How cultural differences influence the international business

05/09/2022

Culturally diverse business environments are nothing new. However, the speed and volume of global trade, coupled with the interconnectedness of markets through mobile devices and the Internet, means that the challenges posed by cultural differences are greater than ever. However, as with any challenge, cultural diversity can prove to be an opportunity for companies willing to adapt their strategies and approach. With that in mind, here are three ways in which cultural differences influence international business.

The main things you should pay attention, when doing business in a new country:

Differences in Communication Behaviors

Some cultures are more direct and expressive while others are more indirect and reserved. In other cases, certain cultures may prefer to communicate face-to-face while others rely more on written or digital forms of communication.

Differences in Behaviors During Negotiations

While negotiation is a common and typical business activity, the way people from different cultures approach and engage in negotiations can vary. For example, some people are more likely to use a “silent approach” during negotiations. This means that they are unlikely to express their feelings.

Differences in Thinking Patterns

Differences in Thinking Patterns

As humans, we are wired with a built-in thinking pattern that influences how we make decisions and solve problems. This thinking pattern is referred to as one’s “cognitive style” and is influenced by a person’s cultural background, upbringing, education, and other social factors.

An example of a cognitive style is “intuitive” thinking pattern.

We recommend when entering a new business activity in a foreign country, consult with quality consultants in the local market. Quality consultants will save us a lot of time, money in the long run and even connect us to key people in the relevant industry.

Always at your service, Auren Israel consulting team.

Maor Zafrani, from Auren Israel

[email protected]