Globalization processes of companies: the importance of cross-cultural communication in business

In the past few years the world has witnessed a growth of social, economic, political and cultural interactions on an international scale, which have created a new level of globalization. After the Second World War, technological advancement has led to an increase in economic and financial exchange between countries. This has led many a company to expand beyond state barriers, embracing globalization, and turning into multinationals through export, delocalization, foreign investments, and activities in alternative markets. This paper will describe the development and growth process of companies on a global scale, analysing their strategic decisions and the most critical aspects, mainly those based on cultural differences: in recent decades research has been focused on identifying, explaining and solving the hardships faced by entrepreneurs and companies in these processes. It will also analyze the impact of Cross-Cultural Communication during negotiations, between individuals from different social and cultural backgrounds. This concept has gained importance as companies started realizing that the failure of their development strategies was due to the lack of cultural diversity awareness. In order to operate beyond state borders, the knowledge of values, habits, customs and behaviors is of paramount importance over the course of the whole process, starting from negotiation, all the way to the exchange rounds: differences will present themselves not only on the level of language but also in bargaining strategies and techniques. Considering all the above-mentioned difficulties, succeeding in an international market appears to be anything but a straightforward process. Nonetheless, a clear view of cultural differences can grant a competitive advantage in the market, as they can affect operations as much as any other aspect and condition. Therefore, it is fundamental to adapt marketing campaigns, strategic decisions and negotiation processes to the cultural heritage of the receiving party.