Description
With the tremendous increase in global trade, learning more about doing international business has become especially significant. It is vital to learn about the different cultures around the world before doing business in other countries, in order to reduce the risk of failure.
The Effect of Culture on Business Relationships
Ashley Bowie
Introduction
With the tremendous increase in global trade, learning more about doing international business
has become especially significant. It is vital to learn about the different cultures around the
world before doing business in other countries, in order to reduce the risk of failure. Becoming
knowledgeable about different countries’ communication styles, body language, meeting and
negotiation tactics, dress, greetings, and social events are all keys to having good business
relationships with individuals in other countries. China, Mexico, France and the United States
are nations that do business with each other regularly. While they do share similarities, there are
many differences between these cultures.
It is J ohn’s first trip overseas to meet a potential client in China for his company, Toys
Inc. Upon arrival he greets the first man he sees with a loud, boisterous hello and a firm hug.
After being formally introduced, he calls his potential client by his first name, and shoves the
business card he was given carelessly into his pocket. Later in the day he joins his new team for
a business lunch where he arrives five minutes late. There J ohn takes the initiative to begin
eating, using a fork, and takes the last of the food on the table. During the meal he is loud, and
makes an attempt to tell a joke when there is silence at the table.
J ohn’s outgoing, friendly personality makes him a great employee of Toys Inc. in the
United States; however, his behavior with the Chinese clients could cost Toys Inc. their business.
Communication and business practices vary greatly from country to country. It is important for
American business men and women to study the way business is conducted in other countries as
there are very different norms for behavior across borders. This not only includes the way
meetings and negotiations are run, but how greetings are done, whether gifts are appropriate,
what types of verbal and non-verbal communication are used, as well as cultural attitudes. It is
also imperative to learn how to behave in a social setting, because in many countries a personal
relationship precedes that of a business relationship.
Thomas J affee once said that first impressions- looking good and having a friendly
greeting for someone- will go a long way. In business, this is much harder than it sounds
because looking good and being friendly must be catered specifically to each culture. On a first
encounter, eye contact, distance, introduction styles, dress, gifts, and language are all things that
should be studied before a meeting takes place. In this research, four countries will be explored
in detail including China, Mexico, France and the United States of America.
Appropriate Business Behavior in China
Of these four countries, business culture in China is the most reserved, and is perhaps most
unlike that of the United States. First and foremost, a contact should always be established
before representatives of a business are sent to China. Trips to China are best if scheduled
between the months of April to J une, and September through October, when they will not
conflict with any Chinese holidays (Morrison, Conaway, and Borden, 1994). On arrival, the
business person should not touch people because touching makes the Chinese uncomfortable,
especially if it is the first meeting. Inappropriate touching would include patting on the back or
squeezing the arm (Morrison et al., 1994).
In China a light handshake is accepted, but the Chinese business associate should initiate
the action. Bowing is common and is done with the palms together while facing each other
(Gesteland, 1999). Holding eye contact is a sign of disrespect and should be done cautiously,
especially in a social setting.
When entering a room full of potential business partners, greeting the most senior person
first is important, as is using appropriate titles. Sometimes the last name is said first in Chinese
culture, and individuals will expect to be addressed formally until they say otherwise. Also, if
greeted with applause, return the gesture (Kenna and Lacy, 1994a).
Chinese often show little to no emotion. Generally joking is not accepted because they
may not interpret humor in the same way as others. Exchanging business cards is something of
great importance in China. Business cards should be printed in both English and Chinese and in
plain lettering. Cards should be accepted using both hands, read, and placed somewhere safe. It
is inappropriate to write on another’s card in front of the person who gave it (Morrison et al.,
1994).
Business dress in China is conservative and formal. Women should wear a high neckline,
and should avoid high heels if they make them taller than their host. Gift giving should be done
only after a relationship has developed, and should be modest (Martin and Chaney, 2006). It is
important to consider carefully what is given. Researching potential cultural superstitions and
hidden meanings is a very good idea. For example, a clock, anything given in a group of four,
and white flowers all symbolize death. If a gift seems appropriate for a particular business
situation, a nice pen or cognac is a good choice. A gift received should not be opened
immediately; it is polite to open it at a later time (Martin and Chaney, 2006).
Business Behavior in Mexico
Mexico has a more expressive culture than does China and individuals show more affection and
emotion. On the first meeting, a potential partner or client should be addressed formally using
titles. Like China, the most senior person should be addressed first followed by everyone else in
the room. Shaking hands is very common and should be done with all upon entry and exit.
If meeting with a woman, bow and wait for her to extend a hand. If meeting with a man,
it is the women’s choice whether to offer her hand (Gesteland, 1999). At later meetings, a hug
may be given rather than a handshake; this is a compliment. Appointments should always be
made two to three weeks prior to when a meeting is desired.
In Mexico and other Spanish speaking countries, attempts at learning and speaking basic
greetings in Spanish go a long way, even if they are not perfect (Gesteland, 1999). Business
cards should be printed in both English and Spanish. Mexican dress is conservative and fairly
formal. The way one is dressed and groomed is a symbol of their status in society (Kenna and
Lacy, 1994c). Women should wear a dress or skirt and look feminine, and should not always
expect to be treated equally in a Spanish speaking country (Martin and Chaney, 2006).
For the most part, gifts are not customary in Mexico, but are accepted. The gift of
flowers is not a good choice and should be avoided if possible because the colors of different
flowers have various meanings. For example, yellow and purple signify death while red is said to
cast spells (Morrison et al., 1994). One occasion where a gift absolutely should be presented is
to a secretary who has helped with the business transactions. If a man is presenting a gift to a
female secretary he should always say it was sent by his wife (Morrison et al., 1994).
The French View of Business Behavior
In France, introductions are very formal and should be given by the embassy of the visiting
country if possible, or at least by someone who knows the French party. It is not a good idea to
travel to France in the months of J uly through August, because these are the holiday or vacation
months (Morrison et al., 1994).
First names should not be used until one is specifically told to do so. It may be the case
that a French business person introduces him or herself saying their last name first, so care must
be taken during the introduction process. It is rude to simply ask the individual to clarify, so
some other means of clarifying the name will have to be used. Shaking hands is the most
common form of touching in French culture and should include everyone in the room, though it
is possible to see a small kiss given on each cheek (Kenna and Lacy, 1994b).
The exchanging of business cards comes only after a relationship has been established
and their content should be treated very carefully (Martin and Chaney, 2006). Also, they should
be printed in English and French and should include the degrees earned rather than a job title and
description (Morrison et al., 1994).
