Cultural Overviews

Cultural Overview: Focus on the Middle East

You cannot do business in the Middle East unless you understand Islam

Islam is not Arab, but Arab is Islam Islam is open tolerance and

acceptance Islam is very diverse in many

respects

Arab Values

Dignity, honor and reputation are paramount

Loyalty to family Courteous and harmonious

communications Priorities are to self, kinsman,

tribesman, and other of religion, in that order

Arab Personal Distance

Close personal relationships, without great distance or intermediaries

Olfaction is prominent Facing someone is required Distance is very close, especially with

friends Very expressive in tone and gestures

Arab Sociability

Cordiality is the core Time is traditional Communication is oral and aural,

with an emphasis on listening Traditional greeting is to place one’s

right hand on the heart Muslims may choose not to eat

pork, drink alcohol, or engage in gambling

Arab Women

The culture is patriarchal, placing the male in the dominant role while protecting and respecting the female

The women publicly defers to her husband, but privately she may be more assertive

Islam does not advance the notion of female inferiority, but the second class status of women is reinforced by clerics’ control over marriage laws

Practices such as driving, not wearing abayas, education vary tremendously

Business Tips for the Middle East

Business relationships require rapport, mutual respect and trust

Connections and networking are most important Negotiating and bargaining are common Decision making is usually done in person Time is flexible Marketing should focus on the customer Socialization in business is traditional and

courteous, but deals aren’t social Communication requires harmony and agreement Taboos are many

How Westerners are perceived by Arabs

They express superiority and arrogance, think they know everything

Do not want to share credit for what is accomplished jointly

Are unable or unwilling to respect and adjust to local culture

Fail to innovate to meet needs of local culture, seek easy solutions based on home

Refuse to work through normal administrative channels, don’t respect local legal procedures

Tend to lose democratic ways abroad, becoming autocratic and instilling fear in subordinates

Too imposing, pushy, aggressive, and rude

What to avoid…..

Bringing up business before getting to know your host

Commenting on a man’s wife or daughters Raising colloquial questions that are

common at home but may be an invasion of privacy

Using disparaging or off-color words Talking about religion, politics, or Israel Bringing gifts of alcohol or using alcohol Requesting favors from those in authority Shaking hands too firmly or “pumping” Pointing your finger or showing soles of

shoes

Cultural Overview: Focus on Latin America

Although technically part of North America, Mexico is much more “Latin” than “North”

Influence of the Catholic church Value of family Distinct male and female roles Indigenous “Indians” in Bolivia, Peru, Mexico African descendents throughout but

primarily in Brazil European heritage – Spanish, some

Portuguese, Italian and German Asia – some Polynesian and Japanese in

Brazil 400 million people, 21 countries plus islands

Sociopolitical developments

Problems of social class integration – primarily based on family connections

Economically and technically developing, but moving from agricultural to industrial to service – in reality a dual economy in many areas

Private education for elite at lower levels, public at upper levels, literacy slowly increasing

Increasing urbanization, especially in Brazil and Mexico

Latin social customs (sort of)

Shaking hands Pleasantries Thank-you notes Time Privacy Asking questions Space Class and status Doing business

Themes and Patterns in Latin America

Personalismo Machismo Get rich quick attitude – tied to

fatalism Good manners and dignity Hospitality Authoritarianism

Doing Business in Mexico

Concept of negotiation Role of individual Concern for protocol Significance of type of issue Complexity of the language Nature of persuasive arguments Trustworthiness Attitude toward risk Form of satisfactory agreement

US American view of Mexicans

Self control: emotional, volatile Type of civilization: primitive, need

instruction Honesty: dishonest, sneaky Character: submissive, weak Time orientation: dwells on past,

procrastinates Social classes: lower classes lack

potential, upper classes lack character Work ethic: lazy, work is bad

Mexican View of US Americans Self control: cold, insensitive, emotionless Type of civilization: condescending,

contradictory Honesty: manipulative, tactless, can’t be

trusted, ulterior motives Character: aggressive, at time brutal and

abusive Time orientation: obsessively future oriented,

can’t relax, unrealistically tries to master time Social classes: morally corrupt, perhaps

economically superior Work ethic: obsessive materialism, only focus is

work

Doing Business in Brazil

Greetings Names and titles Hospitality Appearance, hygiene and dress Gifts and bribes Time Communication issues

