CROSS CULTURAL MANAGEMENT

1. Introduction to Course: Key concepts: cultural, cultural difference, intercultural

management, Cross Cultural communication. Leadership in Globalization Leadership in Global Communications

2. Cross-Cultural Communications Effective communication: cultural factors in communication, types

of communication High/low context cultures. Cross-cultural cnication exercise

3. Hofstede’s Five Dimensional Model Lecture and discussion of Hofstede’s five dimensions of cultural

difference: Power, Distance, Individualism, Masculinity-Femininity, Ambiguity, Avoidance and Confucian Dynamism

4. High-Context vs. Low-Context Communication: Lecture and discussion of the work of Edward Hall on direct vs.

indirect language. Understanding your own communication style. Comparing your style to those of other cultures.

5. Universalism vs. Particularism Discussion of the concept of social responsibility. The definition and

need for trust. Balancing levels of trust and responsibility. Making ethical choices. Bribery in a global context. Leadership in Global Negotiations and Strategic Alliances. Global Negotiations and Strategic Alliances. Cross-cultural negotiation skills and strategies. Synergistic skills for global management. Leadership in Cultural Change Leadership in Cultural Synergy Organizational Culture and Cultural Synergy Change in management, measuring organizational culture,

transforming the work culture. Managing Diversity in the Global Work Culture. Managing for Cross-Cultural Effectiveness Managing Transition and Relocations.

6. Cultural Clash and Cultural Sensitivity Training Lecture and discussion of Korean-American cultural differences. Gender differences, communication across genders. Self-awareness, stereotypes, bias, discrimination and prejudice. Doing business with North Americans.

7. Course Ware

Doing business with North Americans Doing business with Latin Americans Doing business with Asians Doing business with Asians: China and Japan Doing business with Europeans Doing business with Middle Easterners Doing business with Africans Doing business with Russians Doing business with Australians and New Zealanders Doing business with Canadians

References:

1. Essentials of International Management: A Cross Cultural Perspective by David C. Thomas, Saga Publications.

2. Cultures and Organizations by Geert Hofstede, McGraw-Hill International

3. Innovations in International and Cross Cultural Management by Christopher Early and Harbir Singh from Sage Publications

4. Transnational Management: Text, Cases and Readings in cross-Border Management by Christopher Barlett and Sumantra Ghosal from Irwin Publishing.

5. Managing Cultural Differences by Philip R. Harris and Robert Moran from Gulf Publishing.

Sr.

No.Topic

Roll Nos.

1. Bribery in a Global Context

2. Synergistic skills for Global Management

3. Leadership in Cultural Change

4. Change in Management and Transforming Work

Culture

6. Managing Diversity in Global Work Culture

7. Managing for cross-Cultural Effectiveness

8. Managing Transition and Relocation

Introduction

Examples of Cross-Cultural Blunders

1. It’s rude to cross your arms while facing someone in Turkey.

2. The “thumbs up” gesture is considered offensive in Middle East, rude in

Australia and a sign of “OK” in France.

3. A US executive based in Columbia was viewed by Columbian managers

as cold and unworthy of trust because, in face-to-face discussions, he

kept backing away. He didn’t understand that in Peru and other Latin

countries, the custom is to stand quite close to the person with whom

you are speaking.

4. A US executive visiting Germany for the first time was invited to the

home of his largest customer. He decided to be a good guest and

brought the hostess a bouquet of a dozen red roses. He later learnt that

in Germany it is bad luck to present an even number of flowers and that

red roses are symbolic of a strong romantic interest.

5. A US manager transferred to Saudi Arabia successfully obtained a

signature on a million dollar contract from a Saudi manufacturer. The

manufacturer’s representative had arrived at the meeting several hours

late, but the US executive considered this tardiness unimportant. The

American was certainly surprised and frustrated to learn later that the

Saudi had no intention of abiding by the contract. He had signed it only

to be polite after showing up late for the appointment.

6. You’re in Shanghai on business. Walking down the street one day, you

pass a Chinese colleague. He asks you, “Have you eaten yet?” You

answer, “No, not yet.” He rushes off, looking embarrassed and

uncomfortable. The Phrase, “Have you eaten yet?” is a common

greeting – just like “Hi, how are you?” in the United State. It’s the

Chinese way of saying “Is your belly full today?” or “Is life treating you

well?”

7. When in Japan, Don’t Cross Your Legs.

Two Iron Rules of International Business

1. In International Business, the Seller is Expected to Adapt to the Buyer.

2. In International Business, the Visitor is Expected to Observe Local

Customs.

Narayan Murthy: Mentor Infosys

“My definition of global is producing where it’s most cost-effective, sourcing

where it’s cheapest and selling where it’s most profitable”.

For global mindset, it is imperative to benchmark with the best global companies

and have high aspirations.

Globalization is not a twentieth-century phenomenon. Globalization of economic activity has been closely linked with the development and establishment of empires worldwide through international trade since the sixteen century. Looking back over the last three centuries, it would be nearly impossible to separate the political and economic histories of Western nations with reference to international trade.

Empire building in the last three centuries was closely connected with the development of and attempts to monopolize, international trade.

The Spaniards and the Portuguese won trade routes from the Mediterranean powers in the fourteenth to the sixteenth centuries.

Later, these routes were won over and monopolized by the British, the Dutch and the French. Major areas of the world that started out as “economic” colonies subsequently became political colonies including North America. Numerous wars ere fought in Europe and elsewhere over international trading rights, trade routes and maintenance of trading monopolies.

Britain became undisputed world economic power by the late eighteenth century due to Industrial Revolution. This was due to technical progress and innovations in textiles, coal, iron and steel and harnessing of steam. It also resulted in the displacement of agricultural workforce to meet the needs of fast expanding industrial base and riches plundered from colonies. Britain became the world’s first industrial country and accounted for about 50% of the world export of manufactures.

The earliest MNEs were mainly European firms, setting up manufacturing facilities in the colonies. However by the mid-nineteenth century, many US firms began to globalize – for example Singer Sewing Machines – Joint venture in France in 1855, Westinghouse – plant in Paris in 1879 and Kodak – plant in London in 1889. US firms expanded further after world war II as both European and Japanese industrial infrastructure was largely destroyed by the war. Japanese firms were relatively late entrants into the world of MNEs.

Numerous international agreements and institutions were set up after World War II:

International fixed-exchange rate monetary agreement under the Bretton Woods agreement – subsequently broken down

International Monetary Fund The World Bank The World Court – considered ineffective The General Agreement of Tariffs and Trade (GATT) – lost to WTO

GATT WTOSet of agreement without institutional foundation

Agreements are rules with permanent institutional foundation at Geneva

No penalty Heavy penalty for disobeyingSlow method of solving disputes Commercial and trade disputes are

sorted out on fast trackApplicable to trade in goods Applicable to trade in goods, services

and intellectual properties

No expert body to control or manage Office staff acts as management consultants controlling global trade economy.

WTO:Established: 1/1/1995Based: Geneva—SwitzerlandMembers: 150 countries

Functions: Administrating and implementing multi-level trade agreements. Acts as a trade negotiator. Resolves trade disputes. Co-operates with other international institutes.

Globalization

Stages in Globalization:

1. Trade of goods

2. Services

3. Capital

4. Labour

Interdependence

Integration

Equalization

Globalization

The Mode of Foreign Entry:

Exploit Competitive Advantage through Entry Abroad

Produce at Home & Export

Produce Abroad

Licensing or Management Contract

Maintain Control over Assets Abroad

Joint Venture

Majority or Wholly Owned Affiliate

Build from Scratch

Acquire or Merge

A Chronology of Important Events in World History

1215 The Megna Carta limiting the power of the English monarchy1295 The Model Parliament in England1455 Invention of printing press1492 Christopher Columbus reaches the Indies later known as America1498 Vasco da Gama landed at Calicut1517 Beginning of reformation in Germany (Martin Luther)1519-20 First effort to circumnavigate the earth by Magellan1648 The Treaty of Westphalia brought an end to the Eighty year’s war

between Spain and Holland 1774 First stamp was issued at Patna1776 13 American colonies adopted the “Declaration of Independence” at

Philadelphia -- Birth of the USA1783 The Treaty of Paris officially ended the American war of Independence1789 The French Revolution ended the rule of absolute monarchy1799 France declared a Republic1815 Nepoleon Bonaparte was defeated in the battle of Waterloo –End of

Napoleonic ear in European history1823 Monroe Doctrine – American isolation from European politics1830 July revolution –Restoration of dynasty under king Louis Phillippe1839 The First Anglo-Chinese war (Opium War) started1842 End of Opium War1844 First use of Telegraph between Baltimore and Washington1847 Year of Revolutions in Europe (Communist League)1848 French Revolution (February) expulsion of Louis. Revolutions in

Germany, Austria and Italy – Karl Marx’s Communist manifesto1852 Napolean III proclaimed emperor after a coup1853 First railway in India and Britain and France joined Crimean war1855 End of Crimean war1857 The revolt in India1858 Transfer of power from East India Co. to British crown to rule India and

first cable from Britain to America1860 Abraham Lincoln elected President of USA1862 Outbreak of American Civil War –slaves free from 1.1.18631865 Assassination of Abraham Lincoln and end of American civil war1869 Opening of the Suez Canal1870 France declared Republic – unification of Germany and foundation of

German Empire1871 France – first ever Govt. of workers1885 Indian National Congress founded1894 Japan declared war on China1895 End of China-Japan war1896 Modern Olympics at Athens – 13 countries1899 The Boer War between Boers (Dutch settlers in South Africa) and Britain1901 The Commonwealth of Australia came into being1903 First Aeroplane flight of Wright brothers

1904-05 Russo-Japanese War – Japan defeated1905 Revolution in Russia1908 Revolution in Turkey1911 China proclaimed Republic1912 First Balkan War1913 Second Balkan War1914 Panama Canal Opened1914 First World War broke1919 The peace of Paris – End of World War I1920 Formation of the League of Nations – US did not join1920 Radio broadcast1924 Death of Lenin – power struggle between Stalin and Trotsky1927 TV introduced in Britain, US and Germany1928 First five year plan in USSR1929 Stock Market crash at Wall Street in October –The Great Depression1929 Indian National Congress – Poorna Swaraj1930 Dandi march1933 Adolf Hitler became dictator1936 Nazi Germany invades Rhineland1941 World War II1945 Formation of United nations1947 India became independent1949 NATO – North Atlantic Treaty organization US, Canada and 10 Western

European Nations1950 Korean War1953 End of Korean War1957 Sputnic went into orbit and Vietnam war started1961 Berlin wall built between East and West Germany1961 Non-Aligned Movement 1st conference1961 Yuri Gagarin – first human in outer space1969 First landing on Moon1971 Bangladesh1975 End of Vietnam war – National Emergency declared in India1979 Soviet troops invaded Afghanistan1980-88 Iran-Iraq War1990 Iraq invaded and occupied Kuwait1991 Gulf War – Operation Desert UN Multinational force Jan & feb.1988-91 Fall of communist region backed by USSR in Poland, Hungry, Cze.,

Yugoslavia, Romania, Albania and Fall of Berlin Wall – Reunification of Germany 3/10/1990

1991 Disintegration of USSR into 15 independent states2001 Terrorists attacked WTC -- war in Afghanistan 2003 War on Iraq

International Case: Woman CEO Managers by the Textbook:

The demand for managers with an international background is great. Consider Marisa Bellisario who was one of the most sought-after executives in Europe. She was the first woman to head a major industrial firm in Italy, the state-controlled ITALTEL Societa Italiana. This company is the biggest Italian firm making telecommunications equipment. Marisa Bellisario‘s background, however is international. After receiving her degree in economics and business administration from Turin University, she worked at Olivetti in the electronics division. When Olivetti sold its data processing division to General Electric, she spent time in Miami working on GE’s worldwide marketing strategy for computers. She left GE to head corporate planning at Olivetti. As the CEO at ITALTEL, she turned the company around, showing a small profit. (The firm had experienced huge losses in the past.) Her managerial approach has been characterized as “straight out of the textbook” and companies such as GTE Corporation, IBM, AT & T and other European and Japanese firms are interested in recruiting her.

1. Why was Ms. Bellisario a much-sought after CEO? What was her career path?

2. What special problems may she have encountered as a woman heading a major company in Italy?

3. If she was successful managing by the textbook, why do some managers still think that management cannot be taught?

Key concepts: cultural, cultural difference, intercultural management, cross-cultural communication.

Leadership in Globalization Leadership in Global Communications

Key Concepts:

When we think of the word ‘culture’ in ordinary daily conversation, we often see it as equivalent to ‘higher things of mind – art, literature, music and painting. However culture refers to the ways of life of the members of a society, or of groups within a society. It includes how they dress, their marriage customs and family life, their patterns of work, religious ceremonies and leisure pursuits.

Culture can be conceptually distinguished from ‘society’, but there are very close connections between these notions. A society is a system of interrelationships, which connects individuals together. Britain, France and the United States are societies in this sense. Earlier there were hunting and gathering societies. All societies are united by the fact that their members are organized in structural relationships according to a unique culture. Without culture, we would not be ‘human’ at all, in the sense in which we should usually understand the term. We would have no language in which to express ourselves, no sense of self-consciousness and our ability to think or reason would be severely limited. Cultural variations among human beings are linked to differing types of society.

When we refer to culture, we are concerned with those aspects of human societies, which are learned, rather than inherited. These elements of culture are shared by members of society and allow cooperation and communication to take place. They form the common context in which individuals in a society live their lives. A society’s culture comprises both intangible aspects – the beliefs, ideas and values which form the content of culture – and tangible aspects – the objects, symbols or technology which represent that content.

Values and norms: Value and norms work together to shape how members of a culture behave within their surroundings.

1. Values and norms may be different across cultures. E.g. coping in Britain and Russia.

2. Even within one society or community, values may be contradictory. E.g. Some people prefer material comfort and success and others may favour simplicity and quiet life.

3. Changing cultural values and norms over a period of time. E.g. premarital sexual relationship and unmarried couples living together.

4. Cultural diversity is noticed across societies. E.g. Jews do not eat pork, while Hindus eat pork but avoid beef. Westerners regard kissing in public places as normal behaviour, while in India it is regarded as disgusting.

5. Every culture has its own unique patterns of behaviour. Aspects of daily life which we unconsciously take for granted in our own culture may not be part of everyday life in other parts of the world. (Cultural Shock) E.g. Telephone call.

6. Political rule also affects the cultural aspects. E.g. Taliban rule imposed many restrictions on Afghan Women.

7. Socialization connects the different generations to one another.

Types of Pre-modern Human Society

Type Period of existence CharacteristicsHunting and gathering societies

50,000 BC to the present (now on the verge of complete disappearance)

Consits of small numbers of people gaining their livelihood from hunting, fishing and the gathering of edible plants.Few inequalitiesDifferences of rank limited by age and sex.

Agrarian Societies

12,000 BC to the present.Most are now part of larger political entities and are losing their distinct identity.

Based on small rural communities, without towns and cities.Livelihood gained through agriculture, often supplemented through hunting and gathering.Stronger inequalities than among hunters and gatherers.Ruled by chiefs.

Pastoral Societies

12,000 BC to the present.Today mostly part of larger states; their traditional ways of life are becoming undermined.

Dependent on the tending of domesticated animals for their material subsistence.Size ranges from a few hundred people to many thousands.Marked by distinct inequalities.Ruled by chiefs or warrior kings.

Non-industrial Civilizations

6000 BC to the nineteenth century. All traditional civilizations have disappeared.

Based largely on agriculture.Some cities exist, in which trade and manufacture are concentrated.Very large in size, some numbering millions of people (though small compared with large industrialized societies).Distinct apparatus of government headed by a king or emperor.Major inequalities exist among different classes.

Societies in the Modern World

First World Societies

Eighteenth century to the present

Based on industrial production and generally free enterprise.Majority of people live in towns and cities, a few work in rural agricultural pursuits.Major class inequalities, though less pronounced than in traditional states.Distinct political communities or nation-states, including the nations of the West, Japan, Australia and New Zealand.

Second World societies

Early twentieth century (following the Russian Revolution of 1917) to the early 1990s.

Based on industry, but the economic system is centrally planned.Small proportion of the population work in agriculture; most live in towns and cities.Major class inequalities persist.Distinct political communities or nation-states.Until 1989, composed of the Soviet Union and Eastern Europe, but social and political changes began to transform them into free enterprise economic systems, according to the model of First World societies.

Developing societies (Third World societies)

Eighteenth century (mostly as colonized areas) to the present.

Majority of the population work in agriculture, using traditional methods of production.Some agricultural produce sold on world markets.Some have free enterprise systems, others are centrally planned.Distinct political communities or nation-states, including India, China and most African and South American nations.

Newly industrialized countries

1970s to the present. Former developing societies now based on industrial production and generally free enterprise.Majority of people live in towns and cities, a few work in agricultural pursuits.Major class inequalities, more pronounced than First World societies.Average per capita income considerably less than First world societies.Includes Hong Kong, South Korea, Singapore, Taiwan, Brazil and Mexico.

