Language and Economics

The globalization of markets is one of the most important developments of this century. Its impact on the economic transactions, processes, institutions, and players is dramatic and wide ranging. It challenges established norms and behavior and requires different mindsets. Yet, globalization creates opportunities for the well-prepared participants who are visionary and have insight. The globalization of markets reflects the growing interdependency among the economics of the world and the multinational nature of sourcing, manufacturing, trading, and investment activities. It also reflects the increasing frequency of cross -border transactions and financing and the heightened level of competition. These phenomena are fueled by advances in information, communication, and transportation technologies with increased global economic growth.

Whether we like it or not, we have to accept that purely national economies no longer exists and that we are moving towards a growingly integrated global economy. Trade between countries requires communication between the seller and the buyer, which in turn requires a language that they both understand well enough to prevent misunderstandings. How many business deals have not been made between for instance Swedish and Japanese businessmen who happen to both speak not enough good English? According to the international lawyer firm Baker McKenzie (with offices in 35 countries) misunderstandings are the most likely cause behind failed international business. The confusion of languages obstructs the trade among countries and translations costs vast sums. Money that in the very end the households of the world are bound to pay. The confusion of tongues every year costs the people of the world billions of dollars…