Business in different countries

Business in Different Business in Different CountriesCountries

Tips while conducting business in different countries• There are many clear variations in the way different

societies behave & function • Tips are furnished below for the do’s & don’ts while

conducting business overseas• Only a few cultural groups have been mentioned ;

there could be many more points that could be included in addition to those mentioned :-1. Business with the Americans2. Business with the Europeans3. Business with the Japanese4. Business with the Arabs

1. Business with the Americans

1. Competition is important for the Americans. They

tend to equate competition with efficiency. Dress,

speech, smartness, & demeanour have to project

‘competitiveness’

2. Packaging is very important, as important as the

contents or, perhaps, a shade more. Therefore, any

business presentation has to be ‘sleek’ with

gadgetry, showmanship & drama interspersed

with some humour

3. While making a presentation in front of an

American audience, it is necessary that the

presentation is well prepared & well rehearsed

4. Americans like bravado & an air of confidence, like

to use superlative words, like the ‘best’, the

‘greatest’ the ‘finest’, & ‘incredible’. Anyone dealing

with them may also use similar language. Apologetic

language with no superlatives is likely to be

interpreted as a lack of capability or weakness

5. Americans have fetish for quantification for all facts.

Therefore, present any business project/proposal or

any achievement with accompanying numbers,

statistics & measures, charts, graphs & other

quantification aids

6. What impress them are the specific measurable

results – Tangible profits or what appears like

tangible benefits

7. Be clear in any communication. Clarity & trans-

parency will be much appreciated

8. Written contracts have to be made perfectly, with

every detail spelt out, in order to avoid any mis-

understanding & confusion later on

9. Connections, relationships & contacts do not have

the same meaning & weightage with American as in

India or other Asian countries

10. They take pride in ‘quality’ within their society.

Therefore, approach them as equals, with no

inhibitions regarding position & power

11. Eye contact is very important for them; if that is

lacking, they may surmise that there is lack of

interest or that there is something fishy about the

person talking to them

12. Americans have much pride in their own country &

fellow countrymen. If possible, it may be better to

conduct business with them as an insider. They

would trust an India-born American citizen or

permanent resident considerably more than a

British or a Dutch or a Belgian. Someone who has

studied in their universities would also be considered

worthy of their trust.

2. Business with the Europeans

• As was mentioned in the earlier section, there is a

difference in the European & American cultures.

While as ‘Westerners’ they have many similarities, it

would be incorrect to club their cultures.

While doing business with the Europeans the

following points may be noted :-

1. Some European countries like, Sweden,

Denmark & France do not exhibit

‘competitiveness’. While dealing with business

men from such countries, it would be

advisable not to appear highly competitive. They

may feel threatened

2. Europeans – British, French, Dutch or German – do

not like loud people. It would be better to be

subdued

3. It is better to be formal in Europe because some

Europeans, Germans in particular, may not like

business to be mixed with socializing; they think that

it may cause s conflict of interest

4. Organizations in Europe tend to be more rigid.

Important decisions are, most often, made by the top

management

5. Despite the huge industrial & business corporations,

the government have a large role to play. Therefore,

in Europe, may not always be one business

corporation to another;there may be the government

to deal with

6. The Western Europeans are private people but

believe in more permanent relationships; this would,

naturally, take time

7. Quality of products & services is very important for

them. They appreciate the qualitative issues to a

business problem

8. Punctuality is very important & they would always

make prior appointment

9. Educational attainments elevate one’s status in

Europe. Just as education is respected, the

refinement in the personality of a man is also highly

respected, particularly in Western Europe & they

indicate their refined tastes through the collection of

antiques & heirlooms, tasteful furniture, decorative

objects & by their knowledge & selection of wines.

