Cross-cultural competence in international business

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Cross cultural competence in international business:

The rate of globalization continues to increase at a significant pace especially after the collapse of Soviet bloc and the formation and implementation of the North America Free Trade (NAFTA). International management rate has significantly improved in the world today with many firms in the world changing to being global with their smaller counterparts participating increasingly in cross border activities through the act of subcontracting (Adekola, & Sergi 2007). Within multinational business corporations, ethnocentrism is defined as the act of imposing on affiliates living abroad the ways that they are supposed to work at the headquarters of the home culture. Culture specific knowledge involves the act of focusing on specific knowledge existing in another culture other than of the home country. Culture general knowledge on the other hand involves focusing on the knowledge awareness when it comes to cultural differences. This will involve the act of examining the mental makeup of a participant and providing a summary of how it differs from that of the others. Culture specific and culture general knowledge forms the two main cultural knowledge types (Johnson, Lenartowicz, Aped 2006).

Cross cultural competence in international business is the ability of individuals to function effectively in another culture however, within the international business, cross cultural competence definition implies that it is an effective-cultural interaction as it implied three main factors such as skills attitude and knowledge. Therefore in international business, cross cultural competence is the effectiveness of a person to draw upon identified set of knowledge, skills, and personal attributes so as to provide the capability of working together with people from different natural cultural backgrounds both at ...