Business Barriers in Foreign Countries

336 Words2 Pages
Two common business barriers in foreign countries are the negotiating of the environment and cultural issues. This involves some degree of culture shock. This can be anything from language, food, and conflicting business types. Time is also a factor of these barriers. Some people from many nations spend several months just to get to know the area, where as American businesses often try to get negotiations done as quickly as possible.1 Simple alternatives to these barriers is to hire a person who is familiar with the culture and customs of the country that you are trying to negotiate or build a business in and have that person be a liaison between you and the foreign business persons. Two other business barriers encountered by businesses in foreign countries are the ideology and the foreign bureaucracies. Knowing the ideology of the people that you're conducting business with is crucial. Knowing whether they are adversarial, or independent makes a big differences in negotiations. Also knowing the bureaucratic system, commonly referred to as the "red-tape" is important. Many business have silent partners, share holders, etc, and to be success means having an understanding of the laws and related governances. The est way to handle these barriers is to have a legal advisor. This does not mean that you need to have a full time lawyer, since this can be quite expensive for small companies. Rather, make sure to do your research and have a legal advisor that you can go to for specific issues. One last business barrier that is an issue in foreign countries is the currency. Business ventures are intended to be profitable, and in order for this to happen it is crucial to understand and factor in the currency rate of exchange between the two countries. References: 1. www.smallbusiness.chron.com>...>Barriers to Communication 2.
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