1. Inter-cultural Communication
Managing business globally has become a major challenge for managers of multi national
corporations. For successful operations of the company abroad managers need to understand
the cultural context of the country and its people. One of the reasons why US has a high rate of
expatriate failure is that its managers find it hard to adapt to the cultural variations of other
countries. Culture refers to the behavioral characteristics typical of a group. Important
national cultural variables are discussed below.
Education
The level of education varies from country to country. Western managers are considered to be
more qualified than their Eastern counterparts. Before drawing conclusions managers should
assess the reasons behind low education in the country.
Laws & Regulations
All countries have their specific rules & regulations, which also create problems for global
managers. In certain countries advertisement is restricted for certain age groups. Some
countries do not allow fashion products & make-up items. While communicating organisations
must be aware of strictness to the law.
Economics
MNCs operate in rich and poor countries. Availability of finance, infrastructure & standard of
living vary from country to country. All these and other economic factors influence a business
to communicate with people of the country.
Language
Undoubtedly English is the international business language. For carrying business from one
country to another it is the only means to get the message across to the target market. Even
then managers have to adopt many of the local terms to make the message more appealing to
the local people.
Time
American and German executives are time focused whereas Eastern managers show flexibility
in their attitude toward time. Knowing people’s perception time can help manager’s
understand why some responses are slow or fast.
Space
Standing close to one another is considered odd in one culture and a gesture of intimacy in the
other.
Politics
Political environment of a country holds key importance for a company to make crucial
business decisions. A great number of MNCs have not taken their business to politically unstable
countries.
Religion
Some countries in the global village are religiously tolerant whereas some are not. A French
wine manufacturing company will find it difficult to sell its product in Muslim countries. Mac
Donald’s for several years did not sell beef sandwiches in India due to religious values of
Hindus. To communicate well the religious aspect has to be considered thoroughly.