Cultural differences influence how people do business. It plays a huge impact on several components – decision making, marketing, supervision, business protocol, etc. When working with globally diverse clients, it is common to find that business practices, communication, and management styles will be distinct from those to which you are commonly familiarized. Understanding the dynamics of culture with whom you are working with is important to having successful business interactions and accomplishing business goals and objectives. Ignoring cultural differences can put a company’s business at a disadvantage. One wrong signal has the potential of dismantling what otherwise should have been a successful alliance between two (2) cross-border businesses.
“Understanding cultural diversity in business is important to interacting with people from differing cultures while preventing problematic issues. If you know you'll be negotiating with foreign businesspersons, for example, study in advance how their manner of doing business differs from your own… Potential cultural barriers in business can be avoided simply by understanding the impact of culture on business environment.”