The French are impressed by a personal sense of style that is both formal and fashionable.
Businesswomen are noted for dressing up an outfit by using accessories (Gesteland, 1999). In
France, formality is practiced in every respect including gift giving. Although gifts should not
be given on the first encounter, it would be acceptable to bring a small gift for a host. Giving
products with logos is very common, as is giving books and music. The French are impressed if
the gift given shows that some thought was put into it (Morrison et al., 1994).
Business Behavior in the United States
In the United States, the first impression is key to a successful business relationship. Americans
like direct eye contact and a firm handshake from a client or partner. They often perceive a weak
handshake as a sign of weakness in all aspects of life (Kenna and Lacy, 1994a). When being
introduced, American business people typically give a full name but insist that they are called by
their first name.
Of the four countries discussed, citizens of the United States are the most casual in both
addressing one another and in dress. When meeting in a purely social environment, the foreign
business person should expect to come dressed casually, rather than in proper business attire
(Kenna and Lacy, 1994b). Americans tend to be very friendly and will go out of their way to say
hello or wave from afar. Like the other cultures, business cards are given frequently but are not
treated with the same amount of respect as other countries. They are usually presented after the
first meeting with the other party rather than the beginning (Gesteland, 1999).
In the United States, gift giving is not practiced very often and is discouraged by law, but
it is still done in some settings. In two situations gifts are appropriate: if attending a function at
the person’s home or after a deal is closed (Morrison et al., 1994).
The Impact of Cultural Differences
Styles of communication, both verbal and nonverbal, are different in many cultures. Words and
phrases can be interpreted differently, as can gestures. Something as simple as a nod can be
interpreted in two completely different ways in two countries. Seating arrangements and the
distance between two people are also something that varies form culture to culture. It is
important to be sensitive to the place business is being conducted. Also important for the
traveling business person, is to observe things like speaking volume, posture, touching, typical
conversation, and how something is written.
Chinese Cultural Norms
China has one of largest populations in the world; therefore, certain behaviors that may be
considered rude here are generally accepted there. For example, pushing and shoving on buses
or trains is not considered out of the ordinary (Kenna and Lacy, 1994a). Also, spitting on the
street is not considered foul or disgusting but a cultural norm (Martin and Chaney, 2006).
As mentioned previously, China is not a touching culture, and individuals like to
maintain their personal space. They tend to speak softly and expect their guests to do the same.
Pointing with one finger is considered very rude. If pointing is necessary, it should be done with
an open hand. Also, the traveler to China should be aware that “yes” does not always mean that
a Chinese business person is in agreement with what is said. It means simply that they have
heard what was said and will consider it (Kenna and Lacy, 1994a).
Norms in Mexico
Closeness in a family setting, as well as a business setting, is a way of life in Mexico. Physical
contact, even same sex, is seen as part of the cultural norm, and increased physical contact is a
sign that the relationship is progressing. To pull back or step away from someone is considered
rude and unfriendly (Martin and Chaney, 2006). Mexicans stand much closer to one another
than is comfortable for Americans. They are animated speakers and use many expressions and
gestures while talking or presenting something (Kenna and Lacy, 1994c).
When a Mexican business contact is speaking, it is important not to maintain eye contact
the whole time. Continued eye contact and placing hands on hips are seen as confrontational
actions and aggressive behavior. Also, Mexicans will feel threatened, challenged, and annoyed
if an American uses the phrase, “How we do it in America is…”(Kenna and Lacy, 1994c).
Common habits that seem normal to some may be interpreted differently in Mexico. For
example, placing hands in the pockets of clothing is considered impolite. Additionally giving
someone a thumbs down is seen as vulgar and should never be done (Martin and Chaney, 2006).
Appropriate Behavior in France
J ust as the thumbs down is vulgar in Mexico, slapping a fist over an open palm is considered
vulgar in France. Some things that may seem perfectly fine to do in some places are
unacceptable in France. Combing hair, placing hands in pockets, or yawning are all examples of
actions that are rude. Chewing gum is also considered a bad habit and should not be done in
public (Kenna and Lacy, 1994b).
Gestures can also be construed differently. Pointing to the eye means, “You can’t fool
me.” The hand sign for okay in English means zero or worthless in France. It is important to be
careful of these things when in a foreign place. The French are often more intense with their eye
contact and with gestures. They remain very formal, for the most part, and dislike touching
(Kenna and Lacy, 1994b).
It is important not to slouch, sit with legs apart, or with legs stretched out completely
when in a meeting in France. Standing with arms folded also gives a negative vibe in the French
business world, and in France in general (Martin and Chaney, 2006).
When holding a conversation, it is a good idea to make sure an interpreter is present if
needed, though the French do appreciate it if an effort is made to use their language. Being able
to discuss matters of French art, history, and architecture are good choices for topics of
conversation when initiating a relationship because the French value interest shown in their
culture. Topics that should be avoided include personal questions, politics, money, and religion.
Using the word “I” is not a good idea as, in France, using the word “I” is negatively associated
with arrogance and boasting (Gesteland, 1999).
American Behavioral Norms
While Americans also do not like boasting, they are more focused on the individual and are more
self-centered than members of other cultures. Americans tend to confront problems head on, and
get right to the point when it comes to conversation (Kenna and Lacy, 1994a). Normal distance
is about an arm’s length away from each other, but varies depending on the person. Touching
also varies. Common forms of touching in the United States include patting one another on the
back, and slapping each other lightly on the arms (Gesteland, 1999).
When receiving mail or setting up dates for meetings, care must be taken with the way
the date is written. In America the date is written in the format of month, day, and then year; in
most other countries it is written day, month, and then year (Morrison et al., 1994). Styles of
communication are different everywhere. To ensure successful business relationships, it is
imperative that communication styles are learned before visiting any other country so that
offensive mistakes may be avoided.
The Place of Social Settings in China
In many countries, when someone wants to do business they often want to develop a relationship
first, getting to know their future partner, client, or employee through social settings, rather than
by doing business. Often this relationship will be developed through social interaction at
banquets, luncheons, dinners, visits to individual homes, and over drinks (Gesteland, 1999). It is
vital to know not only how to behave when put in these situations, but also what is expected of a
visitor. There may be rules, or cultural norms, for eating, when arrival is expected, and how to
dress. Again, this varies from country to country and should be researched in advance.
Banquets and lunches are the most common ways in which the Chinese will try to get to
know a person. These events are not set up to talk about business, so it is important to let the
Chinese hosts lead the conversation, and not bring up business unless directly asked a question
(Kenna and Lacy, 1994a).
