The Cost of Business Gaffes across Cultures

Cross cultural business gaffes aren’t just embarrassing.  They can be expensive, too.

The Wall Street Journal explores the financial cost of such cross cultural mistakes in  “Expanding Abroad? Avoid Cultural Gaffes” (1-19-10 by Emily Maltby), showing how the lack of advance research and cultural customization can wreak havoc.

Remember the Chevy Nova, which failed to sell in Mexico (and other Spanish speaking countries) because “No Va” means “it doesn’t go”?  Well, this article provides up-to-date examples along those lines. It describes how an e-learning company created driving courses for sale abroad–but failed to research the driving customs of such foreign countries; for example, the course advised drivers to take the center lane on multi-lane highways–without customizing the instruction for Dubai, in which the center lane is used just for passing.  The article also described cultural gaffes–choosing words or a tone of speech that would have worked well in the US but caused offense abroad.

Globalization has spread, but separate cultures (with their own cultural values and customs) still exist. So, do your advance research and avoid costly gaffes.