The role of culture in international business

Thirdly, international business involves negotiating with representatives of different cultures, which makes it necessary to take into account behavior and accepted rules of negotiation to achieve the desired result. There is a division of countries into two blocks: the West (America and European countries) and the East (China and Asian countries), where differences in negotiations related to cultural norms and values are clearly visible. For example, when doing business in one of the Asian countries, a representative of a European company needs to prepare for the fact that before moving on to the essence of the business agreement, it is important to build a trusting relationship that will be long-lasting. On the other hand, representatives of the Western bloc do not seek to establish long-term relationships and prefer to conduct business through signing agreements.

• Thirdly, international business involves negotiating with representatives of different cultures, which makes it necessary to take into account behavior and accepted rules of negotiation to achieve the desired result. There is a division of countries into two blocks: the West (America and European countries) and the East (China and Asian countries), where differences in negotiations related to cultural norms and values are clearly visible. For example, when doing business in one of the Asian countries, a representative of a European company needs to prepare for the fact that before moving on to the essence of the business agreement, it is important to build a trusting relationship that will be long-lasting. On the other hand, representatives of the Western bloc do not seek to establish long-term relationships and prefer to conduct business through signing agreements.

Finally, there is a language barrier that can adversely affect a company's operations in another country, so language can also be considered a cultural difference. In particular, the Economist Research Company Intelligence Unit ” together with the international educational center for teaching English “ Education” First presented a global study, “Competition Without Borders,” conducted among 572 executives of commercial and non-profit organizations. According to the study, almost half of respondents (49%) believe that misunderstandings in communication and inaccuracies in translation not only interfere with the conclusion of international transactions, but also cause large financial losses.”

• Finally, there is a language barrier that can adversely affect a company's operations in another country, so language can also be considered a cultural difference. In particular, the Economist Research Company Intelligence Unit ” together with the international educational center for teaching English “ Education” First presented a global study, “Competition Without Borders,” conducted among 572 executives of commercial and non-profit organizations. According to the study, almost half of respondents (49%) believe that misunderstandings in communication and inaccuracies in translation not only interfere with the conclusion of international transactions, but also cause large financial losses.”

Thus, from the above we can conclude that cultural differences, along with other factors, have a significant impact on doing business internationally. Learning and incorporating cultural differences is essential to achieving superior performance and competitive advantage in foreign markets.