Some Tips from a Friend

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Some Tips from a Friend

• Always do your research before going to another
  country to do business
• Some specifics from Japan and Australia

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CULTURE TIP

• Latin Americans are often late according to
  North American standards, but expect North
  Americans to be on time.
• Dinner usually begins at 8 p.m. or later.
• As a guest, never arrive on time a 30 minute
  delay is customary.

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CULTURE TIP

• South of the border, nobody rushes into business.
• As a foreign businessperson, take your time and
  ask about your colleagues familys health or make
  a few comments about the weather.
• The local sports team is a good beginning point
  of conversation.

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CULTURE TIP

• As a foreigner, be prepared for Latin men to
  flirt with all wives, but men should be careful
  not to flatter or flirt with a South American
  wife.
• Also be aware that a Latin may have a public wife
  (legal) and a private wife (mistress).

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CULTURE TIP

• North Americans begin getting to know people by
  asking a lot of questions.
• In Latin America, it is safer to talk about local
  things.
• Questions are often interpreted as prying.

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CULTURE TIP

• Latin Americans tend to stand close during
  conversation.
• If you want to do business in this part of the
  world, learn to accept your hosts distance.

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CULTURE TIP

• In the Middle East, it is an insult to sit in
  such a way as to face your host with the soles of
  your shoes showing.
• Do not place your feet on a desk, table, or
  chair.

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CULTURE TIP

• When you dont talk business can be as important
  as when you do.
• In Britain, for instance, as soon as the day is
  done, so is business, and nothing will turn your
  hosts off faster than continuing shoptalk over
  drinks and dinner.

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CULTURE TIP

• To the Japanese there is almost no distinction
  between the business day and the business night.
• They consider it part of both their personal and
  professional lives to spend every evening with
  business associates. You get through to a mans
  soul at night, is a saying among Japanese
  businessmen.

10
CULTURE TIP

• In Thailand, doorsills must never be stepped on,
  for Thais believe that kindly spirits dwell below
  them.
• To open a window at night is to let evil spirits
  in.

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CULTURE TIP

• Remember that every culture has its own holidays,
  which are considered truly holy days.
• To schedule a business trip during Carnival in
  Rio, Chinese New Year, etc, is like a foreigners
  asking you to attend a meeting on Christmas
  morning.

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CULTURE TIP

• The Chinese are masters of the multicourse dinner
  and will keep refilling your dish.
• To stop the flow, leave some food in your dish to
  indicate that your host was so generous you could
  not possibly finish.

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CULTURE TIP

• An important concept in Indonesian social and
  business activities is to avoid making someone
  feel malu, or ashamed or embarrassed.
• Criticizing or contradicting a person in front of
  others will cause you to lose face with the group
  and the person will feel malu as a result of your
  action.

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CULTURE TIP

• The Russians are renowned for their negotiating
  ability.
• They will stall for time if they think they can
  get a better deal.
• They are famous for unnerving Western
  negotiations by continuously delaying and
  hassling.

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CULTURE TIP

• When in Russia, it is a good idea to have a large
  supply of business cards to hand out.
• They should be printed in Cyrillic, and the
  university degree of the Western businessperson
  should be included.
• At negotiations, be sure to hand out one to
  everyone present, in order not to overlook
  someone who might turn out to be important.

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CULTURE TIP

• No other Eastern European country is as protocol
  conscious as Russia.
• Russian officials expect to do business with only
  the highest ranking executives so the Western
  firm is advised to send its top managers to
  ensure a favorable first impression.

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CULTURE TIP

• In Saudi Arabia, the system of hospitality is
  based on mutuality.
• An invitation must be returned an equal gift
  must be offered in return. The offer of
  hospitality to visit an Arabs home must be
  accepted.
• Today you may be the guest, but tomorrow you must
  play the host.

