Culture refers to the beliefs, customs, and behaviors of a population group. Understanding the culture of the country a business is operating in, and respecting its traditions, is important for business success. The socio-cultural environment of international business consists of factors like values, education, language, demographics, female workforce participation, religion, and social organization. Failing to understand these socio-cultural elements could be very costly for a business.

2. Culture refers to a set of beliefs, customs,
practices and behavior that exists within a
population group.
Understanding the culture of a country and
respecting its customs and traditions is of
paramount importance for the success of
any business.

3. Various elements of culture are:-
a) Customs and traditions
b) Values and beliefs
c) Attitude
d) Religion
 The cost of ignoring the above elements
could be very high.

4. The Socio-Cultural Environment of International
Business consists of a number of major
components. Some of these components are:-
1. Values and Beliefs
2. Education
3. Language
4. Demography
5. Female Workforce
6. Double income Families
7. Religion
8. Social Organisation

5.  The values and beliefs are the guiding
principles that dictate behavior and action.
 Values often have a religious foundation
which fundamentally affects the beliefs and
mind-sets we hold.
 Thus, it is very important for the firm entering
the foreign nation to understand the
significance of different colors and designs in
different countries.

6.  The level of education affects the business
in a number of ways:-
a. Labeling of product
b. Marketing research
c. Relation with distributors and suppliers
 All these are affected by the literacy rate.

7.  Language reflects the nature and values of
society.
 Some countries have two or three
languages.
 Language can cause communication
problems – especially in the use of media
or written material.
 It is best to learn the language or engage
someone who understands it.

8.  The demography of a region includes
population size and composition as well as
key socio economic attributes such as –
a. Age
b. Sex ratio
c. Family size
d. Occupation.
 Demographic factor plays an important
role in the success of a business.

9.  The proportion of female work-force in total
work-force has a greater influence on the
buying behavior and demand patterns for
the products of the company.
 Today, due to economic empowerment,
women can take their decisions
independently.

10.  The large the income of a family, more will be
the demand for the product.
 Further, the increased income leads to
increase in demand for the luxury products.
 The proportion of double income families
helps the business in deciding as to what type
of products to be launched in the market.

11.  Religion provides the best insight to the
business into a society’s behavior and
helps answer the question why people
behave rather than how they behave.

12.  Social organization refers to the way
people relate to each other.
 For example:-
a. Extended Families
b. Units
c. Kinship
 In some countries, kinship may be a tribe
and so segmentation may have to based
on this.

13. Socio-cultural environment is the important
determinants of human behavior. All the
culture and sub-cultural elements influence
the decision making process and the
buying habits of customers.

14. Submitted By:- Damanpreet Singh
4032/18