Influences:

1. The Physical Environment2. Political Organization3. Cultural Factors: religion, communication systems and leadership.

Leadership in Globalization:

One general conclusion that surfaces from leadership research is that effective leaders do not use any single style. They adjust their style to the situation. Although not mentioned explicitly, national culture is certainly an important situational variable in determining which leadership style will be most effective. For instance, one study of Asian leadership styles revealed that Asian managers preferred leaders who were competent decision makers, effective communicators and supportive of employees.

National culture affects leadership style because it influences how followers will respond. Leaders can’t (and shouldn’t) just choose their styles freely. They are constrained by the cultural conditions their followers have come to expect. Consider the following: Korean leaders are expected to be paternalistic toward employees. Arab leaders, who show kindness or generosity without being asked to do so are seen by other Arabs as weak. Japanese leaders are expected to be humble and speak infrequently. And Scandinavian and Dutch leaders who single out individuals with public praise are likely to embarrass those individuals rather than energize them.

Remember that most leadership theories were developed in the United States, using US subjects, so they have an American bias. They emphasize follower responsibilities rather than rights; assume self-gratification rather than commitment to duty or altruistic motivation; assume centrality of work and democratic value orientation; and stress rationality rather than spirituality, religion or superstition.

As a guide for adjusting your leadership style, you might consider the cultural value dimensions presented below. The most valuable framework to help managers better understand differences between national cultures was developed by Geert Hofstede.

Geert Hofstede is a professor of organizational anthropology and international management at the University of Limburg at Maastricht, the Netherlands. He holds a M.Sc. degree in Mechanical Engineering from Delft Technical University and a Ph.D. in Social Psychology from Gröningen University, both in his native Netherlands.

He worked in Dutch as well as international business companies in roles varying from production worker to director of Human Resources. From 1965-1971, he founded and managed the Personnel Research department of IBM Europe. Since then, he has been teaching and researching at various international-management institutes in four different European countries. In 1991 he held a Visiting Research Fellowship at the East-West Center, Honolulu, while simultaneously teaching at the College of Business Administration, University of Hawaii. He is an honorary professor of the University of Hong Kong.

Geert Hofstede is the founder and first director of the Institute for Research on Intercultural Cooperation (IRIC) at the University of Limburg, and an internationally recognized expert in the field of national and organizational culture research and theory. He has been a consultant to national and international business and government organizations. He wrote a pathbreaking book Culture's Consequences (Sage, 1980). A more popular book Cultures and Organizations: Software of the Mind appeared in 1991; translations have appeared or are under way into ten other languages. His articles -- more than a hundred -- have been published in the journals and readers of different countries of Europe, Asia, and North America.

His research showed that national culture had a major impact on employees’ work-related values and attitudes. In fact, it explained more of the differences than did age, sex, profession or organizational position. More important, Hofstede identified four dimensions of national culture:

1. Individualism versus collectivism2. Power distance3. Uncertainty avoidance4. Quantity versus quality of life.

1. Individualism: A cultural dimension that describes when people are supposed to look after their own interests and those of their immediate family.

2. Collectivism: A cultural dimension that describes when people expect others in their group to look after them and to protect them when they are in trouble.

3. Power Distance: A cultural measure of the extent to which a society accepts the unequal distribution of power in institutions and organizations.

4. Uncertainty Avoidance: A cultural measure of the degree to which people tolerate risk and unconventional behavior.

5. Quantity of life: A national culture attribute describing the extent to which societal values are characterized by assertiveness and materialism.

6. Quality of life: a national culture attribute that reflects the emphasis placed upon relationships and concern for others.

Hofstede’s entire result includes 40 countries.Country Individualism

/collectivismPower Distance

Uncertainty Avoidance

QuantityOf life *

Australia Individual Small Moderate StrongCanada Individual Moderate Low ModerateEngland Individual Small Moderate StrongFrance Individual Large High WeakGreece Collective Large High ModerateItaly Individual Moderate High StrongJapan Collective Moderate High StrongMexico Collective Large High StrongSingapore Collective Large Low ModerateSweden Individual Small Low WeakUS Individual Small Low StrongVenezuela Collective Large High Strong

* A weak quantity score is equivalent of high quality of life.

(Source: Based on G. Hofstede, “Motivation, Leadership and Organization: Do American Theories Apply abroad?” Organizational Dynamics.)

What are Americans Like?

Americans are 1. Very informal.2. Direct.3. Competitive. (Others may find them assertive or overbearing)4. Achievers5. Independent and individualistic6. Questioners.7. Dislike silence.8. Value punctuality.9. Value cleanliness.

1. Ethnocentric Attitude: The parochialistic (a narrow view of the world; an inability to recognize differences between people) belief that the best work approaches and practices are those of the home country.

2. Polycentric Attitude: the view that the managers in the host country know the best work approaches and practices for running their business.

3. Geocentric Attitude: a world-oriented view that focuses on using the best approaches and people from around the globe.

Key Information about three global attitudes: Ethnocentric Polycentric Geocentric

Orientation Home Country Host Country WorldAdvantages Simple structure

More tightly controlled

Extensive knowledge of foreign market and workplace

More support from host government

Committed local managers with high morale

Forces understanding of global issues

Balanced local and global objectives

Best people and work approaches used regardless of origin

Drawbacks More ineffective management

Inflexibility Social and

political backlash

Duplication of work Reduced efficiency Difficult to maintain

global objectives because of intense focus on local tradition

Difficult to achieve

Managers must have both local and global knowledge

Other factors to be considered by Global leaders:

1. Legal Environment.2. Political Environment.3. Economic Environment4. Cultural Environment

A manager on global assignment faces two periods of adjustment: the time before going to a foreign country and the time while in the new country. Both individual and organizational factors influence how successfully a manager adjusts to global assignments.

Characteristics of Global Leaders:

Transformers:

Visionary Inspirational Intuitive Creative Active Change orientation Challenging

Transactors:

People centered Task oriented Short-term orientation Practical, concrete, tangible Passive Maintain stability Clarifying

For effective global Leadership developing balance between Transformers and Transactors is very important.

Ten Commitments of Global Leadership: (Extracted from Kouzes and Posner’s The Leadership Challenge)

1. Search for challenging opportunities to change, grow, innovate and improve.

2. Experiment, take risks and learn from both successes and failures.3. Envision an uplifting and ennobling future.4. Enlist others in a common vision by appealing to their values, interests,

hopes and dreams.5. Foster collaboration by promoting co-operative goals and building trust.6. Strengthen others by sharing information and power and increasing

their discretion and visibility.7. Set an example for others by behaving in ways that are consistent with

your stated values.8. Plan small wins that promote consistent progress and build

commitment.9. Recognize individual contributions to the success of every project.10. Celebrate team accomplishments regularly.

Cross-Cultural Communications

The Great Divide between Business Cultures:

Relationship-Focus vs Deal-Focus: Whether marketing, sourcing or negotiating an international alliance, the fundamental differences between relationship-focused (RF) and deal-focused (DF) markets impact our business success throughout the global marketplace.

RF people prefer to deal with family, friends and persons or groups well known to them – people who can be trusted. They are uncomfortable doing business with strangers, especially strangers who happen to be foreigners. Because of this key cultural value, relationship-oriented firms typically want to know their prospective business partners very well before talking business with them.

In contrast, the DF approach people are relatively open to doing business with strangers.

This “Great Divide” between the world’s cultures affects the way we conduct business from the beginning to the end of any commercial relationship. For starters, even the way we should make the first approach to potential buyers or partners depends upon whether they are in DF or RF cultures.

Deal Focused Cultures

Nordic and Germanic EuropeNorth America

Australia and New ZealandModerately Deal Focused Cultures

Great BritainSouth AfricaLatin Europe

Central and Eastern EuropeChile, Southern Brazil, Northern Mexico

Hong Kong, SingaporeRelationship-Focused Cultures

The Arab WorldMost of Africa, Latin America and Asia

Making Initial Contact:

DF: Direct Contact – Making an appointment is quick and easy. Couple of phone calls and its done.

RF: Indirect Contact – The proper way to approach someone who doesn’t yet know you is to arrange for the right person or organization to introduce you. A third-party introduction bridges the relationship gap between you and the person or company you want to talk to. The ideal introducer is a high-status person or organization known to both parties. (Retired statesman, embassy officials, chambers of commerce, trade associations, golf buddies etc.)The bottom line: In relationship-oriented markets, plan to approach your potential customer or partner indirectly, whether via a trade show, a trade mission or a third-party introduction.

Getting Down to Business:

DF: In DF markets you can usually get down to business after just a few minutes of small talk. And you can learn most of what you need to know about your potential DF counterpart in a matter of days rather than the weeks or months it will take in strongly RF cultures such as Japan.

DF – Deal firstRF – Rapport first

In RF –a) You need to develop a personal relationshipb) Bureaucracy in RF marketsc) The Importance of Face-to-Face Contactd) The role of the Contract more important in DF rather than in RF

Communicating:

RF and DF business cultures also differ in the way they communicate. DF negotiators tend to value direct, frank, straightforward language, while their relationship-focus counterparts often favour a more indirect, subtle, roundabout style.

DF – Direct language: When communicating with others, the priority for DF business people is to be clearly understood: they usually say what they mean and mean what they say. E.g. German and Dutch negotiators are known for their frank, even blunt language.

RF – Indirect language: RF negotiators in contrast give top priority to maintaining harmony and promoting smooth interpersonal relations. RF people carefully watch what they say and do avoid embarrassing or offending other people. RF are more careful and indirect with their language. (Most Japanese, Chinese and Southeast Asian negotiators treat “NO” as a four-letter word. To avoid insulting they may instead murmur ‘that will be difficult’ or ‘we will have to give that further study’ or ‘may be’ or ‘that will be inconvenient’.(E.g. Chinese export of ready made garments to Canada without labels in French)

They use body language also to say no. Many times they hide their emotions. E.g. Thai people smile under most of the circumstances.

Low-Context and High-Context Communication:

RF negotiators tend to use indirect language in order to avoid conflict and confrontation. The polite communication of Asians, Arabs, Africans and Latins helps maintain harmony. The meaning of what they are saying at the bargaining table is often found more in the context surrounding the words rather than in the words themselves. The U.S. anthropologist Edward T. Hall, guru of cross-cultural communication, coined the useful term “high-context” for these cultures.In contrast, when northern Europeans, North Americans, Australians and New Zealanders speak, more of the meaning explicit – contained in the words themselves. A listener is able to understand what they are saying at a business meeting without referring much to the context. Hall termed these cultures “Low-Context”.

Saying it like it is vs Saving face:

Even when indirect RF and direct DF people are both speaking the same language – English for example – they are really speaking different language: A Dutch or German negotiator will choose his words carefully so that his counterparts will understand exactly what he is saying. He wants no ambiguity, no beating around the bush.

Meanwhile his Arab, Japanese or Indonesian counterparts are choosing their words even more carefully – but for a completely different reason. RF negotiator want to make sure that no one at the meeting will be offended. No rude directness, no crude bluntness, no loss of face.

E.g. Direct, straightforward person – a compliment from DF while it is a criticism from RF.

The two meanings of “Sincerity”:

For DF it means honesty and frankness even when that happens to be unpleasant. In contrast for RF people a sincere friend is one who always shows his willingness to be helpful.

Formal VS Informal Business Culture:

Formal culture tend to be organized in steep hierarchies which reflect major differences in status and power. In contrast, informal cultures value more egalitarian organizations with smaller differences in status and power.

Informal CulturesAustralia

USACanada

New ZealandDenmark, Norway and Iceland

Formal CulturesMost of Europe and Asia

The Mediterranean Region and the Arab WorldLatin America

In formal, hierarchical cultures status differences are larger and more important than in egalitarian, informal cultures. Formal ways of addressing people is one important way of showing respect to persons of high status. In formal cultures AGE and Academic Distinctions are also very important.(Party in Singapore by US couple – maid sat with the guest or shaking hands with maid in Bangkok – white skin gets higher status. Mexican customer in Copenhagen getting offended when he is escorted by lower level staff. Party for Egyptian customer in Canada and meeting the minister in formal dress in Bangla Desh)

Therefore the key rule of international protocol is that when in an unfamiliar situation, always err on the side of formality at first. That may mean for instance addressing people by their surname and title rather than first name, dressing more formally and following local etiquette when shaking hands and exchanging business cards. That is why Japanese or Germans have an initial advantage over some of their more informal Aussie or Yankee competitors.

Status Barriers:

There are four classes of international business people, who have to operate at an even greater disadvantage when trying to sell goods to strongly hierarchical buyers:

1. People on the lower rungs of the corporate ladder in their own company.2. Young people of either sex3. Women (some cultures give chance to women from other countries)4. Men and women of any age involved in international sales and marketing.

How to overcome youth barrier?

1. Get introduced by an older man.2. Be a true expert in your field.3. Learn the local business protocol.

In Latin America and much of Europe a DF business person whose interests are limited to making money tends to looked down upon. Higher status goes to the individual able to converse intelligently about art, music, literature, history, philosophy and the cinema. Business visitors who would like to be well-regarded in those markets should consider brushing up on such subjects.

Time and SchedulingRigid-Time vs Fluid-Time Cultures

Globe-trotting business travelers quickly learn that people look at time and scheduling differently in different parts of the world. In rigid-time societies punctuality is critical, schedules are set in concrete, agendas are fixed and business meetings are rarely interrupted. Edward T. Hall invented the term “Monochronic” for these clock-obsessed, Schedule-worshipping cultures.

In direct contrast are “Polychronic” cultures, where people place less emphasis on strict punctuality and are not obsessed with deadlines. Polychronic cultures value loose scheduling as well as business meetings where several meetings-within-meetings may be taking place simultaneously.

Monochronic Business CulturesNordic and Germanic Europe

North AmericaJapan

Moderately MonochronicAustralia/New Zealand

Russia and most of East-Central EuropeSouthern Europe

Singapore, Hong Kong, Taiwan, ChinaSouth Korea, South Africa

Polychronic Business CulturesThe Arab WorldMost of AfricaLatin America

South and Southeast Asia

Nonverbal business behaviour

Expressive vs Reserved Cultures

People of other cultures misunderstand our body language just as they may misinterpret the words we speak or write. Fortunately, however, we can learn the highlights of another culture’s nonverbal language much quicker than we can its verbal language. There are three types of interpersonal communication:

1. Verbal communication has to do with words and the meaning of words.2. Paraverbal language refers to how loudly we speak those words, the

meaning of silence and the significance of conversational overlap.3. With Nonverbal communication (also called Body Language) we

communicate without any words at all.4.

Expressive vs Reserved Cultures

Very Expressive CulturesThe Mediterranean Region

Latin EuropeLatin America

Variably ExpressiveUSA and Canada

Australia and New ZealandEastern Europe

South Asia and AfricaReserved Cultures

East and Southeast AsiaNordic and Germanic Europe

E.g. Interviewing in Bangkok with high expressions due to Italian background scared the interviewees.

Expressive Communicators: Overlapping each other1st speaker ________ _________ ________2nd speaker -------------- -----------

Reserved Communicators: Taking turns to avoid overlap1st speaker _______ __________ _______2nd speaker ----------- ----

Japanese: Intervals of silence between speakers1st speaker _____ _______ _______2nd speaker ------- ----

The Four Key Elements of Nonverbal Behaviour

1. PROXEMICS: Spatial Behaviour, Interpersonal Distance

2. HAPTICS: Touch Behaviour

3. OCULEICS: Gaze Behaviour, Eye-Contact

4. KINESICS: Body Movements, Gestures

Distance Behaviour

Close: 20 to 35 cms (8 to 14 inches) The Arab World

The Mediterranean RegionLatin EuropeLatin America

Distance: 40 to 60 cms (16 to 24 inches) Most Asians

Northern, Central and Eastern EuropeansNorth Americans

High Contact culturesThe Arab World and Mediterranean Region

Latin Europe and Latin AmericaVariable ContactEastern EuropeNorth America

AustraliaLow contact Cultures

Most of AsiaUK and Northern Europe

The Handshake

Germans Firm, Brisk and FrequentFrench Light, Quick and FrequentBritish ModerateLatin Americans Firm and FrequentNorth Americans Firm and InfrequentArabs Gentle, Repeated and LingeringSouth Asians Gentle, Often LingeringKoreans Moderately firmMost Asians Very Gentle and Infrequent

Eye Contact in Expressive Cultures

Intense Eye ContactThe Arab World and the Mediterranean Region

Latin Europeans and Latin AmericansFirm

Northern Europe and North AmericaModerate

Korea and ThailandMost Africans

Indirect Eye ContactMost of Asia

Facial Expression: Raised Eyebrows

North Americans Interest, surpriseBritish SkepticismGermans “You are clever!”Filipinos “Hello!”Arabs “No!”Chinese Disagreement

Ambiguous Gestures

Use of Left Hand: It is considered unclean in Muslim, Hindu and Buddhist cultures. Avoid touching people or handing them objects such as your business card with left hand. In certain cases it is better to use both hands to give gifts as a mark of respect.

Showing the Sole of Your Shoe: The bottom of your shoe or your foot is regarded as unclean in the same cultures.

Fist in Palm: In Southeast Asia this type of body language is similar to an obscene sexual gesture.

Index finger Pointing: Throughout East and Southeast Asia it is rude to point at anyone with your forefinger. Instead, use your whole hand or jerk your chin in the direction you wish to indicate or to simply glance in the direction you wish to indicate.

