ARE CULTURAL DIFFERENCES IN A SMALL COUNTRY IMPORTANT FOR INTERNATIONAL BUSINESS?
Multinational companies (MNCs) and international business relations are crucial for the development of the world economy and the progress of the humankind. Cross-cultural differences play an important role in international business together with differences in communication, managerial styles, and business practices. International Human Resource Management (IHRM) has increasingly been recognized as a major determining factor of success or failure in international business and human capital is more often seen as the main source of sustainable competitive advantage available to companies. In the recent years, many companies have generated considerable revenues outside of their home countries. When involved in international business, MNCs should not underestimate the importance of the cultural specificity of the host countries because different staffing, selecting, training, motivating and compensating practices should be applied in accordance with the characteristics of the local cultura
