{"id":87461,"date":"2022-12-24T16:06:00","date_gmt":"2022-12-24T20:06:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=87461"},"modified":"2022-12-27T14:43:55","modified_gmt":"2022-12-27T18:43:55","slug":"how-cultural-differences-affect-international-business","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-cultural-differences-affect-international-business\/","title":{"rendered":"How Cultural Differences Affect International Business"},"content":{"rendered":"\n

Wondering how cultural differences<\/a> affect international business? What are some examples of cultural differences in international business?<\/p>\n\n\n\n

Jodie Fox wrote Reboot<\/em> in part to provide advice on dealing with many of the situations you\u2019ll encounter should you build a global business. In the book, she explains how cultural differences affect international business by providing examples of running her own global business\u2014Shoes of Prey.<\/p>\n\n\n\n

Read on to learn about how cultural differences affect international business, based on Fox’s examples.<\/p>\n\n\n\n\n\n\n\n

Cultural Differences in International Business<\/h2>\n\n\n\n

Jodie Fox combined her professional background in law, international business, and marketing with her interest in fashion to found Shoes of Prey in 2009. She built it into a profitable, award-winning company alongside co-founders Michael Fox and Mike Knapp. By the time the business collapsed in 2018 after failing to scale effectively, she\u2019d taken on the role of creative director, COO, and CEO, staying with the company to the end. In this article, we’ll explore how cultural differences affect international business, based on the lessons Fox learned while running her global business. <\/p>\n\n\n\n

Fox asserts the importance of understanding cultural difference\u2014both everyday cultural differences and special considerations for working with certain cultures; hiring employees local to the country you\u2019re working in; and meeting the expectations of customers<\/a> in different parts of the world.<\/p>\n\n\n\n

(Shortform note: Understanding cultural differences is a vital part of running an international business. Taking the time to learn about another culture communicates respect and helps to foster long-term, trusting relationships<\/a> with global business partners. There are many ways you can educate yourself about other cultures\u2014for example, take a college course on cultural awareness in business<\/a>, or start learning another language<\/a> using apps like Duolingo<\/a>.) <\/p>\n\n\n\n

Everyday Differences and Special Considerations<\/h3>\n\n\n\n

Fox claims that when you work with international business suppliers<\/a>, you should be aware of how cultural differences will affect your interpersonal relationship. She mentions both everyday cultural differences and special cultural considerations, like culture-specific holidays. If you don\u2019t understand<\/a> the interpersonal dynamics and expectations of your international partners, it can lead to missed opportunities, misunderstandings, resentment, and disruption to your business relationships. <\/p>\n\n\n\n

Let\u2019s look at two examples of how cultural differences affect international business from Fox\u2019s experience:<\/p>\n\n\n\n

Example #1: Dressing for Success<\/h4>\n\n\n\n

Be aware of how your appearance affects the way your international partners perceive you.<\/strong> When Fox and her co-founders first began meeting with suppliers at their factories in China, she selected simple attire: black trousers, a black shirt, simple shoes, and no jewelry. She wanted to look professional and be taken seriously. <\/p>\n\n\n\n

However, over time, she noticed that the suppliers were always dressed well, wearing their nicest jewelry and driving expensive cars. She realized that they communicated the success of their businesses through their appearance. <\/p>\n\n\n\n

By dressing simply, she left the suppliers feeling unsure that she represented a serious business. She started wearing expensive clothes and jewelry to meetings instead, convincing suppliers that Shoes of Prey had money to pay them. <\/p>\n\n\n\n

How to Dress for Success in International Business<\/strong>

As Fox notes, when deciding how you should dress for business interactions, think about how you want to be perceived, and dress for the role you want to fill.<\/a> However, don\u2019t dress solely based on what you<\/em> think that role looks like. Consider what that role looks like to the people you\u2019ll be working with, especially if they come from a different country. 

Fox initially tried to convey that she was a serious professional with her minimal garb. However, she misjudged how her Chinese partners would perceive her. You can avoid making similar mistakes by researching what\u2019s considered appropriate business attire in the country you\u2019re visiting<\/a> or by reviewing your outfit choice with someone you know and trust from that country.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Example #2: How Local Holidays Affect Business<\/h4>\n\n\n\n

Furthermore, understand the important holidays where you do business and how they\u2019ll affect your work.<\/strong> Fox learned this lesson when she and her co-founders failed to account for the effect Chinese New Year would have on their manufacturing. They knew that Chinese suppliers closed for two weeks during Chinese New Year, but they assumed that a reduced crew of workers would be available during the holidays since that\u2019s common practice in Australia, where they\u2019re from. <\/p>\n\n\n\n

When they asked about keeping some staff on during the two weeks, their suppliers were upset that they didn\u2019t understand the importance of the holiday or what it would take to keep the factory going with a reduced staff. Fox and the team worked it out by paying the workers a much higher rate during the holidays. Still, Fox and her co-founders could have prevented the problem with better cultural understanding and communication. <\/p>\n\n\n\n

(Shortform note: If you have international employees, as Fox did, consider integrating their national and religious holidays into your corporate structure from the start. When you only include time off for holidays in your home country, you may leave your employees feeling disrespected and disheartened. To create a respectful culture around holidays and avoid the conflict Fox experienced, ask your regional leaders to create a list of the most important holidays in their country<\/a> and share it with corporate. Put those holidays on the corporate calendar. Establish the expectation that everyone at the company must respect all culturally significant holidays and those who observe them.)<\/p>\n\n\n\n

How to Map Cultural Differences<\/strong>

As Fox suggests, understanding how cultural differences affect international business is vital. However, navigating nuances of communication and interaction with global partners alongside the other everyday stresses of running a business can feel overwhelming. To make this process easier, systematize your understanding of cultural differences using Erin Meyer\u2019s method for measuring them, as explored in The Culture Map<\/em><\/a>. 

Meyer outlines eight categories for measuring cultural differences<\/a>\u2014communication, feedback, thinking, leadership, decision-making<\/a>, trust, disagreement, and time perception\u2014each of which includes a range of possible behavior between two extremes. Every country\u2019s norms in each category fall somewhere between the two extremes. You can judge how different your country\u2019s cultural expectations are from another country\u2019s within any category based on how far you are from them on the behavioral range. You can then modify your behavior toward people from that other culture accordingly.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Local Employees<\/h3>\n\n\n\n

Fox and her co-founders\u2019 early struggles to communicate effectively with international partners highlighted the importance of hiring employees local to other countries. These employees could help them navigate the cultural differences that affect international business, such as the language barrier, and the practical aspects of the business when Fox and her co-founders couldn\u2019t be there. <\/p>\n\n\n\n

If you\u2019re working with suppliers in another country, consider hiring local employees to fill the following roles:<\/strong><\/p>\n\n\n\n