Analyze and evaluate the importance of culture and language in a global business environment.

Essay by absolutUniversity, Bachelor'sB-, February 2004

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We are living in a period were trade is becoming more global by the day. Taxes and economic barriers seem to be like symptoms - from a disease - that fade away, as time goes by. The ability of fast communication between people and places has boosted many companies to expand in other countries. Yet, cultural and linguistic differentiations are the most sustainable features companies need to take under consideration, in a strategic planning of setting up abroad. A firm needs to become progressively more aware of the foreign cultures when aiming in a successful future in an international business environment. Attitudes towards work and material possessions, entrepreneurship, willingness to accept risk, politics, religion, customs, the role of the woman in society, social classes, respect of the law and social institutions, and their reflection on trade and business, should be examined very carefully.

All the above social attitudes and a lot more, are part of culture and appear to be very important in a world-wide business network.

Companies can benefit in a great extend from understanding the nature and dimensions of a specific culture and how these affect the daily work and organizational processes. Culture awareness enables the development of advanced company policies and practices, in order to deal effectively and efficiently in an abroad business environment. In many cases the lack of cultural awareness has cost businesses great money and expanding opportunities. The exact knowledge, of how the principles of intercultural communication impact on business, has the potentiality to give an incontrovertible advantage in companies in future.

Business organizations, like other social systems require a fast and effective communication process in order to successfully reach their targets. International business organizations require effective communication in a number of levels. Effective communication among people of the same culture and language is...