How culture has affected the global business cycle over the years

Trade and commerce has been there for more than 2,000 years. There are evidences that show people used to trade with each other in different forms and it has evolved over a period of time. Previously barter system was the biggest source of trade when compared to today’s monetary transaction. Countries have started measuring their growth in GDP as this helps in understanding the economical condition of a specific country.

The culture of any country affects the decision making skills of the people in that region. Cross-cultural competence is known to be very crucial in developing trade and commerce. Today multinational firms are dealing globally and they need to understand the culture of a specific region to target the customers of that region. Communication is really important to go ahead with any business deal and one should avoid misunderstanding. It is really important to have local people involved as they would help in understanding the trends of a specific country. The cultural themes of China are different from the theme followed by the westerners. It will be really difficult for people of these two regions to communicate if they don’t understand the practices followed in their business deals.

Along with communication, one should also focus on achieving group goals. Opening a centre in another country is not easy if the person is not willing to work in a group. The individuals from different cultures should be allowed to interact and understand the ways to conduct business in a specific country. Marketing has to be localized and local sales people need to be hired to make a product successful. Value proposition is really important but if the company is not able to send out the message to the buyers then they might fail even though they provide quality product.

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