June 2007 - Global View Newsletter
MIND YOUR MANNERS, UNDERSTAND THEIRS
International business is more than researching the market trends, choosing a good venture partner and understanding which region specializes in a particular product or service. Successful international business centers on communication, effective communication. Professional multilingual communication in the form of contracts or brochures or manuals is important, but communication in the form of non-verbal cultural understanding is key.
A prominent businessman was acting as a merger consultant on a multi-million dollar deal in the U.S. The firm purchasing this organization was from the Middle East. As the consultant greeted the foreign representatives for dinner, he promptly grabbed the left hand of the guest, patted him on the back and said, “We’re glad you’re here” as any American gentleman would. What he failed to realize was that the left hand gesture was the equivalent of saying, “I just went to the bathroom, wiped with this hand, and now I’m insulting you by wiping it on you.” The verbal communication was very appropriate; the non-verbal communication was the ultimate insult! Lesson learned: When all that stands between you and a $20 million deal is a good meal, make sure you are culturally up to date before dinner!
There are many ways to culturally acquaint yourself prior to jumping into an international business relationship, whatever you choose, make sure to do it right! Below are some examples of differences in business cultures across the world.
Chinese and most Asian cultures are centered around the group, rather than the individual, such as in the U.S.; disagreements are less verbal and more non-verbal; the essence of time is not driven by exact start and end times; business partnerships cannot start until a sound relationship built around trust is established.
Knowing this, it is important to not rush appointments; look for non-verbal signs of disagreement or frustration; express disagreement or frustration more subtly; be a good host and get to know them personally and when it’s time to be a guest, be a polite guest; and don’t start a business meeting with a contract, start with small talk.
The Middle Eastern and Arab cultures in business generally center around hospitality and relationships first and business second; punctuality is not strict when the event is hosted by the Middle Eastern party, however, foreigners are expected to be on time, but not ever in a hurry to leave; some foods, beverages and clothing have religious connotations, so it is important to understand these beforehand; many rituals are present in religion, times and gestures; personal space is much closer than what American’s are accustomed to.
Many of the same suggestions from the Asian cultures will be the same for the Middle Eastern and Arab cultures. Some of these would be to start connections by forming relationships first, contracts second; be punctual to meetings, and never appear hurried by checking the time; be a good guest by accepting that which is presented and never bring gifts of food or alcohol as it may offend the host; do not admire an item at an event as the host may feel obligated to give it to you; women must be careful of what they wear and be modest at all times; be careful not to show the bottoms of the shoes or shake with the left hand as these are both considered “unsanitary” and are an insult; do not back up when you feel your personal space is invaded as this may be considered rude.
When a handshake can make or break a deal, make sure the shake is appropriate; take the right steps up front to be a good American businessman or woman!
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