Index finger Beckoning: All over Asia this gesture is reserved for calling dogs and prostitutes. A repeated scooping motion of the right hand is the polite way to beckon.

Tapping Your Head: In France, Italy and Germany, if you tap your forehead or temple with your finger while looking at someone you are saying nonverbally, “Hey, you are stupid!” Be careful using that sign in Germany, where it is called Vogelzeigen and will cost you a EURO 100 fine if the Polizei catch you doing it.In Spain or Great Britain that same gesture is self-referential and means “I am so clever!”In the Netherlands watch carefully. If a Dutchman taps the right side of his head with the index finger vertical it translates “You are a very smart person.” But if he taps his forehead with the finger horizontal he is saying “You are an idiot!”

The “Thumbs Up” Sign: Be careful with this one too. While the raised thumb is slowly becoming a universal sign for “Great” it isn’t quite there yet. In germany and other parts of Europe for example it signifies the numeral one. But to many Europeans and in the Middle East it is a very rude sexual sign.

The “Peace” Sign: The two-fingered gesture – forefinger and second finger extended with palm facing outwards – meant V for victory during World War II. But if you accidentally reverse your hand and flash the sign with your palm facing inwards, you have really done it. Should that happen you had better be bigger than the person you just insulted, because the peace sign reversed means roughly the same thing as “flipping the bird” – raising your middle finger with the palm in.

The “A-OK” Sign: The thumb-and-forefinger circle is easily the most dangerous and ambiguous of gestures. Of course most of its multiple meanings are harmless enough:

American astronauts and scuba divers: “Everything OK. All systems go!”For the Japanese the circular shape looks like a coin, so it means “Now we are talking about money.”In the south of France that shape symbolizes the zero, so it indicates quite the opposite – “nothing” or “worthless.”

But in the Iberian peninsula, much of Latin America, parts of Europe and Russia, LOOK OUT! In those cultures it is used as a vulgar sexual suggestion – extremely insulting. The risk of giving offense is so great that it is better not to use it at all.

Business protocol and Etiquette

Business deal lost in Saudi Arabia as Arabian Gulf was mentioned as Persian Gulf.(Roger Axtell’s Do’s and Taboo Books published by John Wiley & Sons in the USA)

Dressing protocol

Climate and culture both play a role in sartorial behaviour. In the tropics and hot desert climes businessmen often wean an open-necked shirt and cotton trousers. But even in those markets it may be safer tow ear a suit coat or blazer to the first meeting just in case. For meetings with government officials this formality takes on greater importance.

In most parts of the world business women can choose between a good dress, suit or blazer and skirt. For men a dark suit, conservative tie and dark socks will cover most meetings with high-status individuals. Here are few culture-specific hints:

1. Visit to Latin Europe and Latin America require special attention to style and quality of both men’s and women’s apparel and accessories.

2. In the Middle East your business contacts often judge you partly by the quality and price of your briefcase, watch, pen and jewelry. Wear and carry the best you have.

3. Germans feel more comfortable doing business with men whose shoes are brightly polished.

4. throughout Asia it is a good idea to wear slip-on shoes such as high quality loafers because custom requires you to remove your footwear when entering temples, peoples’ homes and some offices as well.

5. Americans pay special attention to the condition of your teeth, so some Europeans include a visit to their dentist for a cleaning as part of their preparation.

6. In Muslim countries female visitors should dress so as to show as little bare skin as possible.

Meeting protocol

In Germany, Switzerland, the Netherlands and other rigid-time cultures, it is imperative to be on time for the scheduled meeting. But remember, even in polychronic cultures the visitor is expected to be punctual in order to show respect. It is equally important to recall that if our counterparts keep us waiting in a fluid-time culture, they are not being rude. They are just being themselves – polychronic!

Nonverbal Greetings: Handshake, Bow, Salaam, Namaste or Wai?

For men being introduced to female counterparts, one of the few rules of etiquette that is almost universally valid is to wait for the woman to foeer her hand. In most deal-focused cultures today business women expect to shake hands with men.

In some RF cultures however women may not want to shake a man’s hand. So namaste in India and Wai in Thailand is appropriate. In Japan bowing can be attempted. If one is not comfortable then nodding your head respectfully while shaking hands and maintaining gentle eye contact is good enough.

Nonverbal Greetings: Kissing: Hand, cheek, Lips Or None of the Above?

1. Don’t worry about kissing or being kissed the first time you meet.2. At subsequent meetings foreigners are excused from all that

promiscuous kissing if they do not wish to participate. (A great relief for most Asians)

3. For men who do decide to join, when kissing a woman’s hand or cheek you don’t actually touch the skin. Just kiss the air a few mm from her hand or cheek.

4. Cheek-kissing: The proper Brits usually kiss just once (on the right cheek), the French twice (left, right) and the passionate Belgians three times (left, right, left)

5. Germans, Italians and Spanish prefer hand kissing.6. For non-European women: when a man raises your hand to his lips, the

appropriate response is to react as though this is about the fifth time it has happened to you today. Just acknowledge the gallant gesture with a slight smile.

7. Some male visitors to Russia are not quite comfortable with being kissed on the lips by Russian men while enfolded in a great bear hug.

Meeting Protocol: Forms of Address

1. The more formal the culture the more likely you will confine yourself to using the person’s family name plus any applicable title or honorific.

2. In Korea – Manager Kim or Chairman Park3. In Japan – polite prefix san can mean Miss, MS, Mrs. Or Mr.4. The Chinese normally have three names of which first is the family name.

Yi Er Man as Mr. Yi.5. In Indonesia Lower class has one name, middle class may have two and

the upper class has three names.6. In Malaysia use the title both in correspondence and in person.7. In Spain and Latin America they have two family names 8. In Mexico use prefix Senor and if University graduate than Licencuado for

man and Licenciada for woman.9. USA, Australia and New Zealand is very informal but in USA Dr. for

physicians and surgeons and Dr. for Ph.D’s while on duty.10. Modern organizations first-name but traditional organizations as Mr. Miss,

Mrs., MS etc.

Verbal Greeting

Hi! Hello, How are you? Etc.

Meeting Protocol: Exchanging Business Cards

Americans are very casual about visiting cards but it should be treated with respect. Japanese hold it with both hands and place them in leather wallet and not in plastic.

Giving and Receiving Gifts

In contrast to most DF cultures, RF people tend to value exchanging gifts because it is an accepted way to build and cement strong personal relationships. On these questions the wise business traveler relies on local contacts or consults some of the guides.

1. What to Give: Watch culture specific taboos. Avoid sharp objects such as knives –in some culture they symbolize the ending of a relationship. In China avoid clocks and watches as they bring bad luck. Good choices are quality writing instruments, branded whisky (non-Muslim), picture books about your city, region or country and products your home country is famous for.

2. When to Give: In Europe, after the agreement is signed. In Japan and most other Asian countries, at the end of the meeting. Note that North America is not a gift-giving culture. Many companies have strict policies concerning gifts.

3. How to Give: In Japan the wrapping of the gift is as important as the gift itself. In Japan and the rest of Asia, present and receive any gift with both hands – except in Thailand where you hand over the present with your right hand supported by hour left. In Asia your gift will probably be unwrapped after you leave. In Europe and North and South America it will more likely be opened in front of you.

Hostess Gifts

When invited for dinner at the home of your potential business partner.

1. Red roses are out because they imply that you are romancing the hostess.

2. Red carnations are bad unless you know your hosts are good Socialists.3. Mums, Calla, Lilies, White Asters and Dahlias are not good because they

are for funerals.4. Remember to always bring an uneven number.5. Don’t forget to unwrap the bouquet before presenting it to the hostess.6. Wine bottle is bit tricky – may offend the host unless it is from a renowned

winemaker or from your home country if it is a wine country.7. A box of fine chocolates or tin of best cookies or something for children is

a good idea.

Meeting Protocol: Refreshments

In Asia and the Middle East, visitors will be offered hot tea or coffee. Wait for the host to take a sip before putting cup to lip. Always accept the offered beverage and avoid asking for anything that has not been explicitly offered.

Wining and Dining

1. Observant Muslims do not drink alcohol or eat any pork product. Many avoid shellfish as well. Jews share some of these food taboos.

2. Hindus avoid both beef and pork; most are strict vegetarians.3. Buddhists are often strict vegetarians but may enjoy beef.4. Italians only drink cappuccino in the morning, before 10 am.

Edward T. Hall

1914-

Edward T. Hall was born on May 16, 1914 in Webster Groves, Missouri. He received his A.B. degree at the University of Denver in 1936. He then went to the University of Arizona in 1938 and got his Masters of Arts Degree. Then he went to Columbia University where he received his Ph.D. in 1942. From 1942 until 1946, Hall served in the U.S. Army Corp of Engineers in Europe and the Pacific. In 1946, he married Mildred Ellis Reed. They’ve lived happily ever after in Santa Fe, New Mexico ever since. Ernest T. Hall made many discoveries in how people learn language. He analyzes the levels of learning. He found that there were three levels of learning, the Informal level, the Formal level, and the Technical level.

The Informal level is defined as the level with the most affect. Informal learning is learning by example, by modeling, often out of awareness. It takes no conscious focus on learning. An example would be concerns about grades that might include a general sense that you work hard and that that should earn good grades for you. There would also be a sense that grades are important for later work promotion, and that C’s no longer represent “average” to many people.

The Formal level of learning is the middle level of affect. Formal learning is learned by rules. For a general student a formal level of learning could include, being on time, looking attentive, reading all assignments, and passing tests with high grades. These rules aren’t usually exclusive. They depend on what the person has learned as to what the rule means to them. For example it could be much more important to one person to be to class on time than another. This us because of what they have formally learned.

The other level is the Technical level. This is the level with the least affect. Technical learning is learning by discussion of the reasons for the rules. This is where you learn most of your opinions. An example would be discussing the theory that manners provide the glue for society’s rough spots in interpersonal relationships, so that our policy is to rely on manners to keep those relationships smooth. Edward T. Hall did most of his work on Silent Languages. He used these theories as well as many others to explain how people would communicate without the use of an elaborate language. He has made many discoveries in the Anthropology field dealing with the language of prehistoric people. He has written the books; The Silent Language, Beyond Culture, The Dance of Life, and Hidden Differences.

High-context & Low-context

Perhaps the most well-known cultural continuum is Hall's (1976) discussion of high-context and low-context cultures. Hall views meaning and context as "inextricably bound up with each other" (1982, p. 18). The difference between high and low context cultures depends on how much meaning is found in the context versus in the code. You can think of "code" as the message. You can think of "context" as setting or circumstance, including the people, in which the message appeared.

Low-context cultures, such as the American culture, tend to place more meaning in the language code and very little meaning in the context. For this reason, communication tends to be specific, explicit, and analytical (Ting-Toomey, 1985). In analyzing messages, low-context cultures tend to focus on "what was said" and give literal meaning to each word. For this reason, the words - or what was said - can take on a power of their own. Chen & Starosta pointed out that low-context cultures tend to use a direct verbal-expression style in which the situation context is not emphasized, important information is usually carried in explicit verbal messages, people tend to directly express their opinions and intend to persuade others to accept their viewpoints, and self-expression, verbal fluency, and eloquent speech are valued (1998, p. 50).

In high-context cultures, meaning is embedded more in the context rather than the code. In this case, "what was said" cannot be understood by the words alone - one has to look at who said it, when they said it, where they said it, how they said it, the circumstances in which they said it, to whom they said it, etc. Each variable will help define the meaning of "what was said."

In speaking of high-context cultures, Hall states, "most of the information is either in the physical context or internalized in the person, while very little is in the coded, explicit, transmitted part of the message" (1982, p.18). Thus the listener must understand the contextual cues in order to grasp the full meaning of the message. As Hall says:

People raised in high-context systems expect more from others than do the participants in low-context systems. When talking about something that they have on their minds, a high-context individual will expect his interlocutor to know what's bothering him, so that he doesn't have to be specific. The result is that he will talk around and around the point, in effect putting all the pieces in place except the crucial one. Placing it properly -- this keystone -- is the role of his interlocutor. (1976, p. 98) In other words, in high-context exchanges, much of the "burden of meaning" appears to fall on the listener. In low context cultures, the burden appears to fall on the speaker to accurately and thoroughly convey the meaning in her spoken or written message.  

Polychronic & Monochronic

Edward Hall also introduced the concept of monochronic and polychronic cultures. The concept of chronemics is a nonverbal behavior that speaks to how people use time to communicate. Lateness, for example, can communicate messages of power (waiting in the doctor's office), attraction (arriving early for that first date), or identity (being 'fashionably late'). Chronemics, like all other nonverbal behavior is culturally based. Different cultures have different rules governing the use and meaning of time. Hall's distinction between monochronic and polychronic cultures highlight the different ends of the cultural spectrums of how culture's view time.

Monochronic cultures such as the dominant American culture tend to view time as linear ("spread out across time," "spanning across generations," "the time line" or "time frame"). Being punctual, scheduling, planning tasks to match time frames are valued behaviors. Time is viewed as a commodity ("time is money") that can be bought ("buying time"), spent ("spending time") or wasted ("wasting time"). Thus, although time is technically an abstract phenomena, in the monochronic view it becomes a concrete reality. Woe to he who has lost time. One of the most outstanding features of monochronic cultures is that because time is so concrete and segmented, "only one thing can be done at a time." To try to do many things at one time is chaos, that is, negative.

Polychronic cultures tend to view time as nonlinear. There can be a circular or cyclical quality to time ("what goes around, comes around", "life is a circle"). Punctuality and scheduling is done but rarely with the religious fervor found in monochronic cultures. Schedules are not "etched in stone" but rather "penciled in"as a matter of cultural habit instead of personal habit. People from polychronic cultures, as the term "poly" suggests, find little difficulty doing many things at one time. Because time is not linear or segmented, matching specific activities with specific time frames is not done. Times and activities are fluid.  

Collectivism & Individualism

Psychologist and intercultural scholar, Harry Triandis (1986) at the University of Illinois, has written extensively about individuals define themselves in terms of their social grouping. He has discussed these differences in terms of collectivist and individualist cultures. For an excellent summary see Triandis, Brislin & Hui (1988).

Individualist cultures are defined as those in which the goals of the individual are valued over any particular group or collective. In individualist cultures, a person tends to look primarily after his own interests or that of his immediate nuclear family. Personal accomplishments are important and individuals will take advantage of opportunities for advancement even if it means sacrificing personal relations. Relationships tend to be short-term and transitory. As a result, contracts are an important means for defining and binding relationship.

Collectivist cultures are defined as those which the collective goals are valued over the individual goals. As Triandis & Hui stated about people from collectivist cultures, "individuals pay primary attention to the needs of their group and will sacrifice opportunities for personal gain" because such sacrifice is tied to their sense of self as a member of the larger collective. In other words, what is good for the collective is good for the self; the individual's esteem is tied to the collective's esteem. The distinction between "in-groups" and "out-groups" is clearly defined. In collectivist cultures, a person is assumed to belong to one or more tight "in-groups." The in-group protects the interests of its members collectively. Loyalty to the in-group is primary. Long term relationships based on trust are also very important.

Indirect & Direct

Scholars have also distinguished cultures in terms of direct versus indirect communication styles. Levine (1985) said that the American cultural preference is for clear and direct communication as evidenced by their many common expressions: "Say what your mean," "Don't beat around the bush," "Get to the point" (p.29). Levine's description of indirect or ambiguous communication further underscore the differences:

Indirect verbal communication is designed to be affectively neutral. It aims for the precise representation of fact, technique, or expectation. Direct communication works to strip language of its expressive overtones and suggestive allusions. Ambiguous communication, by contrast, can provide a superb means for conveying affect. By alluding to shared experiences and sentiments verbal associations can express and evoke a wealth of affective responses. (1985, p. 32)  

Thus where direct communication strives for emotional neutrality or objectivity. In contrast, ambiguous communication deliberately uses language to evoke an emotional response. Additionally, whereas nonlinear stresses openness, ambiguous styles would be more likely to conceal or bury the message. Similarly, direct stresses specific factual and even technical aspects of a message that the ambiguous style would omit.  

Linear & Non-linear

Similar to the oral/literate framework, scholar (Dodd, 1982; Lee, 1950) suggest linear versus configurational (non-linear) thought framework. The American culture would be more representative a linear thought framework, and the Arab culture more configurational or non-linear. According to Dodd, the linear orientation "has transformed auditory and oral communication into visual communication by means of written symbols, organized into linear thought patterns" (1982, p. 163). The linear cultural pattern stresses beginnings and ends of events, unitary themes, is object oriented rather than people or event-oriented, and is empirical in its use of evidence.

Nonlinear cultures, says Dodd are characterized by the "simultaneous bombardment and processing of a variety of stimuli" so that people would think in images, not just words (1982, p. 162). The non-linear thought framework normally has multiple themes, is expressed in oral terms and heightened by nonverbal communication. Time orientation is less important than people and events, and time is not segmented.

Oral versus Literate

Anthropologists have long posited the distinctions between oral versus literate dominant societies. The print or literate dominant society relies more on the factual accuracy of a message than its emotional resonance (Ong, 1980). This may relate to the historical purpose of the written word -- to record, preserve, and transmit (see, Stock, 1983). Literate societies also favor evidence, reasoning, and analysis over the less rational, more intuitive approach (Denny, 1991). This contrasts to the logic of oral cultures, where a single anecdote can constitute adequate evidence for a conclusion and a specific person or act can embody the beliefs and ideals of the entire community (Gold, 1988).

