Most companies plunge into trade missions armed with market data. But experts say many businesses ignore something that can make the difference between success and failure in foreign lands: International etiquette.
Etiquette is more than the proper use of chopsticks. It means understanding how the wheels of business turn in Japan; how the history of Mexico affects today’s business climate; when to address a woman directly in the Muslim nations of Africa.
Building a Strong Data Foundation in the Age of AI
Artificial intelligence (AI) has become a key priority in the boardroom and across management —…
Learn More
Understanding these issues, experts say, will help you build business relationships that last; ignoring them can be disastrous.
“The worst mistake that people make is to know absolutely nothing about their customers or client,” said Mary Murray Bosrock, former international editor of Foreign Trade magazine. “There’s nothing more insulting to anyone anywhere in the world than not knowing anything about (them).”
Bosrock, a Minnesota/Miami-based writer and lecturer, is the author of a series of books on international business customs. But help is also available locally.
The Web site of Bryant College’s International Trade Data Network, www.itdn.net, features a database of information on the business climate and customs of various countries. The software can be downloaded free for two months, with a licensing fee applying after, said Paula Tivey, associate director of the trade data network.
The database helps acquaint the business traveler with some vital information. For example, it points out the business relationships in Mexico are built slowly. And many say the same is true elsewhere. Business people in many nations — especially Asian countries — draw less of a distinction between personal and business relationships; that is, they want to be sure they are working with people they can trust.
“Most of the world is used to doing relationship-oriented business,” Bosrock said. “Business is done between people, and business relationships begin with personal relationships.”
Building relationships requires a certain degree of tact. Americans are accustomed to being direct. But criticizing an Asian businessman in front of his peers can cause him to lose face — and subsequently do whatever he can to get it back. The lesson, therefore, is that understanding the subtleties of Asian communication is critical.
“Americans assume that a direct way is not wasting time, (but) if an Asian loses face you’ve wasted time by being direct,” said Susan Place, managing director of WorldWise Inc., a Boulder, Colo.-based company that educates business people on how to conduct business in Asia. “The straight line isn’t necessarily the fastest way in communication with Asians.”
Place, who travels around the country giving seminars on this subject, learned this while living in Japan, where she worked for the government and for an automotive firm in Tokyo. Now, she teaches business people why Asians behave as they do, and how to work in their environment. For example, she noted that U.S. business people are often frustrated by how long it takes Japanese companies to make decisions. What they must understand, she said, is that Japanese firms make decisions more collectively. Going ‘over the head’ of your contact person in an attempt to expedite a deal will only insult that person and slow the process even further, she said.
Cultural differences also impact business. For example, while Americans value the ‘self-made’ person, the opposite is true in South America. There, bloodline and heritage are what count. Irene Zucker, owner of VerbaCom Executive Development, a Dallas firm that teaches executives on the business ways of Mexico, theorizes that the difference stems from Mexico’s regal history that started with Hernando Cortes. By contrast, the United States’ history is more egalitarian, she noted.
Therefore, Mexican business people are more likely to notice if you’re wearing fine clothes and a nice watch than their American counterparts.
“What kind of material is your suit made of? Are you manicured? These are very important in terms of credibility,” Zucker said.
The same is true in Europe and Asia, Bosrock said.
“It’s not the time to be humble,” she said. “People want to do business with people they view as being successful.”
While it’s important to look right and negotiate wisely, manners are equally important. This is especially so in Mexico, a country where honor and politeness are highly valued, Zucker said. Part of this is knowing how to carry yourself appropriately.
Katherine J. Dyer, a general partner with Cadeaux du Monde in Newport, which buys crafts from African village artisans and sells them in the United States, noted that you can lose a deal in an African country by avoiding pleasantries before talking business.
Religion also plays a role. In Northern Africa Muslim nations, she noted, it is inappropriate to talk to the wife of a businessman if he does not introduce her to you directly, for instance.
Certain hand gestures are also inappropriate. In central Africa, showing your palm and turning your hand is an insult, Dyer said. Also, avoid using your left hand.
“One of the things that’s really important is shaking hands when you say ‘hello’ and ‘goodbye,'” she said. “Even in a 10-person group.”
Beyond simply becoming a more gracious guest, knowing business customs — and at least a dozen polite phrases in the host country’s language — can help speed the deal- making process. Arrogance and ignorance are the antitheses of good business relations, experts say.
“The players in this whole game, the winners, are going to be the ones that can not only establish rapport, but also acquire a mutual trust,” Zucker said. “You don’t just go over there (to Mexico) and expect to cut a deal in one trip — it might take months. It’s not all in vain because you’re establishing trust. Once it is there, it can be very long-lasting.”
