Communication became the heart to proven effective strategy of international business. But communicating among the different cultures is what the real challenge is in today’s corporate world. Misleading communication, improper flow of communication can make or things go very harsh and soft in the organisation, that totally depends upon the way of communication used to communicate the information. Communication and culture play a very important role in international business as these are the two most important things involved in the organisation and with its people. Another important thing to consider when communication and cultural differences are involved in international business is mannerism and etiquettes which are commonly accepted in that culture these small gestures make a lot of difference, behaviour and gestures which are common in your culture might be offensive in other cultures.
There are many cultures across the globe but it the communication between all of them which unites them together that is the reason why effective communication is important, that is why the communication is the most effective and powerful amongst the all. There are many examples available where communication gap and cultural differences scraped big billion deals, just like an example of Daimler Chrysler a merger which became unsuccessful because of the communication gaps and cultural differences and a 130 billion dollar deal was scraped. Language barriers are the main hindrance between you and your new potential market. Organizations who are willing to work internationally should know about language hindrances, tone and non-verbal communication. Cross cultural correspondence can be a test, however moving toward social contrasts with affectability, receptiveness, and interest can enable organizations to succeed globally.
Each country has a different language, different culture and different way of saying things what’s good to you in your language is not to others in their language so these things might hurt the sentiments of people, that is the reason why proper communication channel should be required in International Business.
English is a language which has gained the recognition worldwide as the lingua franca, almost every country has their own native language as their first language and English as their secondary language. Many countries like United States, United Kingdom and Australia have English as their 1st language. In this globalisation era and internationalisation of trade many small and medium size business are becoming international, and those international events attracts people from all over the world, and it wouldn’t be possible for all the nationals to communicate in their own language and with a result to come up with common language of communication (Rogerson P, 2007). Europe has multiple languages mainly French, German, Italian and Spanish are spoken in the whole continent but with the increasing rate of international business, Europe has also given relevant importance and made English as an official language for international business (Rogerson P, 2007).
As Stated by (Samovar La and Mohr J in Rosenbloom B, 2003) Communication issues have been broadly inquired about by business researchers and the connection among culture and communication has been looked into , yet most endeavours tending to the significance of communication crosswise over societies have been fundamentally theoretical. It is acknowledged that it is a significant aspect of promoting directs and successful communication in advertising channels is troublesome enough to accomplish in local showcasing channels where culture is moderately homogeneous.
Communication and culture are very well linked to each other, according to (Forbes, 2011) each and every aspect of global communication is influenced by the differences in the culture, all the individuals are different even being in there same culture that doesn’t mean both will be responding in the same way. Starbucks failed in Australia because it didn’t communicate with the culture of Australian people about their needs and habits whereas McDonalds was a sure shot success in the Indian market as it studied the taste and preference pattern of Indian population and came out with the products favoured by the people in that country, they wouldn’t have gained success in India if they came out with their traditional menu which includes a cheeseburger, because they knew that cow is a sacred animal in India and they won’t be able to perform in the country with such menu, so they altered their menu according to the taste and preference of Indian people and gained success in the country.
Translation can be an another issue in in communication and cultural differences in international business many companies and organisations gets lost in translating each other’s language, that is why it very important for an business who is planning to internationalise itself to do a plenty of research about the company, language and cultural barriers which they are going to face and should be open to new experiences and cultural diversities.
Brexit has been a important point of tension between the Britain and the European union and is affecting the international trade vastly, it was on 23rd June 2017 when UK decided to leave the European union, the original effects of this decision will take place after all the negotiations have been made with the European Union (EU), whether it will be a deal or no deal agreement. UK’s decision to leave EU came from their insecurity about high number of immigrants coming down in UK from the EU and getting better pay and jobs in the UK itself, which will decrease the rate of jobs for the UK residents and the potential talent in UK will be ignored. As after Brexit it will be the UK citizens who will be getting the first preference in terms of the experienced job requirements. UK almost sends 350 million pounds every week to the EU, which they said if they’ll be investing that amount in their NHS ( National Health Services) will benefit them to increase the level of services they provide.
Brexit is the current source of uncertainty in EU and UK as mentioned by the Harvard business review, firms who do a lot of import and export activities with EU were mostly uncertain about their loss and uncertainty of sales in the UK after the Brexit deal, as the trade movement between the UK and EU will face many restrictions after the Brexit has happened. Brexit was scheduled on 29th march 2019 but due to the negotiations and fluctuating votes by Member of Parliament whether to vote in favour or against it has been postponed to 29th October, 2019. According to the (Velthuijsen, Brexit Insider), after the Brexit the cost of trade between the UK and EU will increase and that totally depends upon the trade agreement that will be signed by both the sides whether it will be a free trade agreement or fall back to old WTO rules .
As far as interest in the UK, as indicated by a 2017 review directed by EY (Ernst and Young) on the effect of Brexit on UK FDI, remote financial specialists have not yet abandoned the UK but rather there are indications of a log jam of FDI which can be credited to the way that the administration is evident that it won’t permit a no deal situation in any case, current Brexit impacts would quickly be felt in the present moment instead of the long haul. 21% of investors have changed their arrangements though 7% of them have expanded their venture. Regardless of any Brexit situation, outside direct venture is relied upon to decrease in the three years beginning 2017. The transient effect of Brexit will be quickly felt once the UK leaves the EU, anyway the long term gives off an impression of being additionally testing since as indicated by the overview half of organizations who have tasks in the UK expect to move their ventures of UK in to long term after the Brexit.
Some sectors will be affected a lot after the Brexit like the automobile sector, electronics equipment’s and the food processing industry. According to the Brexit monitor, UK is one the biggest producer of automobiles and 2nd largest in terms of automobiles sales in EU after Germany and EU being the main export market for UK accounting to 57.5% of total UK automobile exports. BMW has plant in oxford and build 60% of its mini products there and relies heavily on the parts imported from the Germany as the Brexit is coming it has already stocked up its logistics for the heavy air freight charges, companies with very less margin but high volume production like Toyota and Volkswagen will suffer due to this as they have no plants present in UK and will solely depend on importing the vehicles to UK after the Brexit, which will again increase the cost by some amount (businessInsider, 2019).