Intercultural business refers to business relationships with people from different cultures. Such an interaction is becoming more inevitable with the growth of globalization and the assurance that any sizable business can expect to encounter some form of intercultural business during its various transactions. This sort of business interaction can be viewed from several standpoints, including the influx of people from other cultures and the exportation of businesses to other cultures. We can distinguish 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.
- Business law: Another consideration in cross-cultural business is the manner in which the law of the foreign culture affects the manner in which they conduct their business. This is very important because most times, miscommunications 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 due to the fact that the language barrier 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 also for them to decipher what the other party is trying to say.