culture in international business

1. International business not only crosses borders but also cuts across different cultures.
Essentially, culture strongly influences how business people think, communicate and conduct
themselves. In addition, culture also affects how businesses do transactions and negotiations.
As such, cultural differences can create significant barriers which can impede or stymie
business negotiations. China, where I come from is increasingly becoming an attractive
business destination. It is second largest economy in the world. With solid economic
expansion, rapid market transformation, cheap labor and unprecedented government reforms
makes the option of investing in China irresistible.
However, in order to establish a successful business in China, cultural aspects should
be taken into account. Business success in China depends on business contacts rather than
contracts. If an international business wants to establish its presence in China and thrive, it
should bank on establishing relationships anchored in mutual respect. More important is the
fact that professional relationships are effective if built through face-to-face contact and
interaction. International businesses should thus seek to establish close ties with local
business operators such as suppliers. Given the profound involvement of the state in
business, it is imperative that international business build relationships with local operators if
they want to overcome the bureaucratic hurdles imposed by regulation and ensure
compliance. China is renowned for its unique culture and language barrier. Establishing close
social relationships can also help overcome language barrier. Local relationships can help
prospective international businesses overcome language barrier while guiding the business
around customary practices. For example, the Chinese people are renowned for taking their
before making business decisions and prioritize negotiating and mutual concessions.