Reverse Culture Shock

Definition of 'Reverse Culture Shock'


The shock suffered by some people when they return home after a number of years overseas. This can result in unexpected difficulty in readjusting to the culture and values of the home country, now that the previously familiar has become unfamiliar.

In the business context, the advent of globalization has resulted in more and more employees being sent on lengthy assignments to other countries. With the number of expatriates who live and work in countries other than their own having increased in recent years, reverse culture shock is a phenomenon that is on the rise.

Investopedia explains 'Reverse Culture Shock'


The degree of reverse culture shock may be directly proportional to the length of time spent overseas, i.e. the longer the time spent abroad, the greater the shock factor upon the eventual return home. Another factor that may influence the magnitude of reverse culture shock is the extent of the difference in cultures between the expatriate's home country and the foreign country. The bigger the cultural difference, the greater the reverse culture shock likely upon return.


Filed Under: ,

comments powered by Disqus
Hot Definitions
  1. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  2. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  3. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  4. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
  5. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
  6. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
Trading Center