1 What are some examples of cultural awareness?

8) Why an understanding of cultural differences is important for business people?

The most important reason is to avoid misunderstandings.

You have to buy people’s heart when you are launching any business. People need to know that you care and you know them individually. That you respect their sentiments and love their ways of life. I.e. You cannot tell your customer you don’t like babies if you are selling baby food. However you can be very good at selling baby food even if you don’t want babies. So your job would be to know the characteristics and choices of new parents and you should be able to show interests and love to the baby food customers.
So when in Rome, you not only should live like the Romans but you should research and understand their cultural habits and know: What ways? Why? How? Where?
The knowledge will help you to create the appropriate product, designed and altered for the locals. You will know how to write the peach and what ways to advertise them to generate subliminal messages. You would also estimate your selling targets according to the demographics, target your markets and know where to expand your company.
Knowing the cultural differences will also keep your business safe from any blames. For example I heard some Muslim countries in Asia were mad because the most popular instant noodles they were consuming had been found to be with pork fat. This kind of mistakes are risky for an established business.
It also assures your personal safety. You would know what is appropriate to say and do when you would peach a product or advertise it.