights and proliferation of equal opportunities in all spheres of social and economic activity should be accounted by Pakistani investors. In order to avoid cultural misunderstandings, it is recommended that Pakistani investors become familiar with the major cultural principles spread in the U. S.

Brief analysis of these principles is represented at Picture 4. Intellectual property in the U. S. The U. S. acts within the TRIPS framework relating to the management, control, monitoring and legal interpretation of the intellectual property right. The issue of implementing TRIPS statements is highly controversial, and is frequently stated to contradict to the U. S. traditional law and intellectual property legislation.

The issue of intellectual property rights in the U. S. is the issue of the major importance; the complexity and amount of legal instruments governing IPS is constantly increasing with the changing technological requirements and solutions. Despite the traditional opinion (this opinion has been supported by 69. 1% of legal organizations, having participated in the survey – Haedricke, 2005) that implementing TRIPS provisions into the U. S. legislative framework, will contradict to the article 337 provisions and will seriously restrict the rights of foreign importers, it is more evident that ‘whatever faults the section 337 procedure may have, it is generally swift and far less costly than other proceedings.

The Section 337 procedure and the corresponding TRIPS enforcement-of-rights provisions demonstrate the increasing trade focuses of international intellectual property law. The proceedings further demonstrate that the commercial focus of intellectual property protection, together with the effectiveness with which rights are enforced, “can be a very special benefit for this type of protection’. (Haedricke, 2005)

Conclusion The U. S. economic environment is highly contradictory, due to the high political risks and equally high economic opportunities. The difference between the economic philosophy of Pakistan and the USA represents another serious issue against investing into hotel construction on the U. S. territory.

However, large investments require large risks; the amount of benefits the U. S. economy provides for foreign investors significantly exceeds the number of risks. Moreover, with the American government being focused on attracting additional foreign investments into the U. S. economy, along with the considerable developmental potential of the hotel industry, it is possible to suggest that the creation of the hotel in the USA by a Pakistani investor will become a profitable enterprise if properly managed, with the account of possible economic threats and hotel industry weaknesses.


Baker, JC 2003, Financing international trade, Praeger. Bernarke, B & Gertler, M 2001, ‘Should central banks respond to movements in asset prices? ‘, American Economic Review, vol. 91, pp.

253-257 Bowen, JT & Kotler, P 2006, Marketing for hospitality and tourism, Pearson Prentice Hall. Brink, CH 2007, Measuring political risks: Risks to foreign investment, Ashgate Publishing. Cohen, SD 2007, Multinational corporations and foreign direct investment: Avoiding simplicity, embracing complexity, Oxford University Press. Contractor, FJ 2004, ‘Modal choice in a world of alliances: analyzing organizational forms in the international hotel sector’, Journal of International Business Studies, vol. 29, pp. 92-98

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