Final answer:
Misunderstanding and miscommunication due to cultural differences, such as variations in communication styles and viewpoints on personal space, can seriously impact international business negotiations. These issues are crucial influencers in the increasing complexity of international trade agreements.
Step-by-step explanation:
The most serious problem caused by cultural differences in international business negations is likely the potential for misunderstanding and miscommunication. Variances in communication styles, such as directness or indirectness, personal space, and conversational etiquette, can create barriers that impact negotiations. In an American context, being direct is appreciated, whereas in other cultures, indirectness might be the norm. This can lead to inefficiency in the negotiation process, strained relationships, and even failed business deals.
Global trade concerns also include fear of job loss, environmental impacts, and unfair labor practices. These issues, heightened by the rapid pace of globalization and the push towards a more uniform corporate culture, could make international negotiations more challenging. Indeed, recent WTO and GATT negotiations have become lengthier and more complex partly due to these cultural and ethical considerations, indicating that cultural understanding is crucial for successful international business interactions.