Cultural aspects to

consider in
International business
 Communication
Why
Different cultures have varying communication styles,
which can lead to misunderstandings or offense if not
understood and respected.

Example
In many Asian cultures, direct confrontation or
disagreement may be seen as disrespectful. For instance,
in Japan, people often use non-verbal cues and subtle
language to express disagreement, and it's crucial for
international businesses to recognize and adapt to this
communication style to maintain good relationships.
 Negotiation Styles
Why?
Cultural norms influence negotiation approaches, such as
competitive vs. cooperative, and the level of directness or
indirectness in communication.

Example
In Scandinavian countries, negotiation tends to be
collaborative and cooperative, with an emphasis on
win-win outcomes. In contrast, negotiations in some
Asian cultures may involve more indirect communication
and a slower, relationship-building approach.
Understanding these differences is critical for successful
international business negotiations.
 Social Hierarchy
Why ?
Social hierarchy refers to the ranking of individuals or groups based on their status, power,
and influence. In international business understanding social hierarchy is crucial to build
relationships and navigating and cultural differences.

Example
• South Korea is a prime example of a culture with a strong emphasis on social hierarchy and
respect. Business interactions in South Korea often follow strict protocols regarding how
individuals address one another based on their age and position within the company.
Failure to adhere to these norms can be perceived as disrespectful and negatively impact
negotiations.
• In contrast, cultures like Sweden and Norway tend to have flatter organizational structures,
and the emphasis is less on hierarchical respect. These cultures value open communication
and encourage team members to express their opinions freely.
 Language
Marketing and Branding:
Language plays a significant role in marketing
and branding. Companies must consider
how their product names, slogans, and
advertisements may be perceived in
different languages. What sounds catchy or
appropriate in one language may have
unintended negative connotations in
another.
For example, Chevrolet's Nova car had
difficulty selling in Latin America because "no
va" translates to "doesn't go" in Spanish.
Effective Communication:
Language is the primary tool for
communication. Effective communication is
crucial for building relationships, negotiating
contracts, and understanding customer
needs. Misunderstandings due to language
barriers can lead to costly mistakes and
hinder business success.
Example: In India, McDonald's provides
menus and signage in multiple languages to
ensure that customers can comfortably read
and understand their offerings. Additionally,
they employ staff who can speak the local
languages to provide efficient customer
service. (Panwar & Patra, 2017)
 Religion
Religion is a set of beliefs, ideas and actions that cannot be
scientifically proven but can have an effect on human events.
Christianity and Islam are among the most popular religions in
the world, accounting for approximately 33% and 21% of
global population. The role of religion in people's everyday
lives, which affects their attitudes to work and the way they do
business has a significant influence on corporate culture.

Example
Multinational companies must, for instance, take religion into
account when conducting operations in a given country, such
as respecting religious holidays and avoiding the use of
forbidden products or ingredients. McDonald's had to make
significant adjustments to its menu to accommodate religious
beliefs. Hindus, for instance, avoid consuming beef due to the (MASOVIC, 2018)
sacredness of cows in their religion.
 References
● Panwar, D., & Patra, S. (2017, July). (PDF) LOCALIZATION IN FAST FOOD INDUSTRY: A CASE STUDY ON
MCDONALD’S STRATEGY IN INDIA. ResearchGate.
https://www.researchgate.net/publication/318470523_LOCALIZATION_IN_FAST_FOOD_INDUSTRY_A_CASE_
STUDY_ON_MCDONALD
● MASOVIC, A. (2018). Socio-cultural factors and their impact on the performance of ... - core.
https://core.ac.uk/download/pdf/236086764.pdf
●
Thanks