Whereas literate cultures may place a higher premium on accuracy and precision than on symbolism, in the oral cultures the weights are reversed. In oral cultures there appears to be greater involvement on the part of the audience, and this in turn, affects the importance of style and devices that enhance audience rapport.

Citing Cicero, Gold (1988) highlights numerous features of the oral tradition, including repetition as a means for keeping attention as well as making the speech "agreeable to the ear" (p. 160). In terms of message comprehension, Henle (1962) noted that auditors will "go to considerable lengths to make sense of an oral message" (p. 371). Thus listeners play a valuable part in constructing meaning within an oral exchange. As Gold states, "the audience cooperates with the speaker by trying to understand the meaning or 'gist' rather than the actual content" (1988, p. 170). Thus, the audience is quite active.

With heightened listener involvement, the aesthetics of style and audience relations may supersede the informational aspects of a message. An oral message may be valued more for its affective power than its cognitive merits. Tannen (1982) noted the interpersonal involvement between speaker and audience, as speakers strive for a more emotional and participatory responses from their audience. Clearly with style overriding substance, aural ornaments such as formulas, humor, exaggeration, parallelism, phonological elaboration, special vocabulary, puns, metaphor, and hedges are critical (Feldman, 1991; Gold, 1988).

" Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster."     Prof. Geert Hofstede, Emeritus Professor, Maastricht University.

What are the practical applications for Geert Hofstede's research on cultural differences?

For those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that 'deep inside' all people are the same - but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country - the chances are we'll make some very bad decisions.

Geert Hofstede's research gives us insights into other cultures so that we can be more effective when interacting with people in other countries. If understood and applied properly, this information should reduce your level of frustration, anxiety, and concern. But most important, Geert Hofstede will give you the 'edge of understanding' which translates to more successful results. 

To assist you in better understanding the renowned work of Prof. Geert Hofstede, Stephen Taylor has developed a comprehensive series of Cultural Dimension analytical graphs.

Can you give an example?

One example of cultural differences in business is between the Middle Eastern countries and the Western countries, especially the United States.

 When negotiating in Western countries, the objective is to work toward a target of mutual understanding and agreement and 'shake-hands' when that agreement is reached - a cultural signal of the end of negotiations and the start of 'working together'.

 In Middle Eastern countries much negotiation takes place leading into the 'agreement', signified by shaking hands. However, the deal is not complete in the Middle Eastern culture. In fact, it is a cultural sign that 'serious' negotiations are just beginning.

 Imagine the problems this creates when each party in a negotiation is operating under diametrically opposed 'rules and conventions.'

This is just one example why it is critical to understand other cultures you may be doing business with - whether on a vacation in a foreign country, or negotiating a multi-million dollar deal for your company.

Hofstede, Geert. Culture's Consequences , Comparing Values, Behaviors, Institutions, and Organizations Across Nations Thousand Oaks CA: Sage Publications, 2001

 

Hofstede, Geert. Cultures and Organizations: Software of the Mind.  London: McGraw-Hill U.K., 1991. New York, McGraw-Hill U.S.A.,1997. Entirely re-written Third Millennium Edition, by Geert Hofstede and Gert Jan Hofstede, forthcoming, New York: McGraw-Hill U.S.A., 2004.

What are Hofstede's five Cultural Dimensions?  

Power Distance Index (PDI) focuses on the degree of equality, or inequality, between people in the country's society. A High Power Distance ranking indicates that inequalities of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not allow significant upward mobility of its citizens. A Low Power Distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed.

 

Individualism (IDV) focuses on the degree the society reinforces individual or collective achievement and interpersonal relationships. A High Individualism ranking indicates that individuality and individual rights are paramount within the society. Individuals in these societies may tend to form a larger number of looser relationships. A Low Individualism ranking typifies societies of a more collectivist nature with close ties between individuals. These cultures reinforce extended families and collectives where everyone takes responsibility for fellow members of their group.

 Masculinity (MAS) focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure, with females being controlled by male domination. A Low Masculinity ranking indicates the country has a low level of differentiation and discrimination between genders. In these cultures, females are treated equally to males in all aspects of the society.

Uncertainty Avoidance Index (UAI) focuses on the level of tolerance for uncertainty and ambiguity within the society - i.e. unstructured situations. A High Uncertainty Avoidance ranking indicates the country has a low tolerance for uncertainty and ambiguity. This creates a rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty. A Low Uncertainty Avoidance ranking indicates the country has less concern about ambiguity and uncertainty and has more tolerance for a variety of opinions. This is reflected in a society that is less rule-oriented, more readily accepts change, and takes more and greater risks.

Long-Term Orientation (LTO) focuses on the degree the society embraces, or does not embrace, long-term devotion to traditional, forward thinking values. High Long-Term Orientation ranking indicates the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider". A Low Long-Term Orientation ranking indicates the country does not reinforce the concept of long-term, traditional orientation. In this culture, change can occur more rapidly as long-term traditions and commitments do not become impediments to change.

 

 

 

Culture - Geert Hofstede's Model

Geert Hofstede s Model

(based on his 1991 book: Cultures and Organizations: Software of the Mind. New York, NYM McGraw-Hill.)

Hofstede defines culture as the "software of the mind" that guides us in our daily interactions. Here are some paragraphs from the introduction to his book:

Every person carries within him or herself patterns of thinking; feeling; and potential acting which were learned throughout their lifetime. Much of it has been acquired in early childhood, because at that time a person is most susceptible to learning and assimilating. As soon as certain patterns of thinking; feeling and acting have established themselves within a person s mind; (s)he must unlearn these before being able to learn something different; and unlearning is more difficult than learning for the first time.

Using the analogy of the way in which computers are programmed; this book will call such patterns of thinking; feeling; and acting mental programs; or; as the sub-title goes: "software of the mind". This does not mean; of course; that people are programmed the way computers are. A person s behavior is only partially predetermined by her or his mental programs: (s)he has a basic ability to deviate from them, and to react in was which are new, creative, destructive, unexpected.

Culture is always a collective phenomenon, because it is at least partly shared with people who live or lived within the same social environment, which is where it was learned. It is the collective programming of the mind which distinguishes the members of one group or category of people from another.

Hostede, Geert (1991) Cultures and Organizations: Software of the Mind. New York, NY: McGraw-Hill.

Based on his IBM study in 72 different countries, Hofstede identifies five of these differences in mental programming, which he calls five dimensions:

1. Power distance

PowePower distance measures how subordinates respond to power and authority. In high-power distance countries (Latin America, France, Spain, most Asian and African countries), subordinates tend to be afraid of their bosses, and bosses tend to be paternalistic and autocratic. In low-power distance countries (the US, Britain, most of the rest of Europe), subordinates are more likely to challenge bosses and bosses tend to use a consultative management style.

Power distance measures how subordinates respond to power and authority. In high-power distance countries (Latin America, France, Spain, most Asian and African countries), subordinates tend to be afraid of their bosses, and bosses tend to be paternalistic and autocratic. In low-power distance countries (the US, Britain, most of the rest of Europe), subordinates are more likely to challenge bosses and bosses tend to use a consultative management style.

2. Collectivism versus Individualism

In individualistic countries (France, Germany, South Africa, Canada, etc.), people are expected to look out for themselves. Solidarity is organic (all contribute to a common goal, but with little mutual pressure) rather than mechanical. Typical values are personal time, freedom, and challenge.

In collectivist cultures (Japan, Mexico, Korea, Greece) individuals are bounded through strong personal and protective ties based on loyalty to the group during one s lifetime and often beyond (mirrored on family ties). Values include training, physical condition, the use of skills. See Appendix 2 for comments on differences between American and Chinese society on this dimension.

Note: In their book, An Introduction to Intercultural Communication, Condon and Yousef make a distinction between individualism, prevalent in the United States, and individuality, which is different and prevalent in many other parts of the world:  

What makes individualism in the United States is not so much the peculiar characteristics of each person but the sense each person has of having a separate but equal place in society.... This fusion of individualism and equality is so valued and so basic that many Americans find it most difficult to relate to contrasting values in other cultures where interdependence, complementary relationships, and valued differences in age and sex greatly determine a person's sense of self.

Individuality is different and appears to be much more the norm in the world than United States-style individualism is. Individuality refers to the person's freedom to act differently within the limits set by the social structure. Compared to the United States, many other cultures appear to be much more tolerant of "eccentrics" and "local characters." This confusion of one kind of individualism with individuality at first appears paradoxical: We might suppose that a society which promises apparently great personal freedoms would produce the greatest number of obviously unique, even peculiar people, and yet for more than a century visitors to the United States have been struck by a kind of "sameness" or standardization. As one writer interpreted it, U.S. freedom allows everybody to be like everybody else.... While the individual (glorified as "the rugged individualist") is praised, historically individuals in the United States have made

their achievements in loose groupings. What is different here is that the independent U.S. self must never feel bound to a particular group; he must always be free to change his alliances or, if necessary, to move on.... Cultures better characterized by values of individuality are likely to lack this kind of independence from the group, as well as individual mobility. Thus it may be that such cultures allow for greater diversity in personal behavior in order to give balance to the individual vis-à-vis the group, whereas the United States, characterized by loose groupings and high mobility, does not.  

3. Femininity versus Masculinity

Hofstede s study suggested that men s goals were significantly different from women s goals and could therefore be expressed on a masculine and a feminine pole.

Where feminine values are more important (Sweden; France, Israel, Denmark, Indonesia), people tend to value a good working relationship with their supervisors; working with people who cooperate well with one another, living in an area desirable to themselves and to their families, and having the security that they will be able to work for their company as long as they want.

Where the masculine index is high (US, Japan, Mexico, Hong Kong, Italy, Great Britain), people tend to value having a high opportunity for earnings, getting the recognition they deserve when doing a good job, having an opportunity for advancement to a higher-level job, and having challenging work to do to derive a sense of accomplishment. (adapted from Hoft, Nancy (1995) International Technical Communication. New York: John Wiley and Sons)

4. Uncertainty avoidance

When uncertainty avoidance is strong, a culture tends to perceive unknown situations as threatening so that people tend to avoid them. Examples include South Korea, Japan, and Latin America. In countries where uncertainty avoidance is weak (the US; the Netherlands; Singapore; Hong Kong, Britain) people feel less threatened by unknown situations. Therefore, they tend to be more open to innovations, risk, etc.

5. Long-term versus Short-term orientation

A long term orientation is characterized by persistence and perseverance, a respect for a hierarchy of the status of relationships, thrift, and a sense of shame. Countries include China; Hong Kong; Taiwan, Japan and India A short-term orientation is marked by a sense of security and stability, a protection of one s reputation, a respect for tradition, and a reciprocation of greetings; favors and gifts. Countries include: Britain, Canada, the Philippines; Germany, Australia  

 

Individualism Vs. Collectivism:

China and the United States

Henry Steele Commager: American Individualism

Professor Hsu has traced the influence of the principle of individualism in the large and in the small. He observes in the nature of the American political system, the workings of criminal law; the attitude toward nature, the conduct of foreign policy, and the waging of war. He explores it in the relations of parents and children, the attitude toward ancestors and posterity, the cult of youth and the fate of age, the role of sex in literature and art as in life; in incidence of crime, the concepts of success and the ratings of prestige, the psychology of games and of sports, and many other areas of human endeavor. In all of these areas he contrasts American practices and malpractices with Chinese: American insecurity with Chinese security, American exclusiveness with Chinese inclusiveness, American worship of the next generation with Chinese veneration for the last. Individualism, he contends, explains why competition permeates every aspect of American life: the struggle of children for the attention and affection of their parents, and the struggle of parents to win the attention and approval of their children; the concern of the American woman for such beauty and style as will enable her to win her husband anew every day, the anxiety of the husband to prove that he is a success and thus deserves the respect and affection of his wife; the deadly competition for place and recognition within every organization from the corporation to the university; the readiness of churches to vie with each other for membership and contributions and for ostentatious displays of prosperity much as business enterprises vie with each other.

Individualism explains -so Professor Hsu affirms- the determination not only to keep up with the Joneses but visibly to surpass them, that supports the whole never-never world of the advertising industry; the passion for joining almost everything, and the readiness to abandon a club, a society, or a church and join another that proclaims a higher social status or promises quicker social and economic rewards; the constant moving about from one neighborhood to a better one, from one suburb to a more fashionable one. It illuminates the readiness of almost everyone to participate in politics and the conviction -doubtless at the very heart of democracy-that every man and woman can exert some influence and that every one has a right to be heard- even by the president, who receives every day two or three thousand letters of advice and admonition. Nowhere is individualism more ostentatious than in the conviction that everyone has a right to happiness, a right not only rooted in the very laws of nature, but actually guaranteed in the constitutions of state after state, and that happiness consists in the fulfillment of every individual wish -or whim. Inevitably all of this means constant pressure for experimentation, for change, for progress, for how can you attain happiness and success without these, and it

carries with it, too, the notion that change is, inevitably, for the better.

Everywhere, as he surveys the American scene, Professor Hsu finds evidence of deep insecurity-the insecurity that comes from dependence on self, or on merely the nuclear family. What Americans lack -so he argues- is anchorage, the anchorage that comes from being part of something bigger than themselves, from a network of interdependencies and associations with family and clan and village and neighborhood, and with past and future. It is because Americans lack this that they are so restless, so discontented, so unfulfilled and unhappy, so ready to abandon home, family, religion, career, friends, and associates for the will-o'-the-wisp of success -a success which, almost by definition, they can never wholly win. It is because they lack security that they feel compelled to prove themselves, over and over -the child to prove himself smarter or stronger or more popular than his playmates, the male to prove himself irresistible to the female, the White to prove himself superior to the Black.

From Irving Kathy J (1986) Communicating in Context: Intercultural Communication Skills for ESL Students. Englewood Cliffs, New Jersey. pp. 178-179

Course Ware

Doing Business with Americans (USA)

The USA is a complex multi-ethnic, multicultural society. Because of this diversity it is not possible to predict in detail the negotiating and business behaviour of any individual American. However, there is still such a thing as a mainstream US business culture. You can expect most Americans to be very time-conscious (Time is money), deal-focused (Let’s get down to business) and informal (What’s your first name?). On the other hand, an American’s degree of expressiveness in communication is likely to be strongly influenced by his or her particular ethnic background.

The language: American English.

Making Contact: A referral or introduction is always helpful but in most cases one can approach the prospective counter part directly.

Deal-focused: They prefer to build trust and rapport while the business discussions are proceeding.

Orientation to time: Americans are obsessed with time. They regard a person, who keeps them waiting for longer than ten minutes as either hopelessly undisciplined, intolerably rude, or both. Similarly, once the meeting starts Americans expect discussions to proceed to conclusion without interruption.

They become easily upset when discussions are interrupted by phone calls, drop-in visitors or secretaries bringing in papers to be singed.

Informality: It is meant to show friendliness and warmth and not to show disrespect to high-status persons.

Communication style: Depending on their ethnic background as well as their individuality Americans show great variation in the way they communicate. Compared with Northern Europeans and East Asians, Americans may appear more expressive, more extroverted. But when compared with Southern Europeans and Latin Americans those same Yanks seem bland and introverted.

Verbal Directness: the low-context Americans value frank, straightforward exchange of information and are usually unaware that East and Southeast Asians for example might be offended by their directness. They may even be suspicious of those who prefer indirect, oblique, ambiguous communication.

Vocal Volume and Conversational Overlap: Many Americans speak louder at the bargaining table. They are uncomfortable with silence and may also feel compelled to quickly fill in any gaps in the conversation. They also know that it is rude to interrupt others in mid sentence; if they do this anyway in the course of a lively discussion no offense is intended.

Interpersonal Distance: the normal spacing in a business context is about an arm’s length. Americans generally stand and sit further apart than Arabs, Southern Europeans and Latin Americans.

Touch Behaviour: Varies from moderate to relatively high-contact. Some Americans slap each other on the back and grab one another by the elbow or upper arm to express friendliness.

Dress Code: Varies somewhat according to location and type of business; visitors are well advised to wear a suit and tie to the first meeting with a new contact.

Meeting and greeting: Expect a firm handshake and direct eye contact. Some Americans believe that a soft handshake reflects weakness and that lack of a direct gaze indicates unreliability or dishonesty. They shake hands less often than most Europeans and brief.

Exchanging Business Cards: Americans may not initiate the exchange of business cards; they sometimes offer their card at the end of the meeting rather than at the beginning. One should not get offended if his US counterpart stuffs his business card in his pocket without reading it.

Forms of Address: Start out with Mr., Mrs., Miss or Ms. Do not be surprised if your counterpart suggests switching to a first name basis. Most Americans are uncomfortable using honorifics and titles.

Gift Giving: The US business world is not a gift-giving culture. Many Americans feel uncomfortable if presented with an expensive gift. You can bring something small, logo or an item your country is famous for. Americans unwrap the gift in your presence.

Wining and Dining: Americans prefer to maintain a separation between their professional and private lives as well as between business and pleasure.

Making a Presentation: Americans respond best to brisk, factual presentations delivered by a competent speaker of English and enlivened by visual aids where appropriate. They may interrupt with questions rather than hold their questions until the end.

