Managing Cultural Differences: Challenges for Americans Doing Business in Europe

With the powerful lure of the European Union’s 374 million-strong market and the continued opening of Eastern Europe to commerce with the West, the number of American business travelers going to Europe has increased dramatically. The facility-location and other business opportunities that attract them are self-evident, but the risks and obstacles are frequently overlooked.

Major hidden pitfalls are cross-cultural misunderstanding and friction. Differences in cultural values between Americans and their European counterparts often result in the American being blindsided in a business or social setting and the European being embarrassed or frustrated by the interaction.

Research in the field of intercultural communications and the experience of seasoned international business travelers have clearly demonstrated the importance of being aware of one’s own cultural identity, as well as understanding the values, assumptions and expectations of one’s foreign counterpart. Unfortunately, there is little in the education of the average American to prepare for these challenges.

According to the American Institute of Foreign Language Study, only 5 percent of U.S. college graduates can speak a second language, and the vast majority of business school graduates do not take a single course on international business, economics or politics. But U.S. business executives who take the time to develop a greater understanding and awareness of the many cultural differences between Americans and Europeans will reap the benefits of better business and social relations with their European partners.