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Theoretical Frameworks to Understand Culture
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Global Culture

• Culture-ways of living, built by a group and
  transmitted to other generations
• A,B,V
• Subcultures
• Dietary Preferences
• Language
• Aesthetics

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Cultural Orientations

• Low Context vs. High Context
• Edward Hall
• Hofstedes Dimensions of Culture
• Masculine/ Feminine
• Risk Avoidance
• Power Distance
• Individualism/ Collectivism

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I. High and Low Context Cultures

• High Context Cultures
• Less information contained in verbal, more in
  non-verbal communication
• Meaning of individual behavior and speed changes
  depending on the situation
• Nonverbal messages full of important and intended
  meanings, subtle
• Important to read between the lines

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I. High and Low Context Cultures

• Low Context Cultures
• Intentions are expressed verbally, directly
• Situation is not allowed to change the meaning of
  words and behavior
• Straight talk

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Halls Silent Languages

• Different silent languages
• Time
• Space
• Agreements (emphasis on legal contracts)
• All have important economic implications

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II. Hofstedes Model

• 5 Cultural dimensions
• 3 refer to expected social behavior
• 1 to mans search for truth
• 1 to importance of time
• Power Distance all societies are unequal, some
  are more so
• Extent to which society tolerates inequalities of
  intellectual and physical capabilities
• Individualism versus collectivism relationship
  between individual and his or her fellows

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II. Hofstedes Model

• Masculinity versus femininity identification of
  gender and work roles (Japan - HI Sweden - LO)
• Uncertainty avoidance acceptance of ambiguous
  situations and tolerance of uncertainty
• Aggressive, intolerant and emotional behavior
  versus contemplative, relativistic tolerance
• Confucian Dynamics long term vs short term
  orientation

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Individualism and Power Distance
Power Distance Index (PDI)
GUA
EQA
COL
PAN
VEN
PAK
IDO
Large power distance Low individualism
COS
Small power distance Low individualism
12 18 24 30 36 42 48 54 60 66 72 79 85 91
PER
SAL
TAL
SIN
KOR
THA
WAF
CHL
HOK
PHL
YUG
MAL
POR
EAF
MEX
PHI
GRE
TUR
URU
ARA
BRA
JAM
ira
ARG
JPN
IND
AUT
SPA
ISR
FIN
SAF
GER
NOR
SWI
FRA
SWE
IRE
BEL
DEN
ITA
CAN
NZL
Large power distance High individualism
NET
USA
GBR
Small power distance High individualism
AUL
11 28 44 61
77 94 111
Figure 3-5
Source G. Hofstede, The Cultural Relativity of
Organizational Practices and Theories, Journal
of International Business Studies 14 (Fall
1983), pp. 75-89.
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Uncertainty Avoidance and Masculinity
Masculinity Index (MAS)
Weak uncertainty avoidance Feminine
Weak uncertainty avoidance Masculine
8 16 24 32 40 48 56 64 72 80 88 96 104 110
SIN
JAM
DEN
HOK
SWE
GBR
IRE
MAL
IND
PHI
USA
CAN
NOR
IDO
SAF
NET
NZL
AUL
EAF
WAF
IRA
FIN
SWI
THA
ARA
GER
TAI
AUT
PAK
BRA
ITA
VEN
COS
ISR
CHL
FRA
COL
TUR
SPA
MEX
PAN
ARG
KOR
YUG
PER
SAL
BEL
JPN
URU
GUA
POR
Strong uncertainty avoidance Masculine
Strong uncertainty avoidance Feminine
GRE
5 23 41
59 77 95
Figure 3-6
Source G. Hofstede, The Cultural Relativity of
Organizational Practices and Theories, Journal
of International Business Studies 14 (Fall
1983), pp. 75-89.
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Hofstedes Classification of Triad Countries
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Self-Reference Criterion Unbiased perception

• Unconscious reference to ones own cultural
  values creates cultural myopia
• How to Reduce Cultural Myopia
• Define the problem or goal in terms of home
  country cultural traits
• Define the problem in terms of host-country
  cultural traits make no value judgements
• Isolate the SRC influence and examine it
• Redefine the problem without the SRC influence
  and solve

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Diffusion Theory

• Adoption process
• Characteristics of Innovations
• Adopter categories

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Process of Adoption of Innovations
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
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Rate of Adoption of Innovations
Relative Advantage Compatibility Complexity Divisi
bility Communicability
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Adopter Categories
Bell shaped curve based on the assumption of
human interaction In a social system where an
adopter passes the information onto two people.
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Implications for international sales diffusion

• Depends on word of mouth
• In collectivist, homogenous, and risk averse
  cultures
• Fewer innovators
• But diffusion is likely to be faster
• If introduced late, international learning
  effects give customers more time to assess
  relative advantages, compatibility and product
  attributes

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Environmental Sensitivity (Fig. 4-3)