2. Literature Review
2.1. Cross Cultural Dynamics
There is ongoing debate on consumer cultural needs, and consumer behaviour or spending in the global market.
Global cultural preferences have taken over from local tastes and the way of spending leading to a cross cultural
homogenization (Levitt, 1983). Reducing cultural diversity will entail an inter-temporal welfare tradeoff if the ideas
of cross cultures are imperfect substitutes in production of the quality of future cultural goods (Rauch & Trindade,
2009).
The study of cross cultural dynamics can be traced to the work of Charles Darwin’s biological evolution, who
argued that, human societies struggle with another for survival just like a biological organism. He maintained that
conflicts between societies lead to social change as powerful groups defeat inferior ones. Other notable scientist
argued that, social change is not only as a result of human struggle for survival, but also as a result of physical
environment, political organization, and cultural factors (Giddens, 1991).