Business across cultures

The Importance of Relationships
While Western cultures proclaim to value relationship-based marketing and business practices, in high-context cultures a relationship involves longtime family ties or direct referrals from close friends. Judgments made in business often are made based on familial ties, class and status in relationship-oriented cultures, while rule-oriented cultures believe that everyone in business deserves an equal opportunity to make their case. Judgments are made on universal qualities of fairness, honesty and getting the best deal, rather than on formal introductions and background checks.
Cultivate Cultural Understanding
Understanding cultural diversity in business is important to interacting with people from differing cultures while preventing problematic issues. If you know you'll be negotiating with foreign businesspersons, for example, study in advance how their manner of doing business differs from your own. You'll find that many Eastern cultures, like and expect to have lengthy informative sessions before negotiations begin.
Don't be surprised if colleagues and customers in the UK and Indonesia are more reserved with their responses and hide their emotions. Those in France and Italy, like the US, are more effusive and aren't afraid to show their emotion.
Make sure, too, that your staff understands that cultural differences matter in business and can easily be misunderstood by either party. Above all, when you encounter unexpected behavior, try not to jump to conclusions. Someone who seems unimpressed with your ideas may actually be from a culture where emotions aren't readily expressed. Potential cultural barriers in business can be avoided simply by understanding the impact of culture on business environment.
Dressing for International Success
Some cultures have strict dress codes for business. For example, in Muslim countries, women must avoid sleeveless tops, short skirts and low necklines. In Japan, conservative business suits in dark colors are essential to make the best impression.
When new to a culture, observe what others wear for business. Start out with conservative outfits in neutral colors until you learn what's respectful and appropriate, she suggests.
Going Face to Face
You can unknowingly cause offence when meeting foreign clients one-on-one. In Japan, you should bow rather than shake hands unless the other party offers a hand first. The exchange of business cards is a requirement in many cultures.
In Arab countries, you should accept the card with your right hand, while in China and Japan you should use both hands. In China, you can show respect by taking a Chinese name. In Brazil, business acquaintances stand close to build trust, so backing away may be construed as a rebuff.
Understanding Language Differences
Language differences present a common stumbling block in international business communication. Whenever one party is using a second language or a translator, the potential for misunderstandings increases. Even if you're bilingual, slang, jokes and figures of speech can cause problems. Try speaking slowly and clearly in these circumstances. If you're giving an oral presentation, a clear handout in simple language helps avoid misunderstandings.
Giving Gifts – or Not
Gift-giving etiquette is a complex subject that can be difficult to master. In China, gifts are the norm and expected, while in other countries, the wrong gifts are insulting. Avoid bringing bad luck in China – don't give a clock or a gift with blue, white or black wrapping paper. Keep offering your gift, because Chinese recipients usually refuse three times before accepting.
If you comply with a request for a bribe in any country, corruption charges are a likely complication. It's illegal for U.S. nationals to bribe foreign officials, although sometimes gifts legal in the host country are allowed.
Meeting Expectations
Following local customs builds better relationships at business meetings. For example, Canadians are clock-watchers and expect everyone to arrive on time. In Japanese meetings, often only the most senior person for each side talks, while others typically remain silent.
In China, business dinners often include many toasts, so pace your drinking accordingly. To maintain the respect of Asian contacts, avoid etiquette mistakes that cause you to lose face.
Chinese Business Etiquette
If you’re thinking of doing business in China, or with Chinese nationals, then it’s important that you know what Chinese business etiquette is like and how it differs from American business etiquette. By understanding how Chinese business culture differs from your own, you can gain the trust of the Chinese, avoid offending them and grow your business to new heights. There are quite a few differences between American and Chinese business culture that should be touched on in detail.
The Meaning of Pride
The greatest difference between the Americans and the Chinese is in their mentalities. Americans are highly individualistic and so they value personal achievement above collective achievement. They value personal identity far more than they value collective identity.
This is not the case for the Chinese, who value their national and societal identity more than anything else. Americans do not have a problem bragging about their successes and personal achievements. They see it as an okay thing to do. The Chinese, however, see this as highly selfish because one should always consider themselves part of a whole and successes are associated with the nation or the company, rather than the individual who orchestrated the success. If you focus too much on your individual achievements in front of Chinese businessmen in a bid to impress them, you might end having the exact opposite effect.
Communication Styles
Americans are very direct in their communication styles. They tend to be blunt, persuasive, and highly aggressive when they are pursuing a business deal. They want to have the upper hand in every negotiation. This is a part of American work culture and it works well here. It doesn’t work as well in Chinese work culture. In fact, if you’re too direct with Chinese businessmen, you will likely cause them to shut down and withdraw from negotiations altogether.
The Chinese prefer to be polite and courteous, showing deference to their business contacts and respecting them. They choose the indirect path to negotiations. If you show them this respect and politeness, they will match it and you will find it easier to negotiate your way to a middle ground where everyone is satisfied.
Mixing Business With the Personal Life
Despite the fact that the Chinese choose the indirect path to their negotiations, they also tend to ask highly personal questions of their business contacts, which might seem in contradiction to their polite nature at first. However, it isn’t. It’s just another illustration of how the Chinese value personal relationships far more than impersonal business relationships. In America, you can do business with someone, even if you would never consider being friends with them outside of the business setting. In China, it is inconceivable to do business with someone you don’t like in the first place.
The Chinese will ask you highly personal questions; questions that would be frowned upon in the American business setting and considered irrelevant to the deal. They will ask you about your family, your personal life, and so on. This is because the Chinese let their professional and personal lives overlap. This is a central aspect of Chinese business customs. They want to consider you a friend and not just a business associate. They, therefore, need to build their trust in you or they won’t be able to do business with you. Do not be mistaken, however; you should still maintain your formality, even in such situations, and be respectful and polite. You should not take this as an invitation to be informal and excessively familiar.
Chinese Entertainment
In the spirit of the Chinese’s emphasis on letting professional and personal lives overlap, the way they entertain their business associates is also different from the way the Americans do it. In America, you might find it rather unethical to wine and dine your clients outside of the business setting. You should keep everything strictly professional and never meddle in their personal lives. That is the essence of the maxim that you should never mix business with pleasure, after all.
In China, the situation is very different. Chinese business people expect to wine and dine their business associates. In fact, in China, such entertainment is a goal unto itself. While in America businessmen may take their clients out to discuss business, in China this is frowned upon.
The Chinese rarely discuss business when they take their business associates and clients out. Instead, the goal is to make the business associate feel respected and welcomed. They can even crown the occasion with gifts and tokens of generosity from the host.