Is Intercultural Communication Competence a Key for Successful Cross-cultural Business?

Seminar paper from the year 2011 in the subject Communications - Intercultural Communication, grade: 1,0, European University Viadrina Frankfurt (Oder), language: English, abstract: The closeness between different people has increased through globalization, thereby enabling further intercultural contact. Vast distances can be reached within a short period of time, and people living in faraway countries can become friends. Globalization also leads to an emphasis on cultural differences, so that one's own cultural traits stand in harsh contrast to foreign cultural qualities. Additionally, the clash of different cultures, prejudices, and misunderstandings can result in conflict. In order to avoid such problems, an understanding of cultures through intercultural competence is important; otherwise, rejection or failure may result from not understanding a foreign culture's behavior, or misinterpreting it as threatening. The increase in worldwide networking also forces companies into the international market, in order to remain on pace with their international competition. A crucial factor for the success of intercultural communication is cross-border cooperation. Cooperation with foreign cultures is part of the daily routine for many companies, yet their different ways of thinking and acting may clash rapidly. Even with the best of intentions, cross-border activities still sometimes fail - an indication that problems caused by cultural differences are not sufficiently considered, or that they are much bigger than it had been first thought by the companies. Additional qualifications for employees are a precondition for successful cross-border cooperation, enabling them to better understand the thinking and behavior of the other parties involved and meet the challenges arising in intercultural situations. Intercultural competence can be considered a key ingredient for success, and may reduce difficulties or misunderstandings that often have a decisive influence on profits and losses in intercultural business. Although intercultural knowledge is important for further concept development in intercultural management, there is no universal solution that can be applied in intercultural situations. Nevertheless, companies should continue to further the use and application of intercultural competence.