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NGUYỄN THỊ NGỌC CHINH (FE FPTU HN) APR 08, 2023 06:09AM UTC

ThanhPhuong - Khải culture of open communication is the only way culturally diverse
teams can overcome their differences and work together.  
Understanding cultural differences in international business is a
must for any global employer. The success or failure to - Engage in diversity training:  Diversity training is an effective
understand who your foreign customers, suppliers, vendors, and tool that allows employees to identify hidden prejudices, biases,
partners are can make-or-break your budding or established and other obstacles and create opportunities wherein
international presence. employees can learn how to embrace diversity.

To successfully understand foreign markets, international


employers need to identify such differences, how to manage
them, and what best practices can be adopted to make culture
giang -dung - thành
an asset.
Understanding cultures when doing business abroad is crucial
Cultural differences could arise in many ways when doing for a successful business venture. Here are some benefits of
business abroad. If you're new to doing international business, understanding cultures:
getting a foreign market's culture right is not likely — unless you
get help from a global employer of record. Established 1. Improved communication: Understanding the way people
employers of record, such as Skuad, have in-house legal communicate in different cultures can help you tailor your
expertise and international market exposure, providing you with message and communicate effectively, avoiding any possible
the industry's best hiring practices. misunderstandings.

If you're launching your first international presence abroad or 2. Cultural sensitivity: Being sensitive to the cultural norms and
you're already an established global business, Skuad is an values of different regions can help you navigate social and
excellent solution for your expansion plans.  business interactions, which can foster positive relationships.

Skuad is a global employment and payroll platform that enables 3. Building rapport: Showing an interest in a person's culture
you to hire employees and contractors in over 160 countries can help you build rapport and establish trust, which is essential
without setting up a subsidiary. Skuad also handles payroll for conducting successful business.
management, onboarding and ensuring compliance with
country-specific employment laws. 4. Adaptability: By understanding cultural differences, you can
adapt your business approach to better suit the local culture and
increase your chances of success.
dũng - thảo
5. Competitiveness: With a greater understanding of cultural
- Entry into new markets: Companies must display sensitivity differences, you can gain a competitive advantage by tapping
towards different cultures when dealing with foreign clients or into new markets and developing culturally-aware products and
planning a marketing campaign for their foreign subsidiaries. services.
 
 - Cultivate a shared company culture: When you have a
culturally diverse team, the best way to unite the members is by
H. Bao
establishing a strong company culture reflecting the interests of
all team members.   1. Self-Confidence:
- Attending a convention or trade show, meeting with
- Build Strong Relationships: When a business person meets prospective clients or suppliers, or just going on vacation are
with a business person from a different country or city, they just a few of the numerous reasons why business professionals
want to make sure they understand each other’s culture. This travel. It's not always simple to accomplish this, but if you are
helps them build stronger relationships with each other so they aware of the reasons behind people's preferences, you will be
can grow their businesses together. better able to prevent hurting or upsetting others.
You gain insight into yourself as a person when you study
- Promote open communication: International business and another culture.
cross-cultural communication go hand-in-hand. Promoting a - Regardless of the main purpose of your business trip, you'll
gain from knowing cultural diversity. If you want to succeed in -Increasing profitability: Successfully navigating cultural
business with individuals who have different values from you, differences can help you avoid costly mistakes and improve your
you must respect their beliefs and make an effort to fit in. overall business performance. This can lead to increased profits
2. Influence : and growth opportunities.
- Cultural intelligence, often known as a cultural quotient (CQ),
is the capacity to comprehend and communicate successfully
with individuals from diverse cultural backgrounds. Effective duc hieu, hoang nam
verbal communication, worldwide corporate collaboration, and
negotiating with global teams and individuals are just a few of  Benefits of understanding cultures when doing business abroad:
the intercultural communication techniques made possible by  1. Self-confidence: There are many reasons for business people
CQ. to travel, such as attending a convention or trade show, meeting
- By fostering trust, CQ facilitates sales and negotiations; it also with potential suppliers or clients, or simply taking a vacation.
makes it simpler to acquire influence, listen, comprehend, and This isn’t always easy, but if you understand why people do
communicate effectively. In today's global market, collaborative things differently, you can more easily avoid offending or
partnerships are crucial, and CQ will assist you in developing unintentionally hurting someone. And mostly we can learn more
them. about yourself.
3. Competencies and Knowledge :  2. Influence: Cultural intelligence (or cultural quotient – CQ) is
- There's no denying that visiting another country is a wonderful the ability to understand and interact effectively with people
experience for everyone. from other cultures. CQ makes sales and negotiations easier by
- It enables you to travel the globe and learn new things about building trust; you’ll find it easier to gain influence, listen,
various civilizations, histories, geographies, languages, customs, understand and communicate effectively. CQ will help you build
etc. collaborative relationships that are essential in today’s global
- You will have this information for the rest of your life. economy.
- Additionally, you get empathy skills that you may use with  3. Skills and Knowledge: There’s no doubt that traveling abroad
others in your own culture, including your clients, supervisor, is a great experience for anyone. It allows you to see the world
coworkers, etc. and gain new knowledge about other cultures, history,
4. Create Long-Lasting Relationships : geography, languages, traditions, etc.
- When a businessperson interacts with a businessperson from a 4. Build Strong Relationships: When a business person meets
different city or nation, they want to be sure they are aware of with a business person from a different country or city, they
each other's cultural differences. They may expand their want to make sure they understand each other’s culture. This
enterprises together as a result of this, which strengthens their helps them build stronger relationships with each other so they
ties with one another. can grow their businesses together.
5. Networking Opportunities  5. Networking Opportunities: Traveling to an unfamiliar place
- Traveling to an unfamiliar place can be a great way to make can be a great way to make new contacts, especially if you’re
new contacts, especially if you’re familiar with and interested in familiar with and interested in the local culture. Networking
the local culture. opportunities are everywhere: hotels, airports, restaurants, etc.
- Networking opportunities are everywhere: hotels, airports,
restaurants, etc.
And of course, the people you meet there, if they trust you, can Kim Tú-Long
introduce you to a larger network.
Understanding cultures is crucial when doing business abroad
for several reasons:

