Cross culture is a vital issue in international business, as the success of international trade depends upon the smooth interaction of employees from different cultures and regions. Some of the considerations in cross-cultural business include concerns about the differences that are caused by culture, beliefs, law, and language. We can distinguished mainly three kinds of business culture effects:
- Business roles: the fact that the differences in cultures usually have a direct effect on the manner in which business affairs are carried out by the members of such a community. For example, cultures that do not allow women to have certain rights will also reflect this bias in the business aspect of their dealings, something that businessmen and women from other less repressive cultures would have to understand in order for them to communicate effectively. Since culture is not something that can be changed merely through the operation of a foreign company, the management and staff of such a company would have to look for common grounds on which they and the business partners from those different cultures can meet.
- Business law: Another consideration in cross-cultural business is the manner in which the law of the foreign culture affect the manner in which they conduct their business. This is very important because miscommunication may occur due to the assumption by one party to a business communication that the law in his or her country is also the same in the country of the foreign business partner. One way to avoid this miscommunication is through a conscious effort by a business to study the law and customs in a country before it ventures into that country.
- Language: It is also a concern in cross-cultural business that language barriers must be surmounted in order for business communication to occur. Some businesses achieve this by hiring interpreters or using translation services as a medium for channelling to the other party, and for them to decipher what the other party is trying to say.