Global Businessthe Effects of Language and Cultural Differences

Sandy Chen

Senior Exit Project

Eva Peters
18 November 2015

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Global Businessthe Effects of Language and Cultural Differences
Each business, regardless of whether or not it specializes in international or national
affairs, relies on a great deal of perseverance, dedication, and hard work in order to succeed.
Many successful companies, such as Apple, Microsoft, and Google, not only form their
enterprises with these qualities, but they also recognize the importance of a critical factor:
understanding the cultural and language barriers throughout the world. Fareed Zakaria, author of
The Post-American World: Release 2.0, says that, foreign policy is a matter of costs and
benefits, not theology (248). At the beginning of the Industrial Age, countries could thrive on an
isolationist philosophy; one could enter a store, and expect to find items that were made solely in
North Americafor an outrageous price. In order to become more cost effective, companies
have begun using foreign nations to help produce these items, thus creating a better supply-anddemand market for their consumers. It is no wonder that, now, these companies need to be able
to work with other nations. In order to run a successful business in the 21st century, it is essential
that businessmen and women alike have the drive and commitment to succeed; however, it is
even more important for them to understand how different nations, policies, and languages can
affect ones company.
CULTURAL DIFFERENCES FOUND IN BUSINESS
Every nation has its own set of political, socioeconomic, cultural, and social expectations.
Regardless of the country that the business is located in, there are a plethora of differences, both
consequential and minute, that are not shared in another locationcreating a vast amount of
distinctions among the diverse societies. The differences, which vary from country to country,
offer the United States the chance to work towards globalization, exposing [more] countries to
more interactions and relationships with people and products from other countries (Harris, P.

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Moran, and S. Moran 9). When considering to operate a business in a foreign location, one must
consider the geographical similarities that both the owners country and the partnering country
have in common; however, it is also important to take note of the reasons for immigrating and
emigrating in or out of the country. In Pankaj Ghemawat and Sebastian Reiches Globalization
Note Series, they are quoted as saying, The impact of cultural differences on people [] are
[sic] evidenced in migration patterns 60 percent of migrants move to a country with the same
major religion, and 40 percent go to a country with the same major language (7). As more
people immigrate to the United States, the likelihood of a business conducting overseas rises
people will be more inclined to work with a foreign land where they have seen the cultural
differences in their own country. According to Forbes Magazine in 2013, the top three best
countries for foreign business were Denmark, Hong Kong, and New Zealand (Best Countries
for Business). There is a plethora of reasons as to why these countries were singled out as the
best for international trade; each location attracts a numerous amount of tourists, the currency
exchange positively affects American economy, and the cheap labour are a few of the various
possibilities. Although all three countries provide a strong role in the growth of the American
economy, it is important to note that these countries, despite the coincidences found in the
governments, are not alikethey do not hold the same values, languages, or cultures. While this
may seem bad, it provides for the possibility of starting a new business that is completely unlike
those that are already in existence. These countries, although sharing a few similarities with the
United States, provide an alarming amount of differences, some of which, if approached
differently when conducting business, could make or break the deal. Although the United
States supports foreign trade and business, as this creates a booming economy, often times, many
countries fail in respecting these differences.

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Among the best countries for foreign business, Denmark stands at the top of the list.
Because of its roots in Europe, the country provides the most similar culture to North America. A
monarchy located in Northern Europe, the country offers government roles and branches that
resemble the ones that exist in the United States (The World Factbook: Denmark). Although
they do not hold cultural differences against their business partners, as they realize that no two
countries share the same cultural norms, the Danes hold a much higher regard, if not the same
amount, to punctuality and correspondence compared to Americans. When planning a meeting,
an appointment should be created, then confirmed in writing; however, the planner should not
try to schedule an appointment from June to August, as they (the Danes) are, more likely than
not, on vacation (Denmark Language, Culture). If neither of these conditions are met, the
Danes will see that the meeting is voided, and believe that the person planning the meeting does
not value their time. Moreover, Denmark Language, Culture, Customs, and Etiquette states
that if someone is late to a meeting, it is imperative to the success of the meeting to, [t]elephone
immediately if detained [for] more than five minutes. Essentially, one cannot expect to
appear at a meeting at the last-minute without warningthey need to either make a proper phone
call regarding a delay in the conference, or to cancel the appointment altogether. In this sense,
the Danes will not decide that they will not work with a potential business partner over
something that can easily be fixed, and they will make it a priority to meet with their client(s) at
a future date. Because time is of the essence, it is crucial that an individual work[s] quickly and
efficiently (Danish Culture). To the Danes, every minute wasted is a minute of money or
work that is lost: a fruitless effort on the companys part. Like any country, communication is
key to a successful business startupemployees need to know how to communicate with their
boss in order to effectively work in their position (Danish Culture). In the article

