Feb 04

First of all let us consider what a lingua franca is. In the words of the linguist Nicholas Ostler, a lingua franca is ‘a language that you learn because you need, because you want to.’ In contrast, Ostler defines a mother tongue as ‘… a language that you learn because you can’t help it’.

English as the Lingua Franca for Business, business English, English courses, business English for professional

© istockphoto.com/ Kasia

How did English become today’s lingua franca for business? The spread of English can be traced back to the settlement of North America when the British took over areas of land from native populations and established English as the language that subsequent immigrants would speak. English was also taken to India and other countries around the globe as part of 19th Century imperialism. After the Second World War, English became increasingly popular as it was associated with the new world order. The cultural and economic clout of the countries where English was spoken encouraged and obliged many political elites and companies to adopt this language.

What is the current situation? The Financial Times published an article in 2007 entitled ‘Whose English?’ This article estimated that the number of native speakers of English was 400 million whereas one quarter of the world’s population can communicate in this language. About 80% of all interactions in English take place between non-native speakers. The globalisation of business operations and communication technology has helped bring about this situation.

Currently business English’s position as a lingua franca is upheld by the economic might of the United States and Britain. However, the influence of the two economic powers has recently been shaken by the banking crisis and the consequent economic downturn. This situation shows how things can change. Maybe in the future Chinese companies will be in a position to oblige ‘foreign’ companies to use Chinese to do business with them? It is also worth considering that the number of Americans who have Spanish as their mother tongue is increasing rapidly.

But before this situation occurs, international businessmen or entrepreneurs will still need to use English during their international meetings or business negotiations. Consequently, professionals working internationally can benefit immensely from business English training courses which will allow them to communicate effectively with their foreign counterparts.

© Communicaid Group Ltd. 2011

Jul 16

According to an article in the Economic Times, several Japanese retailers told their employees to start speaking English, or find another job. Japanese organisations like Uniqlo are trying hard to become less Japanese and more global by making English the company’s official language. Many employees working for large international Japanese companies now have to pass the TOEIC with at least 700 out of 990.

Expanding abroad to boost sales or to become a global company seems to be an increasing trend. Nowadays, business English has become the international business language and Japanese managers recognise that excellent business English language skills will make them stand out.

‘No English, No Job’

© istockphoto.com/ Chris Pritchard

In certain Asian countries like South Korea and Japan, people learn English in high school but the focus tends to be around reading and writing rather than listening or speaking so the latter can be quite weak when applied in business. Japanese organisations are aware of the way most Japanese are programmed to learn English from a young age and therefore tend to limit the opportunities they have for English language training because they are not confident that it will make a difference.

English language training can make a difference provided it is organised and delivered effectively. Nevertheless, it’s important employees looking for jobs in Japanese companies and many other companies around the world have excellent business English skills. This will increase their chances of finding a good job allowing them to work abroad and communicate on an international level.

National business, national Stock Exchanges or national economies are now being replaced with international business, international Stock Exchanges and international economies where English is the lingua franca. Being able to read, write and speak in business English is paramount to success in both the Japanese and global marketplace.

© Communicaid Group Ltd. 2010

Jul 14

English is the international language of business and used increasingly around the world, especially within the finance sector. So how did English become the language of international finance?

British colonialism led to the spread of the English language throughout Asia and Africa where it became the language of education and governance. As the British colonies became independent, English remained the language of trade between the 54 countries of the Commonwealth of Nations. English continued to become more widespread as the United States’ economic influence increased during the Second World War. English remained the most commonly spoken language and quickly became the de facto lingua franca of business as American companies such as IBM and GM grew and became truly multinational.

Business and financial services such as banking and accountancy around the world use English as the primary language of communication. International standards for finance such as the International Accounting Standards (IAS) and International Financial Reporting (IFRS) are all recorded in English while many terms and expressions related to banking and accounting have been coined in English.

What is Financial English?

© istockphoto.com/ Track 5

In addition to the many international standards in English, important international bodies have also been set up and use English as the language for communication. One of these is ACCA(The Association of Chartered Certified Accountants), one of the largest and fastest-growing global professional accountancy bodies with 296,000 students and 115,000 members in 170 countries. Its aim is to enable people to become highly qualified so that they can pursue their international careers in accountancy, finance and management.