Bargaining Range: US negotiators are used to a wide variations in bargaining ranges. Expect them to test your opening offer for flexibility. They respond better to realistic quotations. Build a safety margin to cover unexpected developments.

Concession Behaviour: Be prepared for some hard bargaining. Take care to make each concession with great reluctance and demand something of equivalent value in return.

Decision Making: Americans are probably the fastest decision makers in the world. (Right or wrong, but never in doubt) Expect expressions of impatience if your decision-making process seems to be taking too much time.

Role of the Contract: Heavy emphasis on the legal aspects and the fine points of the written agreement. They may even include lawyers in the discussions from the start until the signing ceremony. They often bring a draft agreement to the bargaining table and proceed to negotiate clause by clause. In case of dispute or disagreement American may rely strictly on the terms of the contract and not on the importance of long-term relationship.

Doing Business with Latin Americans

The Language: The national language of different countries varies from Portuguese (Brazil) Spanish (Most of the Latin America – Argentina, Chile, Bolivia, Peru, Colombia, Venezuela) to English (Caribbean Islands) to Dutch and French (Small island countries). You may need an interpreter.

Initial Contact: Local contacts are essential. Plan to attend a trade show or join a trade mission. You can also arrange for a chamber of commerce, trade association, government agency, bank or business associate for an introduction. Request an appointment about two weeks in advance. Expect to meet in an office rather than in a restaurant or bar. Schedule only two meetings a day, one between 10 and 11.30 and the second at 3. Don’t expect to get down to business quickly. They need time to get to know you.

Importance of Relationship: They value long-lasting relationships. Invest a considerable amount of time developing good rapport and a pleasant, relaxed relationship before discussing business. Good topics for small talk are football, history, literature and places to visit as well as information about your home town and region.

Orientation to Time: In some parts people increasingly value firm schedules and punctuality e.g. Sao Paulo. Whereas in some places clock ticks at a different speed for the fun-loving people of Rio. However business visitors are expected to be punctual.

Hierarchy, Status and Respect: These aspects are very important in most of Latin America.

Expressive Communication Style: Most Latin Americans are talkative, nonverbally expressive and open about showing emotions in public. You may be interrupted in mid-sentence. Avoid direct confrontation during negotiations.

Nonverbal Behaviour: Men and women shake hands warmly when introduced and again when departing. Visiting men should expect to shake hands with another male for a considerable length of time – take care not to withdraw you hand prematurely. After they get to know each other two men will shake hands and touch each other on the elbow or forearm, perhaps slap each other on the back or shoulder. Male friends may embrace while women friends brush cheeks with a kissing motion of the lips. They stand very close to each other when talking and maintain strong eye contact with the person they are conversing with.

Dress Code: Male executives tend to wear fashionable three-piece suits. Office workers wear the two-piece version. Male visitors should note that proper business attire always includes long-sleeved shirts, even in hot weather. Women in business wear elegant suits or dresses as well as blouses and skirts. Blouses and jackets may have short sleeves. (Avoid wearing green and yellow in Brazil – the colors of the Brazilian flag)

Meeting and Greeting: Formal to begin with.

Wining and Dining: women drink wine, spirit and liqueurs while beer is considered a man’s drink.

Table Manners: Avoid using your hands and wait until coffee is served before talking business.

Gift Giving: Good gifts to bring from abroad for men are music and small electronic gadgets and for women, perfume. If invited to dinner at home bring chocolates, champagne or a container of fresh strawberries. (Avoid purple flowers in Brazil, which are associated with funerals)

Negotiating Style: Most of them are tough bargainers. Budget enough time for a lengthy negotiating process and include a substantial margin in your opening offer so as to leave room for concessions. Wise negotiators include plenty of time for socializing during these drawn-out discussions. If you wish to entertain a high-level executive, ask his secretary to recommend a restaurant. It is important to host your counterpart only at elegant, prestigious establishments. Similarly, business visitors should only stay in top hotels.

Doing Business with Chinese

Language: Though many Chinese speak foreign languages, especially English, you may need to employ an interpreter.

Concern with Face: Face has to do with self-respect, dignity and reputation. You can lose face by appearing childish or lacking in self-control – for example by losing your temper. You can cause your counterpart lose face by expressing sharp disagreement, embarrassing them, criticizing them in public or by showing disrespect. You can give your counterpart face by using polite forms of address and observing local customers and traditions. Giving face is an effective way to build a solid relationship. If you make a mistake you may be able to save your face with a humble apology.

Dress Code: Suit, white shirt, conservative tie for men. Conservative suit or dress for women.

Meeting and Greeting: Expect a soft handshake and moderate eye contact. Avoid a bone-crushing handshake or an overly direct gaze.

Names and Titles: use the person’s family name or organizational title. Avoid Chinese person by his or her given name. On business cards printed in Chinese the family name comes first, followed by two given names. But on cards printed in Western languages some Chinese reverse the order. When in doubt, ask which is the family name.

Exchanging Business Cards: The exchange of name cards is done using both hands. When you receive your counterpart’s card, read it and then put the card away in a leather card case or place it on the table in front of you. Do not write on someone’s name card in the presence of the giver.

Exchanging Gifts: It is an important part of the business culture, contribution to relationship building. Be prepared with appropriate gifts for your counterparts. A good choice should be an expensive cognac (Brandy from France). Other ideas are typical of your own country or tasteful logo gifts. Present the gift with both the hands. The recipient will probably put it aside and open it after the meeting. You should also receive a gift with both hands and open it later.

Wining and Dining: Entertaining and being entertained is an essential part of building a close relationship with your counterpart. In China you may be invited to one or more formal banquets, depending on the length of your stay. Have your local contact or your hotel help you reciprocate with an appropriate banquet. In your homeland or in a third country, a restaurant offering local specialties is usually a good choice. They also appreciate a good Chinese meal as well. To show your commitment to Chinese customs, master the fine arts of eating with chopsticks and toasting your counterparts appropriately. Women are not expected to keep up with the rounds of banquet toasts and they are definitely not

expected to get drunk. Males who prefer not to drink alcohol can legitimately excuse themselves on the grounds of religious objection or ill health.

Sales Promotion: Avoid opening with a joke or humorous anecdote. Take care not to over-praise your product or company, instead offer testimonials or articles written about your firm. Let others praise your products. Likewise, avoid making negative comments about your competitors.

Bargaining Range: The bargain vigorously and expect their counterparts to grant major concessions on price and terms. Build some margin with opening offer.

Decision Making: Negotiations in China tends to be long, time-consuming process requiring patience and a clam disposition. This is especially true when doing business with a government entity or a public sector company. Decisions take time.

Role of Contract: Chinese may regard the final written agreement as less important than the strength of the relationship but do be sure to get everything in writing anyway. They may expect to renegotiate the contract if circumstances change.

Legal Adviser: Keep the legal adviser in the background until towards the end of negotiations. The presence of the lawyers may be perceived as a sign of mistrust.

Doing Business with Japanese Language: many Japanese speak English but you should ask your counterpart whether an interpreter would be needed.

Hierarchy, Status and Respect: In Japan the buyer automatically enjoy higher status than seller. Most Japanese are not used to dealing with females on the basis of equality in a business context as few women have reached positions of authority in this traditional hierarchical society. Here are four ways to overcome cultural obstacles:

Be introduced by the eldest, most senior male colleague available. Status is a transferable asset.

Learn the verbal, paraverbal and nonverbal ways of showing proper respect. Showing respect gains you respect.

Gradually establish your professional or technical credentials, taking care not to appear cocky or boastful. Expertise confers status.

Women are often more skilled than males in reading body language. This ability is particularly valuable when dealing with Japanese, who rely heavily on nonverbal communication.

Formality and Rituals: To maintain surface harmony and prevent loss of face, Japanese rely on codes of behaviour. Japanese dress and behave formally and are more comfortable with visitors who do likewise.

Dress Code: Dark suit, white shirt, conservative tie for men. Conservative suit or dress for women.

Meeting and Greeting: Expect to bow and a soft handshake. Avoid an excessively firm handshake or overly direct eye contact.

Exchanging Business Cards: It is polite to master the ritual of the meishi or business card. Offer your card using both hands, holding it between thumb and forefinger with the side showing the Japanese printing facing up. Shake hands with a slight bow and state your name and your company’s name. Receive your counterpart’s card with both hands, study it for several seconds and then place it respectfully on the conference table in front of you or in your leather (not plastic) card holder.

Forms of address: Address your counterpart with his or her family name plus the suffix. In Japan the family name comes first, followed by given names. But in business cards meant for foreigners they may reverse the order, so when in doubt ask which is the family name.

Gift giving and Receiving: Exchanging gifts is an important part of the business culture, contributing to relationship building. Be prepared with appropriate gifts. A good choice is an expensive cognac, a good single malt whisky or a tasteful item, which is typical of your city, region or country. Note that the wrapping and presenting of the gift are more important than the contents. Have your gifts

wrapped in Japan or by someone knowledgeable of Japanese customs. Present the gift with both hands. The recipient will probably put it aside and open it later. Your should also receive a gift with both hands and open it later.

Wining and Dining: Entertaining and being entertained are essential parts of building a close relationship with your counterparts. In Japan you may wish to reciprocate with an invitation to a Western style restaurant serving for example French or Italian cuisine. In your homeland or in a third country, a restaurant offering local specialties is usually a good choice. Master the art of eating with chopsticks and toasting appropriately. For males, at times it is appropriate to drink heavily, even to get drunk. (This is helpful to know them well). Women are generally not expected to drink. You may excuse yourself on the grounds of illness or religion.

Making your presentation: Avoid opening with a joke or humorous anecdote. Speak clearly and simply. Avoid using double negatives and convoluted sentences, jargons, slang or unusual words. Take care not to over-praise your product or company. Instead use testimonials or articles written about your firm. Use visual aids, especially for numbers and provide copies of the presentation.

Bargaining Range: In some cultures, starting off with a high price so as to leave room for bargaining is an effective strategy. This approach may backfire with the Japanese. You should have a cogent reason for any major concession on price or terms.

Decision-Making: Many Japanese companies still make decisions by consensus. This is time-consuming process, another reason to bring patience to the negotiating table.

Role of Contract: Same as Chinese.

Doing Business with Middle Easterners

Language: Many Arabs speak English fluently, but be prepared to employ an interpreter in case of need.

Exchange Favours: The exchange of mutual favours is the cornerstone of any relationship with an Arab. If asked for a favour, agree to do it even if you think you may not be able or willing to do it. Your arab friend will understand if circumstances later make it impossible to fulfill his request and will appreciate the fact that you agreed to try to help.

Hierarchy, Status and Gender: An Arab’s status is determined primarily by his or her social class and family background. Saudis and many other Arabs are not used to seeing women in business. For this reason they may have difficulty relating to female executives. Tips for women wishing to do business in the Arab World:

Be introduced by an older, high-ranking male. His gender and status can rub off on you.

Gradually establish your professional or technical credentials, without appearing cocky or boastful. Expertise confers status.

With luck you may be regarded as a foreigner who happens to be female.

The Role of Islam: The Arab world is a conservative, traditional society strongly influenced by Islam, which pervades every aspect of life. Visitors are advised to learn as much as possible about Arab customs, practices and taboos before arriving.

Honour and the Family: An Arab’s honour, dignity and reputation are precious to him and must be protected at all cost. Loyalty to the family is a paramount value. Family needs often come before individual needs.

Expressive, Indirect Communication Style: Arabs readily express emotion and use elaborate verbal language marked by frequent exaggeration for effect. Because Arabs try to avoid confrontation, they usually avoid saying “no” to your face. You will do well to avoid overly blunt language.

Meeting and Greeting: Expect a gentle handshake and strong, direct eye contact. Arabs of the same sex like to stand or sit very close to each other, closer than many foreigners are accustomed to. Try not to move away, since this would signal coldness to your Arab counterpart.Touch Behaviour: As representatives of an expressive culture, Arabs engage in frequent touching among friends. The amount of physical contact between business acquaintances varies within the Arab world. Observe those around you and take your cue from your local counterparts.

Taboos: Always use your right hand only when eating or when passing something to an Arab. The left hand is considered unclean. If you are left-

handed, train yourself to use your right hand as much as possible. When seated, avoid showing the soles to an Arab. The feet and shoes are considered unclean.

Dress Code: Conservative suit and tie. Accessories such as watch, pens and briefcase should be of high quality. Some Arab business people judge foreign counterparts by how they dress.

Forms of Address: Address your Arab counterpart by the first of his three names, preceded by “Mr.” Titles are important, more widely used in Arabic than in English. “Sheikh” is a title of respect for a wealthy, influential or elderly man. Address government ministers as “Excellency.” It is a good idea to find out any titles a person may have and use them.

Exchanging Business Cards: Present your business card with your right hand only. Receive your counterpart’s card in the same way.

Refreshments: You will frequently be offered tea or coffee. This is an important feature of Arab hospitality; it is impolite not to accept.

Gift Giving: gifts are always welcome but not expected. Choose something for which your own country is well-known, but avoid giving alcohol or any other item forbidden to Muslims. Be careful about admiring any of your counterpart’s possessions. He might present you with the object of your admiration and feel insulted if you decline.

Entertaining: Entertaining and being entertained is an essential part of building a close relationship with your counterpart. If invited to dinner at an Arab businessman’s home expect to eat a great deal as a way of showing your appreciation. Your host will press you to eat more you than really want to. Eat as much as you can. When you have reached your limit, you may have to decline further helpings three times, emphatically, in order to make the point. Similarly, when hosing Arabs you must keep pushing them to eat and drink. But remember that alcoholic beverages and pork products are forbidden to Muslims.

Bargaining Range: Arab negotiators tend to be enthusiastic bargainers and may expect their counterparts to grant major concessions on price and terms during the course of the negotiation. Some Arab businessmen measure their success at the bargaining table by how far they are able to move you away from your opening offer. They think of negotiating as a challenging contest, a competitive sport. For this reason it is wise to build plenty of margin into your initial offer, leaving room for maneuver during the lengthy negotiating process.

Concession Behaviour: Be prepared for “Bazaar haggling” – hard bargaining. Take care to make each concession with great reluctance and only on a strict “if … then,” conditional basis. Always demand something in return for each concession in price, terms or other issues.

Decision Making: Negotiating in the Arab world tends to be proceed at a leisurely pace. It would be tactical error to press hard for a quick decision. Go with the flow. Decisions take time, so adjust your expectations accordingly.

The Contract: Get everything in writing to avoid future misunderstandings.

Doing Business with Russians

Chaos, crime and corruption – along with capricious regulations and bureaucratic red tape – continue to present real barriers to trade. Russia is a tempting market for those who know how to overcome those barriers. (Even Mukesh Ambani and Anand Mahindra were refused business visa to Russia recently)

Personal Relationships: As is the case in other relationship focused markets around the world, you need personal relationships to get things done. It’s who you know that counts. Most business here is done face-to-face. Frequent visits to the market and frequent phone calls are essential. While written contacts are as important as anywhere else in today’s global marketplace, be prepared for your Russian counterparts to renegotiate the agreement not long after it was singed.

Direct, Low-Context Communication: Russia’s version of relationship-focus does however differ from most other RF cultures in an important respect: verbal communication. Unlike East and Southeast Asians for example, Russians negotiators tend to be direct, even blunt, saying pretty much what they mean and meaning what they say.

Formality, Status and Hierarchies: Here again we have special case. Russians belong to the more formal wing of Europeans, closer to Germans and French than to informal Danes. Visitors are expected to observe a certain degree of formality in dress and in public behaviour. Hierarchical attitudes affect business visitors in tow ways. First, while visiting female executives will be treated with delightful old world gallantry, they can also expect to be patronized. Second, both male and female visitors will note that all important decisions are reserved for the top man in the organization. Make sure that one is negotiating with the real decision-maker.

Time Behaviour: Most Russian managers admit that while they are usually unconcerned with punctuality, they try hard to be on time when meeting with foreigners. Expect meetings to start late, to run on well beyond the anticipated ending time and to be frequently interrupted.

Variable Expressiveness: At the first meeting, expect a quiet, restrained manner; at subsequent sessions be prepared for more demonstrative behaviour. Be ready for emotional outbursts and displays of temper at critical points in the discussions.

Voice Volume: Visitors should avoid loud, boisterous conversation in public.

Interpersonal Distance: From close to medium – 12 to 18 inches.

Touch Behaviour: Among friends, frequent touching, bear hugs and cheek-kissing.

Eye Contact: Direct gaze across the negotiating table.

Taboo Gestures: The “A-OK” thumb-and-forefinger sign is obscene. Standing with hands in one’s pockets is rude.

Dress Code: Conservative. In winter, adopt the layered look. Expect to check your overcoat in most public buildings.

Meeting and Greeting: Shake hands and state your name. Formulas such as ‘how are you?” are unnecessary.

Forms of Address: When introduced, use title plus last name, not first names. Later you might move to suing the first name plus patronymic, but wait until your counterpart suggests it.

Exchanging Cards: Bring plenty of cards which show your organizational title and any advanced degrees. Do not be surprised if your Russian counterpart does not have a card.

Topics of Conversation: Avoid discussions of war, politics and religion. And remember, Russians tend to sensitive about their country’s recent loss of superpower status.

