With the assistance of technology and globalization,  global expansion has been far more accessible for businesses worldwide over the past decade. 

Even so, it is just because a business has the resources to go global that whether not it can stay global is the question we should all be asking ourselves.

For the latter to happen, businesses must learn to traverse the complex waters of cultural diversity. Unfortunately, many companies often dive headfirst into these waters without developing the skills to keep them afloat. This short-sightedness can have costly results.

In this article, the importance of cultural awareness, and its impact on international business will be demonstrated.

Cultural risks for global businesses

In a constantly evolving world, going global must be accompanied by the ability to carry out business efficiently while also being sensitive and respectful of the unique differences woven into the fabric of intercultural communication.

An in-depth understanding of local business practices is essential for international businesses to have success. Unfortunately, many businesses enter new markets without making themselves familiar with their host country's cultural norms and business customs and struggle to win over new stakeholders and employees.

A big part of embarking on cross-border business ventures is recognising that organisational theory is steeped in culture-specific practices. Yet, the cultural assumptions preceding international business practices remain a recurring issue.

Implementing diversity management

Being a powerful tool for improving creativity and an inclusive environment, workplace diversity can be a major draw for high-quality global talent when successfully integrated into a company's business model. A diverse workforce has also cultivation of an environment promoting fresh perspectives and approaches to problem-solving.

However, this can go awry if it is poorly managed.

Multicultural teams are made up of individuals with various backgrounds, values, opinions, and business customs. Unless these factors are properly managed, interpersonal conflicts between team members can arise. Adversely affecting trust, communication, and productivity.

With workplaces being more and more diverse, challenges like bias, discrimination, and differences in communication styles can strain team dynamics and obstruct collaboration. Failing to manage these issues effectively, the companies miss the chance to harness the strengths of a multicultural workforce.

Identifying regional and subcultural differences

Not everyone in a country shares the dominant culture's values or behaviors.

Subcultures—shaped by factors like socioeconomic status, language, and beliefs—can vary within a region, thus exerting great influences on perceptions, consumption patterns, and product preferences.

Businesses should educate themselves on the attributes forming the cultural makeup within a national context, as cultural barriers can and do exist on an intra-national level. Companies unable to have identification of the diversity within their host country will be exposed to the risk of alienating potential customers.

How to overcome cultural barriers in international business

Create space for other cultural requirements

Be accommodating to your employees' and co-workers' cultural requirements in your host country. Take into account factors such as religious or cultural holidays, prayer times, and dietary needs and integrate them into your workplace policies so that everyone feels included.

Cultural awareness in the workplace is about establishing common ground so that everyone can understand and respect one another's differences.

Guarantee clear and polite communication

Utilize simple, concise language in all materials to overcome language barriers and ensure effective communication with multilingual employees. Avoid slang and complex jargon, and add visuals to make messages clearer.

Employ diversity training programs

Ensuring that people with different cultural backgrounds feel included and safe is an important step in overcoming cultural barriers in the workplace.

Diversity training can be a useful tool in making employees more conscious of any unconscious biases and other barriers may get in the way fully embracing diversity and inclusion. Creating an environment that fosters teamwork, creates new opportunities and motivates positive interdepartmental attitudes is critical to creating and maintaining a healthy work environment.

Global diversity programs should be able to adapt their content, language, and approach to account for variations in employees' cultural, political, legal, and social contexts.