Negotiating in Brazil

Particular over universal Relationship over task Polychronic over monochronic Indirect over direct Group over individual Flexible over inflexible

Cultural Overview: Focus on Asia

Equity is more important than wealth and consumption

Saving and conserving resources is highly valued

Group is more important part of society and is emphasized for motivation

Cohesive and strong family ties, extending to distant relatives, forming a relationship society with a strong network of social ties

Cultural Overview: Focus on Asia

Highly disciplined and motivated workforce/society

Education is an investment in the prestige and economic well-being of the family

Protocol, rank and status are very important

Personal conflicts are to be avoided (few lawyers)

Public service is a moral responsibility

Doing Business in China

Entry into the WTO in 2001 has expanded trade and increased business opportunities

There remains a huge income disparity between rural and urban areas ($5000/cap vs $400/cap)

China is one of the most corrupt countries due to the lack of a legal structure and relationship based interpersonal interactions

Negotiation in China

Emphasis is on trust and mutual connections

Focus is on the long term Sensitivity to national slights and

persistent addiction to Party propaganda, slogans and codes

Chinese have a compelling need to dwell on the subject of friendship and reciprocity as a prerequisite for doing business

Negotiation in China

Once Chinese decide who and what is best, they show great steadfastness (stubbornness??)

Nothing is final until it is realized – signing of a contract is not a completed agreement

Chinese prefer to negotiate through an intermediary so as not to lose face

Business Etiquette in China

Chinese are punctual – be on time Chinese prefer not being touched – slight

bow is more appropriate, maybe a very brief handshake

Formal business dress is expected Family name is first – Li Weiqi or Dr. Li At banquets, the guest of honor makes

the first move to depart, shortly after dinner (8:30 or 9pm)

Business Etiquette in China

Have one side of business cards printed in Chinese (can be done in a few hours in Beijing or Hong Kong)

Dignity, reserve, patience, persistence and respect for Chinese culture and temperament are vital

Numerous visits are required in negotiation – more for sellers than buyers

Guidelines for Doing Business in PRC

Focus on group rather than any one individual

Avoid self-centered conversation where “I” is excessively used – humility is greatly rewarded

Important business must be conducted face-to-face, not by phone, fax or email

Chinese are more reserved, retiring and shy. Silence is a positive trait – and Chinese may seek to take advantage of American impatience

Japanese Language and Communication

Indirect and vague are more acceptable than direct and specific references – ambiguous terms are preferred

Sentences are often left unfinished so that others may make a conclusion

Conversation is often in an ill-defined and shadowy context, never definite, to allow for personal interpretation

There are layers of soft language with various degrees of courtesy and respect.

Listeners make little noises of tentative understanding and encouragement

Business Interactions with Japanese

Japanese try to achieve sales without losing face and harmony

Third party introductions are important and can create trust between individuals, where the third party may be in final negotiations

When you approach a firm, do so at the highest level; the first person approached is likely to always be involved

Avoid direct communication of money….this is left to go-betweens and lower level staff

Business Interactions with Japanese

Avoid praise of your product; let your literature or go-between do that

Use business cards in Japanese and English

Logical, cognitive or intellectual approaches are insufficient; the emotional level of communication is also important

Formality prevails in senior staff meetings, with interpreters. The more senior people present, the more important the meeting.

Wait patiently for meetings to move beyond preliminary tea and long formalities

Age and Business

Young managers, recruited from universities, are expected to stay with a firm until they are 60, conforming, showing respect and deference

At 60, the decision is made whether or not that person will become a company director, thus eligible to work into his 80s

The rest of the group not selected is expected to retire around 55 or 60, though they may be retained on a temporary basis

Business Relationships

Reward and recognition go to the group, never the individual

Great emphasis is placed on belonging Guests are usually given a small gift; on

the next visit, you are expected to give a gift in kind

Personal relationships are required. You will be invited for entertaining with a night on the town, but not at one’s home. The Japanese have very large entertaining budgets.

