What You
Should Know Before You Go
There are several aspects
of any new market you should
study before leaving home:
 Social
Institutions: Social
structures influence the
behavior of individuals. In
cultures such as Latin
America, family is the most
important social group. Family
connections may take
precedence over business. What
an uninformed US
businessperson may feel is
nepotism, i.e. giving special
treatment to a relative, may
be viewed by Latin Americans
as fulfilling an obligation.
Ethnic Background and
Class Distinctions: In the
same way that the US has many
social and ethnic groups -
some more powerful and
prominent than others - so do
other countries. The status or
values of ethnic groups and
social classes can vary
greatly. Understanding class
distinctions will work in your
favor.
Religion: In the US
church and state are separate
institutions. In other
countries, religion may be the
foundation of government and a
dominant business factor. In
Islamic states like Kuwait,
for example, individuals fast
from sunrise to sunset during
the month of Ramadan making
business conduct difficult. It
is important to understand and
respect these beliefs;
religion is taken very
seriously in some countries.
History and Geography:
A country's history and
geography can influence the
behavior and values of its
people. A US businessperson
familiar with the history of
conflict between Cambodia and
Vietnam would avoid suggesting
a three-way joint venture.
Similarly, knowing Finland's
history and topography might
prepare an exporter for a
culture which is
introspective, has minimal
communication, appreciates -
self-made' men, and cherishes
the underdog.
Regional Differences:
Doing business in Michigan is
not the same as doing business
in Mississippi. An
international firm which
prepares cultural briefs for
countries around the world has
three for Canada. Similarly,
regional differences exist in
many international markets. In
Spain, for example, one may
find a marked contrast between
doing business with Basques
who are known for efficiency,
and Andalusians, who prefer a
more relaxed pace of life.
Education: US alumni
have a similar status
regardless of their alma
mater. But in many societies
education is an important
indicator of an individual's
station and excellence.
Knowing about a country's top
educational institutions can
help you make important
distinctions and build
relationships. For example,
many of Singapore's top
lawyers are educated at the
Law School of the National
University of Singapore. A US
business wanting to hire a
lawyer in Singapore would gain
a competitive advantage by
checking for such credentials.
Deep Culture:
Understanding the values,
beliefs, priorities,
assumptions, and superstitions
of your target market can
provide important insight into
local goals, priorities, and
motivation. Though difficult
to access, this information is
essential. A US Businessperson
who knows that Japanese value
harmony, would avoid
aggressive or confrontational
behavior. An architect working
in China would understand the
importance of accommodating
feng shui - a belief that a
building's layout affects the
lives of those who live and
work within it.
Popular Culture and
Politics: Soccer is a
national obsession in Brazil.
Cinema stars are revered in
India. DeGaulle has icon
status in France. Taking an
interest in a country's
popular sports, political
heroes, and national pastimes
can mean the difference
between polite conversation
and cementing business
relationships. A word of
caution when it comes to
politics. Like US political
fanatics, individuals in many
countries will loudly
criticize their politicians.
However, many don't appreciate
criticism from outsiders.
Refrain from voicing opinions
unless invited to.
Some examples are:
-
In
India, the significance of
a business arrangement is
often determined by the
amount of time spent in
negotiations.
-
In
Thailand, it is considered
offensive to show the sole
of the shoe or foot to
another. Therefore, it is
necessary to take care
when crossing your legs.
-
In
Saudi Arabia, the law
prohibits the wearing of
neck jewelry by men, and
westerners have been
arrested for neglecting to
observe this rule.
-
In
Argentina, do not be
offended if your business
associate arrives 30 to 40
minutes late to a meeting.
-
In
Costa Rica, if you are
invited for dinner to a
home, bring flowers,
chocolates, scotch or
wine, Do not bring calla
lilies; they are
associated with funerals.
- In Germany, first names
are reserved for family
members and close friends.
Moreover, in German
business culture, it's not
uncommon for colleagues
who have worked together
for years not to know of
each other's first names.
