While the impacts of culture on international trade and foreign direct investment (FDI) have been considerably discussed, the sway of languages has been underappreciated in international business. By integrating literature from Chinese business history, international business, international economics, and linguistics to analyze the transaction costs of languages, we address this paucity.
Our results point out that this tool is applied otherwise in international trade and in FDI while we understand that languages represent both a tool in international economic transactions along with a vehicle to carry cultural values. For both the FDI and international trade show a chain of command, with English the mainly cost-effective among leading commerce languages, communication prices; yet, we discover that communication costs are a lot more imperative in FDI than in the international trade. Herein, we present realistic suggestion, corporations may execute concerning the matter.
PUBLICATION DATE: March 15, 2012 PRODUCT #: BH471-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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