Title: Going Global An Introduction to the Cultural Aspects of International Trade
1Going GlobalAn Introduction to the Cultural
Aspects of International Trade
2What Is Culture?
- a system of shared values and norms
- values are shared assumptions about how things
should be - norms are social rules and guidelines that
prescribe appropriate behaviour - serious cultural mistakes can negatively affect a
relationship
3Key Cultural Concepts
- High-context Cultures
- the context in which a conversation occurs is as
important as the words spoken - greater value placed on interpersonal relations
in business affairs - Low-context Cultures
- speakers words explicitly convey message to
listener - rely less on relationship building and non-verbal
cues
4Dimensions of Culture
Filters Affect on Business Age Behavioural Body C
aste Systems Conceptual Education
Expressions Influence on Government
Language Religion Social Status Speed Volume Weal
th
Values and Attitudes
Communication
Dimensions of Culture
Language
Religion
Social Structure
5Issues Pitfalls Body Language
- It is an important part of the the communication
process, particularly where language barriers
exist - It is important to understand the mannerisms
common to your foreign market
6Issues Pitfalls Gender
- The culturally appropriate manner in which men
and women relate with each other differs around
the world - An issue for foreign businesspeople, particularly
women seeking to compete in certain environments
7Issues Pitfalls Gift Giving
- Challenge is to know the gift-giving customs of
your target market - Giving the wrong gift at the wrong time can have
serious consequences - Different protocols for presenting and receiving
gifts
8Issues Pitfalls Humour Time
- Humour
- As a general rule, humour does not transfer well
between cultures - To appreciate humour, listeners need an
understanding of the culture from which a joke
originates - Time
- Time and its use are seen differently around the
world - Canadians view time as inflexible - meetings must
start on time or we get frustrated - Other cultures treat time more flexibly
9Issues Pitfalls History Business Card
Etiquette
- History
- History often influences a cultures perceptions
- Even within culturally similar regions, cultural
events will be viewed differently by different
people - Research the target markets history, but avoid
discussing sensitive issues - Business Card Etiquette
- Business card handling is a ritual in some
countries - Japanese view business cards as representative of
the owner - shoddy treatment of the card is
disrespectful
10Communication Role of Words
- In different cultures words play different roles
- In Canada / US we say what we mean
- In other countries, such as Japan, no is rarely
used - to avoid embarrassment - Well see or perhaps may mean no
- Silence or the absence of words can have
different meanings
11Communication Written
- Written communication in two or more languages
presents special challenges - use of slang / idioms
- ineffective translations
- interpretation of written contracts
- Back-translation is a useful tool to ensure
message is received as intended - Effective translation is always critical,
particularly in contractual agreements
12Communication Written
Original Document in English
Translated into Spanish
BACK TRANSLATION PROCESS
Original Meaning Verified or Adjusted
Translated Back into English
13Communication Non-verbal
- Recognizing that a large part of communication is
non-verbal in order to - understand how our message will be received in a
different cultural environment - avoid misunderstanding because of body language
messages - avoid feeling uncomfortable because of cultural
differences such as silence in conversations or
lack of personal space
14Communication Face
- Face is basically your image it is how you
are perceived by the outside world and, more
importantly, by co-workers and associates - It is perhaps one of the most important and
misunderstood cultural concepts - Preserving face becomes more important in
cultures that highly value image or face
15Communication Business Meetings
- Chairing meetings in multicultural environments
requires some planning. - Issues to consider when planning a meeting
- In cultures that are hierarchical in nature, do
not insult participants by seating a subordinate
in a higher position than his or her superior - Participants of equal rank should be treated
equally - Look at the space too tight will be
uncomfortable for cultures that do not like close
proximity between participants - Gender issues can also come into play when
arranging seating
16Communication Business Meetings
- Ensure that greeting of participants is
appropriate to their cultures - Scheduling of meeting agenda should allow enough
time for everyone to arrive, greet, get
refreshments and be seated without being rushed - Refreshments must be appropriate to the culture
and its customs - Be sure that room décor is appropriate with
respect to colours, flowers and so on
17Communication Presentations
- Making a presentation to a group of foreign
businesspeople has some additional challenges
that are not always faced in the domestic market.
- Presentations should be S.M.A.R.T.
