Why Multilingualism is Key to Business Success in a Globalised Yet Fragmented World

Is the world losing interest in English as it’s lingua-franca? Well, according to a recent article by The Economist, in China at least the number of people learning English is declining. And it’s not just in China where there has been a drop in interest in learning English.

With the world moving towards a more multipolar model with the rise in barriers and protectionism, what we are seeing is countries starting to look more inwards and becoming less reliant on English as the language of trade and commerce.

At the start of globalisation, many countries saw English as a must-have for prosperity and growth. The size of the US and UK markets and the history of commerce that they had established English as a must-have. All while in the UK, there’s been a drop in learning languages. Over the past two decades, the UK has seen a significant decline in the learning of foreign language, particularly in secondary education. In 2002, 76% of pupils in England were entered for a foreign language GCSE qualification; by 2017, this figure had dropped to 47%. Yet, the history of the UK has been one of trade. A country you would think would see the value of engaging in a local language overseas.

As a child, I was brought up bilingual, speaking English and Spanish at the same time. As I grew up and even today, this gave me the ability to quickly pick up other languages, such as French and German, during my early years or when I travelled in Europe.

In later years, when I worked in the Middle East or South East Asia, or in the early 1990s when I lived in Hong Kong, I tried to learn basic Arabic or Bahasa Melayu or Cantonese. The ability to show my respect for local culture by trying to speak and engage in local languages I know gave me an ability to understand better business and culture in different communities around the world.

But today, with the world fragmenting into different blocs, Western companies and investors will have to rely less on English if they are to expand and find growth overseas.

Equally, international brands must understand and engage in local languages while respecting local cultures if they are to build trust and their reputation in overseas markets.

Business leaders, founders, and investors must embrace foreign languages and cultivate multilingual skills within their teams to thrive in these challenging times.

The Geopolitical Context: Why English Alone is Not Enough

Globalisation has been a challenging, borderless phenomenon many once envisioned. However, increasing geopolitical tensions and the rise of protectionist policies, such as those between the US and China or within the European Union and its trade partners, is fragmenting the global and interconnected economy.

Businesses seeking to maintain or expand internationally must navigate complex regulatory environments, local government expectations, and culturally nuanced consumers who want brands to be more authentic and relatable.

Relying solely on English is insufficient in this environment and risks alienating key stakeholders.

Governments and businesses in non-English-speaking countries increasingly expect international partners to demonstrate linguistic and cultural competence as a sign of respect and commitment.

As highlighted in The Economist, China’s waning emphasis on English proficiency underscores a broader trend: the one where international businesses must be designed around local expectations rather than vice versa. This issue impacts the marketing and branding of Western products in regional markets where the culture differs from that of the home market.

Britain is estimated to lose out on the equivalent of 3.5% of its GDP every year (2018), because of its population’s relatively poor language skills.

The Business Case for Learning Foreign Languages

Building Trust and Respect

Trust and respect are the cornerstones of any successful business relationship. When leaders and employees speak the language of their counterparts, they convey more than just practical capability — they signal a willingness to engage deeply with their culture and values. This fosters goodwill, reduces the potential for miscommunication, and builds stronger, more resilient relationships that create trust and mutual respect. International brands become more relatable and accessible to consumers and stakeholders in overseas markets.

Data from the British Chambers of Commerce found that UK businesses needing more foreign language skills often need help securing international deals. Up to 70% of respondents had no foreign language ability for the markets they served, significantly hindering their export performance.

Meanwhile, companies that invest in multilingual talent can better navigate international markets and establish lasting partnerships.

Enhancing Credibility with Governments and Regulators

Geopolitical complexities mean securing buy-in from foreign governments and regulators, which is more critical than ever for businesses entering new markets. Leaders who can communicate in the local language are better equipped to build rapport with policymakers and navigate regulatory environments.

Multilingualism demonstrates a level of commitment that earns respect, paving the way for smoother negotiations and collaborations.

