Cross Culture

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DEFINITION of 'Cross Culture'

The interaction of people from different backgrounds in the business world. Cross culture is a vital issue in international business, as the success of international trade depends upon the smooth interaction of employees from different cultures and regions. A growing number of companies are consequently devoting substantial resources toward training their employees to interact effectively with those of companies in other cultures in an effort to foment a positive cross-cultural experience.

INVESTOPEDIA EXPLAINS'Cross Culture'

Cross culture can be experienced by an employee who is transferred to a location in another country. The employee must learn the language and culture of those around him, and vice-versa. This can be more difficult if this person is acting in a managerial capacity; someone in this position who cannot effectively communicate with or understand their employees' actions can lose their credibility. In an ever-expanding global economy, cross culture and adaptability will continue to be important factors in the business world.

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