When invited out, it is customary for a visiting business person to arrive 20 to 30 minutes
early, although the host will probably arrive right on time. While eating, it is crucial to have
good manners because the Chinese are easily offended by how people eat. It is impolite to eat or
drink before the host does, and it is also considered impolite to take the last bit of food in a dish
because it signifies hunger (Morrison et al., 1994).
Even if it is hard to use chopsticks, the Chinese are pleased when a foreign business
person attempts to use them. Great pride is taken in the food of China, and sampling the various
dishes presented at a lunch or dinner is considered good manners. If a visitor finds a dish less
than pleasing, that visitor should politely refuse seconds and move to the next dish. If visiting a
host at home, it is prudent to be mindful that when fruit is offered or hot towels, presented it is a
sign that it is time for the honored guests of the evening to depart (Martin and Chaney, 2006).
Social Settings in Mexico
As in China, people in Mexico often use social events to get to know potential business partners
before they are willing to make any business commitments. At these events business is not to be
discussed. Instead family, sports and Mexican culture are more appropriate topics (Kenna and
Lacy, 1994c).
Mexico is a bit more casual about meetings, and it is customary to arrive 20 to 30 minutes
late to a dinner. Table manners are comparable to those of United States, except that both hands
should remain on the table throughout the entire meal. Normally the host will pay; but, if a
personal tip is given to the server by the guest it should be placed directly into their hands
(Martin and Chaney, 2006). If a woman is inviting a man to a business dinner or event it is
almost required that she invite his wife to join them (Gesteland, 1999).
Social Behavior in France
Business people in France share the behavior of building relationships through social events. In
France, as in China and Mexico, individuals find it very important to get to know the people with
whom they will be working, before they actually start doing business with them. If a potential
business partner is invited out for dinner in France, that individual should plan to arrive about
five to ten minutes late. This is done so one does not appear to be too anxious (Kenna and Lacy,
1994b). If a dinner is going to be held at the French host’s home, the visitor should plan to arrive
about 15 minutes late.
Normally a host will invite a visiting guest to join them at a meal, but in case the visitor
offers the invitation, that visitor must realize that it is generally the person who extends the
invitation who is expected to pay. Although business is not usually conducted at these events, if
business must be discussed over a meal, then lunch is the preferred meal during which to have
discussion. Also, it is important to show enthusiasm for the food and the place where the
luncheon is being held before discussing any heavy business matters (Morrison et al., 1994).
When eating, cleaning the plate or taking a second helping is not viewed as rude, but
rather is a way of expressing that the food was enjoyed. Cutting a salad with a knife is impolite;
instead the pieces of lettuce should be folded to fit on the fork. To impress a French partner, a
visiting business person might try a traditional French dish. The effort to experience the French
culture will be appreciated (Martin and Chaney, 2006).
A Different View of Social Interaction in the United States
In the United States, social interaction is viewed differently than it is in the three other countries
reviewed in this research. Lunches, dinners, and other gatherings are seen as appropriate venues
to conduct business with potential clients, partners, or employees.
People in the United States tend to be less concerned with getting to know people and
more concerned with closing deals (Morrison et al., 1994). They tend to be rushed and very
direct. Americans are punctual and expect guests to arrive on time for all events, including
social ones. Individuals should come prepared to talk business.
A recent addition to the social-business meal is the “power breakfast,” where meetings
are conducted over breakfast. Behavior during breakfast should be considered the same as other
meals. Americans are more focused on the business aspect of meals than they are with manners
or conversation (Gesteland, 1999). Getting down to business, without much small talk or
socializing, is appropriate. For Americans, relationships can be formed while business is taking
place (Gesteland, 1999). “Time is money” is a recurring theme in the United States.
Business Negotiation and Acceptable Practices in China
Negotiating business in China is very different from American practices. It is good practice to
send the same representative to do business in China every time. This builds the strong, solid
relationship that the Chinese prefer. While in a meeting, the Chinese will be very vague in their
propositions so that those propositions may be adjusted in the future if needed. It would not be
unusual to ask the same question in many different ways in order to test a potential partner for
consistency, although this practice tries the patience of the other negotiating party (Kenna and
Lacy, 1994a).
Losing face is an important issue in Chinese culture, so that confrontation and direct
questioning should be avoided at all costs. It is considered rude to question authority, speak
loudly, or to give a negative answer (Kenna and Lacy, 1994a). In a negotiation only a leader
should be singled out; it is important not to single out others. It is easy to spot the leader because
he or she will be the only person speaking, and the one to make the final decisions (Martin and
Chaney, 2006).
As the Chinese behave in a modest manner, a business partner, client, or employee
should act accordingly. As an example, if one is selling something, it is preferable to solicit the
opinions of others on the sale item, in addition to those of the seller. This will be appreciated
much more (Gesteland, 1999). People of the Chinese culture are very reserved and hard
working, and it is vital that visiting business people remain modest and polite while conducting
business there.
Acceptable Practices in Mexico
Mexico is similar to China in that it prefers a slower pace in meetings and negotiations.
Mexicans tend to prefer a relaxed approach, and in a normal meeting there are likely to be many
delays and small interruptions. Also, they will most likely show up a few minutes late to a
meeting, a means of saying, “No one has power over me.”
In general, the Mexican culture is not what would be considered a “meeting” culture
(Kenna and Lacy, 1994c). Although Mexican business people would rather meet in person than
do business over the phone or through email, it may be difficult for them to stay focused on only
business topics. There may be long tangents prior to initiating negotiations; jumping right into
negotiations is not likely.
“Personalismo,” or personal friendships, are much more important than any business
contract (Morrison et al., 1994). Negotiations in Mexico take place often, and when they do,
Mexicans tend to be very expressive and passionate. Ideas are usually presented creatively, and
style of presentation is key to getting the point across. Visuals aids such as graphs or models and
anything “hands on” like handouts are advantageous in negotiations (Kenna and Lacy, 1994c).
Business contracts are not detailed, and are not considered as binding agreements in
Mexico. Rather contracts constitute what business partners are striving for. Final decisions
regarding any agreement are made by the most senior members of a business delegation, and are
not subject to question by lower level associates.
Most managers of Mexican companies are not quick to delegate responsibilities,
especially if it involves delegating to a woman. It is a very male-oriented culture and all
communication should be done through a male if possible (Kenna and Lacy, 1994c). The
Spanish word for appropriate male behavior is “machismo.” This term suggests that men are
expected to show self confidence, force, courage, and strong leadership. Regrettably this also
prevents many women from advancing to top positions in Mexican companies (Kenna and Lacy,
1994c). Overall, Mexicans can be sensitive people, and tend to avoid competition or criticism.
