Cultural
Business Etiquette
By
Joseph Morbach and Melissa J.
Kopolow Trade
Information Center, Trade
Development
Although
globalization is reducing
trade barriers on many levels,
lack of familiarity with a
country's cultural business
etiquette remains an important
issue in establishing a
successful market abroad.
Regardless of a company's
previous export experiences,
cultural nuances can have a
significant impact on the
success or failure of
international sales. Companies
that fail to take these
factors into consideration
risk misunderstandings,
frustration, and loss of
business.
WHAT
ARE SOME OF THE IMPORTANT
CULTURAL FACTORS TO CONSIDER
WHEN ENTERING A NEW MARKET?
Building
successful business relations
across cultures is
not only a matter of knowing
what to say or when to arrive
for a meeting. It involves a
continued effort to recognize
and appreciate your partners'
expectations and business
practices. U.S. companies need
to research their target
country's holidays, suitable
business or formal attire,
gift-giving practices,
business hours, acceptable
subjects of conversation,
greeting practices, meeting
formalities and acceptable
venues, time sensitivities,
body language, and other
aspects of etiquette. These
differ widely across cultures.
WHAT
ARE SOME EXAMPLES OF BUSINESS
CULTURAL ETIQUETTE?
Europe
-
In
Scandinavia it is both
difficult and
inconsiderate to try to
conduct major business
deals during July and
August as many companies
close for extended periods
during these months so
that employees can take
vacations.
-
Professional
titles are not prevalent
in Irish business culture,
and are usually seen as
arrogant.
-
Ensure
that you learn the titles
of everyone you have
meetings with in the Czech
Republic, as these
distinctions are extremely
important in this culture.
-
Shaking
hands through a doorway is
considered bad luck in
Russia and should be
avoided.
Africa
-
Be
sure not to use red ink on
your business cards in
Madagascar.
The color red has a
negative connotation in
that country.
-
In
West Africa, it is
important not to shake
hands or pass
anything with your left
hand, as this hand is used
for hygiene purposes only.
-
In
Kenya, businesspeople of
the same sex who are
well-acquainted may greet
each other with hugs. Wait
for your Kenyan
counterpart to initiate
this action.
-
The
peace sign, formed by
extending the index and
middle fingers with the
palm facing towards your
body, is considered
extremely rude in South
Africa.
Asia
-
The
Chinese may refuse a gift
multiple times before
finally accepting it. Make
it known to your client
that the gift is from your
company. It is advisable
to express appreciation
when the gift is received.
-
Among
Indians, shaking one's
head from side to side
actually signals
agreement and interest in
what is being said or
expressed. It does not
suggest disagreement or
disapproval.
-
In
South Korea, a
"yes" answer is
often an acknowledgement
of something being
discussed or conveyed, and
does not necessarily mean
agreement.
-
Receive
your Japanese
counterpart's business
card with two hands,
carefully examine it for a
few moments, and then
comment about it.
Accepting a business card
and thrusting it
immediately in your pocket
is considered
discourteous. Writing on a
business card is also seen
as impolite.
Middle
East
-
If
you compliment someone in
Bahrain on one of their
personal items, they may
insist that you accept it
as a gift.
-
Don't
sit in a position that the
sole of your show can be
seen. This is both
disrespectful but also
condemns the viewer to
hell.
-
A
man in Saudi Arabia, as a
sign of friendship, may
hold hands
with another man in
certain social settings.
-
Sample
all of the food that your
Qatari colleague serves at
a
meal; this shows respect.
-
The
first part of a business
meeting is almost
invariably reserved for
your Middle Eastern
associate to become
acquainted with you (and
vice versa). It is common
to have discussions about
global events, politics,
or religion. In some
cases, it may be
considered rude to launch
into a business discussion
or negotiation without
first engaging in a
conversation about these
unrelated topics. In fact,
these conversations may
prove critical in
establishing a business
relationship.
-
During
meetings in Kuwait, there
may be a man who appears
to be part of the business
delegation, but whose sole
job is to offer and serve
coffee. Try not to take
too much notice, as he
will not be a participant
in your business
discussions or
transactions. His service
role merely reflects the
Middle Eastern custom to
offer guests refreshments.
