DEFINITION of 'Culture Shock'

A feeling of uncertainty, confusion or anxiety that people experience when visiting, doing business in or living in a society that is different from their own. Culture shock can arise from a person's unfamiliarity with local customs, language and acceptable behavior, since norms can vary significantly across cultures.

BREAKING DOWN 'Culture Shock'

The feeling of culture shock can dissipate over time. Visitors to a new country, for example, will at first be unfamiliar with the nuances of local culture, but will learn how to adapt as interactions with people continue. Culture shock can be daunting for those who do business abroad due to the added pressure of maintaining or developing a profitable business relationship. Many international companies provide cultural training to help reduce cultural gaffes by employees, which can affect business.

  1. Cross Culture

    The interaction of people from different backgrounds in the business ...
  2. Economic Shock

    An economic shock is an event that occurs outside of an economy, ...
  3. Performance Management

    The management of employees and departments to ensure that goals ...
  4. Supply Shock

    A supply shock is an unexpected event that changes the supply ...
  5. Demand Shock

    A sudden surprise event that temporarily increases or decreases ...
  6. Glocalization

    Glocalization is a term used to describe a product or service ...
Related Articles
  1. Insights

    Sexism Charges Bring Uber's Toxic Culture to Fore

    An employee penned a lurid tale of sexism in the workplace culture at the fast-growing startup.
  2. Small Business

    4 Ways to Find the Best Companies to Work For

    Discover four ways to find the best companies to work for and how to make sure those companies line up with your personal and professional goals.
  3. Small Business

    How Corporate Culture Affects Your Bottom Line

    Here's a look at how companies can be successful financially by promoting a positive work atmosphere for employees.
  4. Tech

    Robo-Advisors: Top Challenges for Tapping China

    Robo-advisors and advisors at large face cultural challenges as they seek to break into the Chinese market. But as trends shift, so should opportunities.
  5. Tech

    Uber's Revenues Multiply as Losses Balloon

    The San Francisco-based company continued its stratospheric growth at the expense of its balance sheet.
  6. Tech

    Top Tips for Buying a Financial Advisory Practice

    When acquiring a new financial advisory practice, make sure that your game plan avoids these acquisition missteps.
  7. Investing

    Hedge Fund Fortunes Change, High-Rolling Culture Doesn't

    The lavish lifestyles of hedge fund employees have persisted, even as returns have dwindled.
  8. Insights

    Uber to Change Culture and Present Diversity Report

    Controversies aside, the ride-sharing company had its most successful week ever last week.
  9. Investing

    Market Shocks: What to Expect When You're Not Expecting

    Market shocks happen all the time, and are rarely predictable. The Chinese Equity Market meltdown, Brexit, and Donald Trump's election are all examples.
  10. Personal Finance

    How Safe is Traveling in the Middle East?

    Unrest in the Middle East dominates the news, but many parts of the region are safe for vacation and business travelers. A prudent traveler's guide.
  1. What are some common examples of demand shock?

    Discover some common examples of demand shock. Demand shocks lead to rapid increases or decreases in demand that catch everyone ... Read Answer >>
  2. How do interpersonal skills influence a business culture?

    Interpersonal skills are vital to business culture because they determine not only how a person interacts with others, but ... Read Answer >>
  3. How does the notion of the American Dream influence the U.S. economy?

    Learn about how the American Dream has influenced the U.S. economy. The American Dream is the idea that anyone can make it ... Read Answer >>
  4. What are some ways employers can reduce employee turn over?

    Learn a few strategies in hiring, compensation and management that employers can use for increasing employee retention and ... Read Answer >>
  5. What are major differences between investment banking and private equity?

    Private equity and investment banking both raise capital for investing purposes, but they do so in very different ways. Read Answer >>
Hot Definitions
  1. Entrepreneur

    An Entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture. ...
  2. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  3. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  4. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  5. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  6. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
Trading Center