Why Cultural differences matter

Our recent article published in Gatwick Diamond Business magazine highlights why observing and understanding cultural differences can make or break international business relations.

In today's global economy international trade is no longer the preserve of large corporations. Small and medium-sized businesses are increasingly forging partnerships across borders. While technology has made global trade faster and more accessible, success still relies on people, the ability to connect, negotiate, and build trust. This is where recognising cultural differences becomes essential.

At a recent workshop with a global housing organisation, we discussed how mapping cultural norms helps maintain strong relationships. For example, while delivering a leadership program in Uganda, we faced challenges around differing views on LGBT issues. By staying true to our values of inclusivity while showing respect for local culture, we were able to build trust and promote leadership skills.

The lesson is clear, beyond logistics and regulations, cultural context must be considered. Simple gestures carry great weight. In Japan, business cards are exchanged with both hands as a sign of respect, while in Germany punctuality and hierarchy are critical. In the United States, directness speeds negotiations, whereas in parts of Africa, personal rapport and hospitality often proceed formal business discussions.

Cultural practices also influence contracts and marketing. In some markets, legal documentation is essential, in others, Charles and a handshake suffice. Marketing can also misfire if cultural symbolism is ignored. In China for example we successfully used red and the number eight in branding, while avoiding the number four, associated with misfortune.

Does this matter? Absolutely. Cultural awareness improves outcomes, protects reputations, and strengthens partnerships. Companies that invest in understanding local customs are not just being polite, they are making a strategic choice.

Cultural intelligence can be developed through research, local partnerships, team training, and curiosity. International trade is more than exchanging goods, it is about building bridges trust and respect. In today's competitive markets, cultural intelligence is not optional, it is essential.

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