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Communicating Effectively for Business,
the Queensland Government stated that a
successful communication, foster[s] a good
working relationship [among the staff]
By being able to actively communicate with
their boss, they do not have to worry about
not following the proper protocols that are
prominent in Denmark, thus allowing for both
parties to not be offended.
When conducting business in
foreign countries, businessmen and
women are more inclined to include a
society that has a strong relation to the
Chinese. Located in Eastern Asia with
a population of 7,141,106 people,
Hong Kong is one of the biggest
business centers for conducting global
business (The World Factbook: Hong Kong). It is not only a growing port for international
relations and trade, but also a prominent tourist destination. The Chinese culture offers a variety
of differences, some of which are only accustomed to the Chinese. In the article Hong Kong
Business Culture, it states that one must greet the senior members of another party first with a
handshake and a slight bow. As bows are seen as a sign of respect to the Chinese, giving one to
the members of the other party will show them not only that the business partner knows how to

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effectively use the cultural differences to their advantage, but it also demonstrates a mutual
respect towards each other; the Americans display their knowledge of Chinese greeting
protocols, and in turn, the Chinese will show their respect by not only doing the same as the
Americans, but by also treating them more as their colleagues, rather than strangers. When
scheduling business trips and appointments, it is best to [schedule them] for October,
November, and March [through] June (Doing Business in Hong Kong). In doing so, the
planner is guaranteed a date for an appointmentsaving time for both parties during the
scheduling process. Unlike the United States, where people are more inclined to praise someone
who singlehandedly completed a difficult task, people from Hong Kong are more likely to praise
achievements that were done through a group effort (Differences between Hong Kong).
Although both accomplishments may be similar in terms of effort and how much was achieved,
group efforts are found to hold more weight in their society; people from Hong Kong value the
concept of teamwork, and will strive to produce anything of the sort when working. Similarly,
the Chinese put a large emphasis of ones reputation in their social standing: if someone loses
face and becomes embarrassed in public, the business negotiation could be declined (Do No
Wrong). The Chinese value their reputation among other people, and thus avoid any and all
situations in which they could become heavily embarrassed; however, if they become flustered,
but do not show it, theey are seen to display an immense amount of strength, something that the
Chinese admire. Finally, being quiet is important when conducting business in Hong Kongit is
considered rude to interrupt the hosts thoughts by speaking, and breaking the silence (Williams).
In order to allow the host to come to a complete decision, it is best to allow him to analyze his
choices, and to not rush him into reaching an outcome. By doing this, the host will be able to

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formulate a thought that is both cognizant and grounded, based solely on the information that he
is provided.
Lastly, New Zealand stands as the third
best nation to conduct business in. Located
southeast of Australia, it is not only the sole
country of the top three foreign business centers
to have English as its main language, but it is
also a democracy, much like Hong Kong (The
World Factbook: New Zealand). According to
the article New Zealand Culture, Etiquette,
and Customs, when creating an appointment, it
is best to schedule it a week in advance, as well
as to avoid planning one in December and
January, which are the summer months of that country. By doing this, both parties will be able to
get an exact date and time for the meetingthe advanced planning will encourage the New
Zealanders to believe that the planner of the appointment values their time. If one is speaking to
another individual, it is imperative to not stand too close to them; the speaker should maintain a
reasonable distance between them and the person they are talking to (Cultural Information
New Zealand). This ensures that neither side is offended, and neither person oversteps their
boundaries, and into the others personal space. According to the article New Zealand Business
Etiquette, the success of a business meeting relies partly on the fact that one should not
exaggerate claims or use hyperboles. Because these claims are often overstatements of the
truth, New Zealanders are less likely to trust them; they would like to hear more of what

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someone can do, rather than what they would like to do. After preparing a business presentation,
it is imperative to remove any form of exaggeration, else the New Zealanders will believe that
the presenter is dancing around the questionleaving a sour opinion of the company.
If these cultural differences are not acknowledged, it is likely that an unfortunate outcome
may commence. When Tom Bonkenburg, a director for St. Onge Company Inc., travelled to
Russia for a business meeting, he greeted the companys director with a firm handshake, a light
joke, and a smile; however, the director was not amused. Bonkenburg later learned that, although
it is acceptable in America to greet your counterpart in such a way, it is not culturally acceptable
in Russia to do the samethey admire seriousness in a business setting (Maltby). With stories
such as Bonkenburg, it is imperative for ones business to strive by doing research on the dos
and do nots in the foreign nation. While each of these countries offer a plethora of cultural
differences that can affect ones business and trade in the nation, it is vital that businessmen and
women alike learn how the geographic, regional, and cultural differences affect the process of
two businesses merging.
LINGUISTICS IN BUSINESS
Nowadays, it is often required to know how to speak a foreign language when applying
for a job; however, when it is not required, the business will generally put applicants who are
bilingual above those that are only monolingual. According to the Huffington Post article 15
Reasons Every American Should Learn Spanish, it is found that 96 percent of [high level
managers and executives] [believed language skills to be] either very important or somewhat
important (Planas and Ramirez). When creating a global business, the businessmen and
women may overlook the diversity of the many languages that are found in the world. While the
focus on languages is heavily emphasized when creating a business in a different country, it is