Business Gifts: Quality pens, books, music CDs, solar powered calculators, liquor, card wallets, gift soaps, T-shirts.

Business Entertainment: It is a signal honour to be invited to a Russian home. Be sure to accept. Most business entertaining is done at restaurants.

Drinking: Russians seem to have high tolerance for alcohol. Few foreigners succeed in staying with the locals drink for drink. To limit your intake, drink only when someone proposes a toast. If there are many toasts, switching to sipping is better idea. Be prepared to drink at least one or two small vodkas.

Making a Presentation: Especially at the first meeting, avoid starting off with a joke. Show that you are taking business seriously. Pack your presentation with facts and technical details.

Local Sensitivities: Avoid statements such as “We are planning a really aggressive marketing campaign. The word aggressive has a negative connotation in Russia. Also avoid proposing a Compromise during the negotiation – most Russians regard a Compromise as morally wrong. Instead, suggest meeting each other halfway, or make your proposal conditional on an equivalent concession from your counterparts.

Bargaining Style: Be ready for hardball tactics – a tough, sometimes confrontational approach, possibly punctuated with table-pounding, temper tantrums, emotional outbursts, brinkmanship, loud threats and walkouts. With some Russians these components of the “Soviet” style of bargaining have

survived into the post-Soviet era. Counter these tactics by staying calm. More often, your counterparts will simply try to out-wait you, exploiting your presumed impatience. Counter this with patience, patience and more patience.

Resolving Disputes: Insist on a clause calling for arbitration in a third country. Sweden is currently a popular choice.

Doing Business with Australians and New Zealanders

The Language: English

Making the first contact: Direct contact by letter, fax or e-mail with relevant information about your company and product, then follow up with a phone call requesting a meeting. They usually get down to business shortly after meeting for the first time. The elaborate preliminaries and extensive small talk are out of place. A few beers at a pub smooths the way to getting to know each other.

Communication Style: They tend to be less talkative and less demonstrative.

Verbal Directness: At times they are more direct than the Germans and the Dutch, not to mention Americans. They value straightforward and frank speech.

Informality: This may be the only culture in the world where business people interact even more informally than in Denmark, the Midwestern US or western Canada. Visitors should avoid trying to impress them with their titles and accomplishments. Anything smacking of boastfulness or showing off gives a negative impression. (As in the case of Denmark, male passengers traveling alone are expected to sit next to the (male) driver as a sign that they do not regard themselves as above the taxi driver in social status. Women are exempt from the front-seat rule unless the driver is also female)

Speaking of gender: In contrast to Scandinavia, they do not necessarily extend the same respect to women in business. Female visitors should be prepared for behaviour, which they may perceive as chauvinistic or patronizing.

Orientation to Time: They are a bit less obsessed with time and schedules. Visitors are expected to be roughly on time for meetings, but few minutes late is tolerated. Local business people are likely to resent foreigner, who try to hurry things along.

They vary from very expressive to quite reserved depending partly on their particular ethnic background.

Interpersonal Distance: They generally stand or sit an arm’s apart in a business situation.

Touch behaviour: Expect less physical contact than is the case with Latin and Mediterranean cultures but more than those if East and Southeast Asia.

Eye Contact: use steady eye contact when conversing with your counterparts across the bargaining table. Good eye contact indicates interest and sincerity.

Taboos: The “Thumbs-up” sign is considered obscene by most. Also rude is extending one’s first and middle fingers with the palm facing in. It is impolite to point at someone with the index finger – use the whole hand instead. When you

have a cold, avoid blowing your nose loudly. It is also impolite to sniffle repeatedly. The solution is to leave the room and blow your nose in privacy.

Queue behaviour: They have inherited the British custom of forming lines and politely waiting one’s turn.

Dress Code: For business, men wear a dark suit and tie, often removing the jacket in the summer. Businesswomen wear dress or skirt and blouse.

Meeting and Greeting: Expect a firm handshake and direct eye contact. Note that some of them believe a soft handshake reflects weakness and that lack of direct gaze indicates unreliability or even dishonesty. A man should wait for a woman to offer her hand rather than holding out his hand.

Forms of Address: Use full names when you first meet but expect to move quickly to first names. To be polite, wait for your local counterpart to suggest switching to given names.

Business Cards: While it is customary to exchange cards, do not expect the two-handed ritual.

Topics of Conversation: The best choice is sports – especially water sports, football, golf, tennis and in some cases cricket. Positive comments on local food, beer and wine are always welcome. Visitors should avoid invidious comparisons with elements of their own cultures. Also to be avoided are comments about hard one works; workaholics are pitied in this delightfully laid-back society.

Gift Giving: they don not have a gift-giving business culture. If invited to dinner at home consider either an item for which your city or region is famous or wine, flowers or chocolates.

Wining and dining: Tea is the evening meal and supper a late-nigh snack. Don’s expect to be invited to someone’s home until you know them fairly well. After a big meal, avoid saying you are “stuffed”’ this word has a vulgar connotation.

Pub Etiquette: You are expected to pay for a round for the group you are drinking with when it’s your turn. However, avoid paying for a round out of turn. People who do this are regarded as pretentious show-offs.

Sales Presentations: The general advice that modesty is the best policy applies especially to making sales presentations. Marketers find that the soft sell works better. Whenever possible, let your documentation, testimonials and third-party reports speak for you.

Bargaining Style: Since they dislike bazaar haggling, Visiting negotiators will get better results by opening discussions with a realistic bid. The negotiating process may take more time than it would in some other deal-focused business cultures, though less than in strongly relationship-focused markets.

Doing Business with Canadians

The multicultural mosaic that is Canada complicates things a bit for visitors. You need to be aware of the cultural background of the business people you will be dealing with, be it Anglophone, francophone, New Canadian or other. New Canadians are recent immigrants from Hong Kong, Eastern Europe and many other parts of the world.

Anglophone Canadian negotiators tend to be deal-focused, direct, moderately informal, very egalitarian, reserved and relatively time-conscious. In contrast, French Canadians tend to be more formal, relationship-focused, hierarchical, expressive and moderately polychronic. As a general rule, Canadians are usually less expressive, less assertive and a bit more formal and conservative than for example US Americans.

Language: English. Fluency in French is an asset for those doing business in Quebec.

Making Contact: In French Canada it is important to have connections, to be properly introduced. Cold calls are unlikely to get good results in Quebec. In English Canada business people are more open to a direct approach.

First meeting: English Canadians – straight on business, whereas francophones normally prefer lengthier preliminaries.

Orientation to Time: In both of Canada’s mainstream business cultures visitors are expected to be on time for appointment.

Formality and Informality: English Canadians are uncomfortable with status distinction and class differences where as francophones in contrast tend to be somewhat more hierarchical.

Verbal Directness: Low-context English Canadians tend to be more direct than high-context francophones.

Variable Expressiveness: English Canadians are more reserved as compared to francophones.

Dress code: Male visitors should wear a suit or blazer with tie. Women may wear a suit, dress or skirt and blouse.

Form of Address: In English Canada start out with Dr, Mr, Mrs, Miss or MS. But be prepared for your counterpart to suggest switching to a first name basis very soon after meeting you. Expect more formality in Quebec but still a bit less than in France.

Meeting and Greeting: Visitors should expect a firm handshake and direct eye contact. Some Canadians believe that a soft handshake reflects weakness and that lack of direct eye contact signifies shifting shiftiness or dishonesty.

English Canadians shake hands less often and are quite brief.French Canadians shake hands more often than Anglophones; when being introduced, when saying hello and when saying goodbye.

Gift Giving: Business gifts are given after a deal has been closed. But remember that expensive, ostentatious gifts are out of place in Canada. Better choices are tasteful logo gifts or an item your city, country or region is famous for. They may unwrap the gift in front of you. Good hostess gifts are flowers, candy, wine and special items from your country.

Wining and Dining: According to North American custom it is rude and aggressive to repeatedly insist that a guest eat and drink. This can be a problem for visitors from the Middle East and other parts of the world where the custom is to say no thank you two or three times before ‘reluctantly’ accepting the proffered food or drink. You should respond in the affirmative if you wish to have something that is offered – do not assume you will be asked twice.

Making a Presentation: Canadians prefer soft-sell approach. They are likely to resent an overly-aggressive, pushy sales presentation. Avoid hype and overblown product claims.

Bargaining Range: Take care not to over-inflate your initial offer. Many Canadian buyers are turned off by the classic “high-low” tactic. Instead, build a certain safety margin into your opening bid to cover unexpected developments, but avoid overdoing it.

Doing Business with French(Belgium, Italy, Spain, Hungary)

Language: French. Parisians especially seem to find it physically painful to hear their language spoken poorly. Written correspondence should be in French and the key parts of your product literature should be translated as well. Good interpreters are easy to find.

Making the Initial Contact: Connections count heavily in this market. Trade shows and official trade promotion missions are good ways to make initial contact. The alternative is to arrange for a formal introduction to potential customers, distributors or partners. Ask your country’s embassy to introduce you. Other useful intermediaries are chambers of commerce, trade associations and international banks, law and accounting firms. Your letter requesting a meeting should be in flawless business French. As in other hierarchical cultures, it is wise to start at the top. Address the letter to the president/Director General and if you are a senior person in your company request a meeting with him.

Importance of Relationships: France is definitely a country of personal networks. You get things done more quickly by working through inside contacts than by ‘going through channels.’ The French want to know a good deal about you before discussing business, but building rapport involves less small talk than in some other cultures. Showing a knowledge of French history, literature, art and philosophy is a good way to build rapport. Discussing French cuisine and wine over a meal is another good way.

Orientation to Time: Visitors are expected to be roughly on time for business meetings. Meetings don not follow fixed agenda.

Hierarchy and Status: Level of education along with family background and wealth determine status in France. French bosses tend to run their companies in an authoritarian style. Managers are expected to be highly competent and to know the answer to virtually every question that arises. They are often reluctant to delegate authority.

Communication style: The French are verbally and nonverbally expressive. They love to argue, often engaging in spirited debate during business meetings.

Verbal Communication: They tend to favour subtle, indirect language and like to present their point of view with Cartesian logic, elegant phrasing and verbal flourishes.

Nonverbal Communication: Always shake hands both when meeting and when leaving someone. The French use many more hand and arm gestures. The thumb-and forefinger circle signifies ‘zero’ in France. To indicate “A-OK” they flash the thumbs-up sign instead. Taboos include standing or speaking with hands in one’s pockets and slapping the palm of one hand over a closed fist.

Dress Code: Male business visitors should wear a dark suit; women should choose tasteful, somewhat conservative clothing and accessories.

Meeting and greeting: handshake with moderate pressure and steady eye contact. Among makes the older or higher status person should initiate the handshake. Women of any rank can decide whether or not to offer their hand.

Forms of address: Greet your local counterparts with monsieur, madame or mademoiselle without the person’s name.

Women in Business: Because relatively few women have reached high positions in French companies, female business visitors may occasionally feel somewhat out of place.

Wining and Dining: Entertaining and being entertained is an important way to build rapport. There is certain ceremonial aspect to dining in France. Many Western ideas of proper table manners originated in France, so visitors are advised to observe some key rules of etiquette. Business lunches often last two to three hours over at least that many glasses of wine. In some cultures it is a sign of generosity to fill a wine glass to the brim. In France – as elsewhere in Europe and North America – when pouring wine for your neighbour at table remember to fill the glass only two-third full. Avoid discussing business at least until dessert is served unless your host broaches the subject earlier.

Dinner at Home: such invitations are more common in the provinces than in Paris. Always accept and plan to arrive about 15 minutes after the appointed time.

Hostess Gift: Flowers may not be your best choice. Your hostess may not appreciate having to search for the right size vase in the midst of all her other duties. And then you would have to remember to bring an uneven number (but never 13), to avoid chrysanthemums (funerals only), red roses (they signify you are having an affair with your hostess) and yellow flowers (they imply your host is having an affair with someone else). Nor is wine a better choice. A bottle of undistinguished plonk brands your as ignorant or cheap while with the good stuff you run the risk of insulting your host by insinuating that his cellar is inadequate. The best solution therefore is usually a box of the very best chocolates you can find. Wait at the door until the host or hostess invites you in. Men should not take off their jacket unless encouraged to do so by the host. Wait for your host or hostess to start eating. If you are accustomed to keeping one hand in your lap, leave this custom behind. Your table companions are liable to roll their eyes and ask each other what you are doing under the table.

Table Manners: When the salad arrives, do not cut your lettuce with a knife. Instead fold it into small pieces with your fork. Peel the fruit with a knife and eat it with a fork. It is impolite to take two servings of cheese, and extremely gauche to slice the tip from a wedge of cheese.

Sales presentation: Avoid hard-sell tactics, hyperbole and flippant humor. Prepare a sober presentation with logical sequence of arrangements. If you encounter forceful disagreement on some point, be prepared to respond with factual counter-arguments. Vigorous disagreement with specific issues does not necessarily signal lack of interest in your overall proposal.

Bargaining Style: Be prepared for long, relatively unstructured negotiating sessions punctuated frequently with verbal confrontation. Your counterpart may also attack the though process behind your bargaining position. Expect decision-making to take longer.

Doing Business with British(Denmark, Finland, Germany, The Netherlands, Czech Republic)

The Language: English

Making Contact: It is market where referrals, recommendations and testimonials are extremely useful. Write in English with basic information about your company and products, adding that you will contact them soon to set up an appointment. Follow this with a phone call requesting a meeting two or three weeks hence. Your British counterpart will suggest the time and place.

Orientation to Time: While visitors are expected to be on time, locals are often a few minutes late for meetings. Still, the British are definitely clock-obsessed.

Formality, Hierarchies and Status Differences: Status in England is largely determined by one’s regional origin, social class, family background and accent. English usually prefer to stay with Mr or Mrs until at least the second or third meeting. Visitors find that younger English people are becoming less formal. The rapidly growing use of electronic mail has informalized the communication process.

Communication Style: English are reserved rather than expressive or demonstrative in the way they communicate. This is evident in their use of understatement, large space bubble, low-contact body language, restrained gestures and in their preference for always keeping a “stiff upper lip.”

Verbal Communication: The British also occupy an in-between position among the world’s cultures when it comes to verbal directness. Upper-class Brits favour vague, oblique language while others speak more directly.

Paraverbal Communication: British negotiators rarely interrupt their counterparts across the bargaining table. They are also less likely to raise their voice than are negotiators from more expressive societies such as those in Southern Europe and Latin America.

The handshake: When meeting and greeting, a light handshake is common. The British normally do not shake hands with colleagues upon meeting in the morning and again when leaving the office, as is common practice in some Continental cultures.

Interpersonal Distance: The normal interpersonal distance in a business context is about an arm’s length. The British tend to stand and sit further apart than the Arabs and the Latins. Moreover, two Englishmen in conversation will often stand at a 90 degree angle to each other rather than facing each other directly. Face-to-face conversation seems to make some Brits uncomfortable.

Gaze Behaviour: Eye contact tends to be less direct than in expressive cultures. A very direct gaze may be interpreted as rude and intrusive.

Touch Behaviour: This is a low-contact culture. Except for the handshake, most English people avoid touching others in public. For example, the American custom of back-slapping, elbow-grabbing and arm-around –the-shoulder is considered slightly vulgar.

Gestures: As in the case with other reserved cultures, the British use relatively few hand and arm gestures. When flashing the two-finger “peace” sing, make sure your palm is facing outward. With palm inward this is an obscene gesture. Avoid pointing with your index finger; instead indicate direction with a nod of your head.

Dress Code: Men wear a dark suit, plain shirt, conservative tie and polished black shoes. Avoid striped ties – they can be seen as imitating prestigious British regimental ties. The black shoes should be of the laced type rather than loafers, which are considered too casual. Natural fibers are considered much more acceptable than synthetics. Women should likewise dress conservatively, avoiding garish colours and too much jewelry.

Meeting and Greeting: while men exchange light to moderate handshakes, some women chose not to offer their hand. Men should always wait for the woman to extend her hand.

Form of Address: use Mr., Mrs., Miss or Ms. Until your counterpart suggests switching to given names. Medical doctors, dentists and clergy expect to be addressed with their titles, but a male surgeon is plain Mister. Visitors accustomed to saying “Yes sir” and “No sir” as sign of respect to older or senior people should avoid this practice in Britain.

Business Gifts: This is not a gift-giving culture. A better idea is to invite your counterparts to dinner.

Hostess Gifts: If invited to an English home, bring chocolates, liquor, champagne or flowers. Avoid white lilies (funerals) and red roses. Be sure to send along a handwritten thank-you note the next day. During the meal keep both hands on the table but both elbows off the table.

Wining and Dining: Pub lunches are customary for business entertainment; dinners tend to be more of a social event. Avoid talking business unless your British counterpart clearly initiates such a discussion.

Pub Etiquette: patrons take turn ordering drinks. When ordering drinks at the bar, catch the publican’s eye and say, “Another pint, please!” rather than shouting or silently holding up your glass for a refill. In fact, “please” and “thank you” are very important words throughout Britain.

Making a presentation: Accustomed to understatement, British buyers are turned off by hype and exaggerated claims. Presentations should be straight-forward and factual. Humor is acceptable, but visitors from abroad should remember that it rarely translates well.