Latin
America
-
In
Guatemala, as well as in
most of Latin America,
little to
no business is conducted
during Holy Week, the week
lead
ing up to Easter.
-
It
may be considered an
insult in Columbia to
leave immediately after a
meeting is completed, as
doing so may suggest that
you are not interested in
getting to know your
counterparts.
-
In
Mexico, conversations
occur at a much closer
physical proximity than
you may be accustomed to
in the United States.
Moving away to establish
distance is considered
unfriendly. In response,
your counterpart may step
towards you to close the
distance.
-
In
Venezuela, once you
establish a relationship
with certain people, you
may receive an abrazo. It
is a customary embrace
that may be accompanied by
a kiss on the cheek.
WHAT
KINDS OF RESOURCES ARE
AVAILABLE?
There
are a variety of resources
available to U.S. companies
seeking guidance and
information relating to the
cultural practices of their
international business
partners. The U.S. Commercial
Service, of the U.S.
Department of Commerce, has
officers in more than 150
offices overseas to help u.s.
companies, particularly
small and medium-sized
businesses, make sales in
international markets.
Commercial Service officers
produce Country Commercial
Guides that, among other
useful information, give
some advice on business
etiquette. These reports can
be found at http://www.export.gov/marketresearch.html.
The
Society for Intercultural
Education, Training, and
Research (SIETAR) is another
excellent resource for
companies looking for
information on how culture
impact business. SIETAR is an
interdisciplinary professional
and service organization with
chapters around the country.
Visit their Web site http://www.sietar.org
to find your nearest chapter.
Additionally,
the following Web sites and
books offer practical
cultural information for
companies looking to break
into new international
markets. They are among many
other excellent publications
and Web sites available.
WEB
SITES (free
to user)
BOOKS
Global
Business Negotiations: A
Practical Guide, by Claude
Cellich and Subhash Jain,
South Western Educational
Publishing; (February 2003)
.
This book provides the
reader with a range of
effective tactics intended to
help companies breakdown
cultural barriers, enhance
international negotiations,
and resolve culture-based
disputes.
Understanding
Cultural Differences: Germans,
French, and Americans, by
Edward T. Hall and Mildred
Reed Hall, Intercultural
Press; (March 1990)
.
Based on 30 years of
research and interviews with
top German, French, and
American executives, this book
provides key insights and
useful advice on routine
dealings in international
business.
Cultures
and Organizations, Software of
the Mind: Intercultural
Cooperation and its Importance
for Survival by Geert Hofstede,
McGraw-Hill; (December 1995)
. Geert Hofstede's study
of the "software of the
mind" helps companies
look at how people from
different cultures think and
work as members of teams.
Riding
The Waves of Culture:
Understanding Diversity in
Global Business, by Charles
HampdenTurner and Fons
Tromenaars, Irwin Professional
Publication; (March 1994)
.
Geared toward international
managers, this book provides
U.S. companies with concrete
ways to adapt to new markets'
cultural, economic,
legislative, and
sociopolitical environment.
Dun
And Bradstreet Guide Doing
Business Around World Revised,
by Terri Morrison, Wayne A.
Conaway, Joseph J. Douress,
Prentice Hall Press; Revised
edition (October 2000)
.
Offering comprehensive
information on subjects useful
to companies doing business
abroad, this guide is designed
to assist companies achieve
international businesses
successes. Topics covered
range from business holidays
to intellectual property
rights protection, and most
things in between. Appendixes
provide samples of key
documents and useful Web
sites.
COMPANION
SITES
- Business
Travel Guide - Since
so many trade
professionals travel,
encountering different
cultural customs and
occasionally relocating
abroad, we have selected
links that will help
prepare business
executives for their
impending trips overseas.
- Before
You Go - We've all
heard about the cultural
mistakes of businesses,
government officials, and
the casual tourist.
Learn what you can do to
avoid making a fool of
yourself and your company.
Date Updated: March 27, 2007
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