Do's & taboos: cultural aspects of international business - includes short bibliography and sources for help - Cover

Story
Business America, August 13, 1990 by M. Katherine Glover

DO s ! "ABOO#

$ultural As%ects o& 'nternational Business

(ever touch the hea) o& a "hai or %ass an ob*ect over it, as the hea) is consi)ere) sacre) in "hailan). +i,e-ise, never %oint the bottoms o& the &eet in the )irection o& another %erson in "hailan) or cross your legs -hile sitting, es%ecially in the %resence o& an ol)er %erson.

Avoi) using triangular sha%es in .ong Kong, Korea, or "ai-an, as the triangle is consi)ere) a negative sha%e in those countries.

/emember that the number 0 is consi)ere) ba) luc, in Kenya, goo) luc, in $1echoslova,ia, an) has magical connotations in Benin.

/e) is a %ositive color in Denmar,, but re%resents -itchcra&t an) )eath in many A&rican countries.

A no) means 2no2 in Bulgaria, an) sha,ing the hea) si)e3to3si)e means 2yes.2

4n)erstan)ing an) hee)ing cultural variables such as these is one o& the most signi&icant as%ects o& being success&ul in any international business en)eavor. A lac, o& &amiliarity -ith the business %ractices, social customs, an) eti5uette o& a country can -ea,en a com%any s %osition in the mar,et, %revent it &rom accom%lishing its ob*ectives, an) ultimately lea) to &ailure.

As business has become increasingly international an) communications technology continues to )evelo%, the nee) &or clearly un)erstoo) communication bet-een members o& )i&&erent cultures is even more crucial.

Gro-ing com%etition &or international mar,ets is another reason that com%anies must consi)er cultural )istinctions. As #ecretary o& $ommerce /obert Mosbacher in)icate). 2American com%anies have to rely on all available tactics &or -inning in the global mar,et%lace to)ay. +earning international business )i%lomacy shoul) be the &irst ste% they ta,e.2

Business e6ecutives -ho are not alert to cultural )i&&erences sim%ly cannot &unction e&&iciently overseas. "hey may not even un)erstan) something as basic as -hat signi&ies closing a )eal in a %articular country33a han)sha,e, a -ritten contract, or a memoran)um o& un)erstan)ing.

"a,ing the time to learn something about the culture o& a country be&ore )oing business there is also a sho- o& res%ect an) is usually )ee%ly a%%reciate), not to mention re-ar)ing &or the com%any. "hose -ho un)erstan) the culture are more li,ely to )evelo% success&ul, long3term business relationshi%s.

$ustoms vary -i)ely &rom one country to another. #omething -ith one meaning in one area may mean the o%%osite some-here else. #ome o& the cultural )istinctions that 4.#. &irms most o&ten &ace inclu)e )i&&erences in business styles, attitu)es to-ar)s )evelo%ment o& business relationshi%s, attitu)es to-ar)s %unctuality, negotiating styles, gi&t3giving customs, greetings, signi&icance o& gestures, meanings o& colors an) numbers, an) customs regar)ing titles.

American &irms must %ay close attention to )i&&erent styles o& )oing business an) the )egree o& im%ortance %lace) on )evelo%ing business relationshi%s. 'n some countries, business %eo%le have a very )irect style, -hile in others they are much more subtle in style. Many nationalities value the %ersonal relationshi% more than most Americans )o in business. 'n these countries, long3term relationshi%s base) on trust are necessary &or )oing business. Many 4.#. &irms ma,e the mista,e o& rushing into business )iscussions an) 2coming on too strong2 instea) o& nurturing the relationshi% &irst. Accor)ing to /oger A6tell in his boo, Do s an) "aboos o& .osting 'nternational 7isitors 8see list o& %ublications on %. 9:, 2"here is much more to business than *ust business in many %arts o& the -orl). #ociali1ing, &rien)shi%s, eti5uette, grace, %atience, an) %rotocol are integral %arts o& business. ;um%ing right into business )iscussions be&ore a get3ac5uainte) interlu)e can be a ba) mista,e.2

$harles <or), $ommercial Attache in Guatemala, cites this cultural )istinction as the greatest area o& )i&&erence bet-een the American an) Guatemalan styles o& )oing business. "he ine6%erience) American visitor, he claims, o&ten tries to &orce a business relationshi%. "he abru%t 2al-ays -atching the cloc,2 style rarely -or,s in Guatemala. A better in&orme) business e6ecutive -oul), he a)vises, engage in small tal, about Guatemala, in)icate an interest in the &amilies o& his or her business associates, *oin them &or lunch or )inner, an) generally allo- time &or a %ersonal relationshi% to )evelo%. #oli) business o%%ortunities usually &ollo- a strong %ersonal relationshi% in Guatemala. "his hol)s true &or +atin America in general.

