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Asian Business and Culture

August 22, 2012

1. From the reports (Thailand-China) identify the following countries that have similar or
the same business cultures.
There are countries in Asia that have similarities in terms of their business practices or
culture. The following are some of the business cultures that different countries have in common.

During business meetings in countries such as Thailand, Indonesia, Malaysia, Brunei


and Singapore, it is usual that the most senior/high rank in the group is the first to
enter the room and should be introduced first.

Business cards are commonly use when transacting business in Thailand, Indonesia,
Vietnam, Malaysia, Myanmar, Singapore, Turkey, Philippines and China. You should
give and accept card with both hands or with right hand as a sign of respect. Cards
should be examined first before putting it in the table or in the business card case.
Countries such as Vietnam, Malaysia and Turkey consider it polite, useful and
impressive when business cards are printed in both English and the countrys own
language.

In Singapore, Vietnam, Turkey and Philippines, appointments or meetings should be


arranged in advance. In Singapore and Vietnam meetings should be arranged weeks
or even months prior to the visit. In Philippines preferably 3-4 weeks in advance and
in Turkey, 1-2 weeks in advance.

In Indonesia, Vietnam, Malaysia, Turkey, Brunei, the first meeting is usually more
about getting to know the other side rather than business. They prefer to use this first
meeting as an opportunity to build a rapport which is essential to them.

Like Filipinos, Indonesians, Malaysians and Bruneians are indirect communicators.


This means that they do not always say what they mean. This is done to avoid
embarrassing someone or causing either party to lose face. Rather than say no they
might say I will try or Ill see what I can do or just say yes even if they mean
no. it is up to the listener to read between the lines.

Gift giving is a common practice in transacting business to some countries in Asia


such as in Vietnam, Indonesia and China. In Vietnam gifts do not need to be
expensive and should be a simple token of appreciation. Common gifts include fruits
and flowers. Gifts are wrapped in colourful paper. Unlike in Vietnam, there are many
things to be considered in giving gift to Indonesian and Chinese. Never give sharp
objects such as knives or scissors as they signify the cutting of relationship. Gifts are
not opened when received and should be given with both hands. In Indonesia
elaborate wrapping is expected-gold and red are considered suspicious. In China,
never give a clock, handkerchief, umbrella or white flowers because these signify
tears and/or death.

Negotiations can be quiet lengthy and time-consuming in most of these countries


(Thailand, Vietnam, Indonesia, Malaysia, Brunei, Turkey, Singapore, Myanmar and
China). Decision making usually take a long process so patience is important when
transacting business with them.

2. In spite of a favourable business environment, what do you think are the stumbling
blocks and essentials for success in business that influence business relationships and the
hindrances?

I think one of the stumbling blocks that influence business relationship is the
differences in culture. Each country has its own customs, belief and traditions that has
big influence in terms of the behaviour of individuals living in that particular country.
These differences could sometimes cause conflicts between two parties from different
country. In order to succeed when negotiating business, the best way I think is to
understand and respect their differences especially in their behaviour and culture.
Patience is also important to avoid conflicts. Through these it is more likely that you
will be able to build a harmonious relationship when doing business in different

countries.
3. In negotiations, there are cultures that work harder and longer in preparation than the
Western one has. Like asking more questions, longer meeting sessions and demonstration
of amazing patience. For a Westerner it becomes an invaluable tool. How will you deal
with it?
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The best way to deal with this is to just be patient enough and be understanding. You
should respect them because it is their way of doing business. When negotiating to
other country it is also necessary to be flexible to their business practices/protocols in
order to succeed.

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