1st slide: Title

2nd slide: Summary: (what specifically will we talk about throughout the entire discussion)
 Cultural context
 Economic context
 Political context
 Synergies and intersections
 Challenges and opportunities

“But before that, let me first ask a question….”

3rd slide: Why do you think we need to understand the cultural, economic, and political
context around trading activities?

“Correct, actually, we want you to understand that..”

4th slide: Trading is not merely a transactional exchange of goods and services, but a complex
interplay of cultural nuances, economic realities, and political landscapes.

“A deep understanding of this multifaceted context is paramount for achieving success in the
global marketplace. It's about recognizing that every transaction occurs within a specific
cultural, economic, and political environment that can significantly influence the outcome.
So, to discuss further, let us dive into the cultural context.”

5th slide: Cultural Context

Culture is the beliefs, ideas, and social behavior of a particular person or

group within society.

But how does culture affect international business and trading practices?

In a business context, culture relates to what behavior is accepted as

common practice professionally in a specific location, compared to another. What
may be acceptable business practice in one country may be very different from the
approach that is used by businesses overseas. Therefore, recognizing how culture
can affect international business and trading practices is something that should be
understood in order to avoid misunderstandings and miscommunication.
Understanding culture also ensures that the business is presenting itself to its new
market in the best way it can. Furthermore, global trade patterns are greatly
influenced by cultural factors such as values, beliefs, and attitudes.

Values and Beliefs

6th slide:
Collectivism and
Individualism
Collectivist
cultures prioritize
relationships and long-
term partnerships,
leading to longer
negotiations and trust-
building. Individualistic
cultures focus on
efficiency and short-term
gains, relying on formal
contracts
Collectivism and Individualism:
“The emphasis on collectivism in many Asian cultures means that establishing mutual trust
and long-term relationships are often among the primary objectives of business dealings.
Longer negotiating processes and an intention to work with trusted partners could arise from
such. On the other hand, business procedures in individualized cultures like Western Europe
or the United States typically place a higher value on efficiency, directness, and short-term
results and heavily rely on formal contracts.”

Religious beliefs:
“In some cultures, ethical guidelines and dietary restrictions influence what can be traded and
how transactions are carried out.”

Hierarchy:
“Additionally, attitudes toward hierarchy can vary widely: in high power distance cultures,
negotiations might involve a clear respect for authority and a hierarchical chain of command,
whereas in more egalitarian societies, a more equal approach is often taken.”

7th slide: Attitudes

Communication Styles
Directness and
explicitness are valued in
some cultures, while
indirectness and subtlety
are preferred in others.

Negotiation Approaches
Some cultures
prioritize relationship-
building before
negotiations, while others
focus on the bottom line.
Communication Styles:
“Some cultures are more direct and expressive while others are more indirect and reserved. In
other cases, certain cultures may prefer to communicate face-to-face while others rely more
on written or digital forms of communication. For instance, in some cultures, explicit
communication and assertiveness are valued, while in others, a more indirect and subtle
approach is preferred. Understanding these differences can help businesses adapt their
communication styles to build rapport and avoid misunderstandings.”

Negotiation Approaches:
“Negotiation is a common and typical business activity, the way people from different
cultures approach and engage in negotiations can vary. For example, some people are more
likely to use a “silent approach” during negotiations. This means that they are unlikely to
express their feelings. Some cultures emphasize building personal relationships and trust
before engaging in business negotiations, while others focus on efficiency and the bottom
line. Decision-making processes can vary as well, with some cultures favoring consensus and
collective decision-making, while others rely on hierarchical structures and individual
decision-makers. Adapting negotiation strategies to align with cultural norms can lead to
more successful outcomes and foster long-term partnerships.”

Business Ethics:
“Perceptions of ethical behavior, bribery and corruption, intellectual property rights, and
corporate social responsibility can vary across cultures.”

“Understanding the ethical standards and legal frameworks in each market is essential to
ensure compliance and maintain business integrity. Investing time and effort in cultivating
relationships and demonstrating respect for local customs and traditions can contribute to
building trust and long-term business partnerships.”

“Now, let’s explore the role of cultural intelligence in facilitating cross-cultural trade.”

8th slide: Cultural Intelligence

Cultural intelligence is
related to emotional
intelligence, but it picks
up where emotional
intelligence leaves off. A
person with high
emotional intelligence
grasps what makes us
human and at the same
time what makes each of
us different from one
another. A person with
high cultural intelligence
can somehow tease out of
a person’s or group’s
behavior those features
Building Rapport and Trust: Cultural intelligence enables understanding and respecting
cultural norms, values, and communication styles, facilitating stronger relationships and trust-
building with international partners.
Adapting Negotiation Strategies: Cultural intelligence allows for tailoring negotiation
approaches to align with cultural preferences, leading to more effective discussions and
mutually beneficial outcomes.
Enhancing Communication: Cultural intelligence helps interpret verbal and non-verbal cues
accurately, avoiding misunderstandings and fostering clear communication across cultures.
Fostering Collaboration: Cultural intelligence promotes effective collaboration by
appreciating diverse perspectives and leveraging cultural differences to drive innovation.
Expanding Market Reach: Cultural intelligence enables businesses to adapt products,
services, and marketing strategies to resonate with diverse cultural contexts, reaching a wider
customer base.
“Overall, cultural intelligence is a critical asset for businesses engaged in cross-cultural trade.
It allows them to navigate cultural complexities, build strong relationships, and achieve
sustainable success in the global marketplace.”