How can an MNE use language as a competitive weapon? What role does language play in cultural cluster approach of international business?

What will be an ideal response?

Communication is a critical part of business. When companies have a common language, communication is facilitated. So, for example, firms from English-speaking nations such as Australia and Canada will find it easier to conduct business in other English-speaking countries. In fact, the dominance of English as the language of business gives companies from English-speaking countries a competitive advantage. The cultural cluster approach is a technique for classifying and making sense of national cultures. Similarities exist among many cultures, thereby reducing some of the need to customize business practices to meet the demands of local cultures.Many clusters are based on language similarities, as is apparent in the Anglo, Germanic, Latin American, and Arab clusters. Many international businesses instinctively utilize the cultural cluster approach in formulating their internationalization strategies. U.S. firms' first exporting efforts often focus on Canada and the United Kingdom. Hong Kong and Taiwanese firms have been very successful in exploiting China's markets. Similarly, many Spanish firms have chosen to focus their international expansion efforts on Spanish-speaking areas in the Americas.