How does language affect international business?

An old expression says that business is all about relationships, which is true in a certain sense. However, today we can go one step further by affirming that business is all about communication. We are not talking about classic communication strategies used by companies all over the world, no. We are saying that the language that companies use when communicating with their clients and associates will have an important impact on their business.  How could languages affect your business?

Every manager trying to run a business should understand the significant role that the mother tongue plays in people’s lives. It is a real added-value to communicate not only with customers, but also with employees or associates, in their native language. It makes them feel more comfortable and usually helps developing valuable relationships.

Customers’ Perspective

Your customer will often approach your products and services from a perspective distinct from yours. The most customer-friendly businesses will win just about every time, and being customer-friendly includes speaking your customers language. When you speak someone’s language, you start to earn their trust. Trust is a key in developing new and repeat customers.

According to a Harvard study conducted on 2,430 online consumers, it seems that about 40% of the consumers never purchase products or services in other languages.

Co-workers’ and Associates’ Perspective

The way the language is constructed may influence perceptions. The perception of your employees or associates will guide their future behaviors. For instance, it has been demonstrated that the perception of an employee depends on the words the employer will use while assigning him to a task. Two different ways to ask the same question imply two different feelings from the employee’s point of view. Moreover, when the language used is not the native language of the employee, it could also result in unwanted responses. Feelings of being offended, dominated or even adverse reactions, such as complacency and over-confidence, are examples of these unwanted responses. Languages shape the way people feel and think. By speaking the mother tongue of your co-workers and associates, and by constructing your phrases correctly, you will avoid all unexpected reactions from them. It will help you to run your business more efficiently.

How Languages Affect your Business

Language affects business in two different ways. On the one hand, economic globalization does not mean globalization of the languages. It rather means that international companies have to take the language of their foreign clients into account while trying to make them purchase their products or services. The more confident the client is, the higher the chance of purchase. On the other hand, companies could be more efficient by using native languages in their internal communication, and thus avoid unexpected, unwanted or adverse reactions from their employees and associates, since these reactions could be sand in the wheels of your business.

You May Want to Think about…

Have you been approached by a non-English speaking customers, employees or associates, and were you able to help them? Have you experienced confusion, misunderstandings, misconceptions or unwanted responses from your non-English speakers? A professional and reputable translation company will be able to assist you with your foreign-language communication. If you want to know more about an international translation company, don’t hesitate to contact USA TRANSLATIONS, your exceptional translation service worldwide. We are the experts and will gladly assist with all your questions.

The UK has finally reached a trade deal with the EU, but the complications arising from the new Brexit agreement are already being felt by businesses. There have been reports of shipping price increases and delays at ports, which have been partially blamed on Brexit. Add to this the news that many smaller companies are considering moving away from trading between the UK and the EU due to VAT and customs complications, and it comes as no surprise that some businesses are switching their focus towards rapidly developing markets elsewhere in the world. Areas such as the APAC region and South America are becoming increasingly popular with international traders. While Latin American Spanish and Brazilian Portuguese are the main languages in South America, in the APAC region, there are over 14 languages in widespread use. All of this gives exporters a lot to consider in terms of potential language barriers and global trading!

Selecting your markets – the fundamentals of International Trade

Selecting new markets to enter is guided by a number of factors. Successful international trade requires solid market analysis beforehand. Identifying consumer / business spending habits, cultural influences and competitors needs the support of accurate translations. It is important to also consider the native language of the main populations in new markets – these have key cost and resource implications for trading overseas. Additional costs could also arise due to employees. New starters in other countries may need documents translated, and you may need an interpreter for interviews or spoken communications.

How does global trading affect the world?

Global trading affects the world in many ways. Global trade can help to boost economies, bring new goods to specific markets and help with balanced risk management. Expanding into wider markets can help to avoid serious consequences as a result of market or economic downturns.

If your industry is facing a skills shortage post-Brexit or in the wake of Covid-19 job losses, having a more globalised workforce can allow you to invest in talent from anywhere in the world. Balance this with the trends towards remote working and recruiting globally could prove a cost-effective move long term. Entering emerging markets can also help build business resilience – since some countries have fewer restrictions and Coronavirus cases, consumer spending and trade could be less affected. Being ready with translated human resources documents such as employee contracts, onboarding documents, health and safety information and user guides is crucial.

Another area of vital importance for businesses post-Brexit is compliance with new regulations and keeping even more on top of exchange rates – access to expert financial translations can be key to keeping finances watertight.

Do language barriers affect global trading?

According to an article on Sciencedirect.com, a 10% increase in the Language Barrier Index could result in a 7% to 10% decrease in trade between countries. Language barriers can at best, cause confusion, and at worst, cause offence. Time differences and expectations of communication can also produce barriers to global trading productivity. Building your brand abroad relies on communicating your brand messaging consistently and effectively in the languages within scope for your trading efforts. Language barriers can effect global trading hugely.

How to market effectively in different languages

With a clear communication strategy, translation can be completed cost-effectively and to even the tightest schedule. As business documents can often contain legally binding and regulatory content, it is advisable to prioritise when budgets are tight and make sure to use a professional provider.

It’s also important to ensure cultural sensitivity across communications as traditions and popular culture references can vary around the world. The best starting point for global trade is to investigate the markets most relevant to your sector. This requires a full understanding of the target market, purchasing decisions and local culture. For marketing materials, it’s vital to achieve buy-in. This means investing in translators with creative translation (transcreation) experience and knowledge of the specific language of your sector.

To find out more about translations for global trading success, please contact our language experts today!

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