Business Relationships

Social and self control disguise a highly emotional quality of the Japanese character and relationships that is hard to understand

Japanese tend to be clean, polite and disciplined; but publicly, with strangers, can be pushy and inconsiderate

The gap between generations is very wide – with each person assigned an older mentor. This is problematic – if your mentor is not well-respected, your career is over

Women especially have a problem in terms of mentors, socializing and mobility

Values and Standards

Japanese personality is self-confident and flexible, tending toward diligence and thrift balanced with a fun-loving side

Japanese are cautious and given to stalling tactics; they are also insular

Japanese highly regard innovation and new ideas, swallowing them up until they are “Japanized” (internalized) after careful examination and study

Japanese value training and education, with deep pride in work, no matter how humble

Values and Standards

Work hard and play hard Goals of corporate growth, product superiority

and national economic welfare are more important than profits

Corporate social responsibility is built into the Japanese system

Standard is psychological security in a job in return for loyalty to the company; mutual obligation

Seniority is slowly giving way to merit Japanese value decisions by consensus,

deciding if a decision is needed first, what it is about and the process, before the actual decision…it is a long process

Focus on Continuous Training

Training is performance focused rather than promotion focused – multiple jobs at same level

Emphasis is on productivity – what have we learned to do the job better?

Older workers are believed to be more productive

Education is seen as a preparation for life Permanent employees that leave an

employer find it difficult to be a permanent employee with another firm

Focus on Europe (very general)

Europeans are highly diverse with over 40 countries

Business in the US is concerned with quantities, numbers and performance far more than with people….in Europe, humans are at the center of thought and philosophy

Europeans have an inherent interest in the quality of life….people should be served by progress, not vice versa

Focus on Europe (very general)

Europeans have a strong sense of reality….given the wars and disruptions of the 20th century, tragedy can be just around the corner, so live in the moment.

Europeans have historically fought neighbors for centuries, Americans have fought the elements for decades

Europeans have endured plagues, great wars, border and government changes, and have a strong sense of survival

Focus on Europe (very general)

According to Bloom, et al. (1994), Europeans: Are cynical realists Believe individuals should be at the

center of life Have a sense of social responsibility Have mistrust of authority Have desire for security and continuity Believe that profit maximization is not

the primary aim of business

Some interesting items:

Italian arrangiarsi-the ability to make do or get out of a tough situation

Creative problem solving – getting around things that don’t work or are impediments to getting things done (trains on strike, complicated tax codes, etc.)

Connections and family ties are helpful

Italy

Bella figura – literally beautiful figure, but means the ability to make a good impression (dazzle). A bit like saving face, but more related to presentation and image. Appearance, presentation and dress must be impeccable. Status and prestige also matter.

Greece

Greeks like to discuss and bargain. It is permissible, even accepted, to exaggerate when one tells a story.

Relationships are very important, as is living life

We have smoke free workplaces, Greeks joke that they have work-free smokeplaces.

Be prepared to go out for dinner at 9 or 10, then drinks later, get home at 3 or 4, and go to work in the morning

Germany

Throughout Europe, titles are important. In Germany, they are essential. If someone has multiple titles, use all of them…Herr Professor Doktor Braun. Always use the title until you are invited to use someone’s first name. This may take 10 years.

Emotional distance is important in Germany. Friends and relatives may greet with nods and handshakes. This is completely unacceptable in Italy.

High German will be spoken in all business conversations (or English).

France

Except for lunch (2 hours), the French sense of time is casual. Subordinates should be prompt, but superiors can be late.

Expect meetings to be rescheduled…this is the norm

French schools are highly competitive and value linguistic ability, putting immigrant children from non-French speaking cultures at a distinct disadvantage

Non-French are often mistrusted, despite claims to the contrary

Competition is what happens on the soccer field…it is often not associated with business

Britain

Brits, while sophisticated, are a bit touchy about conversations involving family, privacy is valued

Decorum and formality are valued Building morning coffee and afternoon tea

breaks into meetings Tolerance, compromise and resolution by

committee are common occurrences Fine manners and good etiquette are

expected at all social occasions