Cross- cultural Communication This page intentionally left blank

 Gift- giving and hospitality
This area can be a cultural minefield. In the British culture, expensive gift-
giving is less used than in many other cultures and there are often corporate 
company guidelines as to what is ethically acceptable. In many cases, 
companies require all gifts to be reported and approval must be given before 
acceptance if they are over a certain value. However, in many cultures, 
gift- giving is standard practice. Failure to either accept or reciprocate is 
considered at least as bad manners and at worst as an insult.
It is therefore essential to know the customs of a country, especially the 
social etiquette. In some countries, there are strict anti- corruption laws 
and to offer gifts to local nationals could potentially cause trouble for 
both parties. However, gifts that symbolize the status of your company 
and the importance of the impending deal, preferably an item charac-
teristic of your local area or one that displays your logo, may well be 
permissible.
In certain cultures, before gifts are considered, it is necessary to check 
which are acceptable. This is particularly important if flowers are to be given 
because, for example, in France and Italy, chrysanthemums are given only 
for funerals. It is advisable not to give a clock in China as it gives the impres-
sion you wish to end the relationship. In cultures where ‘face’ is a sensitive 
issue, one should not give a lavish or expensive gift if it may cause a problem 
for the receiver to reciprocate in value. In Japan there are etiquette books 
that detail the suitable gifts for a variety of occasions. In any case, in Japan 
gifts are never opened in public. In other cultures, for example, Arab and 
many Western cultures, gifts can be opened in public, thus providing the 
opportunity for the recipient to graciously thank the giver. There are also 
social conventions as to whether gifts should be wrapped or unwrapped, 
and the colour of the wrapping paper can be significant.
Cultural sensitivities also apply to hospitality, although it is customary in 
all cultures to entertain business clients as part of the overall programme for 
the negotiations. This provides the opportunity to build closer relationships. 
Age and seniority should be taken into account when organizing social occa-
sions, in particular the seating arrangements at formal meals.

---

The Effect of Culture on International Negotiations 169