A danger to the foreigner doing business in Mexico, is that the Mexican business person
might wish to avoid causing “hurt feelings” by telling a business associate what they wish to hear
rather than telling someone the truth. This is a negative because sometimes it is important to hear
about negative things that are taking place around a business or negotiation (Kenna and Lacy,
1994c). Also, though they are good at haggling, Mexicans often do not like to take risks, and
plan for short-term rather than long-term. Promotions are based on loyalty, unlike the United
States where loyalty is only one small part of why someone is promoted.
Acceptable Practices in France
The French are also sensitive to risks. In their culture mistakes are not tolerated and compliments
are rarely given. In a negotiation, a strict schedule is rarely followed and plans are changed
frequently. A guest is expected to arrive on time to any type of meeting; however, the host will
probably arrive late, to indicate that he or she is very busy (Kenna and Lacy, 1994b).
During a meeting, interruptions are frequent and talking over one another is common but
it is respectful to stand when a superior enters a room. Debating during negotiations is a strength
to the French (Morrison et al., 1994). Exchanging views is considered stimulating in French
culture; this translates to an appreciation of showing all sides in a debate. Even those
perspectives with which they do not agree will be valued because recognition will be given to
those who are strong debaters. Presenting an argument with wit and scholarly references, mixed
with elegance and good use of language, is admired. The French are patient and do not make
decisions until after much deliberation (Kenna and Lacy, 1994b).
French society tends to be one of the more hierarchal societies in the world when it
comes to business. Status is very important and is based upon degrees, awards and schools
attended. It is a country where trust must be earned, and education is the main ticket to a
successful career. As a whole, the French are very proud and rivalry, rather than teamwork, is
likely to occur (Kenna and Lacy, 1994b). Strong leadership is appreciated, and top managers
will keep strict control, which workers are expected to obey. In business, the French may not
want to plan very far ahead because they perceive too many things able to interfere with long-
term plans (Kenna and Lacy, 1994b). Being very engaged in intellectual conversation and
behaving in a scholarly way during discussion is ideal if one wishes to clinch a deal with a
French company.
Business Practices in the United States
When arriving for a scheduled meeting in the United States, the business person should be sure
to be punctual or even a few minutes early. If a guest arrives late, Americans perceive them as
being rude or highly disorganized (Gesteland, 1999).
An action plan or agenda with a clear cut schedule is provided at almost all formal
business meetings, and contracts are written out ahead of time. That way time is not wasted in
the drafting of new contracts and previously contracts may be easily modified (Kenna and Lacy,
1994a). In negotiating, American business people are more likely to be very open and direct,
and normally do not enjoy haggling. The United States produces the fastest negotiators in the
world.
Although they are competitive, Americans value flexibility and spontaneity, and these
characteristics play key roles when trying to close out a deal. Often Americans will accept sub-
par deals towards the end of a negotiation, due simply to an impatient desire to complete the
transaction (Kenna and Lacy, 1994b). Americans tend not to be comfortable with silence and
will make every effort to maintain constant communication. Interruptions are not always
welcomed either; in presentations all questions and comments should be held to the end of a
gathering unless otherwise specified (Gesteland, 1999).
In less formal business settings, Americans are more relaxed and place great emphasis on
personal achievement. Fairness and the ability for a person to move up and down the business
ladder are highly valued; however, businesses in the United States also value teamwork.
Unlike many other countries, business in the United States is based on personal power
rather than class, status or seniority. Hiring family or friends solely based on favoritism is
completely unethical in the United States (Kenna and Lacy, 1994c). Americans are not as
reserved about their personal opinions and express themselves freely in the work environment,
including giving input on important decisions. Managers tend to delegate many of their
responsibilities, and it is not uncommon to see lower ranked employees questioning superiors.
Decisions are made on all levels (Kenna and Lacy, 1994b).
Americans think big and are constantly planning for and anticipating the future. A job
description is appreciated when interviewing because clear cut roles are preferred in a business
environment. Once at a job, all employees are expected to be immediately loyal. Changing jobs
is very common. A person does not usually stay at one job his or her entire career. Americans
are risk takers; they are likely to take chances to achieve goals. In this environment, money
equals power and status (Kenna and Lacy, 1994b).
Conclusion
Every country has a different way of communicating and a unique way of doing business. The
Chinese tend to be reserved and patient and do not like to be pressured during negotiations. In
Mexico, individuals are relationship oriented and like to become friendly with those with whom
they are working. Respect plays a huge role in relationships and business people in Mexico will
welcome anyone who treats them as valuable. In France, one may not feel as comfortable as in a
Mexican culture, but France possesses one of the most interesting business cultures in the world.
In France, relationships are developed before business takes place- a phenomenon that occurs in
China and Mexico as well.
The emphasis is on deal making in the United States. Americans do not feel it is
necessary to form a personal relationship before entering into a business contract with someone.
A fast-paced, scheduled plan is the way negotiations are conducted, and for the most part,
individuals in the United States do not like to haggle.
This research has illustrated the importance of knowledge of other cultures as the key to
reducing risk of failure in business relationships. Revisiting J ohn’s trip to China from earlier, it is
now easy to identify exactly what he did wrong. His company is also to fault for not making
sure he was prepared to meet with Chinese clients before he was sent.
Today, globalization is the norm, and it is important that people go to different countries
prepared to do business and behave in a socially acceptable manner. This includes having a
sense of communication styles, being aware of body language, learning meeting and negotiation
skills, dressing appropriately, giving proper greetings, and learning how social events are
conducted. It is best to be sensitive to other cultures and always treat people with respect.
Goethe once said, “There is nothing more frightful than ignorance in action.” This applies to
international business and business people should be aware that informed actions will be
appreciated by all.
References
DuPraw, M.and Axner, M. (1997). Working on common cross-cultural communication
challenges. Retrieved November 3, 2007, from http://www.pbs.org/ampu/crosscult.html
Gesteland, R.R. (1999). Cross-culture business behavior. Herndon, VA: Copenhagen Business
School Press.
Kenna, P. and Lacy, S. (1994). Business China: a practical guide to understanding Chinese
business culture. Lincolnwood, IL: NTC Publishing Group.
Kenna, P. and Lacy, S. (1994). Business France: A practical guide to understanding French
business culture. Lincolnwood, IL: NTC Publishing Group.
Kenna, P. and Lacy, S. (1994). Business Mexico: A practical guide to understanding Mexican
business culture. Lincolnwood, IL: NTC Publishing Group.
