Is Intercultural Competence Important in International Business?

IS INTERCULTURAL COMPETENCE IMPORTANT IN
INTERNATIONAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Intercultural competence in reference to the business shall be referred to the capabilities
and qualities of the management which helping them to smoothly carry on their business in
diversified work environment (Li, 2020). The knowledge and understanding of various cultures,
value systems is a necessity and must be inculcated in the staff to compete in the international
markets. It facilitates the understanding of multi culture people, their beliefs, values, emotions,
behaviour. The present essay will argue that intercultural competence is an essential skill in
today's international business environment and in the same way, it will highlights the importance
within a business.
MAIN BODY
The era of globalization is providing with many opportunities for expansions and growth
of the businesses. In order to capitalize on such opportunities it is very essential for the company
to have intercultural competence. Intercultural competence play important role because with the
help of this skill, company provides an opportunities to employees in order to interact with each
other and share their views that helps to shape up the firm (Ibrahimª, Abdullahb and Ismailc,
2016). Kahiya (2020) stated that international business is related to specific situation in which
company export or import their own products across different countries. Thus, with the help of
this, company is able to expand and diversify their own business, this in turn helps to increase
the profit as well as increase the competitive capacity too.
Culture is defined as an evolving set of collective beliefs that helps to make effective
decision for the company (Meleady, Seger and Vermue, 2020). Culture enriches all the attributes
of a personality and develops the mind of a human. An employee in an organization is required
to build self awareness regarding own culture and also developing knowledge about all the other
cultures with whom business is undertaken. Intercultural risk is suffered by the managers if they
do not develop the competence in terms of knowing the distinct languages, values, traditions and
behaviours of different people. On the contrary if the management of the company is well
diverse with various cultures it shall be able to functions smoothly across international borders
(Pikhart, 2018).
A set of characteristics are required to be build in order to work with linguistically and
culturally different types of people. Therefore, with the help of effective intercultural