Influences of Cultural Risks in Cross-Cultural Business Activities

The paper firstly analyzes the original causes of cultural risks from four cultural dimensions of Individualism vs. Collectivism, Power-Distance, Uncertainty-Avoidance, and Masculinity vs. Femininity based on the theory of Geert Hofstede. Then, it focuses on expounding how cultural risks reflect the cross-cultural business activities and discusses the negative impacts. Finally, this paper proposes to reduce impacts or solve these problems fully from five approaches of cultural confluence, cross-cultural training, cultural due diligence, setting up common beliefs and building learning organization, and knowledge innovation.