Doing Business in Asia. PROPRIETARY © 1988 Thomas Group, Inc. All Rights Reserved. 2 All people are...

Doing Business in Asia

PROPRIETARY© 1988 Thomas Group, Inc.All Rights Reserved.

2

“All people are the same ... it’s only

their habits that are so different!”

Confucius

“All people are the same ... it’s only

their habits that are so different!”

Confucius


3

East Meets West

Cultural and personality differences

Common courtesies and customs

Culture shock

The foreign enterprise or business

Our goal


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continued...

Cultural and Personality Differences

Modesty and reserve vs. pride and familiarity Individuals from countries with a pioneering experience

consider the traits of pride, boldness, aggressiveness, achievement, frankness and familiarity to be assets

This may be the opposite in some countries The virtues of humility, reserve, modesty and consensus

are the most greatly admired and respected Eastern familiarity is a natural sign of friendliness to

Americans and Australians. Getting familiar is not thought of by Asians as synonymous with getting friendly


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Tone of Voice The more important the subject the more quiet the voice

Language barriers are not over come by speaking loudly

Speak in complete sentences


continued...


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Temper Tantrums In western societies, anger can be expressed loudly and usually

no harm is done. Often results are quick and forthcoming.

In the East, it is a different story

Speaking in a raised voice, shouting and swearing and a display of temper are considered in excusable.

The person involved will suffer a lose of face and the person who has shown the anger a loss of respect that may never be regained

continued...


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The “Back-Home” Syndrome Pride in one’s country is natural. However, statements such as

“Back in _______” are resented.

A person can feel free to criticize his own friends, family or country, but outsiders should never do it.

continued...


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The western profile If we look at ourselves the way others might see us,

we can tone ourselves down so that we don’t seem to be so overwhelming


continued...


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continued...


Sense of humor We should understand the difference in west-east reactions


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Compliments Beware and Danger

Do not praise an Asian’s beautiful child, do not say how fat and healthy or how much it has grown. It is believed that this cast an “evil eye” and some harm may come to the child or person.

continued...


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First-Name Basis Never call an acquaintance by the first name until asked

to do so It is considered polite to seek out the elderly person to

announce your presence

continued...


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Touching people Westerners are “touchy people.” In some cases this is

considered an unnatural form of intimacy.

continued...


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Discussions on a personal or emotional level Westerns often speak in a deep or personal level

They strive for openness in their relationship with others

It is seen as a sign of weakness

In the Asian culture, much value is placed on the reserved Conversely, Westerners are reluctant to discuss the price

paid, salary, rent, etc. To the Asian, this is a sign of friendly interest

continued...


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Offensive or obscene gestures The pointing fingers Calling someone to you Making a fist and striking the other hand Hands off the hip

continued...


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Ethnocentricity “Characterized by or based on the attitude that one’s own

group is superior” One looks at cultures through their own eyes

Reacts to bigoted, prejudiced, or close minded ways

Ones sees one’s own culture as virtuous or select and values are universally true

All other customs are inferior… “Back-home,” we do it this way

continued...


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Asian “yes” Sometimes means, “I hear what you are saying, but I do not

necessarily agree.” It could mean “no” or “maybe.” “When I don’t want you to feel bad, I say yes with my

mouth and no with my face.”


continued...


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Formality Asian cultures are much more formal and traditional than

Western cultures The Asian appreciates and respects preliminaries

and form The importance of the deal is measured by how much

formality surrounds it and how it is set up. Westerners often make decisions in an atmosphere of informality, giving little time to preliminaries, getting strait to the heart of the matter, and feeling that formalities are a waste of time.

continued...


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Asian face Saving face…. If you go to a party in Australia, you are

expected to bring your own bottle of sprites. In Asia, the host would feel insulted (lose face). It might imply that the host did not have enough for him to drink.

Difficult concept to understand, recognize and internalize...

Making someone feel embarrassed; making someone feel humiliated; causing someone to feel inferior; giving insult to someone.

Dishonest verses disagreement or respect

continued...


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The Westerner Sometimes it is best “not to be yourself” Many times what the westerner feels is normal in his

culture, is seen as irritating to peoples of other cultures An Asian is less likely to admire a Westerner for his

friendliness, outspokenness, and frankness, than he is to view him as lacking grace, manners and cleverness

continued...