For example, in sectors such as technology, where data protection, intellectual property, and regulatory compliance are major concerns, the ability to engage with government officials in their native language can significantly enhance credibility. This is particularly true in countries where cultural norms value personal relationships as much as if not more than, formal agreements.

The Role of Multilingual Teams in Strengthening Company Reputation

The benefits of multilingualism extend beyond leadership. Companies that foster a culture of language learning and cultural competence across their workforce are better positioned to gain the trust of international partners and clients. Multilingual employees can act as cultural ambassadors, bridging gaps between headquarters and local offices or between a company and its global stakeholders.

Furthermore, research shows that companies with multilingual teams are more innovative and adaptive. Language skills facilitate better knowledge sharing and collaboration across borders, ensuring that global teams work more effectively. This improves operational efficiency and enhances the company’s reputation as a culturally aware and inclusive organisation.

Ten years ago, when I was Grayling’s Head of Digital for the Middle East, Turkey and Africa, I remember learning about the differences in Arabic that existed (Levantine, Gulf Arabic, Maghrebi Arabic, Egyptian Arabic and others) and the need to ensure that content that was created was adapted for the geographical location that this was being activated in.

Why Language Matters Even More in an Era of Protectionism

Protectionist policies and trade barriers force companies to localise their operations, from supply chains to marketing, communications and stakeholder engagement strategies. This localisation requires a deep understanding of regional markets, languages, and cultural norms. Without these skills, companies may be seen as out of touch or exploitative, leading to reputational damage and lost opportunities, not just in the local market but globally, if they are an international brand.

Consider the case of a UK technology company expanding into the EU. Post-Brexit, the regulatory environment has become more complex, and relationships with EU governments have become more sensitive.

Companies that invest in French, German, or Spanish-speaking leaders are better positioned to navigate these challenges and secure the trust of their European counterparts.

Similarly, in Asia, where markets such as Japan and South Korea value formal communication and cultural understanding, companies that communicate in the local language are considerably more likely to succeed. In these regions, even minor gestures — such as conducting meetings in the native language or translating marketing materials — can substantially influence a company's perception.

Practical Steps for Business Leaders

1. Invest in Language Training for Leaders and Teams: Encourage senior executives and employees to learn the languages of key markets. This will improve communication and build confidence when engaging with international partners. As an example, In 2013, the FCDO inaugurated a dedicated language school aimed at delivering extensive language education to its staff. The facility started with the provision of approximately 70,000 hours of training annually, covering around 70 languages and serving over 1,000 students. The objective was to ensure diplomats possess the necessary linguistic proficiency to operate effectively in diverse cultural environments. This then expanded into the Civil Service Language Network.
2. Hire Multilingual Talent: Actively recruit individuals with linguistic and cultural expertise in target markets. These employees can act as interpreters, cultural mediators, and market experts. Support and listen to their real-life experience when you are visiting that location, as they can help improve how you are perceived locally.
3. Integrate Multilingualism into Corporate Strategy: Develop a comprehensive language strategy that aligns with your business objectives, focusing on key markets where local engagement is critical. Don’t design a communications and/or marketing strategy that uses a dragnet Anglo-Saxon model that lacks relevancy locally, as you create risk for your brand and how you are perceived locally.
4. Foster Cultural Competence Across the Organisation: Provide training beyond language to include cultural norms, business etiquette, and regional market dynamics.
5. Partner with Local Experts: Collaborate with consultants and advisors who understand your target regions' linguistic and cultural nuances to ensure effective communication and strategic alignment.

A Strategic Imperative for the Future

The ability to speak foreign languages and understand international cultures is no longer just a skill but a competitive advantage.

As the global economy continues to fragment along geopolitical lines, businesses that invest in multilingualism will be better equipped to navigate complex landscapes, build trust, and secure sustainable growth.

For founders, leaders, and investors, this is not just about securing deals — it is about earning respect, fostering trust, and enhancing reputation in a world where these qualities are increasingly valued.

Multilingualism is not merely a tool for communication; it is a strategy for success in a changing world.