Angelo Gorriceta

MGT C402-302K

How Cultural Differences Affect Business

1. Communication Styles: The story highlights differences in communication styles between

Western cultures, like that of Minnesota, and Japan. In Western cultures, direct eye contact is
often seen as a sign of engagement, while in Japan, it can indicate discomfort or disrespect.
This variance underscores the importance of understanding non-verbal cues and adapting
communication approaches accordingly.

2. Implicit Cultural Cues: The concept of "reading the air" or "ky'' in Japanese culture
emphasizes the importance of understanding implicit cultural cues and non-verbal
communication. This skill is crucial in international business contexts where individuals may
come from diverse cultural backgrounds. Failure to recognize and adapt to these cues can
hinder effective communication and collaboration.

3. Trust and Decision-Making: The development of trust and decision-making processes varies
across cultures. Different cultures may prioritize different factors in building trust, and
decision-making styles may range from hierarchical and consensus-driven to individualistic and
pragmatic. Understanding these cultural nuances is essential for successful negotiation and
collaboration in international business settings.

4. Decision-Making Processes: Another crucial aspect is how decision-making processes differ

across cultures. Some cultures prioritize consensus-building and group harmony, while others
value efficiency and decisive action. Recognizing these variations helps organizations tailor their
decision-making approaches to suit the cultural context.

5. Impact on Business Performance: Cultural differences can significantly impact various

aspects of international business, including negotiation outcomes, team dynamics, customer
relationships, and organizational effectiveness. Ignoring or downplaying cultural differences can
lead to communication breakdowns, conflicts, and ultimately, business failures. On the other
hand, embracing cultural diversity and leveraging it as a source of innovation and competitive
advantage can lead to enhanced business performance and success in global markets.

In essence, cultural differences profoundly impact various facets of international business, from
communication and trust-building to decision-making and organizational dynamics.
Recognizing, respecting, and effectively navigating these differences are essential for success
in today's interconnected global marketplace. Your journey from a monocultural background to
becoming an expert in cross-cultural understanding serves as a testament to the transformative
power of cultural awareness and adaptation in business contexts.

Link to Video: https://www.youtube.com/watch?v=zQvqDv4vbEg