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also stressed in the job market in the United States. Although it is easy to categorize every
language into brackets, such as English, Chinese, and Spanish, it is important for each person to
understand that those are not the only three types of languages that the world offers. The
Washington Post, in their article titled The Worlds Languages, states that there are over
7,000 spoken languages in the world; 2,300 of those languages are found in Asia (Gamio and
Noack). In a universe that is home to so many cultures and languages, the United States, one of
the worlds leading figures in business, does not enforce these differences enough. In 2015, it
was discovered that Mandarin Chinese was the most spoken language in the world, followed by
Spanish and English (The 10 Most Common Languages). While English and Spanish are
taught elsewhere within the country, Mandarin Chinese, as well as the written form of the
language (pinyin), is not as frequently taught, thus causing a rift between the Chinese-speaking
nations and North America.
Mandarin Chinese, spoken in Mainland China, provides for a large amount of sisterlanguages (Taiwanese, Shanghainese, Cantonese, etc.); however, although each language offers a
similar sentence structure/pattern, it should be noted that the dialects are entirely differentno
two languages share the same tones when speaking. Because the language is composed entirely
of tones and accents, it is essential to be able to accurately communicate to others using the
correct variations; pronunciation is key in order to not potentially harm a business deal. Despite
the fact that the symbol for each character is different, the way that one pronounces the word will
determine the meaning of it. For example, the number four in Chinese appears as , or s,
but if the accent and tone is given to the wrong part of the word, the word then becomes , or
sa character symbolizing death. This poses as a substantial language barrier for those

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learning Mandarin; one needs to be able to accurately speak the language in order to not have
their message be misconstrued.
Not only does the tone affect ones
understanding of the language, but the
different forms of writing (traditional and
simplified Chinese) play a key role in the confusion of the language. In modern-day China, it is
uncommon to see traditional Chinese anywhereit is generally only found in areas that are
heavily dominated by Cantonese speakers. Students, regardless of whether or not they are taught
in a Chinese- or American-style school, are taught how to read and write using simplified
Chinese: an easier version of traditional Chinese. In the above photo, the symbol , which
means love, is written in both traditional and simplified Chinese. While both carry the same
connotation and meaning, it is important to note how the simplified Chinese version of the
symbol has a slight variation, making it easier for people to write (almost as if it were a
shortcut); however, the use of both traditional and simplified Chinese may confuse foreignersit
overcomplicates the symbols. In recent years, there has been a switch in Hong Kong to begin
teaching simplified Chinese, rather than traditional. By doing so, less people, who travel to the
country and know how to read the language, will be confused when glancing at passing signs;
however, this begs the question of whether or not traditional Chinese will be completely
forgotten. Because of the thousands of characters that are found in the Chinese dictionary, the use
of simplified Chinese offers people the ability to shorten their writing time, saving the effort of
both them and the reader from translating the text.
Although Chinese is noted as the second most spoken language in the world, Spanish is
still the leading non-English language in the United States (Lopez and Gonzales-Barrera).

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Whether the product be medicine, toys, or food, it is common to see the label translated in both
Spanish and English. In Arizona alone, each high school offers Spanish to their students as a
foreign language; as the state shares a border with Mexico, it is essential for the citizens here to
be able to converse in Spanish with many of the immigrants (often native Spanish speakers). In
the textbook American Government: Institutions & Policies, it is found that, Latinos are the
largest and fastest-growing minority group in America (Bose, Dilulio, and Wilson). While
Spanish has historical roots in the United States (this is most notable in the late 1400s, when the
Spaniards were trying to colonize the New World), it is best for companies to note that many
businesses are extending their reach to areas that are composed predominantly of Hispanics.
Despite the fact that both languages are found throughout the world, it is best to
understand and know each one. In doing so, one will be able to effectively work in a business
setting, and know how to communicate with others, who may speak a foreign language, with
ease.
CONCLUSION
Languages and cultural differences provide for interesting effects in business; regardless
of whether or not they are implemented, these differences could potentially reinforce the idea of
not going through with the business deal. It is critical for the success of a business to be able to
use these differences to ones advantage in order to further both the companys reach in other
countries and the businesss development. In doing so, ones business will flourish in the foreign
nationwhether it be through economics, foreign relations, or tradeand the employees will be
able to introduce themselves to new, different cultures, effectively spreading the belief of
globalization throughout the world.

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