The impact of culture on international business A Case Study of Tanzanian Exporters

The purpose of this study was to analyze the impact of cultural differences on international business with specific attention given to Tanzanian Exporters. Specifically, the study sought out to examine the cultural differences in the export businesses, to investigate how Tanzanian exporters overcome cultural differences barriers and to examine the role of the Tanzanian government in reducing obstacles caused by cultural barriers to its exporters. Respondents were selected by non-probability and snowball sampling techniques. Data for this study was collected through questionnaire, interview and observation. The data were analyzed by statistical methods with the help of SPSS and Ms Excel. Responses were categorized under thematic statements and presented in narrative form. The findings indicate that culture affects both the negotiation process and price negotiation. Language barriers as cultural aspect have the greatest impact on international business, followed by education and religion. Respondents considered hiring some experienced people, local people of foreign market, foreign translators and using of foreign agents as strategies used to overcome cultural differences barriers. Various government institutions are found to have greatly influenced the steps involved in the export process and thus they have crucial roles to play in order to enable Tanzanian exporters reduce obstacles caused by cultural differences barriers. In this study it is concluded that global cultural differences have a negative impact on international business. Based on the findings, the study recommends some measures that should be taken in order to improve cultural awareness and increase the export performance in the country.