- Specific
- Measurable
- Achievable
- Results-oriented
- Timely
18Cultural Differences International Marketing
- Cross-cultural marketing involves learning how to
adapt marketing strategies and communications to
cultural differences - Knowing cultural differences is fundamental for
market research, strategy development, planning
and implementation - Local guidance essential to avoid costly
marketing blunders
19Cultural Differences International Marketing
- Issues
- the desired meaning of a product name does not
always survive translation - solutions include nonsense names and multiple
names for multiple markets - marketing materials will differ from market to
market, depending on education, gender and so on - packaging and marketing materials will differ to
satisfy different aesthetic tastes - education profiles will determine level and
quality of professional / support services in
target market
20Cultural Differences International Marketing
- Issues
- Design product modifications may be required to
meet regional needs - Colour colours used in packaging / marketing
materials must be appropriate to target market - Music maintain cultural sensitivity when using
music to deliver marketing messages
21The Art of Negotiation Across Cultures
- We negotiate constantly in one form or another
throughout our lives - Negotiation should not be a matter of winning all
you can at the expense of others - Win-win negotiations are preferable
- Negotiating in a multicultural environment is
more challenging than in a domestic environment
22The Art of Negotiation Four Phases
Four Phases of Negotiation
Concession Agreement
Relationship Development
Information Exchange
Persuasion
23The Art of Negotiation Relationship
Development/Information Exchange
- Negotiating parties need to develop respect and
trust for each other - More time is required in high-context cultures
- Develop common goals as a benchmark in future
negotiations - An initial exchange of information helps build
trust - Ask questions in such a manner that they do not
seem aggressive
24The Art of NegotiationPersuasion
- Questioning phase should identify areas of
potential agreement, as well as potential discord - Now begin trying to persuade your counterparts to
agree to your terms - Avoid I-centred statements and focus on
we-centred ones - Persuasion tactics need to take into account the
cultural environment - Strong-arm tactics will not work in a
high-context culture
25The Art of Negotiation Concession and Agreement
- Negotiators can now move on to the final phase
concession and agreement - Both sides may make concessions they feel they
can live with to obtain the required agreement - It is common to attach a concession to a
counter-concession using if language, e.g I
will assume responsibility for insuring the cargo
if you agree to assume the costs of customs
duties - Not all cultures view contracts as stringently as
Canadians do for some cultures they are merely
road maps
26Relationship Building in an International Context
- How much of a relationship is required?
Low Context
High Context
27Relationship Building in an International
Context
- Business Socializing
- as simple as lunch or as complex as a catered
event - socializing sometimes involves social visits to a
family home - extent is dictated by level and importance of
relationship - host organization usually responsible for social
events - you are often expected to reciprocate for
hospitality in some manner, perhaps by hosting a
function or presenting gifts
28Relationship Building in an International Context
Excellent Chance to Meet and Network
Welcoming Event
City / Cultural Tour
Important to Host
Informal Sessions Discuss Business
Small Lunches / Dinners
Formal Gift Giving Cultural Issues
Invitation to Hosts Home
Opportunity to Thank Host Gift Giving
Departure Function
29Relationship Building in an International
Context
- Costs
- Conducting international business is more
expensive than operating domestically - High-context cultures can be more expensive at
first - Business relationship arrangements, if long term,
can be more cost-effective than they first appear
30Relationship Building in an International
Context
- Nepotism (good or bad)
- In Canadian culture, nepotism is generally
considered unacceptable and, at times, unethical - Many organizations, especially those that are
publicly funded, have specific policies
concerning hiring relatives - For some societies it is natural to trust family
members more than outsiders
31Relationship Building in an International
Context
- Ethics
- Many activities that Canadians consider corrupt
and unethical occur on a regular basis throughout
the world - Even if an activity is illegal in a foreign
destination, laws may not be enforced or may be
enforced unfairly - If you engage in an activity that is perfectly
legal in the foreign market but considered
unethical by the majority of your consumers, it
could adversely affect your business
32Intercultural Effectiveness Competencies
- Concept of culture
- Modesty and respect
- Target market and its culture
- Adaptation skills
- Intercultural communication
- Relationship building
- Personal commitment
33Intercultural Effectiveness Concept of Culture
- Culture is learned through study and experience
- To determine understanding in this area
- describe the main factors used to compare
cultures, such as authority systems (e.g.
autocratic and democratic), social stratification
(e.g. caste systems), and attitudes to time and
gender issues - describe how culture influences business aspects,
such as negotiations and relationships
34Intercultural EffectivenessModesty and Respect
- Refrain from judging foreign cultures or trying
to impose your own beliefs on other cultures - Remain modest about your own culture
- Avoid comparisons that attempt to show your
culture as superior. - Always apply the belief that its not better or
worse, just different
35Intercultural EffectivenessTarget Market and
its Culture
- Knowledge of the target market will allow you to
avoid cultural pitfalls - People competent in this area demonstrate a
desire to learn more about the foreign culture
by - reading extensively
- socializing with people from the local culture
- sampling local cultures tastes in food
- considering a diversity of sources (written,
people, networks) and points of view before
drawing conclusions - developing an understanding of how a countrys
history and socio-economic conditions might
affect the business venture
36Intercultural Effectiveness Adaptation Skills
- Adaptation skills may require changing the way we
manage our lives - You may have to abandon long-held beliefs and
practices - Often international business takes us away from
family and other support networks and exposes us
to greater levels of stress
37Intercultural EffectivenessIntercultural
Communication
- Good intercultural communicators exhibit a
willingness to engage in communication in
culturally diverse environments and recognize
that mistakes will be made and that they can
learn from them -
38Intercultural EffectivenessRelationship Building
- Successful relationships are developed over time
and need to be continually strengthened - Relationship building is closely associated with
knowledge of the foreign market and effective
communication - Success or failure of a venture is linked to
ability to foster good relationships
39Intercultural EffectivenessPersonal Commitment
- International business practitioners must develop
and maintain realistic expectations of what they
wish to accomplish - Obtaining all of the competencies required to be
successful in international markets takes a great
deal of personal commitment