Martin, J .S. and Chaney, L.H. (2006). Global business etiquette. Westport, CT: Praeger
Publishers.
Morrison, T., Conaway, W. and Borden, G. (1994). Kiss, bow, or shake hands. Avon, MA:
Adams Media.
doc_566490455.pdf
With the tremendous increase in global trade, learning more about doing international business has become especially significant. It is vital to learn about the different cultures around the world before doing business in other countries, in order to reduce the risk of failure.
The Effect of Culture on Business Relationships
Ashley Bowie
Introduction
With the tremendous increase in global trade, learning more about doing international business
has become especially significant. It is vital to learn about the different cultures around the
world before doing business in other countries, in order to reduce the risk of failure. Becoming
knowledgeable about different countries’ communication styles, body language, meeting and
negotiation tactics, dress, greetings, and social events are all keys to having good business
relationships with individuals in other countries. China, Mexico, France and the United States
are nations that do business with each other regularly. While they do share similarities, there are
many differences between these cultures.
It is J ohn’s first trip overseas to meet a potential client in China for his company, Toys
Inc. Upon arrival he greets the first man he sees with a loud, boisterous hello and a firm hug.
After being formally introduced, he calls his potential client by his first name, and shoves the
business card he was given carelessly into his pocket. Later in the day he joins his new team for
a business lunch where he arrives five minutes late. There J ohn takes the initiative to begin
eating, using a fork, and takes the last of the food on the table. During the meal he is loud, and
makes an attempt to tell a joke when there is silence at the table.
J ohn’s outgoing, friendly personality makes him a great employee of Toys Inc. in the
United States; however, his behavior with the Chinese clients could cost Toys Inc. their business.
Communication and business practices vary greatly from country to country. It is important for
American business men and women to study the way business is conducted in other countries as
there are very different norms for behavior across borders. This not only includes the way
meetings and negotiations are run, but how greetings are done, whether gifts are appropriate,
what types of verbal and non-verbal communication are used, as well as cultural attitudes. It is
also imperative to learn how to behave in a social setting, because in many countries a personal
relationship precedes that of a business relationship.
Thomas J affee once said that first impressions- looking good and having a friendly
greeting for someone- will go a long way. In business, this is much harder than it sounds
because looking good and being friendly must be catered specifically to each culture. On a first
encounter, eye contact, distance, introduction styles, dress, gifts, and language are all things that
should be studied before a meeting takes place. In this research, four countries will be explored
in detail including China, Mexico, France and the United States of America.
Appropriate Business Behavior in China
Of these four countries, business culture in China is the most reserved, and is perhaps most
unlike that of the United States. First and foremost, a contact should always be established
before representatives of a business are sent to China. Trips to China are best if scheduled
between the months of April to J une, and September through October, when they will not
conflict with any Chinese holidays (Morrison, Conaway, and Borden, 1994). On arrival, the
business person should not touch people because touching makes the Chinese uncomfortable,
especially if it is the first meeting. Inappropriate touching would include patting on the back or
squeezing the arm (Morrison et al., 1994).
In China a light handshake is accepted, but the Chinese business associate should initiate
the action. Bowing is common and is done with the palms together while facing each other
(Gesteland, 1999). Holding eye contact is a sign of disrespect and should be done cautiously,
especially in a social setting.
When entering a room full of potential business partners, greeting the most senior person
first is important, as is using appropriate titles. Sometimes the last name is said first in Chinese
culture, and individuals will expect to be addressed formally until they say otherwise. Also, if
greeted with applause, return the gesture (Kenna and Lacy, 1994a).
Chinese often show little to no emotion. Generally joking is not accepted because they
may not interpret humor in the same way as others. Exchanging business cards is something of
great importance in China. Business cards should be printed in both English and Chinese and in
plain lettering. Cards should be accepted using both hands, read, and placed somewhere safe. It
is inappropriate to write on another’s card in front of the person who gave it (Morrison et al.,
1994).
Business dress in China is conservative and formal. Women should wear a high neckline,
and should avoid high heels if they make them taller than their host. Gift giving should be done
only after a relationship has developed, and should be modest (Martin and Chaney, 2006). It is
important to consider carefully what is given. Researching potential cultural superstitions and
hidden meanings is a very good idea. For example, a clock, anything given in a group of four,
and white flowers all symbolize death. If a gift seems appropriate for a particular business
situation, a nice pen or cognac is a good choice. A gift received should not be opened
immediately; it is polite to open it at a later time (Martin and Chaney, 2006).
Business Behavior in Mexico
Mexico has a more expressive culture than does China and individuals show more affection and
emotion. On the first meeting, a potential partner or client should be addressed formally using
titles. Like China, the most senior person should be addressed first followed by everyone else in
the room. Shaking hands is very common and should be done with all upon entry and exit.
If meeting with a woman, bow and wait for her to extend a hand. If meeting with a man,
it is the women’s choice whether to offer her hand (Gesteland, 1999). At later meetings, a hug
may be given rather than a handshake; this is a compliment. Appointments should always be
made two to three weeks prior to when a meeting is desired.
In Mexico and other Spanish speaking countries, attempts at learning and speaking basic
greetings in Spanish go a long way, even if they are not perfect (Gesteland, 1999). Business
cards should be printed in both English and Spanish. Mexican dress is conservative and fairly
formal. The way one is dressed and groomed is a symbol of their status in society (Kenna and
Lacy, 1994c). Women should wear a dress or skirt and look feminine, and should not always
expect to be treated equally in a Spanish speaking country (Martin and Chaney, 2006).
For the most part, gifts are not customary in Mexico, but are accepted. The gift of
flowers is not a good choice and should be avoided if possible because the colors of different
flowers have various meanings. For example, yellow and purple signify death while red is said to
cast spells (Morrison et al., 1994). One occasion where a gift absolutely should be presented is
to a secretary who has helped with the business transactions. If a man is presenting a gift to a
female secretary he should always say it was sent by his wife (Morrison et al., 1994).
The French View of Business Behavior
In France, introductions are very formal and should be given by the embassy of the visiting
country if possible, or at least by someone who knows the French party. It is not a good idea to
travel to France in the months of J uly through August, because these are the holiday or vacation
months (Morrison et al., 1994).
First names should not be used until one is specifically told to do so. It may be the case
that a French business person introduces him or herself saying their last name first, so care must
be taken during the introduction process. It is rude to simply ask the individual to clarify, so
some other means of clarifying the name will have to be used. Shaking hands is the most
common form of touching in French culture and should include everyone in the room, though it
is possible to see a small kiss given on each cheek (Kenna and Lacy, 1994b).
