Introduction

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5a Describe how intercultural communication can affect the success of a business (CLO 1, CLO 3, CLO 4, CLO 5)

According to Bill Gates, intercultural communication is a bridge to understanding and a catalyst for global business success. Globalization has had a profound impact on professional interactions and provides a framework for navigating cultural differences in the workplace. In this reading, we see the application of Hofstede's cultural dimensions and how they play out in business settings and negotiations. Communication styles vary between cultures and business leaders must be mindful of these styles and protocols so as not to offend those they hope to strike a deal with. In addition to negotiation styles, decision making practices and conflict management practices also vary by culture. Business transactions require us to apply all the skills of intercultural communication competence.

With the globalization of business, there has been an increasing interest in intercultural communication. Multi-national companies have expanded to the ends of the earth so to remain competitive in this rapidly changing world, most large businesses are expanding beyond national borders and cultural boundaries. Insights from studies in intercultural communication can help business professionals understand how cultural differences can be used as assets in the ever-changing corporate world.

Global markets are also changing and expanding as multinational companies play an increasingly important role in the world economy. To see continued growth and remain competitive, most companies must employ economies of scale. In other words, if production increases while all other costs remain the same, the company can grow through lower cost per unit.

Yet, it's not just the global marketplace that can benefit from the insights that intercultural communication can bring. On the domestic front, there is an increasing demographic diversity within the workplace. Never have so many people on this planet been on the move. Whether it be economic opportunity, political strife, changing climate, or war, people are migrating in record number. Massive relocation means that much of the workforce and small business ownership in any given nation is becoming increasingly diverse.

Source: Karen Krumrey
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