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Challenges of Business Across Borders

In today's time there is a major need to collaborate across cultures and geographies to enhance your business.  With thrilling new chances for growth the globalization and geographical interconnection have grown more common. However along with this rosy picture comes the challenges and risks.

The basic challenge comes with the behavioral issues like many managers are not prepared to work with people who are very different from themselves. When diverse ways of thinking, understanding, acting, and communicating come together in a work environment, many well-intentioned managers struggle. It takes time and patience to hear and understand the interaction with people with unfamiliar accents.

When business collaborate across cultures, one often faces few of the below challenges:

Legal Understanding: Still in today's world there are many people who are not in favor of outsourcing and globalization. To start your business in a new land we should be familiar with the rules and laws of the land example there might be many additional taxes and duties levied which one should be familiar with. To counter that we need to have a proper backing of a lawyer/ law firm who are well versed with the rules and regulations of the country.

Trust aspect: when cultural lines are crossed, coworkers may face struggle finding common ground to work thus mutual trust is crucial at that juncture.

Cultural and language barriers: Different countries have different cultures and values. Example the marketing style might be different in different countries or there are countries where women are not treated at par with men. Thus it is important to understand the cultural intricacies of the country we plan to do a business.

Language is one the major barriers that holds on to the business opportunities across borders. Language difference often leads to misunderstandings thus one needs to deploy the right resources with the required language skill sets.

Team alignment: To lead a team across the globe chasing a common goal can be quiet demanding. Members of different cultures may have difficulty identifying as part of the team and aligning behind agreed-upon goals and responsibilities.

Currency fluctuations: Market fluctuation in various currency values can lead to a lot of profit/loss for a business operating overseas. We should hire a professional currency trading firm to counter the effects which in turn can be control through currency hedging.


Having mentioned the challenges of cross border business we still will have a favorable economic conditions to flourish our business. Moreover, overseas expansion increases the exposure to a new market with a new set of customers which have different expectation and reactions to the business.


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