The exchanging of business cards comes only after a relationship has been established
and their content should be treated very carefully (Martin and Chaney, 2006). Also, they should
be printed in English and French and should include the degrees earned rather than a job title and
description (Morrison et al., 1994).
The French are impressed by a personal sense of style that is both formal and fashionable.
Businesswomen are noted for dressing up an outfit by using accessories (Gesteland, 1999). In
France, formality is practiced in every respect including gift giving. Although gifts should not
be given on the first encounter, it would be acceptable to bring a small gift for a host. Giving
products with logos is very common, as is giving books and music. The French are impressed if
the gift given shows that some thought was put into it (Morrison et al., 1994).
Business Behavior in the United States
In the United States, the first impression is key to a successful business relationship. Americans
like direct eye contact and a firm handshake from a client or partner. They often perceive a weak
handshake as a sign of weakness in all aspects of life (Kenna and Lacy, 1994a). When being
introduced, American business people typically give a full name but insist that they are called by
their first name.
Of the four countries discussed, citizens of the United States are the most casual in both
addressing one another and in dress. When meeting in a purely social environment, the foreign
business person should expect to come dressed casually, rather than in proper business attire
(Kenna and Lacy, 1994b). Americans tend to be very friendly and will go out of their way to say
hello or wave from afar. Like the other cultures, business cards are given frequently but are not
treated with the same amount of respect as other countries. They are usually presented after the
first meeting with the other party rather than the beginning (Gesteland, 1999).
In the United States, gift giving is not practiced very often and is discouraged by law, but
it is still done in some settings. In two situations gifts are appropriate: if attending a function at
the person’s home or after a deal is closed (Morrison et al., 1994).
The Impact of Cultural Differences
Styles of communication, both verbal and nonverbal, are different in many cultures. Words and
phrases can be interpreted differently, as can gestures. Something as simple as a nod can be
interpreted in two completely different ways in two countries. Seating arrangements and the
distance between two people are also something that varies form culture to culture. It is
important to be sensitive to the place business is being conducted. Also important for the
traveling business person, is to observe things like speaking volume, posture, touching, typical
conversation, and how something is written.
Chinese Cultural Norms
China has one of largest populations in the world; therefore, certain behaviors that may be
considered rude here are generally accepted there. For example, pushing and shoving on buses
or trains is not considered out of the ordinary (Kenna and Lacy, 1994a). Also, spitting on the
street is not considered foul or disgusting but a cultural norm (Martin and Chaney, 2006).
As mentioned previously, China is not a touching culture, and individuals like to
maintain their personal space. They tend to speak softly and expect their guests to do the same.
Pointing with one finger is considered very rude. If pointing is necessary, it should be done with
an open hand. Also, the traveler to China should be aware that “yes” does not always mean that
a Chinese business person is in agreement with what is said. It means simply that they have
heard what was said and will consider it (Kenna and Lacy, 1994a).
Norms in Mexico
Closeness in a family setting, as well as a business setting, is a way of life in Mexico. Physical
contact, even same sex, is seen as part of the cultural norm, and increased physical contact is a
sign that the relationship is progressing. To pull back or step away from someone is considered
rude and unfriendly (Martin and Chaney, 2006). Mexicans stand much closer to one another
than is comfortable for Americans. They are animated speakers and use many expressions and
gestures while talking or presenting something (Kenna and Lacy, 1994c).
When a Mexican business contact is speaking, it is important not to maintain eye contact
the whole time. Continued eye contact and placing hands on hips are seen as confrontational
actions and aggressive behavior. Also, Mexicans will feel threatened, challenged, and annoyed
if an American uses the phrase, “How we do it in America is…”(Kenna and Lacy, 1994c).
Common habits that seem normal to some may be interpreted differently in Mexico. For
example, placing hands in the pockets of clothing is considered impolite. Additionally giving
someone a thumbs down is seen as vulgar and should never be done (Martin and Chaney, 2006).
Appropriate Behavior in France
J ust as the thumbs down is vulgar in Mexico, slapping a fist over an open palm is considered
vulgar in France. Some things that may seem perfectly fine to do in some places are
unacceptable in France. Combing hair, placing hands in pockets, or yawning are all examples of
actions that are rude. Chewing gum is also considered a bad habit and should not be done in
public (Kenna and Lacy, 1994b).
Gestures can also be construed differently. Pointing to the eye means, “You can’t fool
me.” The hand sign for okay in English means zero or worthless in France. It is important to be
careful of these things when in a foreign place. The French are often more intense with their eye
contact and with gestures. They remain very formal, for the most part, and dislike touching
(Kenna and Lacy, 1994b).
It is important not to slouch, sit with legs apart, or with legs stretched out completely
when in a meeting in France. Standing with arms folded also gives a negative vibe in the French
business world, and in France in general (Martin and Chaney, 2006).
When holding a conversation, it is a good idea to make sure an interpreter is present if
needed, though the French do appreciate it if an effort is made to use their language. Being able
to discuss matters of French art, history, and architecture are good choices for topics of
conversation when initiating a relationship because the French value interest shown in their
culture. Topics that should be avoided include personal questions, politics, money, and religion.
Using the word “I” is not a good idea as, in France, using the word “I” is negatively associated
with arrogance and boasting (Gesteland, 1999).
American Behavioral Norms
While Americans also do not like boasting, they are more focused on the individual and are more
self-centered than members of other cultures. Americans tend to confront problems head on, and
get right to the point when it comes to conversation (Kenna and Lacy, 1994a). Normal distance
is about an arm’s length away from each other, but varies depending on the person. Touching
also varies. Common forms of touching in the United States include patting one another on the
back, and slapping each other lightly on the arms (Gesteland, 1999).
When receiving mail or setting up dates for meetings, care must be taken with the way
the date is written. In America the date is written in the format of month, day, and then year; in
most other countries it is written day, month, and then year (Morrison et al., 1994). Styles of
communication are different everywhere. To ensure successful business relationships, it is
imperative that communication styles are learned before visiting any other country so that
offensive mistakes may be avoided.
The Place of Social Settings in China
In many countries, when someone wants to do business they often want to develop a relationship
first, getting to know their future partner, client, or employee through social settings, rather than
by doing business. Often this relationship will be developed through social interaction at
banquets, luncheons, dinners, visits to individual homes, and over drinks (Gesteland, 1999). It is
vital to know not only how to behave when put in these situations, but also what is expected of a
visitor. There may be rules, or cultural norms, for eating, when arrival is expected, and how to
dress. Again, this varies from country to country and should be researched in advance.