Đức Anh 1. Building trust: Different cultures have different ways of


-Avoiding cultural misunderstandings: Different cultures have building trust, and knowing these cultural nuances is
their own customs and traditions, and what may be acceptable essential when building relationships with potential
in one culture may not be in another. By understanding these business partners. Understanding the cultural context of
differences, you can avoid unintentionally offending or your business partners helps in building trust and
disrespecting your business partners. developing stronger business relationships.
2. Avoiding misunderstandings: Cultural differences can
-Building strong relationships: Showing an interest in and lead to misunderstandings, misinterpretations, and
respect for the local culture can help build trust and rapport communication breakdowns. Having an understanding of
with your business partners. This can lead to longer-lasting and the cultural nuances helps in avoiding such
more successful business relationships. misunderstandings and ensuring that your message is
conveyed effectively.
3. Enhancing communication: Understanding the cultural
-Gaining a competitive advantage: Understanding local market nuances of your target market is key to effective
trends, consumer behavior, and preferences can give you a communication. It helps you choose the right tone,
competitive edge over other businesses that don't take the time language, and communication style to convey your
to research and understand these factors. message effectively.
4. Adapting to local customs: Each country has its own set It helps the organizations to have a better understanding of how
of customs, traditions, and social norms. Understanding local businesses and the workforce function.
these customs and adapting to them is essential to do 1. Team organization
business successfully in a foreign market. This includes Culture is a decisive factor that affects how organizations
understanding business etiquette, gift-giving practices, negotiate a deal. While some believe in consensus decision-
and other cultural practices that are relevant to your making, others believe in the supremacy of a single leader who
business. takes all decisions. Whether the culture promotes hierarchical
5. Gaining a competitive advantage: Understanding roles or societal equality, these values affect all parties in a
cultural differences gives you a competitive advantage business deal. Hence, business executives should understand
over your competitors who may not have invested time in how teams in different cultures organize and participate in
understanding the cultural nuances of the market. It decision-making.
helps you tailor your products and services to meet the 2. Entry into new markets
needs and preferences of the local market, thereby Conducting international business involves entering new
increasing your chances of success. markets. Companies must display sensitivity towards different
cultures when dealing with foreign clients or planning a
Overall, understanding cultures when doing business abroad is marketing campaign for their foreign subsidiaries. Business
crucial to building strong relationships, effective executives should start by studying the local market’s beliefs,
communication, and achieving success in a foreign market. values, and customs.
3. Increase Personal styles --> Self confidence
Culture in international business strongly influences personal
style, from an individual’s dressing sense to interacting with
others. Each culture has its customs and formalities for business
negotiations and meetings. Hence, knowing the subtleties of
foreign cultures and respecting appropriate formalities go a long
way in making the right impression and bagging crucial business
Đồng _ Xuân Lộc deals.

Cultural adaptation in international business encompasses


organizational culture as well as national cultures and traditions.

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