Bargaining Range: English negotiators have been doing business all over the world for hundreds of years. They may put a wide safety margin in their opening position so as to leave room for substantial concessions during the bargaining process. This practice may put off negotiators from Germany and Sweden, where the “high-low” tactic is frowned upon.

Decision-Making: Time-is-money Americans may find the British process too time-consuming, but for the rest of the world’s business cultures it is quite normal.

Role of Contract: Except emphasis on the legal aspects and the fine points of the written agreement. Should a dispute or disagreement arise later the British tend to rely on the terms of the contract and could become suspicious if their counterpart invokes non-contract issues such as the importance of the long-term relationship.

Group 1 Relationship-focused, Formal, Polychronic and Reserved1.2.3.4.5.6.7.

IndiaBangladeshIndonesiaMalaysiaVietnamThailandPhilippines

Group 2 Relationship-Focused, Formal, Monochronic and Reserved1.2.3.4.

JapanChinaSouth KoreaSingapore

Group 3 Relationship-Focused, Formal, Polychronic and Expressive1.2.3.4.5.

Saudi ArabiaEgyptGreeceBrazilMexico

Group 4 Relationship-Focused, Formal, Polychronic and Variably Expressive

1.2.3.

RussiaPolandRumania

Group 5 Moderately Deal-Focused, Formal, Variably Monochronic and Expressive

1.2.3.4.5.

FranceBelgiumItalySpainHungary

Group 6 Moderately Deal-Focused, Formal, Variably Monochronic and ReservedThe Baltic States

Group 7 Deal-focused, Moderately Formal, Monochronic and Reserved

1.2.3.4.5.6.

BritainDenmarkFinlandGermanyThe NetherlandsCzech Republic

Group 8 Deal-Focused, Informal, Monochronic and Variably Expressive

1.2.3.

Australia and New ZealandCanadaUSA

Doing Business with Europeans

Hawaii. He is an honorary professor of the University of Hong Kong.

Geert Hofstede is the founder and first director of the Institute for Research on Intercultural Cooperation (IRIC) at the University of Limburg, and an internationally recognized expert in the field of national and organizational culture research and theory. He has been a consultant to national and international business and government organizations. He wrote a pathbreaking book Culture's Consequences (Sage, 1980). A more popular book Cultures and Organizations: Software of the Mind appeared in 1991; translations have appeared or are under way into ten other languages. His articles -- more than a hundred -- have been published in the journals and readers of different countries of Europe, Asia, and North America.

 

Overview:  Cultural Continuums R.S. Zaharna, Ed.D.

There are several ways in which scholars have distinguished cultures. This section briefly reviews theoretical frameworks useful in highlighting the salient differences among cultures.  Because of ethnocentricism, we may tend to view "our way" versus "the other way" -- or, one side of the continuum versus the other side of the continuum.  A more helpful approach is to think of cultural differences as variations spread out across a continuum.  One may view the cultural variations of a cultural continuums in much the same way as one would view the different colors within a spectrum.  Just as we tend to have "favorite colors," we tend to have cultural preferences within a cultural continuum that we favor.

I should note that although America is rapidly becoming a more multicultural society, the cultural features highlighted here characterized the dominant cultural pattern of American cultural history and are still quite prominent in the American media (a major force in shaping the new members of American society). Table 3: Cultural Continuums provides an overview of the different ways of looking at cultures.

High-context & Low-context

Perhaps the most well-known cultural continuum is Hall's (1976) discussion of high-context and low-context cultures. Hall views meaning and context as "inextricably bound up with each other" (1982, p. 18). The difference between high and low context cultures depends on how much meaning is found in the context versus in the code. You can think of "code" as the message. You can think of "context" as setting or circumstance, including the people, in which the message appeared.

Low-context cultures, such as the American culture, tend to place more meaning in the language code and very little meaning in the context. For this reason, communication tends to be specific, explicit, and analytical (Ting-Toomey, 1985). In analyzing messages, low-context cultures tend to focus on "what was said" and give literal meaning to each word. For this reason, the words - or what was said - can take on a power of their own. Chen & Starosta pointed out that low-context cultures tend to use a direct verbal-expression style in which the situation context is not emphasized, important information is usually carried in explicit verbal messages, people tend to directly express their opinions and intend to persuade others to accept their viewpoints, and self-expression, verbal fluency, and eloquent speech are valued (1998, p. 50).

In high-context cultures, meaning is embedded more in the context rather than the code. In this case, "what was said" cannot be understood by the words alone - one has to look at who said it, when they said it, where they said it, how they said it, the circumstances in which they said it, to whom they said it, etc. Each variable will help define the meaning of "what was said."

In speaking of high-context cultures, Hall states, "most of the information is either in the physical context or internalized in the person, while very little is in the coded, explicit, transmitted part of the message" (1982, p.18). Thus the listener must understand the contextual cues in order to grasp the full meaning of the message. As Hall says:

People raised in high-context systems expect more from others than do the participants in low-context systems. When talking about something that they have on their minds, a high-context individual will expect his interlocutor to know what's bothering him, so that he doesn't have to be specific. The result is that he will talk around and around the point, in effect putting all the pieces in place except the crucial one. Placing it properly -- this keystone -- is the role of his interlocutor. (1976, p. 98) In other words, in high-context exchanges, much of the "burden of meaning" appears to fall on the listener. In low context cultures, the burden appears to fall on the speaker to accurately and thoroughly convey the meaning in her spoken or written message.  

Polychronic & Monochronic

Edward Hall also introduced the concept of monochronic and polychronic cultures. The concept of chronemics is a nonverbal behavior that speaks to how

people use time to communicate. Lateness, for example, can communicate messages of power (waiting in the doctor's office), attraction (arriving early for that first date), or identity (being 'fashionably late'). Chronemics, like all other nonverbal behavior is culturally based. Different cultures have different rules governing the use and meaning of time. Hall's distinction between monochronic and polychronic cultures highlight the different ends of the cultural spectrums of how culture's view time.

Monochronic cultures such as the dominant American culture tend to view time as linear ("spread out across time," "spanning across generations," "the time line" or "time frame"). Being punctual, scheduling, planning tasks to match time frames are valued behaviors. Time is viewed as a commodity ("time is money") that can be bought ("buying time"), spent ("spending time") or wasted ("wasting time"). Thus, although time is technically an abstract phenomena, in the monochronic view it becomes a concrete reality. Woe to he who has lost time. One of the most outstanding features of monochronic cultures is that because time is so concrete and segmented, "only one thing can be done at a time." To try to do many things at one time is chaos, that is, negative.

Polychronic cultures tend to view time as nonlinear. There can be a circular or cyclical quality to time ("what goes around, comes around", "life is a circle"). Punctuality and scheduling is done but rarely with the religious fervor found in monochronic cultures. Schedules are not "etched in stone" but rather "penciled in"as a matter of cultural habit instead of personal habit. People from polychronic cultures, as the term "poly" suggests, find little difficulty doing many things at one time. Because time is not linear or segmented, matching specific activities with specific time frames is not done. Times and activities are fluid.  

Collectivism & Individualism

Psychologist and intercultural scholar, Harry Triandis (1986) at the University of Illinois, has written extensively about individuals define themselves in terms of their social grouping. He has discussed these differences in terms of collectivist and individualist cultures. For an excellent summary see Triandis, Brislin & Hui (1988).

Individualist cultures are defined as those in which the goals of the individual are valued over any particular group or collective. In individualist cultures, a person tends to look primarily after his own interests or that of his immediate nuclear family. Personal accomplishments are important and individuals will take advantage of opportunities for advancement even if it means sacrificing personal relations. Relationships tend to be short-term and transitory. As a result, contracts are an important means for defining and binding relationship.

Collectivist cultures are defined as those which the collective goals are valued over the individual goals. As Triandis & Hui stated about people from collectivist cultures, "individuals pay primary attention to the needs of their group and will sacrifice opportunities for personal gain" because such sacrifice is tied to their

sense of self as a member of the larger collective. In other words, what is good for the collective is good for the self; the individual's esteem is tied to the collective's esteem. The distinction between "in-groups" and "out-groups" is clearly defined. In collectivist cultures, a person is assumed to belong to one or more tight "in-groups." The in-group protects the interests of its members collectively. Loyalty to the in-group is primary. Long term relationships based on trust are also very important.

Indirect & Direct

Scholars have also distinguished cultures in terms of direct versus indirect communication styles. Levine (1985) said that the American cultural preference is for clear and direct communication as evidenced by their many common expressions: "Say what your mean," "Don't beat around the bush," "Get to the point" (p.29). Levine's description of indirect or ambiguous communication further underscore the differences:

Indirect verbal communication is designed to be affectively neutral. It aims for the precise representation of fact, technique, or expectation. Direct communication works to strip language of its expressive overtones and suggestive allusions. Ambiguous communication, by contrast, can provide a superb means for conveying affect. By alluding to shared experiences and sentiments verbal associations can express and evoke a wealth of affective responses. (1985, p. 32)  

Thus where direct communication strives for emotional neutrality or objectivity. In contrast, ambiguous communication deliberately uses language to evoke an emotional response. Additionally, whereas nonlinear stresses openness, ambiguous styles would be more likely to conceal or bury the message. Similarly, direct stresses specific factual and even technical aspects of a message that the ambiguous style would omit.  

Linear & Non-linear

Similar to the oral/literate framework, scholar (Dodd, 1982; Lee, 1950) suggest linear versus configurational (non-linear) thought framework. The American culture would be more representative a linear thought framework, and the Arab culture more configurational or non-linear. According to Dodd, the linear orientation "has transformed auditory and oral communication into visual communication by means of written symbols, organized into linear thought patterns" (1982, p. 163). The linear cultural pattern stresses beginnings and ends of events, unitary themes, is object oriented rather than people or event-oriented, and is empirical in its use of evidence.

Nonlinear cultures, says Dodd are characterized by the "simultaneous bombardment and processing of a variety of stimuli" so that people would think in images, not just words (1982,

p. 162). The non-linear thought framework normally has multiple themes, is expressed in oral terms and heightened by nonverbal communication. Time orientation is less important than people and events, and time is not segmented.

Oral versus Literate

Anthropologists have long posited the distinctions between oral versus literate dominant societies. The print or literate dominant society relies more on the factual accuracy of a message than its emotional resonance (Ong, 1980). This may relate to the historical purpose of the written word -- to record, preserve, and transmit (see, Stock, 1983). Literate societies also favor evidence, reasoning, and analysis over the less rational, more intuitive approach (Denny, 1991). This contrasts to the logic of oral cultures, where a single anecdote can constitute adequate evidence for a conclusion and a specific person or act can embody the beliefs and ideals of the entire community (Gold, 1988).

Whereas literate cultures may place a higher premium on accuracy and precision than on symbolism, in the oral cultures the weights are reversed. In oral cultures there appears to be greater involvement on the part of the audience, and this in turn, affects the importance of style and devices that enhance audience rapport.

Citing Cicero, Gold (1988) highlights numerous features of the oral tradition, including repetition as a means for keeping attention as well as making the speech "agreeable to the ear" (p. 160). In terms of message comprehension, Henle (1962) noted that auditors will "go to considerable lengths to make sense of an oral message" (p. 371). Thus listeners play a valuable part in constructing meaning within an oral exchange. As Gold states, "the audience cooperates with the speaker by trying to understand the meaning or 'gist' rather than the actual content" (1988, p. 170). Thus, the audience is quite active.

With heightened listener involvement, the aesthetics of style and audience relations may supersede the informational aspects of a message. An oral message may be valued more for its affective power than its cognitive merits. Tannen (1982) noted the interpersonal involvement between speaker and audience, as speakers strive for a more emotional and participatory responses from their audience. Clearly with style overriding substance, aural ornaments such as formulas, humor, exaggeration, parallelism, phonological elaboration, special vocabulary, puns, metaphor, and hedges are critical (Feldman, 1991; Gold, 1988).

REFERENCES

Learning Curvel Implications of cross-cultural differences on

business transactionsDiversity of business cultures across nations

and its peoples

Overcoming cultural barriers through effective communication

After having agreed on all the financial, legal and technical issues, the regional manager of Trans-Oceanic, Mr Ted Goodfellow, went to Riyadh to wrap up the final details and to sign the contract with Arabco. During the meeting with the top Arabco executives Goodfellow said casually, "We, at Trans-Oceanic, are really looking forward to working with you here in the Persian Gulf!" At that there was a moment of shocked silence on the Arabco side of the conference table. Then the three senior executives arose and strode angrily out of the room, breaking off negotiations. Bewildered Goodfellow looked at the two junior Saudis who had remained behind. "What happened here?" he asked the young Arabs across the table. "Did I say something wrong?" After some hesitation one of the Arabco employees explained that in Saudi Arabia, the body of water in question is called Arabian Gulf. By misnaming it Goodfellow had unintentionally implied that the gulf belonged to Iran - a country which Saudi Arabia at that time considered hostile and threatening. Such misunderstandings are rampant when companies do business globally. And to iron out such creases in the fabric of relationships it is essential for the executives to be alert to the cross-cultural differences that can wreck even the most promising business deals. Culture differs across the globe along with the shift of latitudes and longitudes, along with the variations of the hair colour and changes of the bone structures. Thus, in Singapore, if the lift operator asks you at 7.30 AM, "Have you had your lunch", politely answer "Yes, thank you. Have you had yours?" To site an example of such a cultural variation, if you go to Russia, do not feel uncomfortable if a fellow Russian enfolds you in a great bear hug and kisses you on your lips. While thumbs-up sign is slowly emerging as a universal sign for "great", to many Europeans and in the Middle East, it is an obscene sign. Talking loudly, using hand gestures and facial expressions, which comes quite normally to many, can easily make the Thai women feel that you are furious or insane. Thus, behavior that is proper and familiar in one culture may be rude, offensive and strange at the other. And these contrasting values may cause conflict at the conference table. To avoid such blunders, it is absolutely essential for the international business travelers to go through the travails of learning the cultural basics of the country with which they are expected to interact. Some of the aspects of the varied patterns and hues of cross-cultural behaviors have been described hereunder.The "Great Divide" between culturesThe differences between the deal-focused (DF) people who are fundamentally task-oriented and relationship-focused (RF) folks, who are more people-oriented is considered to be the "Great Divide" between business cultures. Conflicts are common when DF export marketers make an effort to do business with the RF markets. While the RF people find the DF types aggressive, authoritative and offensively blunt, the latter find the former dilatory, vague and inscrutable.

Attributes of those for whom deal comes first:* Common in only a small part of the world. Strongly DF cultures are found in Northern Europe, North America, Australia and New Zealand, where people are relatively open to doing business with strangers (See Box 1).* Relatively open to dealing with strangers; export marketers can normally make direct contacts with potential buyers without any previous relationship or connection.* Talk business right from the start and get to know each other as things proceed; build rapport right at the bargaining table.* Business negotiations last for a shorter while.* Much communication and problem solving is handled via telephone, fax and e-mail rather than in face-to-face meetings.* Rely more on written agreements to prevent misunderstandings and solve problems. For instance, many US companies bring a lengthy draft contract and a lawyer to the negotiating table.

Attributes of those for whom relationship comes first:* Prefer to deal with family, friends and groups who are beyond suspicion.* Get things done through intricate networks of personal contacts and are uncomfortable about doing business with strangers. The vast majority of world's markets are relationship-oriented: the Arab world and most of Africa, Latin America and Asia-Pacific region (See Box 1).

Box 1The Great Divide

Deal focused cultures

Moderately deal-focused cultures

Relationship-focused cultures

North America, Australia, Nordic and Germanic Europe,New Zealand

Great Britain, South Africa, Latin Europe, Central andEastern Europe, Chile, South Brazil, North Mexico,Hong Kong, Singapore

The Arab world, most of Africa, Latin America and Asia

* Proper way to approach someone who does not yet know you is to arrange for the right person or organization to introduce you. A third-party introduction bridges the relationship gap between you and the person/company you want to talk to (See Box 2). Often the best way to contact RF business partners is at an international trade show or to join an official trade mission.* In the "getting to know you" game, at the initial stage, meeting hovers around discussing weather, sports, music etc and often ends up without a single mention of business. It takes time, patience and a cast-iron liver (as, in many a case, getting inebriated together seems to speed up the rapport-building process) to develop a strong relationship.* Business negotiations last for a long while.* People rely more on personal relationships rather than on lawyers and detailed contracts. It is better to keep lawyers only in the background until the last stages of discussion. A reliance on close relationships* Effective communication and problem solving require frequent face-to-face

contacts.

box 2Opening an office in Dhaka without paying bribes

When an American company decided to open a outsourcing and quality-control office in Bangladesh, they were told by the local consulting firms that the approval process would take up to a year and the quoted fees was $ 10,000 including "special expenses" - bribes to the responsible officials. Unwilling to engage in bribery, the firm shelved the idea of a Dhaka office. In the later years, the firm's regional director for South and South-East Asia met a charming, well-read gentleman who had headed two different ministries in a previous Bangladesh government and discussed the problem with him. The latter promised to arrange to get his office registered within a month. The fee asked for was $900, the cost of the airfare. Three weeks later their Dhaka office was a legal entity - the fastest liaison-office registration ever recorded in Bangladesh.

Communicating across the Great DivideThese two sections vary immensely in the way they communicate. DF negotiators are found to value direct, frank, straight-forward language while their RF counterparts favour a more indirect, subtle, roundabout style.

