Research on the Impact of Cross-cultural Differences on the Implementation of a Company's Foreign Economic Activities

The study examines the essence and a characteristic of cross-cultural differences, analyzes the rea- sons for their emergence, and explores ways to overcome them in the process of conducting a company’s foreign economic activities. The main challenges that complicate business interactions between companies and foreign partners are characterized. The main causes of difficulties are not limited to language barriers or insufficient professional training of personnel but also include deeper socio-cultural factors that may remain unnoticed by the participants in the interaction. In particular, a low level of intercultural compe- tence among employees can become an obstacle to the effective implementation of foreign economic ac- tivities, which is especially relevant for enterprises seeking to expand their presence in international mar- kets.
The successful implementation of foreign economic activities in a cross-cultural environment re- quires a comprehensive approach that includes developing employees' intercultural sensitivity and utiliz- ing digital solutions to overcome communication barriers. The level of intercultural competence among personnel can be improved by implementing Milton Bennett’s model of intercultural sensitivity develop- ment. This model enhances mutual understanding between representatives of different cultures and re- duces the risk of conflicts during negotiations. By fostering intercultural sensitivity, enterprises can build trust and strengthen partnerships with foreign counterparts.
The research established that the process of cross-cultural interaction between enterprises and for- eign partners is complicated by the insufficient use of modern information technologies. In the context of intercultural cooperation, effective communication and access to up-to-date information become key fac- tors for the successful implementation of a foreign economic strategy. However, the lack of tools that enable fast and efficient interaction with foreign counterparts can lead to reduced operational efficiency and a slowdown in the decision-making process. To address this issue, enterprises engaged in foreign economic activities should consider utilizing modern information technologies, such as virtual showrooms powered by virtual reality (VR) technology. This tool will not only enable enterprises to showcase their products or services to foreign partners in real time but also help overcome cultural and geographical barriers. Virtual showrooms can significantly enhance communication, reduce travel expenses, and create more efficient conditions for international cooperation.
The research findings indicate that enterprises engaged in foreign economic activities must imple- ment comprehensive strategies for effective cross-cultural collaboration. These strategies should include training personnel in international communication specifics, adopting advanced information technologies to overcome interaction barriers, and adapting management approaches to the cultural differences of foreign markets.