Banquets and lunches are the most common ways in which the Chinese will try to get to
know a person. These events are not set up to talk about business, so it is important to let the
Chinese hosts lead the conversation, and not bring up business unless directly asked a question
(Kenna and Lacy, 1994a).
When invited out, it is customary for a visiting business person to arrive 20 to 30 minutes
early, although the host will probably arrive right on time. While eating, it is crucial to have
good manners because the Chinese are easily offended by how people eat. It is impolite to eat or
drink before the host does, and it is also considered impolite to take the last bit of food in a dish
because it signifies hunger (Morrison et al., 1994).
Even if it is hard to use chopsticks, the Chinese are pleased when a foreign business
person attempts to use them. Great pride is taken in the food of China, and sampling the various
dishes presented at a lunch or dinner is considered good manners. If a visitor finds a dish less
than pleasing, that visitor should politely refuse seconds and move to the next dish. If visiting a
host at home, it is prudent to be mindful that when fruit is offered or hot towels, presented it is a
sign that it is time for the honored guests of the evening to depart (Martin and Chaney, 2006).
Social Settings in Mexico
As in China, people in Mexico often use social events to get to know potential business partners
before they are willing to make any business commitments. At these events business is not to be
discussed. Instead family, sports and Mexican culture are more appropriate topics (Kenna and
Lacy, 1994c).
Mexico is a bit more casual about meetings, and it is customary to arrive 20 to 30 minutes
late to a dinner. Table manners are comparable to those of United States, except that both hands
should remain on the table throughout the entire meal. Normally the host will pay; but, if a
personal tip is given to the server by the guest it should be placed directly into their hands
(Martin and Chaney, 2006). If a woman is inviting a man to a business dinner or event it is
almost required that she invite his wife to join them (Gesteland, 1999).
Social Behavior in France
Business people in France share the behavior of building relationships through social events. In
France, as in China and Mexico, individuals find it very important to get to know the people with
whom they will be working, before they actually start doing business with them. If a potential
business partner is invited out for dinner in France, that individual should plan to arrive about
five to ten minutes late. This is done so one does not appear to be too anxious (Kenna and Lacy,
1994b). If a dinner is going to be held at the French host’s home, the visitor should plan to arrive
about 15 minutes late.
Normally a host will invite a visiting guest to join them at a meal, but in case the visitor
offers the invitation, that visitor must realize that it is generally the person who extends the
invitation who is expected to pay. Although business is not usually conducted at these events, if
business must be discussed over a meal, then lunch is the preferred meal during which to have
discussion. Also, it is important to show enthusiasm for the food and the place where the
luncheon is being held before discussing any heavy business matters (Morrison et al., 1994).
When eating, cleaning the plate or taking a second helping is not viewed as rude, but
rather is a way of expressing that the food was enjoyed. Cutting a salad with a knife is impolite;
instead the pieces of lettuce should be folded to fit on the fork. To impress a French partner, a
visiting business person might try a traditional French dish. The effort to experience the French
culture will be appreciated (Martin and Chaney, 2006).
A Different View of Social Interaction in the United States
In the United States, social interaction is viewed differently than it is in the three other countries
reviewed in this research. Lunches, dinners, and other gatherings are seen as appropriate venues
to conduct business with potential clients, partners, or employees.
People in the United States tend to be less concerned with getting to know people and
more concerned with closing deals (Morrison et al., 1994). They tend to be rushed and very
direct. Americans are punctual and expect guests to arrive on time for all events, including
social ones. Individuals should come prepared to talk business.
A recent addition to the social-business meal is the “power breakfast,” where meetings
are conducted over breakfast. Behavior during breakfast should be considered the same as other
meals. Americans are more focused on the business aspect of meals than they are with manners
or conversation (Gesteland, 1999). Getting down to business, without much small talk or
socializing, is appropriate. For Americans, relationships can be formed while business is taking
place (Gesteland, 1999). “Time is money” is a recurring theme in the United States.
Business Negotiation and Acceptable Practices in China
Negotiating business in China is very different from American practices. It is good practice to
send the same representative to do business in China every time. This builds the strong, solid
relationship that the Chinese prefer. While in a meeting, the Chinese will be very vague in their
propositions so that those propositions may be adjusted in the future if needed. It would not be
unusual to ask the same question in many different ways in order to test a potential partner for
consistency, although this practice tries the patience of the other negotiating party (Kenna and
Lacy, 1994a).
Losing face is an important issue in Chinese culture, so that confrontation and direct
questioning should be avoided at all costs. It is considered rude to question authority, speak
loudly, or to give a negative answer (Kenna and Lacy, 1994a). In a negotiation only a leader
should be singled out; it is important not to single out others. It is easy to spot the leader because
he or she will be the only person speaking, and the one to make the final decisions (Martin and
Chaney, 2006).
As the Chinese behave in a modest manner, a business partner, client, or employee
should act accordingly. As an example, if one is selling something, it is preferable to solicit the
opinions of others on the sale item, in addition to those of the seller. This will be appreciated
much more (Gesteland, 1999). People of the Chinese culture are very reserved and hard
working, and it is vital that visiting business people remain modest and polite while conducting
business there.
Acceptable Practices in Mexico
Mexico is similar to China in that it prefers a slower pace in meetings and negotiations.
Mexicans tend to prefer a relaxed approach, and in a normal meeting there are likely to be many
delays and small interruptions. Also, they will most likely show up a few minutes late to a
meeting, a means of saying, “No one has power over me.”
In general, the Mexican culture is not what would be considered a “meeting” culture
(Kenna and Lacy, 1994c). Although Mexican business people would rather meet in person than
do business over the phone or through email, it may be difficult for them to stay focused on only
business topics. There may be long tangents prior to initiating negotiations; jumping right into
negotiations is not likely.
“Personalismo,” or personal friendships, are much more important than any business
contract (Morrison et al., 1994). Negotiations in Mexico take place often, and when they do,
Mexicans tend to be very expressive and passionate. Ideas are usually presented creatively, and
style of presentation is key to getting the point across. Visuals aids such as graphs or models and
anything “hands on” like handouts are advantageous in negotiations (Kenna and Lacy, 1994c).
Business contracts are not detailed, and are not considered as binding agreements in
Mexico. Rather contracts constitute what business partners are striving for. Final decisions
regarding any agreement are made by the most senior members of a business delegation, and are
not subject to question by lower level associates.
