Aran, Dawn Juliana V.

“There is an atmosphere of understanding and support

at Hult. Everyone has this respect and curiosity for all
2/9/2025
the cultural and personal differences between us. This
International Business and Trade environment encourages everyone to strive for
excellence.”
Cultural differences in business refer to variations in
customs, behaviors, and norms that affect how Tatiana Ufimtceva​
individuals and organizations run business activities in Hult MBA Class of 2014
different parts of the world. It should come as no
surprise that each conducts business differently
according to their respective cultures. 2. Workplace etiquette

How cultural differences impact international business Different approaches to professional communication are
just one of the innumerable differences in
As companies continue to expand across borders and
workplace norms from around the world. CT Business
the global marketplace becomes increasingly more
Travel has put together a useful infographic for a quick
accessible for small and large businesses alike, 2017
reference of cultural differences in business etiquette
brings ever more opportunities to work internationally.
globally.
Multinational and cross-cultural teams are likewise
For instance, the formality of address is a big
becoming ever more common, meaning businesses can
consideration when dealing with colleagues and
benefit from an increasingly diverse knowledge base
business partners from different countries. Do they
and new, insightful approaches to business problems.
prefer titles and surnames or is being on the first-name
However, along with the benefits of insight and
basis acceptable? While it can vary across organizations,
expertise, global organizations also face potential
Asian countries such as South Korea, China, and
stumbling blocks when it comes to culture and
Singapore tend to use formal “Mr./Ms. Surname,” while
international business.
Americans and Canadians tend to use first names. When
While there are a number of ways to define culture, put in doubt, erring on the side of formality is generally
simply it is a set of common and accepted norms shared safest.
by a society. But in an international business context,
The concept of punctuality can also differ between
what is common and accepted for a professional from
cultures in an international business environment.
one country, could be very different for a colleague from
Different ideas of what constitutes being “on time” can
overseas. Recognizing and understanding how culture
often lead to misunderstandings or negative cultural
affects international business in three core areas:
perceptions. For example, where an American may
communication, etiquette, and organizational
arrive at a meeting a few minutes early,
hierarchy can help you to avoid misunderstandings with
an Italian or Mexican colleague may arrive several
colleagues and clients from abroad and excel in a
minutes — or more — after the scheduled start-time
globalized business environment.
(and still be considered “on time”).
1. Communication
Along with differences in etiquette, come differences in
Effective communication is essential to the success of attitude, particularly towards things like workplace
any business venture, but it is particularly critical when confrontation, rules and regulations, and assumed
there is a real risk of your message getting “lost in working hours. While some may consider working long
translation.” In many international companies, English is hours a sign of commitment and achievement, others
the de facto language of business. But more than just may consider these extra hours a demonstration of a
the language you speak, it’s how you convey your lack of efficiency or the deprioritization of essential
message that’s important. For instance, while the Finns family or personal time.
may value directness and brevity, professionals from
3. Organizational hierarchy
India can be more indirect and nuanced in their
communication. Moreover, while fluent English might Organizational hierarchy and attitudes towards
give you a professional boost globally, understanding management roles can also vary widely between
the importance of subtle non-verbal communication cultures. Whether or not those in junior or
between cultures can be equally crucial in middle-management positions feel comfortable
international business. speaking up in meetings, questioning senior decisions,
or expressing a differing opinion can be dictated by
What might be commonplace in your culture — be it a
cultural norms. Often these attitudes can be a reflection
firm handshake, making direct eye contact, or kiss on
of a country’s societal values or level of social equality.
the cheek — could be unusual or even offensive to a
For instance, a country such as Japan, which
foreign colleague or client. Where possible, do your
traditionally values social hierarchy, relative status, and
research in advance of professional interactions with
respect for seniority, brings this approach into the
individuals from a different culture. Remember to be
workplace. This hierarchy helps to define roles and
perceptive to body language, and when in doubt,
responsibilities across the organization. This also means
ask. While navigating cross-cultural communication can
that those in senior management positions command
be a challenge, approaching cultural differences with
respect and expect a certain level of formality and
sensitivity, openness, and curiosity can help to put
deference from junior team members.
everyone at ease.
However, Scandinavian countries, such as Norway, Outside of the classroom, Hult students have the
which emphasize societal equality, tend to have a opportunity to experience life, culture, and commerce
comparatively flat organizational hierarchy. In turn, this in today’s most dynamic business centers through our
can mean relatively informal communication and an global campus rotation program. This international
emphasis on cooperation across the organization. When learning environment offers a truly global perspective
defining roles in multinational teams with diverse and unique insight into culture and business practices
attitudes and expectations of organizational hierarchy, it from all over the world.
can be easy to see why these cultural differences can
present a challenge.

As part of our mission to become the world’s most

relevant business school, Hult is dedicated to preparing References:
our students for the challenges and opportunities
of working across borders and cultures. A big part of this https://www.google.com/search?q=international+busin
preparation is understanding the role culture plays in ess+and+trade+Differences+in+Culture&rlz=1C1ONGR_e
international business. In many ways, the Hult nPH1003PH1003&oq=international+business+and+trad
classroom mirrors today’s business environment, with e+Differences+in+Culture&gs_lcrp=EgZjaHJvbWUyBggA
students of 130 nationalities collaborating and studying EEUYOTIGCAEQRRg80gEIMTE4MmowajeoAgCwAgA&so
together. And not only are our students multicultural, urceid=chrome&ie=UTF-8
our faculty is too. Many have lived, worked, and taught https://www.hult.edu/blog/cultural-differences-impact-i
across Europe, Asia, the Middle East, and beyond. nternational-business/