3. Business with the Japanese

Here are a few tips for communicating or doing

business with the Japanese :-

1. Everything has to be done in a methodical

way. Method or process of doing things is

extremely important to them. They abhor the

lack of orderliness. Follow their orderliness in

business meetings/interactions with them

2. Their orderliness is seen in their

organizational hierarchy as well. Do not offend

them by dealing with inappropriate

individuals. Otherwise, the negotiation may

suffer

3. Japanese people, generally, believe in long-term

associations. It gives them a sense of security. Along

with the long-term association comes their long-term

commitment. But, once the decision is taken they

give their full commitment. Japanese get persuaded

by long-term business associates

4. Although they have a hierarchy, the decisions are

taken by the consensus. Do not rush them for

decisions; rushing & pushing would only make

them extremely uncomfortable & it will be counter-

productive

5. Japanese have an obsession towards cleanliness.

Therefore, while dealing with them the dress, the

office, the surroundings, the actions during the

meetings should project cleanliness

6. For the Japanese, the organisation is more

important than an individual. The company is

valued the most; then comes the department; the

individual is the last. While speaking to them &

while doing a business transaction with them, one

should show respect for their company; one should

also express similar respect for one’s own company

7. During a business presentation with the Japanese it

is good to be polite, modest, apologetics, & thankful,

in contrast to what should be done while negotiating

with the Americans

8. When the Japanese discuss business, one person –

the head of the delegation – speaks; the others

supply information or assist him; on the contrary

Indians, have a tendency of a number of people

speaking, sometimes as cross-proposes

9. In business meetings between two parties, it is

customary to introduce each member of the

delegation. Exchange of visiting cards is an

important process & should not be hurried. It may

even be a good idea to make a booklet containing a

brief introduction of each of the members attending

a meeting. Preferably, be in both English &

Japanese. Accompanied by the individuals photo-

graphs for easy identifiability.

10. During any interaction do not make a Japanese

business partner or counterpart lose face. Japanese

are very sensitive to what others think of them

11. Personal relationship are important for the Japanese

Future business dealings depend upon how one

responds in the first business interaction. Business

relationships should be cemented by social relation-

ships. Social relationships does not mean taking the

Japanese business counterparts home. Japanese

executives, have a large budget for entertaining a

guest in town. They may expect a similarly grand

entertainment. Grand entertainment does not mean

a ‘loud’ entertainment. They look for delicateness,

artistry & honour in these matters

4. Business with the Arabs

Despite, disparities, there is a common thread of a

Arabic way of behaviour patterns, attitudes & of looking

at the world outside of them.

the following points may be of interest in doing business

in the Arab world :-

1. The Westerners are always looked up to by the

Arabs, whereas the South Asians are mostly looked

down upon.

2. The local laws in most Arab nations prohibit any

foreigner/s to conduct business in those nations

without a local citizen as a partner. Many of these

local business partners would be ‘absentee owners’,

in any case, the foreign investor has to ensure that

the local Arab partners is least obtrusive.

3. Arabs have a huge sense of honour. Shame is a

terrible thing to happen to an Arab. At all costs it

must be avoided. To save their honour, the Arabs

would do anything

4. It is not surprising to find the tribal people to be

friendly, affectionate, generous & very loyal to one

another within their tribe & within their country.

A member of his extended family or as his guest, he

is not considered as a member of his extended

family, the Arab may not mind too much to cheat or

trick him or to take some advantage of him. One

has to carefully cultivate the Arab business partners.

5. Arabs have their own sense of justice. When things

go against that sense of justice, Arabs are likely to

get morally outraged & indignant. An Arab can be a

great friend & terrible enemy as well. It all depends

upon how well a foreigner wins his confidence &

retains it

6. They place a great value on the recommendations

from the tribesmen or other Arabs or friends &

loyal employees. Therefore, in doing business with

Arabs, connections are vital - particularly

connections with people of influence. So, if he wants

to start a business or further a business in one of the

Arab countries, a good reference from someone who

works in the same office – preferably someone in a

top position – would work wonders

7. Socialization in business is common; but, business

deals are not supposed to be discussed at social

occasions. The decisions are taken only by the top

person. They tend to be feudal (which is natural in a

tribal society). Developing contacts at the top level

might help the business

8. It is difficult to make out the position of an Arab in

an organization based upon his dress or his office

size or the furnishings in his office. They can be differentiated by their knowledge, manner of speech,etiquettes, skills, their family & friends. A juniorArab participant would not speak up & ask queries/doubts. Unless the top boss or a person senior in position or in age has spoken, out of deference to thesenior person

9. Arabs have a sunny disposition & are always optimistic. This is very encouraging in doing business with them

10. Arabs are a very sensitive people. There are many do’s & don’ts beyond what has been mentioned herein. Foreign businessmen have to be careful notto put a wrong foot forward.