What is 'Cross Culture'

Cross culture often refers to a company's initiatives to increase understanding of different groups. Understanding leads to stronger, more productive communication and marketing aims to reach clients outside of the company's traditional base. Healthy cross-culture interactions of people from varying backgrounds are vital in international business.

BREAKING DOWN 'Cross Culture'

Cross culture is becoming increasingly important with the globalization of businesses. Many companies devote substantial resources to training employees how to communicate and interact effectively with those from different cultures. Cross culture can develop through personal experiences. For example, if an employee of an international company transfers to another country, they may experience the cross culture. To assimilate, they must learn the language, understand the culture, and adapt or conform to social norms. 

Cross culture initiatives are imperative to implement for employees acting in managerial capacities. Failure to effectively communicate with or understand their subordinates' actions may lead to cascading problems within the business. 

Considerations in Cross Culture

Culture is immeasurably valuable because it shapes how social, societal, and professional behaviors are interpreted. Cultures can be hierarchical, matriarchal, or have flat social structures. The levels and types of interactions between managers and employees will vary among the different cultural forms.  For example, some cultures view the association between a manager and a subordinate as a symbiotic relationship. In other cultures, the manager rules bureaucratically.  

Cross culture also extends to body language, physical contact, and personal space. In cultures where the adherence to strict religious practices and values is standard, interactions between members of the opposite sex, even in the business sphere, may be complicated. Body language, such as using the hands while talking, may be frowned upon or gestures may have different meanings. In cultures where community, harmony, and nature are valued, touching during interactions may be encouraged.

Example of Cross Culture

Simple practices and behaviors may be viewed quite differently in various cultures. Accepting a business card from a Japanese businessperson, for example, is more ceremonial in the Japanese culture than you would find in the American culture. The person presenting the card will bow and present the card with both hands. The receiver should take it with both hands to show respect.  Contrastingly, in many Western societies such as the United States, business cards are exchanged freely with little consideration. Understanding these small yet significant differences help enhance relationships between members of different cultures.

  1. Corporate Culture

    Corporate culture refers to the beliefs and behaviors that determine ...
  2. Cross Trade

    A cross trade is when a buy and sell order are matched without ...
  3. Performance Management

    Performance management is the supervision of employees and departments ...
  4. Cross

    A cross is when a broker receives a buy and sell order for the ...
  5. Death Cross

    A death cross pattern occurs when a security's short-term moving ...
  6. Cross Currency

    A cross currency is a currency rate that is quoted and transacted ...
Related Articles
  1. Financial Advisor

    Expect FINRA to Ask These Culture Questions

    This month, FINRA kicks off its culture examinations for brokerage firms. Here's how to cram for the test.
  2. Investing

    Hedge Fund Fortunes Change, High-Rolling Culture Doesn't

    The lavish lifestyles of hedge fund employees have persisted, even as returns have dwindled.
  3. Trading

    Make The Currency Cross Your Boss

    Tap into a world of possibilities by going beyond the simple pro- or anti-dollar trade.
  4. Financial Advisor

    Buying an Advisory Practice? These Tips Will Help You Get it Right

    Before purchasing a financial advisory practice, ensure due diligence is done and that you understand the business and culture of the organization in question.
  5. Retirement

    Top 4 California Cities to Retire if You're Ultra-Rich

    Discover why many rich individuals are choosing to retire in California, and some of the cities that are popular as retirement destinations.
  6. Investing

    Toshiba's Accounting Scandal: How It Happened (OTCBB:TOSBF)

    Learn how Toshiba's corporate culture and lax internal controls led to an accounting scandal that ended with the resignation of the company's CEO.
  7. Trading

    What's a Death Cross?

    A death cross is seen when the short-term moving average of a security or index falls below its long-term moving average.
  8. Personal Finance

    How to Identify a Workplace that Will Help You Succeed

    While the workforce gender gap has narrowed, women are still underrepresented in the C-suite. Here's how top female CEOs got their start.
  9. Personal Finance

    Advance Your Career With a Finance Job Overseas

    Many finance jobs have moved overseas with outsourcing providing cost benefits. Find out why taking a job in a foreign country could be a good career move.
  10. Insights

    What People Spend On Christmas Around The World

    Here's a look at some famous Christmas traditions from around the world, how much they cost and how the cost compares to a Christmas in the U.S.
  1. What is the difference between a Golden Cross and a Death Cross Pattern?

    The golden cross indicates a long-term bull market going forward, and the death cross signals a long-term bear market. Read Answer >>
  2. How do interpersonal skills influence a business culture?

    Interpersonal skills are vital to business culture because they determine not only how a person interacts with others, but ... Read Answer >>
  3. Investment Banking vs Private Equity

    Despite both shared similar characteristics, they are different in many ways. Check out how private equity and investment ... Read Answer >>
  4. How does the notion of the American Dream influence the U.S. economy?

    Learn about how the American Dream has influenced the U.S. economy. The American Dream is the idea that anyone can make it ... Read Answer >>
  5. What does a merger or acquisition mean for the target company's employees?

    Learn about the likely impact of a merger-and-acquisition deal on the target company's employees, including their benefits ... Read Answer >>
Trading Center