Buil)ing a %ersonal ra%%ort is also im%ortant -hen )oing business in Greece, accor)ing to #on)ra #no-)on, =resi)ent o& #no-)on s 'nternational =rotocol, 'nc., a &irm that trains an) %re%ares e6ecutives in cross3cultural communications. Business entertaining is usually )one in the evening at a local taverna, an) s%ouses are o&ten inclu)e). "he rela6e) atmos%here is im%ortant to buil)ing a business relationshi% base) on &rien)shi%.

Belgians, ho-ever, are the o%%osite, #no-)on says. "hey are li,ely to get )o-n to business right a-ay an) are unusually conservative an) e&&icient in their a%%roach to business meetings.

Attitu)es to-ar) %unctuality vary greatly &rom one culture to another an) unless un)erstoo) can cause con&usion an) misun)erstan)ing. /omanians, ;a%anese, an) Germans are very %unctual, -hile many o& the +atin countries have a more rela6e) attitu)e to-ar) time. "he ;a%anese consi)er it ru)e to be late &or a business meeting, but it is acce%table, even &ashionable, to be late &or a social occasion.

'n Guatemala on the other han), accor)ing to <or), a luncheon at a s%eci&ie) time means that some guests might be 10 minutes early, -hile others may be >9 minutes late.

?hen crossing cultural lines, something as sim%le as a greeting can be misun)erstoo). "he &orm o& greeting )i&&ers &rom culture to culture. "ra)itional greetings may be a han)sha,e, hug, nose rub, ,iss, %lacing the han)s in %raying %osition, or various other gestures. +ac, o& a-areness concerning the country s acce%te) &orm o& greeting can lea) to a-,-ar) encounters.

"he ;a%anese bo- is one o& the most -ell3,no-n &orms o& greeting. "he bo- symboli1es res%ect an) humility an) is a very im%ortant custom to observe -hen )oing business -ith the ;a%anese. "here are also )i&&erent levels o& bo-ing, each -ith a signi&icant meaning. ;a%anese an) Americans o&ten combine a han)sha,e -ith a bo- so that each culture may sho- the other res%ect.

.an)sha,es are the acce%te) &orm o& greeting in 'taly. 'talians use a han)sha,e &or greetings an) goo)byes. 4nli,e the 4nite) #tates, men )o not stan) -hen a -oman enters or leaves a room, an) they )o not ,iss a -oman s han). "he latter is reserve) &or royalty.

"he tra)itional "hai greeting, the -ai, is ma)e by %lacing both han)s together in a %rayer %osition at the chin an) bo-ing slightly. "he higher the han)s, the more res%ect is symboli1e). "he &ingerti%s shoul) never be raise) above

eye level. "he gesture means 2than, you2 an) 2' m sorry2 as -ell as 2hello.2 <ailure to return a -ai greeting is e5uivalent to re&using to sha,e han)s in the ?est.

Accor)ing to #no-)on, American intentions are o&ten misun)erstoo) an) Americans are sometimes %erceive) as not meaning -hat they say. <or e6am%le, in Denmar, the stan)ar) American greeting, 2.i, ho- are you@2 lea)s the Danes to thin, the 4.#. business %erson really -ants to ,no- ho- they are. #he suggests that 2.i, ' m %lease) to meet you2 is %re&erable an) conveys a more sincere message.

=eo%le aroun) the -orl) use bo)y movements or gestures to convey s%eci&ic messages. "hough countries sometimes use the same gestures, they o&ten have very )i&&erent meanings. Misun)erstan)ings over gestures is a common occurrence in cross3cultural communication, an) misinter%retation along these lines can lea) to business com%lications an) social embarrassment.

"he 2OK2 sign commonly use) in the 4nite) #tates is a goo) e6am%le o& a gesture that has several )i&&erent meanings accor)ing to the country. 'n <rance, it means 1eroA in ;a%an, it is a symbol &or moneyA an) in Bra1il, it carries a vulgar connotation.

Assistant $ommercial Attache in the 4nite) King)om "homas Kelsey a)vises that American businessmen shoul) never sit -ith the an,le resting on the ,nee. "hey shoul) instea) cross their legs -ith one ,nee on to% o& the other. .e also suggests avoi)ing bac,sla%%ing an) %utting an arm aroun) a ne- ac5uaintance.