Anyone who wants to understand the financial standards and regulations or participate in these important international bodies must ‘possess first-rate English language skills and the ability to converse with other accounting and finance professionals’ (University of Cambridge). Being able to communicate with finance professionals in today’s international business environment requires not only excellent skills in business English but the ability to use Financial English.

Someone with excellent Financial English skills will understand the many terms and abbreviations used in the financial sector. Some examples include: ROI (return on investment), EBITDA (earnings before interest, tax, depreciation and amortisation) and GAAP (generally accepted accounting principles).

There are also a number of themes which professionals working in finance need to understand such as financial reporting, insurance, investment banking, ethics and professionalism, accounting software, assets and company valuations, and acquisitions and mergers. All of these areas contain lexical fields that need to be mastered by any professional in a finance role.

In addition to these lexical fields, Financial English also encompasses the language required to perform everyday financial tasks. Financial professionals need to possess the linguistic skills to:

  • Prepare and deliver presentations
  • Take part in discussions
  • Participate in and conduct meetings
  • Give their opinions and suggest alternatives
  • Present an argument and handle questions
  • Write financial reports and formal letters

The ability to speak Financial English is no longer a nice to have but it’s a must have for any finance professional working in today’s global world. Whether it’s understanding the specific terminology or international standards, taking part in important financial discussions or writing vital financial reports, finance professionals must have an excellent level of Financial English to succeed in a domain where precision is fundamental. Click here to find out what the content of a Financial English course contains.

© Communicaid Group Ltd. 2010

Jun 16

What are the reasons why so many professional people are currently attending Business English courses? The answer to this question is simple. English is the language for doing International Business. As a consequence, companies need those employees who are in relation with foreign clients or suppliers to have the skills in English which enable them to do their work efficiently. Even if an employee has good knowledge of the English language, he/she still needs to acquire the language to their professional area (logistics, human resources, etc.) and therefore need to attend a Business English course.

In this post we will look at why English is in this position, what the implications of this are for the English language and Business English training courses and what future developments we can expect to witness.

Business English as International Language of Business

© istockphoto.com/ Pali Rao

British colonialism spread the English language around the globe as it was administratively imposed on the non-English speakers in these colonies. English started to become increasingly influential on the world-scene at the beginning of the Twentieth Century. The Versailles Treaty of 1919 was drawn up not only in French (the diplomatic language of the time) but also in English. The US’s powerful political, military and economic position in the second half of the Twentieth Century meant that English became the main language of communication in such organisations as NATO and the IMF. The following facts from the British Council website reveal the current widespread use of English: English is spoken as a first language by around 375 million and as a second language by around 375 million speakers. Around 750 million people are believed to speak English as a foreign language.

Due to the fact that Business English is so important, companies require increasing numbers of their employees to have knowledge of this language. This knowledge is no longer the preserve of people in positions of responsibility; technicians who have to phone for support in another country and receptionists who receive foreign delegations also need to be able to do certain parts of their jobs in English. Companies therefore allocate a proportion of their training budgets to business English courses. This more diverse demand has led to the development of training courses which specialise in exactly what the delegate needs to know in order to be able to function correctly at work.

As Business is done in English between people who are not necessarily native speakers of the language, a simplified version of English is now emerging. This version is sometimes called ’standard’ or ‘international’ English. This new type of English for Business purposes is trimmed of all the non-essential grammatical structures and has a reduced common vocabulary. Phrasal verbs such as ‘go on ‘ and ’set up’ are not as important as ‘continue ‘ and ‘create’, for example, and knowledge of the difference between the present perfect and the past simple is no longer a priority in the training room.

The primordial objective of the business person using international business English is to communicate efficiently and effectively. Native speakers with their fast delivery, colloquial expressions and unclear pronunciation are feared in the business place as they have become the most difficult people to understand. The result of this is that native speakers may have to start learning how to speak a more communication-friendly form of their own language – i.e. international English

According to a recent BBC article, US economic, military and political dominance is likely to decline over the next two decades. This change shows that the situation that made English into the international Business language is going to change in the future. Will this mean that another language will replace English as the new language of international business communication? It is improbable as Chinese, for example, is such a difficult language to learn and does not have the same world-wide spread as English. Another emerging economy, India, already uses English substantially in everyday life. It is also true to say that International English is easier to learn than other forms of English such as British English or American English. The result is that this standardised international version of English will become more and more prevalent in international business and training courses will have to reflect this reality.

© Communicaid Group Ltd. 2010

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