Cultural Differences & Its Impact on Global Businesses

Cultural Differences & Its Impact on Global Businesses

Culture is a complicated subject, way more than what you perceive. Culture shapes personality in terms of how we raise our kids to how we conduct our business. Culture has a spellbinding impact on everything, especially international business. When we are doing business with people from the same culture, there are rules written on the stone. These rules lay the foundation of how we negotiate and communicate. Most importantly, the languages used in communication will be the same. 

On the flip side, when we work with people belonging to a different culture, every aspect of conducting business becomes complex. There will a difference in concepts & values, behaviors & beliefs, manners & customs, negotiation & bargaining styles and most importantly, the languages. Once the language barrier is taken care, most of the cultural differences will get wiped out automatically. Communication is the key to removing cultural variations. 

In the next segment, we will talk about the difference in culture and challenges associated with doing international business. So, let’s scroll down and find out. 

Personal Challenges

When working in a multicultural environment there are plenty of challenges which are personal. When we are unable to recognize and embrace the cultural difference, our self-confidence and mental well-being gets hampered. 

Many individuals build walls in their minds when dealing with cultural differences and it does more harm than any good. It takes an emotional toll on the individual as he is moving out of his comfort zone. Anxiety and stress are very common when the culture is foreign to an individual.

The cultural shock can affect the professionals on a personal level. If the differences are not sorted out or accepted, it will affect the health of the individual. The prevalent symptoms to watch out for include headaches, migraines, burnout, and exhaustion. 

Cognitive Challenges 

Collaborating with people from a different culture leads to the birth of several cognitive challenges. Cognitive challenges are related to the way we think and process the information. And, when we work with someone who is from a different culture, it creates a problem, especially, if we are unable to recognize the dissimilarity between the two cultures and adapt to it.

For instance, in your culture, waste of time could be regarded as waste of money, whereas, in another culture, it is the importance of personal connections. In many cultures, relationships come before business. In some cultures, business is the top-notch priority. If you want to expand your business to countries having different cultures, best is to train, adapt and accept the new culture.

Practical Challenges

Working with people from different cultures has numerous practical challenges as well. We all are fine tuned by our culture on the practicalities of business. Culture defines how to conduct an interview, a presentation or even deal with customer complaints. Making an eye contact, sitting posture, moving hands, etc, could mean different things in different cultures.

For instance, eye contact in a certain manner may be a way of showing self-confidence in a culture, but in another culture, it could inflict disrespectful attitude. Also, management is done is different ways in different cultures. The Japanese system of management is very different from the American way. Hence, doing some research before moving businesses to another country will be helpful.


Finally, if you want to adapt to the culture of your prospective audience in non-English speaking countries, you have to hire a trustworthy translation services agency that understands the cultural nuance. Not all translation companies are good enough, research well, read online reviews & ratings to make the right decision.

Translation services provided by qualified linguists who understand the culture differences could prove to be a game changer and help your business to progress at an international level.

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