'n "hailan), it is consi)ere) o&&ensive to %lace one s arm over the bac, o& the chair in -hich another %erson is sitting, an) men an) -omen shoul) not sho- a&&ection in %ublic.

"he use o& a %alm3u% han) an) moving in)e6 &inger signals 2come here2 in the 4nite) #tates an) in some other countries but is consi)ere) vulgar in others. 'n Bthio%ia, hol)ing out the han) %alm )o-n an) re%eate)ly closing the han) means 2come here.2

=ro%er use o& names an) titles is o&ten a source o& con&usion in international business relations. 'n many countries 8inclu)ing the 4nite) King)om, <rance, an) Denmar,:, it is a%%ro%riate to use titles until use o& &irst names is suggeste).

<irst names are sel)om use) -hen )oing business in Germany. 7isiting business %eo%le shoul) use the surname %rece)e) by the title. "itles such as 2.err Dire,tor2 are sometimes use) to in)icate %restige, status, an) ran,.

"hais, on the other han), a))ress each other by &irst names an) reserve last names &or very &ormal occasions, or in -riting. ?hen using the &irst name, they o&ten use the honori&ic 2Khun2 or a title %rece)ing it. 'n Belgium, it is im%ortant to a))ress <rench3s%ea,ing business contacts as 2Monsieur2 or 2Ma)ame,2 -hile Dutch3s%ea,ing contacts shoul) be a))resse) as 2Mr.2 or 2Mrs.2 Accor)ing to #on)ra #no-)on, to con&use the t-o is a great insult.

$ustoms concerning gi&t3giving are e6tremely im%ortant to un)erstan). 'n some cultures, gi&ts are e6%ecte), an) &ailure to %resent them is consi)ere) an insult, -hereas in other countries o&&ering a gi&t is consi)ere) o&&ensive. Business e6ecutives also nee) to ,no- -hen to %resent gi&ts33on the initial visit or a&ter-ar)sA -here to %resent gi&ts33in %ublic or %rivateA -hat ty%e o& gi&t to %resentA -hat color it shoul) beA an) ho- many to %resent.

Gi&t3giving is an im%ortant %art o& )oing business in ;a%an. B6changing gi&ts symboli1es the )e%th an) strength o& a business relationshi% to the ;a%anese. Gi&ts are usually e6change) at the &irst meeting. ?hen %resente) -ith a gi&t, com%anies are e6%ecte) to res%on) by giving a gi&t.

'n shar% contrast, gi&ts are rarely e6change) in Germany an) are usually not a%%ro%riate. #mall gi&ts are &ine, but e6%ensive items are not a general %ractice.

Gi&t3giving is not a normal custom in Belgium or the 4nite) King)om either although in both countries, &lo-ers are a suitable gi&t i& invite) to someone s home. Bven that is not as easy as it soun)s. 'nternational e6ecutives must use caution to choose a%%ro%riate &lo-ers. <or e6am%le, avoi) sen)ing chrysanthemums 8es%ecially -hite: in Belgium an) else-here in Buro%e since they are mainly use) &or &unerals. 'n Buro%e, it is also consi)ere) ba) luc, to %resent an even number o& &lo-ers. Be-are o& -hite &lo-ers in ;a%an -here they are associate) -ith )eath, an) %ur%le &lo-ers in Me6ico an) Bra1il.

Cue3#ai Kan, host an) e6ecutive %ro)ucer o& a television sho- about Asia33+oo,ing Bast33an) o& a ne- &our3%art series on Doing Business in Asia, %oints out that customs to-ar) the e6change o& business car)s vary, too. #eemingly minor in im%ortance, observance o& a country s customs to-ar)s car)3giving is a ,ey %art o& business %rotocol.

'n ;a%an, it is %articularly im%ortant to be a-are o& the -ay business car)s shoul) be e6change), accor)ing to Cue3 #ai Kan. "he -estern tra)ition o& acce%ting a business car) an) imme)iately %utting it in your %oc,et is consi)ere) very ru)e there, she conten)s. "he %ro%er a%%roach is to care&ully loo, at the car) a&ter acce%ting it, observe the title an) organi1ation, ac,no-le)ge -ith a no) that you have )igeste) the in&ormation, an) %erha%s ma,e a relevant comment or as, a %olite 5uestion. During a meeting, s%rea) the car)s in &ront o& you relating to -here %eo%le are sitting. 'n other -or)s says Cue3#ai Kan, treat a business car) as you -oul) treat its o-ner33-ith res%ect.

