Cultural differences in international business

A key to being successful in business internationally is to understand the role of

culture in international business. Whatever sector you are operating in, cultural
differences will have a direct impact on your profitability. Improving your level of
knowledge of international cultural differences in business can aid in building
international competencies as well as enabling you to gain a competitive
advantage.

Here are some key factors that have a direct impact on business.

■ Communication is the key to success for any business, whether you are
operating nationally or internationally, but when operating internationally it
becomes even more important due to language barriers.
■ Being aware of basic customer needs is an important aspect as this will
give the advantage of conveying your message. In simple terms, if you are
aware of the customer’s cultural background, then you will be able to adopt
better and more suitable advertising methods.
■ Body language is another key factor in cultural difference. As different
countries have different ways to convey or share their message, for
instance in Germany people tend to speak loudly when sharing ideas,
whereas in Japan people speak softly, it is very important to know what
your body language should be doing when interacting with people whether
it’s your business partner or an interviewer.
■ Before launching a marketing campaign, always conduct research to
become aware of your target audience since customer demand, decision
making, gender views and ideologies greatly vary in cultures.
The big question here is how to address different cultures under one roof. Some
cultures strongly regard personal distance and to others, a simple handshake seals a
deal.

For example in Hong Kong, the handshake is commonly used when greeting
westerners. During the greeting, the Chinese lower their eyes as a sign of respect,
and keeping eye contact for too long must be avoided as this may be seen as a
challenge of authority.

The Indians greet according to age, therefore the oldest person in the room must be
greeted first. They also believe in greeting and thanking each individual personally
when leaving a room. Men shake hands with men and women with women, while
men and women seldom shake hands with each other.

The Italians are one of the friendliest nations, but don’t let that fool you when it
comes to business. When doing business with the Italians, greetings are
enthusiastic, yet very formal until you are invited to move to a first name basis, then
some air-kissing on both cheeks, starting with the left may also be permitted.

From the examples above, it is clear to see that one has to be careful when
conducting business with many different cultures, we have to take care not to offend
each other, yet still make everyone feel welcome. With all this interaction between
different cultures, we may also be forming an international business culture which
may be accepted in all countries at all times.