Impact of Culture on Business: A Comparative Study Between Egypt and Ecuador

“Impact of culture on business: A comparative study between Egypt and Ecuador”

By Humberto Wilfrido Tomalá Lainez

It is a fact that nowadays the world is changing due to globalization*. And all this brings changes on corporate culture, business rules and trade. As we know, there are many things like culture, economy, politics, etc. that impact the working of international businesses in today's world.

When working in the global commercial environment, knowledge of the impact of cultural differences is one of the keys to international business success. Improving levels of cultural awareness can help companies build international competencies and enable individuals to become more globally sensitive.

I have chosen this topic, because nowadays it is really important to know what the differences are between two or more cultures when we want to do business. Each country contains different aspects and information of topics of immediate commercial relevance to anybody working in a global organization or studying international trade.

You need to know what you face when doing business in another country. Learn about their culture is one of the most important key to avoid mistakes when doing business. Many large companies have lost opportunities to negotiate with other countries due to small mistakes. That's why before you do business, take a little time to learn about their history, culture, historical dates, holidays, customs, dress, communication, language, etc.

And most importantly, be willing to change aspects of our behavior during a negotiation with a foreign entrepreneur and be open-minded. This will ensure a good business and entrepreneurial success in the foreign market.

In this paper I have chosen Ecuador and Egypt. They are completely different countries which are in different continents, so we are going to find some differences and similarities, but, the most important to find and understand is the way to do business in both cultures. The methodology is to talk about Egypt in first place and second Ecuador.

Now, let define some of Egypt. Egypt is a country in northeastern Africa and southwestern Asia, although modern day Egyptians are usually lumped together with "the Arabs" due to their language and Islamic traditions, this is not completely accurate. The predominant religion for Egypt is Islam, the practice of the Muslim faith.

Next, the republic of Ecuador is a unitary multiparty republic, Ecuador has a population of approximately 11 Million people with an ethnic composition of 65 percent mestizo*, and 25 percent Amerindian**. Along the north coast lives a small black minority.

Talking about main products, we have that Egypt is producer of Barley, Beans, Buffaloes, Cattle, Clover, Cotton, Goats, Gypsum,