In this era of globalization, business negotiations around the world have become mantras for successful deals. However, the problem is that business people are sometimes not sure on how to deal with people from other countries, cultures or ethnic groups. It is here that the concept of cultural intelligence comes into picture. In the present global marketplace, cultural intelligence is an essential requirement of leaders and managers. Organizations and individuals who understand strategic value of cultural intelligence are able to effectively leverage cultural differences for a competitive advantage in their business. Cultural intelligence can be acquired through long duration of study, observation and practice. This article discusses various approaches, which will help us in understanding the procedures to develop cultural intelligence and to know as to how cultural differences affect business behavior.

Culturally intelligent people are like ancient Greek, Proteus. Proteus was a supernatural character in Homer's Odyssey, a sea dweller who could change shape at will and become a fish or a lion, or a tree, or a fire, according to the situation. He was in this adaptation guided by knowledge and mindfulness of the situation. Similarly, global managers of today and tomorrow must learn to be flexible enough to adapt knowledgably to each new cultural situation they face.

The need for regular and effective interaction with people from different cultures is now felt world over due to globalization. It has become a prerequisite fundamental skill for effective management of businesses involving many parties from different countries with different cultural backgrounds. Cultural intelligence has become important for business dealings so that parties trust each other in business. The fact remains that cultural intelligence has a great bearing on business negotiations/deals/decisions. The reason is that various parties to the deal may be coming from different countries and are subject to the conditioning of their own cultures. Sometimes, businessmen face difficulty in their negotiations and wonder as to how to deal with people from different countries, diverse cultures and ethnic groups. These difficulties can, however, be overcome by understanding the various aspects of other cultures.

Cultural Intelligence, Globalization, Business negotiations, Cultural intelligence, Effective management, fundamental management skills, Intelligence Quotient, IQ, Cultural Intelligence Quotient, CQ, Business environment, Inter-cultural environments.