?hen %resenting a car) in either ;a%an or #outh Korea, it is im%ortant to use both han)s an) %osition the car) so that the reci%ient can rea) it. 'n any country -here Bnglish is not commonly taught, the )ata shoul) be %rinte) in the native language on the reverse si)e o& the car).

(egotiating can be a com%le6 %rocess bet-een %arties &rom the same nation. (egotiating across cultures is even more com%licate) because o& the a))e) chance o& misun)erstan)ings stemming &rom cultural )i&&erences. (egotiating styles )i&&er &rom nation to nation. 'n a))ition, a host o& cultural variables must be )ealt -ith all at once.

<or e6am%le, it is essential to un)erstan) the im%ortance o& ran, in the other country an) to ,no- -ho the )ecision ma,ers are. 't is e5ually im%ortant to be &amiliar -ith the business style o& the &oreign com%any. 's it im%ortant to be )irect or subtle@ 's it necessary to have an establishe) relationshi% -ith the com%any be&ore beginning negotiations@ B6ecutives negotiating -ith &oreign com%anies must also un)erstan) the nature o& agreements in the country, the signi&icance o& gestures, an) negotiating eti5uette.

"hese cultural variables are e6am%les o& the things that 4.#. e6ecutives involve) in international business must be a-are o&. At times in the %ast, Americans have not ha) a goo) trac, recor) o& being sensitive to cultural )istinctions. .o-ever, as business has become more global, Americans have become more sensitive to cultural )i&&erences an) the im%ortance o& )ealing -ith them e&&ectively. #till, some com%anies &ail to )o their home-or, an) ma,e &atal or near3&atal mista,es that coul) have easily been %revente). A number o& &irms have learne) the har) -ay that success&ul )omestic strategies )o not necessarily -or, overseas an) that business must be a)a%te) to the culture.

<ailure to research an) un)erstan) a culture be&ore entering the mar,et has le) to many international business blun)ers. "hey run the gamut &rom &orgivable to )isastrous. #ome years ago, &or e6am%le, a lea)ing 4.#. gol& ball manu&acturer targete) ;a%an as an im%ortant ne- mar,et &or gol&. .o-ever, sales o& the com%any s gol& balls -ere -ell belo- average. "he &irm, as it turne) out, ha) %ac,age) the balls in grou%s o& &our33the number o& )eath in ;a%an.

Davi) /ic,s, in his boo, Big Business Blun)ersD Mista,es in Multinational Mar,eting 8see list o& %ublications on %. 9:, cites a number o& other blun)ers that resulte) &rom cultural oversights. One concerns a tele%hone com%any that trie) to incor%orate a +atin &lavor in its commercial by em%loying =uerto /ican actors. 'n the a), the -i&e sai) to her husban), 2/un )o-nstairs an) %hone Mary. "ell her -e ll be a little late.2 "he commercial containe) t-o ma*or cultural errorsD +atin -ives sel)om )are or)er their husban)s aroun), an) almost no +atin -oul) &eel it necessary to %hone to -arn o& tar)iness since it is e6%ecte). Another com%any e6%erience) hea)aches cause) by %oor translation. A Me6ican maga1ine %romotion &or an American3bran) shirt carrie) a message stating the o%%osite o& -hat ha) originally been inten)e). "he a)vertisement, instea) o& rea)ing 2-hen ' use) this shirt, ' &elt goo),2 sai) 2until ' use) this shirt, ' &elt goo).2

A tooth%aste com%any trie) to sell its %ro)uct in regions o& #outheast Asia through a %romotion -hich stresse) that the tooth%aste hel%e) enhance -hite teeth. 'n this area, -here some local %eo%le )eliberately che-e) betel nut in or)er to achieve the social %restige o& )ar,ly staine) teeth, such an a) -as less than e&&ective. "he slogan 2-on)er -here the yello- -ent2 -as also vie-e) as a racial slur.

Mista,es o& these ty%es can at the least re)uce sales, an) at the -orst, give the com%any an) the %ro)uct such a ba) name that it closes out the mar,et entirely. "o avoi) blun)ers li,e this, a com%any ultimately must not only have a sensitivity to other cultures but also must have a goo) un)erstan)ing o& its o-n culture an) ho- other countries see American culture.

M. Katherine Glover ?riter, Business America 'nternational "ra)e A)ministration

$O=C/'G." 1990 4.#. Government =rinting O&&ice $O=C/'G." E00> Gale Grou%