BUS613: Advanced International Business

2a. Analyze the role language and culture play in international business conduct 

• What factors do language and culture play in positive or negative outcomes for international businesses?
• How can a global company condition and improve its operations to mitigate cultural risk in new international markets?
  

Language and culture significantly influence how groups from differing backgrounds interact in a business setting. An international company must implement strategies and policies to prepare its key business leaders for meetings with potential new clients or partners to increase the likelihood of success. There are countless examples of successful companies creating mistakes in a new international market due to a lack of cultural understanding. To expand and sustain an international business, a global company must develop processes to mitigate cultural risk.
 
To review, see English, the Universal Language and Other Major Languages.

2b. Describe how companies adapt to cultural practices

• What strategies should a global corporation explore to enhance cultural understanding internally among employees from different regions and customers in a new international market?
• How must companies adapt their cultural practices to operate effectively in new cultural settings?
  

The modern-day global economy has provided a large level of interaction between cultures. Cultural competence, which is the ability to understand other cultures, is an essential aspect of an international business leader. A corporation entering a new market must adapt to many different factors, of which culture is one of the most critical. A company's past success is not indicative of future results. Companies that are successful in new international markets typically have a keen sense that they must first identify cultural differences, strategize how they can adapt, and then implement. Businesses, from small start-ups to large corporations, face similar challenges in this area.
 
To review, see The Effect of Culture on Business and Cultural Competence.
 

2c. Explain how various cultures communicate, think, and negotiate differently and discuss the impacts on new business opportunities 

• How would a company from Japan negotiate and communicate differently than a company from the United States?
• How would a company from Germany negotiate and communicate differently than a company from Brazil?
  

Each culture is the result of a culmination of many different factors. They have different histories, languages, experiences, and mindsets that influence how they interact with each other. The global economy has brought many cultures in close contact and interaction with each other, and cross-cultural challenges are playing out in board rooms and offices daily around the world. It is necessary to identify these differences and prepare yourself for new cultural interactions to be in a good position for success in international business. Companies from different countries must prepare for differences in negotiating style, communication style, and overall perceptions, which can vary from small to major differences depending on the country.
 
To review, see Negotiation Style and Cultural Norms, Values, and Beliefs.
 

2d. Identify common or universal cultural gestures, body language, and communication styles 

• What common or universal gestures can you consider appropriate in international business?
• How could using certain body language or communication styles that are acceptable in the United States be interpreted negatively in other parts of the world?
  

We often don't realize the level of communication conveyed without speaking through universal gestures or body language. We may find ourselves in a situation where a gesture or aspect of body language is appropriate in the United States but may be perceived very differently in other parts of the world. Why would this be a factor in the outcome of an international business meeting? This area should be closely analyzed when entering a new or foreign environment where you are conducting business.
 
To review, see Communication Styles.
 

2e. Evaluate approaches to international negotiations that respond to differences in culture 

• In the U.S., we are very direct, which would be less appropriate in the Philippines. How would an American successfully navigate negotiations in the Philippines to adapt to local cultural practices?
• How would you evaluate your negotiation style, and what areas would need to be adapted to succeed in particular cultural settings worldwide?
  

Even in America, people have different negotiation styles and may communicate differently based on personality. However, Americans generally communicate similarly in terms of being more direct than certain other cultures and the speed at which they conduct business and bypass relationship building, which is critical in some other cultures. As you prepare for this section, continuously evaluate your communication and negotiation style to develop an awareness of what areas would need to be adapted in various cultural settings around the world. Hofstede's Cultural Framework is an effective tool for assessing certain aspects of culture and understanding cultural interaction.
 
To review, see Cultural Competence and Cultural Norms, Values, and Beliefs.
 

2f. Explain the difference between high-context and low-context cultures 

• What basic elements make a low-context culture and a high-context culture?
• Why would the United States be considered a low-context culture, and what differences between American culture make the Chinese culture a high-context culture?
  

It is important to classify low-context cultures, which communicate more directly, and high-context cultures, which tend to be less direct. It is important to identify and group different countries to better understand how some might act similarly or differently. If you have experience conducting business in China, you might find it easier to apply similar aspects to conducting business in Japan than in Sweden. Classifying and identifying will assist you in building upon your experience and application in new international settings.
 
To review, see Communication Styles, Negotiation Styles, and Cultural Competence.
 

Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• cultural competence
• high-context culture
• Hofstede's Cultural Framework
• low-context culture