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Summary It is not that Westerners must restrain their warm and

friendly ways toward their Asian host. However, misunderstanding occurs when people’s assumptions failed to be met on both sides. Most cultures are willing to overlook all kinds of mistakes when the visitor’s heart is in the right place.

continued...


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Common Courtesies and Customs

Driving

Smoking and littering

Taxis

Tipping

Toilet facilities

Conversation

Eating


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Driving The driver normally watches the front and assumes the

back will take care of itself. In most countries, formally or not, buses have the

right of way Western cultures are generally not “Bike Smart.” Bikes

and other local transport must be given the right of way. If you chose to drive, remember…

Each city and culture have unwritten rules, a rhythm. Find it and join it.

Always carry your papers, have insurance, and know who to call for help.


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Smoking and littering The rules are changing in many countries. Smoking in

public places, such as theaters, may be prohibited and should always be verified.

Littering is the highest form of public disrespect. Do not do it!


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Taxis The taxi industry generally is highly regulated. The

government knows that a large portion of their income is from tourism.

Remember:..

There should always be a meter.

Ask rates before entering.

Bargaining--sometimes yes, sometimes no.

No business conversations or complaints with your colleagues

If it doesn’t feel “right,” do not do it!


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Tipping Tipping varies by country. If a sign is posted, do not tip.

To do so will embarrass your host and server.

Hotels

Restaurants

Taxies


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Toilet facilities For the first time traveler or his his guest, the toilet can be

an interesting journey. Do not be surprised. Carry with you whatever you think you may need.

There is a difference…both western and “squat” types toilets will be found. Even with the western type, the seat may be missing. You may find a bucket of water and bailing scoop. It is believed, and it may be true, that washing is more sanitary than paper. Also, it has been proved that “squatting” is more natural and is one of the reasons given for the low rate of colon cancer in Asian countries.


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Conversation It is always best to avoid “sex talk” or risqué jokes in

mixed company. Young people should not correct an elder. Be courteous,

simply ask for clarification. Speak softly, avoid wild gestures, and be restrained in

front of elders--both in age, statue or position.


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Eating Enjoying the foods of different countries is an essential

part of being in the culture. Be conscious of the style, placement of the hands, utensils

and protocol.


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continued...

Culture Shock

What do you think it is? What does it mean? Psychological symptoms of the culture impact How do we react

The encapsulator

The cosmopolitan

The absconder .. Go native

How to deal with culture shock as quickly as possible.

Physical differences

Adjusting to the environmental difference


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Environmental Impact

Cultural DifferencesSensory Differences

Psychological Symptoms

The 1001 Stress Producing Differencesin the Everyday Life of the Expat

Depth of Expat’s Experience

Reactions

Cultural Empathy “Goes Native”Fight or Flight

Cultural Types

The Cosmopolitan The AbsconderThe Encapsulator

Expat

Culture Shock

Physical Impact

Psychological Symptoms


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continued...

The Foreign Enterprise or Business

Some Advice Be aware that there are differences in the

business structure Ask local businessmen in the office to explain how

things should be done Ask the “old-timers” to explain what to do and what

not to do Smile a lot


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continued...


Some Advice In the field, always speak to the foreman, or who you think

is the most important supervisor Do not make obscene gestures to local workman … they

may walk off the job Never shout Never say anything against a father or mother Pay employees through the foreman


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continued...


Some Advice Always negotiate – bargain Never discuss business immediately, spend at least 45

minutes in pleasantries. Always offer tea first, not drinks. It is wise to talk about food, compliment their

government. It is not wise to talk about personal things and private matters.


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continued...


Some Advice Business ethics:

Westerners like to get to the point immediately

Easterners like formality

Cleverness is admired

They send in the second team first ... they can always come back and say “father said no.”


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“Walk and talk softly ... you never know

who you are speaking to”

“Walk and talk softly ... you never know

who you are speaking to”

Some Advice Never negotiate business in one day - three days is about

normal. Time means a different thing in Asia. A 12-course dinner is a good sign.

The Eastern business is often a family concern.


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Our Goal

It is through shared common business

interests and goals that multi-national

corporations can bridge the gap that

separates one country from another.

It is through shared common business

interests and goals that multi-national

corporations can bridge the gap that

separates one country from another.

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