Literature analysis of the language challenges and the responses thereto of European multinational companies

Abstract

Language diversity is an inherent part of international business transactions, despite the dominance of English. The challenge for management, HRM, and employees in multinational companies is to find the right strategy. Multinational organizations can be categorized using the EPRG (ethnocentric, polycentric, regiocentric, geocentric) model, according to how they define their relationship with subsidiaries, and how they operate in foreign markets. Using this model, conclusions can also be drawn from their applied language strategy. JEL code: F23, Z13

Keywords

• language diversity
• language barrier
• EPRG-model
• economics of languages
• language strategy