Attributes of direct language preference of deal-focused people* Priority is to be clearly understood.* Usually say what they mean and mean what they say. For example, German and Dutch negotiators are found to be blunt speakers. They smile only when they need to and do not hesitate to say a straight and polite "no". * Have a transparent face that does not make much of an effort to conceal expressions.* Their communication is regarded as "low context" i.e. more of the meaning is explicit - contained in words themselves. * Directness and frankness in communication are equated with honesty and sincerity. Little attention is paid to issues of face. * A sincere friend is considered to be one who tells you the truth even when the truth happens to be unpleasant.

Attributes of indirect language preference of relationship-focused people* Priority is to maintain harmony and to promote smooth interpersonal relationship.* Tend to use indirect language to avoid conflict and confrontation. They carefully watch what they do or say in order to avoid embarrassing or offending other people. * Most Japanese, Chinese and South East negotiators treat "no" as an insulting word (See box No 3). When they mean "no" they say "That will be difficult" or "We will have to give that further study" or "That will be

inconvenient". While Arabs lift their eyebrows to politely refuse the request, Thais often smile and change the subject or say nothing at all!* Negotiators tend to be sensitive to issues of "face", dignity, self-respect. Showing impatience, irritation, frustration and anger are regarded to disrupt harmony and are considered to be rude and offensive. They mask their negative emotions by remaining expressionless or by putting a smile on their face. And when negotiator on one side of the bargaining table loses temper, both sides lose face. * Their communication is "high context" i.e. the meaning of what they are saying at the bargaining table is often found more in the context surrounding the words rather than in the words themselves.* Directness and frankness in communication are equated with immaturity and naivete - perhaps even arrogance. A sincere friend is considered to be one who declares his willingness to help out - even when he cannot or will not do the favour.

Formal Vs informal business culturesBreezy informality offends high status people from hierarchical cultures just as the status-consciousness of formal people may offend the egalitarian sensibilities of informal folks.

Attributes of formal culture:* Tend to be organized in steep hierarchies that reflect major differences in status, hierarchies, power and respect. * Business contacts are formally addressed by their family name and title and not by given name. Your Italian contact should be addressed with the honorific "Commendatore" until you know him well enough to call him Gustavo. And your German contact Doctor Wilhelm Muller should be called Herr Dr. Muller and never ever Willi.* Formality in interpersonal communication is an important way of showing respect and deference. Protocol rituals are often numerous and elaborate. Innocent informality can be easily misinterpreted as disrespect. For instance, bureaucrats in South and South-east Asia can be offended by overly casual behavior of the Westerners. Wearing a suit and tie to meetings during the hot season sends a positive signal of respect and keeping ones jacket on in a non-air-conditioned office signals even greater respect.

Box 396,000 shirts that can't be sold

When the Great Northern Apparel of Toronto planned to import shirts from China, the VP had categorically explained to the Evergreen Garment of Guangzhow that any apparel sold in Canada ought to have labels with fibre content and laundering instructions in both French and English. This news was a cause of concern in the Chinese side because of their lack of expertise in French. Too polite to say a precise "no", the MD said "it might be difficult" and "the question will require further study". The VP of the Toronto firm

reiterated that they were left with no other option with this since this was the law. He was then assured that "his request will be given a serious consideration". Relieved to have settled this final deal, the VP signed the contract of purchase and went back home. Several months later, a colleague called him up to tell him that a shipment of 96,000 shirts has arrived from China with bilingual labels in English and Chinese. The VP did not know what to do with 96,000 shirts that surely cannot be sold due to lack of the right labels.

* In certain hierarchically organized cultures women rarely get senior positions in commercial organization. Especially in South Korea, Japan and Saudi Arabia, men are traditionally accorded higher status in the business world than females. The top positions in most of the companies are held by men who are not used to dealing with women in business on the basis of equality. In Japan, for instance, almost all the "office ladies" perform clerical duties and they lack the status necessary to interact effectively with corporate decision-makers. * Age barrier is a matter of grave seriousness.

Box 4

Formal Cultures Informal Cultures

Most of Europe and Asia The Mediterranean regionArab world Latin America

AustraliaUSACanadaNew ZealandDenmark, Norway, Iceland

Attributes of informal culture:* People are uncomfortable with obvious status differences that are, surely, smaller than those in the hierarchical societies. * One tends to address an acquaintance by his first name too soon. Your prospective Australian business partner, for instance, whom you happen to know only for a short while, greets you with a hearty "G'day Phil! Let's 'ave a beer!"* Informal behavior is not regarded as disrespectful.* Protocol rituals are relatively few and simple. * Women in egalitarian cultures around the world are successful entrepreneurs or executives in major corporations. * Youth is an advantage.

Rigid and fluid time culturesPeople look at time and scheduling differently in different parts of the world. In rigid-time societies punctuality is critical, schedules are set in concrete, agendas are fixed and business meetings are rarely interrupted. Edward T hall coined the word "monochronic" for these clock-obsessed, schedule-worshipping cultures. And in direct contrast are "polychronic" cultures, where

people place less emphasis on strict punctuality and are not obsessed with deadlines. Polychronic cultures value loose scheduling as well as business meetings where several meetings-within-meetings may be taking place simultaneously.

Box 5

Monochronic business cultures

Moderately monochronicPolychronic business culture

Nordic and Germanic Europe, North America, Japan

Australia/New Zealand, Russia and most of East-CentralEurope, Southern Europe, Singapore, Hong Kong, Taiwan,China, South Korea, South Africa

The Arab World, most of Africa, Latin America, Southand Southeast Asia

Attributes of monochronic business culture:* Punctuality and schedules are very important to business people. * Schedules and deadlines are very important. Tardiness signals lack of discipline. Germans, for instance, feel that if a man is ten minutes late for a meeting, he may well be ten weeks late with his delivery.* Meetings are seldom interrupted.* Tend to follow agenda. Conversations proceed in a linear fashion from Item 1 to the last item on the agenda with no major digressions.* Meeting starts off only with a few minutes of introductory small talk.

Attributes of polychronic business culture* People and relationships are more important than punctuality and precise scheduling* Schedules and deadlines tend to be quite flexible. Many of them even tend to have an aversion towards rigid deadlines. For instance, if one’s Sicilian counterpart shows up at all on the day of the meeting, he is considered to be punctual. Wedding dinners are guaranteed to begin at least two hours late in Singapore. Many Arab men believe that it is impious and irreligious to try to see into the future; terms like Insh'allah or "God willing" expressions that belief.

Box 6

Very expressive cultures

Variably expressive Reserved cultures

The Mediterranean region, Latin Europe, Latin America

USA, Canada, Australia, New Zealand, Eastern

East and Southeast Asia, Nordic and Germanic Europe

Europe,South Asia, Africa

* Meetings are frequently interrupted.* They do not always abide by an agenda. And if they do, they may might as well start with item No. 5, proceed to Item 3 and wander off in several directions.* The introductory chat can last for several minutes. In Italy or France, for example, the warm-up chat can really be lengthy. Expressive Vs Reserved nonverbal business behaviorExpressive people communicate in radically different ways from their more reserved counterparts. This is true whether they are communicating verbally, paraverbally and nonverbally. The confusion that results from these differences can soil our best efforts to market, sell, source, negotiate or manage people across cultures. Thus the expressive/reserved divide creates a major communication gap.

Box 7World's prime culture zones

On the basis of the culture profile the whole of the global market can be sliced into eight prime culture zones. They are as follows: 1. Relationship-focused, formal, polychronic and reserved Bangladesh, Indonesia, Malaysia, Vietnam, Thailand, Philippines. India2. Relationship-focused, formal, monochronic and reserved Japan, China, South Korea, Singapore3. Relationship-focused, formal, polychronic and expressive Saudi Arabia, Egypt, Greece, Brazil, Mexico4. Relationship-focused, formal, polychronic and variably expressive Russia, Poland, Romania5. Moderately deal-focused, formal, variably monochronic and expressive France, Belgium, Italy, Spain, Hungary6. Moderately deal-focused, formal, variably monochronic and reserved The Baltic States7. Deal-focused, moderately formal, monochronic and reserved Britain, Denmark, Finland, Germany, the Netherlands, Czech Republic8. Deal-focused, informal, monochronic and variably expressive Australia, Canada, USA

 

Attributes of reserved business cultures* People speak more softly, hardly interrupt each other and are more comfortable with silence that is the case with expressive cultures* Expect interpersonal distance of about an arm's length and little physical contact aside from the handshake.* Avoid intense, continuous eye contact across the negotiating table

* Expect very few hand and arm gestures and restrained facial expression

Attributes of expressive business cultures* People often speak quite loudly, engage in conversational overlap and are uncomfortable with silence* Expect interpersonal distance of half an arm's length or less and considerable physical touching* Direct, even intense eye contact across the negotiating table signals interest and sincerity* Expect lively facial expressions along with vigorous hand and arm gesturing.

Highlighting notable differences in expression

Conversational overlap and the meaning of silence:While expressive people regard "conversational overlap" as a normal part of conversation, it is considered extremely rude by people from reserved societies. For instance, Northern European and North American negotiators are often frustrated by the constant interruptions they experience while conducting meetings in Italy, Spain or the former Yugoslavia. And the Asian negotiators take turns in a sort of verbal table-tennis match. Interestingly, the super-polite Japanese people not only take turns to avoid overlap but they also go a step further to pause five or ten seconds before taking their conversational turn. They often sit without speaking for what seems like an eternity to voluble Mexicans, Greeks or Americans. After three or four seconds the latter feel compelled to say something. Anything. To fill the silence. Unfortunately the loquacity of expressive people irritate the reticent Japanese, who seem to value the space between the spoken words just as much as the words themselves and who find their voluble counterparts rude and insulting. On the other hand, the people from expressive cultures like the Latins and Arabs tend to think that the Japanese are at loss for words or are indecisive.

Distance behavior Every human being is surrounded by an invisible envelope of air called a space-bubble which varies in size according to (a) where in the world we grew up and (b) the particular situation. For instance, two Canadians who have just met at a social event are likely to stand about an arm's length away from each other. But he space bubble of the same two Canadians shrink to zero when they are embracing. No spatial problem exists as long as the people involve share similar-sized comfort zones. The differences begin in cross-cultural situations when different sized space bubbles collide. For instance, the Arab men show their friendliness by nearly collapsing in your arms. And, if you are a large bubble person, you will probably instinctively step back by which you will reflect your dislike towards him.

Box 8

Distance behaviour

Close (20 to 35 cm) Distant (40 to 60 cm)

The Arab world, Mediterranean region,Latin Europe,Latin America

Most Asians, Northern, Central and Eastern Europeans,North Americans

TouchingTouch behavior regarded as proper in one culture may be quite inappropriate in another. Differences in touch behaviors are serious enough for problems to arise even between cultures located fairly closer together on the map. For example, the variation between the British and the French is surprisingly large considering that these two European nations are separated only by a channel of water. A couple of years ago, researchers studied comparative touch behavior in Paris and London cafeterias by counting the number of times couple touch each other. They counted about 100 times in Paris and zero times in London. While the British people think that the "moderate" Americans do far too much shoulder-patting, elbow-grabbing and back-slapping to please them, the Latin Americans often accuse Yanks of being snobbish and stand-offish as, they think, they do not engage in enough physical touching. Touching in the corporate relationships by and large consists of shaking hands and kissing.

Shaking handsAmong business people the world over the handshake is the most common form of physical contact. See Box No. 9 for a few of the variations.

Box 9How hard should be the handshake

Germans Firm, brisk, frequent

French Light, quick frequent

British Moderate

Latin Firm, frequent Americans

NorthFirm, infrequent Americans

Arabs Gentle, repeated, lingering

South Asians Gentle, often lingering

Koreans Moderately firm

Most Asians Very gentle, frequent

Most Europeans shake hands each time they meet and again when they take leave. North Americans shake hands less often than Europeans but more firmly than most Asians. In Asia, for men being introduced to female

counterparts, one of the few rules of etiquette that is most universally valid is to wait for the woman to offer her hand.

KissingNon-Europeans visitors tend to be perplexed by the variety of kissing rituals in the multicultural mosaic that is Europe. Some of the guidelines are hereunder:

Box 10

Intense eye contactThe Arab World, the Mediterranean Region, Latin European and Latin AmericansFirm eye contactNorthern Europe and North AmericaModerateKorea, Thailand, Most of the AfricansIndirect Eye contactMost of Asia

 

* Do not worry about kissing or being kissed the first time you meet* At subsequent meetings foreigners are excused from all that promiscuous kissing if they do not wish to participate. This will be a relief to many Asians who feel ill at ease with the strange and embarrassing custom of kissing people you barely know* When kissing a woman's hand or cheek, you do not touch the skin. Just kiss the air a few millimeters from her hand or cheek. For kissing purposes space bubble shrinks considerably.* The Brits usually kiss just once on the right cheek, the French kiss twice (on the left and right) and the passionate Belgians three times: left, right, left.* Like the Italians and the Spanish, the reticent Germans prefer to kiss a lady's hand instead of her cheeks* For non-European women: When a man raises your hand to his lips, just acknowledge the gallant gesture with a slight smile.* The male visitors to Russia feel uncomfortable when the Russian men take them in their arms and kiss them on their lips.

Eye contactPerhaps the subtlest form of body language is gaze behavior. We are easily confused when people use either stronger or weaker eye contact than we do. Box No. 10 displays the variation.

Box 11Meaning of raised eyebrows

North Americans Interest, surprise

British Scepticism

Germans “You are clever!”

Filipinos “Hello”

Arabs “No!”

Chinese Disagreement

Very expressive cultures seem to value strong, direct eye contact. While conversing with the Arabs, Turks and Latin Europeans, one should look firmly in the eye. On the other hand, the business visitors to East and Southeast Asia should prepare themselves to encounter exactly the opposite style of gaze behavior. There a direct gaze may be interpreted as a hostile act. It might mean that you are trying to intimidate them or provoke them to a fight. To avoid such problems, some put on sunglasses. Unfortunately, that creates another problem: In Southeast Asia, it is rude to have sunglasses on when conversing with someone who is not wearing sunglasses.

Raised eyebrowsNegotiators are likely to encounter raised eyebrows in many parts of the world. But flashing one's eyebrows sends different signals in different cultures. In many a case the same expression can have a different meaning - sometimes an opposite meaning - in another culture (See box 11).Thus, culture of a nation is soul deep. It runs through the veins of its mortals. Gets inseparably woven into the social, political and economic fabric of the land. And even as globalization blurs the boundaries and distinctions between nations, it grossly fails to sever man's ties with his land and the culture to which he belongs. So when one deals with people from the other part of the planet, one ought to take cognizance of their habits, values, attitudes, sentiments and expectations. And it is needful to remember that along with creating invisible barriers to trade, cultural differences may also pave way to new market opportunities. Only the savvy marketer will know what it takes to make the international customers tick.

The above article has been condensed/extracted from select chapters of Cross-cultural Business Behavior by Gesteland, Richard R., published by Viva Books Private Limited. All rights of the authors and publisher are reserved

Edward T. Hall

1914-

Edward T. Hall was born on May 16, 1914 in Webster Groves, Missouri. He received his A.B. degree at the University of Denver in 1936. He then went to the University of Arizona in 1938 and got his Masters of Arts Degree. Then he went to Columbia University where he received his Ph.D. in 1942. From 1942 until 1946, Hall served in the U.S. Army Corp of Engineers in Europe and the

Pacific. In 1946, he married Mildred Ellis Reed. They’ve lived happily ever after in Santa Fe, New Mexico ever since. Ernest T. Hall made many discoveries in how people learn language. He analyzes the levels of learning. He found that there were three levels of learning, the Informal level, the Formal level, and the Technical level.

The Informal level is defined as the level with the most affect. Informal learning is learning by example, by modeling, often out of awareness. It takes no conscious focus on learning. An example would be concerns about grades that might include a general sense that you work hard and that that should earn good grades for you. There would also be a sense that grades are important for later work promotion, and that C’s no longer represent “average” to many people.

The Formal level of learning is the middle level of affect. Formal learning is learned by rules. For a general student a formal level of learning could include, being on time, looking attentive, reading all assignments, and passing tests with high grades. These rules aren’t usually exclusive. They depend on what the person has learned as to what the rule means to them. For example it could be much more important to one person to be to class on time than another. This us because of what they have formally learned.

The other level is the Technical level. This is the level with the least affect. Technical learning is learning by discussion of the reasons for the rules. This is where you learn most of your opinions. An example would be discussing the theory that manners provide the glue for society’s rough spots in interpersonal relationships, so that our policy is to rely on manners to keep those relationships smooth. Edward T. Hall did most of his work on Silent Languages. He used these theories as well as many others to explain how people would communicate without the use of an elaborate language. He has made many discoveries in the Anthropology field dealing with the language of prehistoric people. He has written the books; The Silent Language, Beyond Culture, The Dance of Life, and Hidden Differences.

References:

“Synchrony and Group Cohesion” (Fri 21 Oct. 1994) http://www.ratical.org/many_worlds/SynRyth.html 2 May 2000.

“Intercultural Communication” http://www2.soc.hawaii.edu/css/dept/com/resources/intercultural/Hall.html 2 May 2000.

Written by Jake Wischmeier