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Cross Culture: Definition, Examples, and Differences Across Countries

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Investopedia / Yurle Villegas

What Is Cross Culture?

Cross culture in the business world refers to a company's efforts to ensure that its employees interact effectively with professionals from other backgrounds. Like the adjective cross-cultural, it implies a recognition of national, regional, and ethnic differences in manners and methods and a desire to bridge them.

Key Takeaways

  • Cross culture is a concept that recognizes the differences among business people of different nations, backgrounds, and ethnicities, and the importance of bridging them.
  • With globalization, cross culture education has become critically important to business success in opening up and maintaining new markets.
  • Business people working abroad need to learn subtle differences in style and substance in order to be effective.
  • Employees can obtain cross culture training from their business and educational organizations.

Understanding Cross Culture

A field of study, cross-cultural communication, has emerged to define and teach the many ways that the different peoples of the world communicate with each other verbally and non-verbally.

The concept of cross culture has become critically important with the globalization of business. Many companies that seek to expand the markets for their products and services devote substantial resources to training employees in how to communicate and interact effectively with those from other cultures.

For example, when employees of an international company transfer to another country, they need to master aspects of that country's culture. They must not only learn to understand and speak the language but adapt to its social norms, as well.

Today, cross culture education is considered imperative for employees acting in managerial capacities abroad. Failure to effectively communicate with colleagues and subordinates or to understand their actions can lead to cascading problems within the business.

Many corporations strive to be multicultural organizations. They employ workers who encompass people from diverse backgrounds. These organizations also tend to have an absence of prejudice and discrimination.

Cross Culture Differences

Every culture shapes how its most minute and important social, societal, and professional behaviors are interpreted, and that inevitably carries over into business. Some cultures view the association between a manager and a subordinate as a symbiotic relationship. In others, the manager is expected to rule from a distance.

Cross culture extends to body language, physical contact, and perceptions of personal space. In cultures that adhere to strict religious standards, interactions between members of the opposite sex, even in the business sphere, may be complicated.

Body language such as hand gestures may be frowned upon or, worse yet, may have meanings that are entirely unintended. In some cultures, casual touching is common, while in others it is viewed as rude, disrespectful, or worse.

In certain cultures, food and business may or may not mix. For instance, in Italy and the United Arab Emirates, don't expect to make important business decisions during a meal before establishing a good relationship.

Cross Culture Examples

Failing to observe any of the customs listed below would be a serious cross culture faux pas.
  • Accepting a business card from a Japanese businessperson is not a casual action. The person presenting the card will bow and present it with both hands. The recipient takes it with both hands, indicating respect. 
  • In China, giving a direct "yes" or "no" answer, or demanding one of anyone else, is considered very rude. Meetings are for talking things over, not announcing decisions.
  • In Mexico, business is done primarily among friends and family. Visiting business people often seek an introduction through an intermediary with local connections.

Is Cross Culture Training Useful for Employees?

Yes, it is useful because it can help develop awareness and understanding for the values, social norms, acceptable gender-related actions, and particular business behaviors of people in different countries. With such training, employees can better represent their companies.

Why Does Cross Culture Awareness Matter?

An awareness of the beliefs, practices, and requirements of businesses in other parts of the world can lead to clear and meaningful communications. This can aid and enhance business, government, and personal relationships between peoples unfamiliar with each other. And that can smooth the way for mutually beneficial interaction.

What Specific Actions Support Cross Culture Success?

Some actions include learning about another country's language and manner of communicating; observing what you learn by maintaining rules of etiquette; listening carefully when others speak; showing respect for different behaviors and activities; taking part in those activities when invited to do so.

The Bottom Line

Dealing with businesses beyond one's own border is becoming the norm for many companies seeking new outlets for their products and services. It's vital to study and learn about a country's approach to business relationships and decision-making, business dining and social etiquette, and more. Your cross culture business success may depend on it.
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