Interculturalists and cross-cultural communication
specialists are the first to advise caution when it comes to using humour in  international business. Copywriters and marketers often avoid humour for fear of offending readers in an increasingly diverse market place.

However, according to a recent study laughter may be a profit-enhancing business tool when used in negotiations by increasing trust and rapport. Read below to understand the role of humour on the early stages of negotiations and its subsequent impact on the trust between the negotiating parties – and, most importantly, whether there was any commercial gain…

Marks & Spencer has just learned how expensive the transaction costs in international business are when you don’t do your homework properly. The opening of the first Marks & Spencer store on the Chinese mainland has been beset by many cultural problems – most of which could have been foreseen with a little research.  One of the most costly though was their complete lack of Market Research. Sir Stuart Rose, executive chairman of Marks & Spencer, admitted that the company “had misunderstood the local market” by assuming Hong Kong sizing would also apply to the mainland. “Shanghai clothing sizes were based on Hong Kong sizing, but the smaller sizes rapidly sold out” he explained. (FT February 10th 2009). Remember to do your cultural research – you can’t afford to get things wrong!