Business in India: How Cultural Differences Affect Cross-Cultural Business Dealings

Business in India: How Cultural Differences Affect Cross-Cultural Business Dealings

Proper communication practices tend to be one of the primary indicators of business success domestic and internationally (Gelberd, B., 2008). As more and more business is outsourced to other countries, specifically India, more companies are experiencing the difficulties associated with cross-cultural business dealings. The economic implications of maintaining proper business relationships with India and other countries has become so vast that President Obama has made this issue a top priority following mid-term elections. President Obama will be spending his longest foreign relations trip with the largest delegation this week in India to discuss this very issue, according to the Associated Press (India tries, 2010).

Obama “is bringing 250 U.S. executives including GE chief Jeffrey Immelt and Honeywell's David Cote, which the U.S. India Business Council says is the largest such delegation to ever accompany a president on a foreign visit. The presidents of six universities, including Georgetown and Duke, are also set to come” (India tries, 2010, ¶4). The group is seeking more than $10 billion in deals.

In the past, Americans have enjoyed the benefits of large organizations being able to outsource positions to India. However, as U.S. unemployment reaches over 9 percent, Americans are beginning to desire an equitable relationship with India involving some jobs returning to the United States while still maintaining corporate relationships with India. India is also disgruntled as American companies seem to be dealing in an unfair manner with Indian outsourcing companies.

This issue, like others in the business world, centers on the differences between the cultures involved. Success in international business tends to hinge on the organization’s ability to understand and integrate various cultures (Björkman, Ingmar, 2007). Yates and Cutler (1996) discussed the importance of...