Language: Some of
the greatest international
business stories have been
centered around misusage of
words in a multicultural
environment. Examples include
GM and trying to market the
Nova (Doesn’t go) in Latin
America and in the old days of
Burroughs Computers, their
attendance at a trade show
with the native equivalent of
"bastard" flashing
away at their booth. If you
are taking multilingual
literature, please have it
proofed by a native speaker
familiar with both your
industry and the target
audience.
Are You Ready? A Checklist
- Know the ethnic, social,
and class differences of
your target market.
- Learn about the history,
geography, and politics of
your target market.
- Understand and develop a
respect for religious
differences.
- Learn about regional
distinctions and
disparities.
- Read/subscribe to
international sources of
news and information on
your target market.
- Develop an understanding
of your target market's
higher education system
and educational
preferences.
- Identify local resource
people or cultural
interpreters who can help
familiarize you with the
deep culture of your
target market.
- Familiarize yourself
with popular culture.
- Compare what you've
learned to a local US
context.
| Source |
Website |
Description |
| Centre
for Intercultural
Learning Ethologies |
http://www.e-thologies.com/ |
A
collection of general
and cultural
information on
countries around the
world. |
| CIA
World Factbook |
http://www.odci.gov/cia/ |
Facts
on local government,
economics, politics,
and religious groups
for countries. |
| Country
Studies |
http://lcweb2.loc.gov/ |
The
Library of Congress
database on country
specific information. |
| International
Resources on the WWW |
http://ciber.bus.msu.edu/ |
Regional
and country specific
information for
markets worldwide. |
| Take
a World View: Export
Your Services |
http://strategis.ic.gc.ca/twv |
A
comprehensive,
step-by-step guide to
exporting your
services. |
| Web
of Culture |
http://www.webofculture.com |
Country-specific
information on
languages, religions,
gestures, holidays,
etc. |
| Executive
Planet.com |
http://www.executiveplanet.com/ |
Your
guide to international
business etiquette and
culture in U.S. top
trading partner
nations. Your source
for education on
intercultural
communication. Covers
numerous aspects of
business protocol,
including gift-giving,
negotiating tactics,
appointments, business
entertaining,
cross-cultural
communication and
more. |
| Worldbiz.com |
http://www.worldbiz.com |
This
site provides a list
of informational
reports available on
international business
practices, business
protocol, etiquette,
cross-cultural
communication,
negotiating tactics
and country-specific
data. Note:
Fee based |
| FITA |
http://www.fita.org/ |
The
Federation of
International Trade
Associations offers a
free bi-monthly
publication of useful
websites often
relating to cross
cultural business. |
| culturalsavvy.com |
http://www.culturalsavvy.com |
This
very informative and
well-maintained site
provides useful
business tips and
backgrounds on Japan,
China and Korea |
| Schauwecker's
Guide to Japan |
http://www.japan-guide.com/ |
This
site is a good source
of knowledge for basic
rules of Japanese
etiquette both
personal and business. |
| Window
on the World |
http://www.windowontheworldinc.com/ |
Window
on the World is
committed to enhancing
individual and
organizational
effectiveness
worldwide. |
| Cyborlink.com |
http://www.cyborlink.com/ |
Appropriate
business and social
etiquette. |
Selected
Publications
Kiss,
Bow, or Shake Hands: How to Do
Business in Sixty Countries
By Terri
Morrison, et al.
A good,
easy-to-use reference on
cultural overviews, behavioral
styles, negotiating
techniques, protocol and
business practices for the 61
countries with which U.S.
exporters are likely to do
business.
Understanding
Arabs
By Margaret
Nydell This book is a very
informative cross-cultural
guide and presents an overview
of Arab culture as well as
individual frameworks for each
of the nineteen Arab countries
and their differences.
Communicating with
Customers Around the World
By Chan-Herur, K.C.
A concise,
easy-to-use guide filled with
'must-know' information and
practical tips to help you
communicate with your
international customers.
Blunders
in International Business
By David A.
Ricks, this book, by relaying
interesting anecdotes, takes a
fascinating look at how
mistakes are made everyday by
large and small companies as
they try to compete globally.
Date Updated: March 27, 2007
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