Bob Mitchell, a retired military Bob Mitchell, a retired military attaché with considerable experience attaché with considerable experience in the Middle East, was hired by a in the Middle East, was hired by a large U.S. computer software large U.S. computer software company to represent them in a company to represent them in a number of Persian Gulf countries. number of Persian Gulf countries. Having received an introduction from Having received an introduction from a mutual friend, he arranged to meet a mutual friend, he arranged to meet with Mr. Saade, a wealthy Lebanese with Mr. Saade, a wealthy Lebanese industrialist. Having spent many industrialist. Having spent many years in the Middle East, Bob knew years in the Middle East, Bob knew they would engage in small talk they would engage in small talk before getting down to business. before getting down to business.

They talked about the weather, Bob’s They talked about the weather, Bob’s flight from New York, and their golf game. flight from New York, and their golf game. Then Mr. Saade inquired about the health Then Mr. Saade inquired about the health of Bob’s elderly father. Without missing a of Bob’s elderly father. Without missing a beat, Bob responded that his father was beat, Bob responded that his father was doing fine, but that the last time he saw doing fine, but that the last time he saw his father at the nursing home several his father at the nursing home several months ago he had lost a little weight. months ago he had lost a little weight. Saade’s demeanor changed abruptly from Saade’s demeanor changed abruptly from warm and gracious to cool and aloof. Bo warm and gracious to cool and aloof. Bo was never invited back to further was never invited back to further discussions. discussions.

Negotiating TipsNegotiating Tips

Concentrate on long-term Concentrate on long-term relationshipsrelationships

Focus on interests behind positionsFocus on interests behind positions Avoid overreliance on generalizationsAvoid overreliance on generalizations Be sensitive to timingBe sensitive to timing Remain flexibleRemain flexible

Prepare carefullyPrepare carefully Learn to listenLearn to listen Be realistic about how others view us Be realistic about how others view us Act ethicallyAct ethically Use interpretersUse interpreters

Betty Carpenter, president of a U.S. Betty Carpenter, president of a U.S. cosmetics firm, decided to spend cosmetics firm, decided to spend several days in Paris talking to some several days in Paris talking to some distributors. Upon arrival, she felt distributors. Upon arrival, she felt quite confident about her proficiency quite confident about her proficiency with French. She also knew that with French. She also knew that trying to speak a foreign language trying to speak a foreign language was often appreciated in was often appreciated in international business. international business.

The next morning she met with The next morning she met with Monsieur DuBois, vice president of a Monsieur DuBois, vice president of a large French department store chain. large French department store chain. Although their initial conversation Although their initial conversation went well, when the subject turned went well, when the subject turned to business Betty felt that she was to business Betty felt that she was not communicating efficiently. He not communicating efficiently. He seemed to be mildly annoyed and seemed to be mildly annoyed and showed little interest in continuing showed little interest in continuing the discussions.the discussions.

Roger Brown, marketing VP for a Roger Brown, marketing VP for a lumber company, was making a sales lumber company, was making a sales presentation to a plywood wholesaler presentation to a plywood wholesaler in Tokyo. Roger had just proposed in Tokyo. Roger had just proposed what he considered to be a fair price what he considered to be a fair price for a large shipment of first-quality for a large shipment of first-quality plywood. Much to his amazement, plywood. Much to his amazement, the three Japanese executives did the three Japanese executives did not respond immediately. not respond immediately.

They sat across the table with their They sat across the table with their hands folded and their eyes cast hands folded and their eyes cast downward, saying nothing. Fifteen downward, saying nothing. Fifteen seconds passed, then thirty, and still seconds passed, then thirty, and still no response. Finally, Roger became no response. Finally, Roger became so exasperated that he said with a so exasperated that he said with a good deal of irritation in his voice, good deal of irritation in his voice, “Would you like for me to repeat the “Would you like for me to repeat the offer?” From that point on, talks offer?” From that point on, talks stalled and the contract was never stalled and the contract was never finished. finished.

Adaptation RequirementsAdaptation Requirements

ImperativesImperatives• Customs that must be recognized and Customs that must be recognized and

accommodated in order to be successfulaccommodated in order to be successful• Ex: FriendshipEx: Friendship

AdiaphoraAdiaphora• Customs to which adaptation is optionalCustoms to which adaptation is optional• Majority of customsMajority of customs• Ex: Local dressEx: Local dress• May help establish a relationshipMay help establish a relationship

ExclusivesExclusives• Outsider must not participateOutsider must not participate• Ex: Christian wouldn’t attempt to act like Ex: Christian wouldn’t attempt to act like

a Moslem a Moslem

If an international businessperson If an international businessperson were here…..were here…..

