International business and cultural differences
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Transcript of International business and cultural differences
Kom verder. Saxion.
Dealing with cultural differences in international business
Drs. G.J. (Gerrit Jan) Kerkdijk
“When in Rome do like the Romans do!”
Kom verder. Saxion.
Agenda 1. Cultural differences in communication
– Quiz
– Exercise 1: prepare 1st meeting abroad
– Definition and importance for business
– Four tips for intercultural communication
– Some deadly sins to avoid
2. Regional cultures: sources and measurement
– Geert Hofstede’s 6 dimensions
– Exercise 2: deeper understanding
3. Concluding remarks
Kom verder. Saxion.
Quiz
What do you know about
Business Etiquette?
Source: http://international-business-etiquette.com
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1. In all of these countries you are expected to bring a gift to a business
meeting EXCEPT one. Which one?
• China
• Japan
• Czech Republic
• Denmark
• Bolivia
Kom verder. Saxion.
2. Which behavior is a common gesture of friendship between men
in Saudi Arabia?
• a high-five
• holding hands while walking
• a handshake
• winking
Kom verder. Saxion.
3. In Great Britain, tapping your nose indicates that something is:
• confidential
• inappropriate
• very important
• incredibly boring
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4. Which of the following should not be given as gifts in the Chinese culture?
• clocks
• straw sandals
• a handkerchief
• all of the above
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5. When treating a client to a business meal in China, the most appropriate tipping
strategy would be:
• 15% tip
• 20% tip
• 50% tip
• no tip at all
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6. In Iran, while doing business, a woman should cover her:
• mouth
• eyes
• arms and legs
• arms, legs and hair
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What is culture?
• Definition: A group’s system of learned values and norms.
• “Group” what group? : nation, region, organization, family, profession, socker-supporters ..
• Culture is mythical, both vague and visible, changing all the time!
Kom verder. Saxion.
Why is culture-awareness important?
Globalization causes large increase in multi-cultural diversity and international business relations and an increased need for intercultural communication skills.
Intercultural communication skills are fundamental for your business success!
Kom verder. Saxion.
In international relations..
•Speak at least 2 languages –and know some words or expressions ..
•Make sure you know local rules –religious, legal and political aspects ..
•Study folkways=>business etiquette –learn about rules for interaction
Kom verder. Saxion.
Excercise 1
1. Chile
2. Africa
3. Japan
4. New Zealand
5. Indonesia
6. China
7. France
8. Saudi Arabia
9. Mexico
10.Denmark
First: each group, please select
a different country from list.
Kom verder. Saxion.
The assignment
• Your firm is going to sent a team to the selected country to establish business contacts.
• Preparing yourself for the trip you ask yourself: “What would be (un)appropriate behavior when meeting with business partners in that country”?
Kom verder. Saxion.
How to do this?
1. Visit: http://international-business-center.com
2. Find “business etiquette” (left - bottom).
3. Look up the selected country in the list.
4. For this particular country:
– Find answers to 9 questions (see next slide).
– Find surprising/shocking example (question 10)
5. Share your findings with the class.
Kom verder. Saxion.
How should I behave at.. a general meeting:
1. Timeliness?
2. Dress code?
3. Last/First names?
4. Female participation?
5. Gifts giving: – Type of gift?
– Colour of wrapping?
– Wait for unpacking or not?
6. Making eye contact?
7. Best moment for making a business deal?
a dinner meeting:
8. Seating order? Type of conversation: social or business?
9. Right hand/left hand?
More do’s and don’ts?
10. Surprising/shocking?
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Three “deadly sins” Being unaware => denying cultural influence
– Assuming all behavior is personal and intended.
– “I don’t know why my behavior should shock you”.
Ethnocentrism => I am the center of the world ..
– My behavior & norms are standard for everybody else.
– So, I don’t need to understand others. They must adapt!
– “If English was good enough for Jesus Christ then it is good enough for me”.
Amnesia => we have no history, yes?
– All civilizations/nations: good + bad, past + present.
– “Our civilization is and has always been superior”.
Source: http://ed.ted.com/on/lLJQX8SU
Kom verder. Saxion.
Four tips for interacting
1. Observe body language and mirror it
– Mirroring behavior builts rapport
2. Appreciate differences
– Show “courting behavior”
3. Respect individuality (avoid stereotyping)
– A person is not his nationality nor his culture !
4. Be patient, listen and ask
– When you don’t understand reactions, ask!
Source: http://www.youtube.com/watch?v=ZDvLk7e2Irc&feature=related
Dr. Snéha Khilay on intercultural interaction on YouTube
Kom verder. Saxion.
“National” cultures: sources and measurement
• Huntington: 7 civilizations
• Geert Hofstede: 6 dimensions
Kom verder. Saxion. Huntington: Clash of civilizations
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Hofstede: 6 dimensions Power Distance: acceptance of hierarchy in society
– Respect for social and organizational position
- CEO not easily approached, sits first etc.
Individualism/Collectivism: center of identification
– “I”:Me & my family, “We”: I am part of larger society
– Promotion based on loyalty or initiative?
Masculinity/Femininity: hard or “soft” interaction
– Low/high interpersonal skills
– Achievement/Rewards versus Caring/Cooperating
Kom verder. Saxion.
Hofstede: 6 dimensions Uncertainty Avoidance: by the book/taking initiative
– Low vs Moderate to High risk behavior
– Ritualistic behavior vs open for new experiencs
Pragmatic/Normative: adapt/obey strict norms
– Adapting/respecting social obligations + traditions
- Truth depends on situation & time/TRUTH is eternal.
Indulgence/Restraint: tolerance/intolerance
– allowing hedonistic behavior or not
Kom verder. Saxion.
Exercise 2
• Your firm wants to do business in the country you selected. Compare this country’s culture with your national culture following Hofstede’s theory.
• http://geert-hofstede.com/cultural-tools.html
• First: select the foreign country.
• Next: select your own country or the country of one or more members of your group.
• Compare: what are the most striking differences?
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Avoid error of Level Confusion
• The concept of Culture applies to collectives: nations, regions, groups, professions, organizations, families, genders, age-groups...
• Individuals don’t have cultures but Personalities For the individual “culture” is the answer to the question: “what behavior (of others) is familiar and makes me feel safe and at home”?
• But there is always room for personal choices.
Kom verder. Saxion.
An intercultural attitude
Hey, those differences are fun!
Disrespectfulness is never Ok!
If a person’s behavior seems odd to you it does NOT necessarily follow that this person’s intentions are disrespectful.
Kom verder. Saxion.
Some interesting Links
Gestures:
• http://www.youtube.com/watch?v=fa_GCK-Czqs&feature=related
International business and culture
• http://www.youtube.com/watch?v=wxrp7u86SGs
Hofstede: seven deadly sins
http://ed.ted.com/on/lLJQX8SU
I and WE cultures
• http://www.youtube.com/watch?v=CW7aWKXB5J4
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Evaluation
• Get your “proof of attendance”
• Please fill out the evaluation form.