Unit 2: Language and Culture
In this unit, we will analyze the role of language and cultural differences in international business. As global organizations learn how to maneuver in new markets, they must be willing to adapt and understand the importance of culture and language to their operations' effectiveness.
Completing this unit should take you approximately 2 hours.
Upon successful completion of this unit, you will be able to:
- analyze the role language and culture play in international business conduct;
- describe how companies adapt to cultural practices;
- explain how various cultures communicate, think, and negotiate differently and discuss the impacts on new business opportunities;
- identify common or universal cultural gestures, body language, and communication styles;
- evaluate approaches to international negotiations that respond to differences in culture; and
- explain the difference between high-context and low-context cultures.
2.1: Language
As globalization brings the world closer together, communicating through a common language and learning other languages' communication styles has become critical to conducting successful international business transactions.
English has become the common language of most industries, and contracts between companies are typically written in English to avoid misunderstandings. As the global economy has grown, companies have needed a way to perform transactions efficiently, and English filled that gap. Watch this video to see why so many people are learning English to solve problems and understand one another better.
Though English has become the standard language for business, other major languages like Mandarin and Spanish, which have a large population of speakers worldwide, are gaining influence. Review this list of the most widely spoken languages and focus on the importance of language in communicating about products, services, or investment opportunities.
2.2: Culture
In international business, culture is everything. You must develop a keen understanding of other cultures and adapt to new ways of speaking, working, and thinking when doing business in another country. Language and culture are deeply ingrained within people and influence every interaction they have with others, which in turn shapes their approaches to business.
Geert Hofstede, a Dutch social psychologist, developed a widely used platform that established the dimensions of culture. Read this chapter to better understand these dimensions and see how they can be applied to different countries and cultures.
To build trust and avoid confusion, you should prepare before you interact with people from different cultures. By trying to understand others, you can create business opportunities that would otherwise have been impossible. Read this chapter and try to answer the questions to consider at the end of the section.
Communication styles vary greatly in different regions, so you need to be willing to adapt your communication to ensure it is effective. Read these sections to see how communication styles affect business.
Your communication skills will be put to the test during negotiations, especially if those negotiations include people with different personalities, approaches, and comfort levels. In international negotiations, differences in culture and communication styles become even more apparent. Read this article, which gives an example of Chinese and Brazilian companies negotiating an agreement and highlights the importance of finding a common understanding.
Cultural competence is the ability to communicate and understand people from different cultures effectively. You will need to know what to do and not do during cross-cultural interactions. You should be sure to study cultural differences before traveling to other countries or attempting to do business abroad. Read this chapter and reflect on how you can use the advice it presents to improve your skills.
Culture also plays a significant role in how groups develop their values and belief systems. Culture has a lasting impact on how people think and perceive situations. Think about when you and someone different culture looked at the same situation but perceived it differently. How might that apply to a business setting? Read this page, which describes how values differ worldwide and how they are influenced by culture.
Study Guide: Unit 2
We recommend reviewing this Study Guide before taking the Unit 2 Assessment.
Unit 2 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.