Most managers of Mexican companies are not quick to delegate responsibilities,
especially if it involves delegating to a woman. It is a very male-oriented culture and all
communication should be done through a male if possible (Kenna and Lacy, 1994c). The
Spanish word for appropriate male behavior is “machismo.” This term suggests that men are
expected to show self confidence, force, courage, and strong leadership. Regrettably this also
prevents many women from advancing to top positions in Mexican companies (Kenna and Lacy,
1994c). Overall, Mexicans can be sensitive people, and tend to avoid competition or criticism.
A danger to the foreigner doing business in Mexico, is that the Mexican business person
might wish to avoid causing “hurt feelings” by telling a business associate what they wish to hear
rather than telling someone the truth. This is a negative because sometimes it is important to hear
about negative things that are taking place around a business or negotiation (Kenna and Lacy,
1994c). Also, though they are good at haggling, Mexicans often do not like to take risks, and
plan for short-term rather than long-term. Promotions are based on loyalty, unlike the United
States where loyalty is only one small part of why someone is promoted.
Acceptable Practices in France
The French are also sensitive to risks. In their culture mistakes are not tolerated and compliments
are rarely given. In a negotiation, a strict schedule is rarely followed and plans are changed
frequently. A guest is expected to arrive on time to any type of meeting; however, the host will
probably arrive late, to indicate that he or she is very busy (Kenna and Lacy, 1994b).
During a meeting, interruptions are frequent and talking over one another is common but
it is respectful to stand when a superior enters a room. Debating during negotiations is a strength
to the French (Morrison et al., 1994). Exchanging views is considered stimulating in French
culture; this translates to an appreciation of showing all sides in a debate. Even those
perspectives with which they do not agree will be valued because recognition will be given to
those who are strong debaters. Presenting an argument with wit and scholarly references, mixed
with elegance and good use of language, is admired. The French are patient and do not make
decisions until after much deliberation (Kenna and Lacy, 1994b).
French society tends to be one of the more hierarchal societies in the world when it
comes to business. Status is very important and is based upon degrees, awards and schools
attended. It is a country where trust must be earned, and education is the main ticket to a
successful career. As a whole, the French are very proud and rivalry, rather than teamwork, is
likely to occur (Kenna and Lacy, 1994b). Strong leadership is appreciated, and top managers
will keep strict control, which workers are expected to obey. In business, the French may not
want to plan very far ahead because they perceive too many things able to interfere with long-
term plans (Kenna and Lacy, 1994b). Being very engaged in intellectual conversation and
behaving in a scholarly way during discussion is ideal if one wishes to clinch a deal with a
French company.
Business Practices in the United States
When arriving for a scheduled meeting in the United States, the business person should be sure
to be punctual or even a few minutes early. If a guest arrives late, Americans perceive them as
being rude or highly disorganized (Gesteland, 1999).
An action plan or agenda with a clear cut schedule is provided at almost all formal
business meetings, and contracts are written out ahead of time. That way time is not wasted in
the drafting of new contracts and previously contracts may be easily modified (Kenna and Lacy,
1994a). In negotiating, American business people are more likely to be very open and direct,
and normally do not enjoy haggling. The United States produces the fastest negotiators in the
world.
Although they are competitive, Americans value flexibility and spontaneity, and these
characteristics play key roles when trying to close out a deal. Often Americans will accept sub-
par deals towards the end of a negotiation, due simply to an impatient desire to complete the
transaction (Kenna and Lacy, 1994b). Americans tend not to be comfortable with silence and
will make every effort to maintain constant communication. Interruptions are not always
welcomed either; in presentations all questions and comments should be held to the end of a
gathering unless otherwise specified (Gesteland, 1999).
In less formal business settings, Americans are more relaxed and place great emphasis on
personal achievement. Fairness and the ability for a person to move up and down the business
ladder are highly valued; however, businesses in the United States also value teamwork.
Unlike many other countries, business in the United States is based on personal power
rather than class, status or seniority. Hiring family or friends solely based on favoritism is
completely unethical in the United States (Kenna and Lacy, 1994c). Americans are not as
reserved about their personal opinions and express themselves freely in the work environment,
including giving input on important decisions. Managers tend to delegate many of their
responsibilities, and it is not uncommon to see lower ranked employees questioning superiors.
Decisions are made on all levels (Kenna and Lacy, 1994b).
Americans think big and are constantly planning for and anticipating the future. A job
description is appreciated when interviewing because clear cut roles are preferred in a business
environment. Once at a job, all employees are expected to be immediately loyal. Changing jobs
is very common. A person does not usually stay at one job his or her entire career. Americans
are risk takers; they are likely to take chances to achieve goals. In this environment, money
equals power and status (Kenna and Lacy, 1994b).
Conclusion
Every country has a different way of communicating and a unique way of doing business. The
Chinese tend to be reserved and patient and do not like to be pressured during negotiations. In
Mexico, individuals are relationship oriented and like to become friendly with those with whom
they are working. Respect plays a huge role in relationships and business people in Mexico will
welcome anyone who treats them as valuable. In France, one may not feel as comfortable as in a
Mexican culture, but France possesses one of the most interesting business cultures in the world.
In France, relationships are developed before business takes place- a phenomenon that occurs in
China and Mexico as well.
The emphasis is on deal making in the United States. Americans do not feel it is
necessary to form a personal relationship before entering into a business contract with someone.
A fast-paced, scheduled plan is the way negotiations are conducted, and for the most part,
individuals in the United States do not like to haggle.
This research has illustrated the importance of knowledge of other cultures as the key to
reducing risk of failure in business relationships. Revisiting J ohn’s trip to China from earlier, it is
now easy to identify exactly what he did wrong. His company is also to fault for not making
sure he was prepared to meet with Chinese clients before he was sent.
Today, globalization is the norm, and it is important that people go to different countries
prepared to do business and behave in a socially acceptable manner. This includes having a
sense of communication styles, being aware of body language, learning meeting and negotiation
skills, dressing appropriately, giving proper greetings, and learning how social events are
conducted. It is best to be sensitive to other cultures and always treat people with respect.
Goethe once said, “There is nothing more frightful than ignorance in action.” This applies to
international business and business people should be aware that informed actions will be
appreciated by all.
References
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Kenna, P. and Lacy, S. (1994). Business China: a practical guide to understanding Chinese
business culture. Lincolnwood, IL: NTC Publishing Group.
Kenna, P. and Lacy, S. (1994). Business France: A practical guide to understanding French
business culture. Lincolnwood, IL: NTC Publishing Group.
Kenna, P. and Lacy, S. (1994). Business Mexico: A practical guide to understanding Mexican
business culture. Lincolnwood, IL: NTC Publishing Group.
Martin, J .S. and Chaney, L.H. (2006). Global business etiquette. Westport, CT: Praeger
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