Role of communication of international trade

Communication consists of so many dimensions and is a very complex subject. While discussing
communication, one has to look at several aspects regarding the subject. You have to identify
different skills, components and challenges in the environment of communication, though it
doesn’t end there.
A communication line also goes beyond the borders of your business and stretch to international
companies. To successfully trade across international borders, you have to analyze the country
and culture of the people whom you are trading with. You have to get a feeling for the way they
do business and also for customs or manners that could offend them. People from a different
background will feel honored and will be much more open to business if they can see that you
respect their ways. Because of this reason, it is also critical to look at the importance of
multicultural communication in international trade. Looking at aspects such as marketing,
logistics finance and payment, we discuss the important role that communication plays in today’s
businesses.
The importance of communication in the international trade environment: To communicate is
to live. It plays such a vital role in our daily existence that we can do nothing without it, but just
as important as it is in our daily existence, the more so vital it is in the business environment
because if the communication lines between your business and those of your partners’ isn’t open
and up to standard, it could mean the financial ruin of both entities (RANI). Communication is
“…the successful transition of information through a common system of symbols, signs,
behaviors, speech, writing or signals.” (ITRISA, 2010:30). To implement successful lines of
communication in your business, you have to look at all the components mentioned above.
The components of communication: According to ITRISA, communication is made up of three
components, each one just as important as the other. We look at verbal, written and non-verbal
communication to grasp the importance of this complex subject.
1. Verbal or spoken communication is important because that is the quickest way to portray
your ideas and hear other peoples’. It also provides room for discussion. On the other
hand, it can be very difficult to arrange because of the distances between partners. It is
not sufficient as means of communication because people can read just as much in the
things you don’t say but show. This is known as non-verbal communication and helps
when words just aren’t enough to express yourself.
2. Non-verbal communication is reflected in your body language and this can cause
confusion. It is very important to do research before communicating face to face with
people from other cultures. Your use of personal space, for example, may be offensive to
them. This is a very difficult component to exercise and should be regarded as one of the
 most important factor to consider in the relationship between you and your business
partners in another country.
3. Written communication is a very easy way to communicate less important aspects of a
deal but should not be used in midst of a crisis, when problems need to be sorted out
quickly and with no misunderstandings. More important decisions regarding the deal
should be on paper to insure a permanent record of the agreement between the two
parties. In today’s corporate environment, electronic communication also takes up a
major part of the methods companies use.

These are just the main methods of communicating. Numerous other means of communication
exists and in the end, companies should decide which method might fulfil their needs best. It
should be noted that every method of communication has its own advantages but also
disadvantages.
Communication in the international corporate environment: Communication between
employees of the same company is important. Francis Jock takes it even so far as to say that the
skill of communication -or the absence thereof- can cause a business to either be successful or
to fail. Let us assumes the lines are already in order. To communicate with people from another
corporation tends to be slightly more difficult because other corporations may do business in a
whole other way. Business partners from other environments are out of your control and are
unpredictable (ITRISA: 2010, 25). A general segmentation of the kind of entities one might have
to work with can be private companies, government organizations or foreign entities. For the
purpose of this essay, we look particularly at the communication between you and a foreign
entity. To make successful business deals, employees administering the deals between
businesses of different cultural background need to understand the importance of multicultural
communication.
The Role communication plays in the International Trade Environment:

The role of communication in the international trade environment is so important that many
studies have been committed to emphasizing and analyzing this role. Models to help companies
interpret communication in their daily business environment have been created. Databases’,
statistics and other information has been collected on this subject (GRIFFITH: 2002). It is difficult
to ignore the role of communication. According to ITRISA, communication plays a big role in three
main aspects of the general business. A discussion of logistics, marketing, finance and payment,
follows.

Logistics:

Though there are many events that can happen which a company has no control over, the role
of human error in logistics are a major problem. Communicating various details about a
consignment and its shipping specifications is a major part of the success of the business deal.
Employees need to make sure that both ends of the partners understand each other when
making decisions about the obligations regarding delivery, the costs each partner is liable to carry
and freight insurance. To achieve a clear understanding of the responsibilities of each party, there
should be good communication between the importer, exporter, inspection officers, and various
banks involved, customs authority in both countries, agents and insurers.

Financing and payment of international trade deals:

Without funds and the proper management necessary, international trade will not be possible.
Before entering in a contract with the other company, you have to make sure that the financing
on your side is guaranteed. To acquire this financing, proposals to your financer and motivation
behind your proposed deals have to be in order. Only after this, you can commit yourself to a
partnership with the foreign company. Once this partnership has been established, the two
businesses should communicate so that they will be aware of their exact obligations regarding
payment, due dates for this payments, the manner in which funds will be forwarded etc. It is
important to verify these details so that the financial risk regarding the deal can be minimized.

Marketing:

Marketing must be the most essential of the three roles because without marketing, you cannot
create a market for your product. Without this market, there would be no demand for your
product and therefore, no international trade. A company should communicate with affiliates in
other countries, get information from them and get to know their clients. One should be very
careful not to offend potential customers and thereby stopping the deal even before it could
realize. The absence of communication in marketing had previously led to many business deals
gone wrong and it is important to get to know the culture of prospecting clients before trying to
sell something to them.

The role of the international communication professional has changed with the global expansion
of businesses. It has also grown with the enormous growth of expressive diversity of new media
and the rise of participatory cultures. As a result, the areas of corporate communication,
advertising and promotion, public relations and other forms of persuasive communication are
merging. Nowadays, global companies show increasing demand for communication experts with
knowledge of new media. There is a need for communication professionals who are able to
translate corporate communication needs on a strategic corporate and global communication
level, by analyzing corporate communication policies, monitoring and forecasting global issues,
economic and cultural trends and analyzing marketing and communication developments.