Attend Church on Sunday morningAttend Church on Sunday morning Refrain from belching in a business Refrain from belching in a business

meetingmeeting Eat local foodsEat local foods

How do you know?How do you know?• Get to know cultureGet to know culture• Ask other businesspeopleAsk other businesspeople• Reference materialsReference materials• Pay attention to othersPay attention to others

Howard Duvall, an up-and-coming Howard Duvall, an up-and-coming accountant with a New York-based accountant with a New York-based firm, was on contract in Mombasa, firm, was on contract in Mombasa, Kenya, for three months, setting up Kenya, for three months, setting up an accounting system for a client. an accounting system for a client. Because he had never been out of Because he had never been out of the U.S. before, he was interested in the U.S. before, he was interested in learning as much as possible about learning as much as possible about the people and their culture.the people and their culture.

Every spare moment, he had the Every spare moment, he had the company’s driver take him to see the company’s driver take him to see the interesting sights both in town and in interesting sights both in town and in the rural villages. To document this the rural villages. To document this for his friends at home, he took his for his friends at home, he took his camera wherever he went. Although camera wherever he went. Although Howard was able to get a good Howard was able to get a good number of pictures, he became number of pictures, he became increasingly frustrated because increasingly frustrated because people turned their backs on him people turned their backs on him when he tried to take their pictures. when he tried to take their pictures. Several people became quite angry. Several people became quite angry.

Culture ShockCulture Shock

Term coined in 1960’s to describe Term coined in 1960’s to describe the disorientation experienced by the disorientation experienced by people living and working in a people living and working in a radically different cultureradically different culture

Includes anxiety, confusion, feelings Includes anxiety, confusion, feelings of loss, doubt about values, of loss, doubt about values, withdrawalwithdrawal

Reducing Culture ShockReducing Culture Shock

Be preparedBe prepared Become familiar with local patterns Become familiar with local patterns

of communicationof communication Understand your own culture firstUnderstand your own culture first Know as much about the other Know as much about the other

culture as possibleculture as possible

Become familiar with immediate Become familiar with immediate surroundings ASAPsurroundings ASAP

Build “survival skills”Build “survival skills” Learn to live with ambiguityLearn to live with ambiguity Keep your sense of humorKeep your sense of humor Take health precautionsTake health precautions Be flexibleBe flexible

Bernice Caplan, purchaser for Bernice Caplan, purchaser for women’s apparel for a major U.S. women’s apparel for a major U.S. department store, had just taken department store, had just taken over the overseas accounts. Excited over the overseas accounts. Excited and anxious to make a good and anxious to make a good impression on her European impression on her European counterparts, Bernice worked long, counterparts, Bernice worked long, hard hours to provide info needed to hard hours to provide info needed to close purchasing contracts in a close purchasing contracts in a timely manner. Stefan, one of her timely manner. Stefan, one of her Dutch associates, sent an urgent Dutch associates, sent an urgent message on May 1 requiring message on May 1 requiring information before the close of day information before the close of day on 6/5. on 6/5.

Although she had thought it odd for the Although she had thought it odd for the message to barked URGENT for info message to barked URGENT for info needed over a month away, Bernice needed over a month away, Bernice squeezed the request into her already squeezed the request into her already busy schedule. She was pleased when she busy schedule. She was pleased when she had whipped together the information and had whipped together the information and was able to fax it by May 10, three weeks was able to fax it by May 10, three weeks before the deadline. She placed a call to before the deadline. She placed a call to Stefan to make sure he had received the Stefan to make sure he had received the fax and was met with an angry, hostile fax and was met with an angry, hostile response. The store lost the contract and response. The store lost the contract and the Dutch office asked that Bernice be the Dutch office asked that Bernice be removed from the account.removed from the account.

Business situations courtesy ofBusiness situations courtesy of• The Cultural Dimensions of International The Cultural Dimensions of International

Business by Gary P. FerraroBusiness by Gary P. Ferraro• Ferraro, G. (2006). Ferraro, G. (2006). The cultural The cultural

dimensions of international businessdimensions of international business. . 5th ed. Upper Saddle River, NJ: Pearson 5th ed. Upper Saddle River, NJ: Pearson Prentice Hall. Prentice Hall.