We need to completely understand the traditions or beliefs of other cultures and appreciate what they have to offer. Successful companies that do business internationally are those that consider the cultural environment and recognize and understand those differences. The impact of the cultural blunders includes embarrassment for the company, potential loss of customers, possible legal implications, damaged reputation, and increase in costs to address the error. Here’s an example of why it is important to for business to understand foreign markets and gain a better understanding of cultural differences.

http://online.wsj.com/article/SB10001424052702304707604577422073271517262.html

Class: This of course isn’t the first time this type of cultural blunder has occurred. What is the impact of this type of blunder? 

Management, Ch. 4: Global Management: Managing Across Borders