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Business in Different

Countries
Tips while conducting business in
different countries
• There are many clear variations in the way different
societies behave & function
• Tips are furnished below for the do’s & don’ts while
conducting business overseas
• Only a few cultural groups have been mentioned ;
there could be many more points that could be
included in addition to those mentioned :-
1. Business with the Americans
2. Business with the Europeans
3. Business with the Japanese
4. Business with the Arabs
1. Business with the Americans

1. Competition is important for the Americans. They


tend to equate competition with efficiency. Dress,
speech, smartness, & demeanour have to project
‘competitiveness’
2. Packaging is very important, as important as the
contents or, perhaps, a shade more. Therefore, any
business presentation has to be ‘sleek’ with
gadgetry, showmanship & drama interspersed
with some humour
3. While making a presentation in front of an
American audience, it is necessary that the
presentation is well prepared & well rehearsed
4. Americans like bravado & an air of confidence, like
to use superlative words, like the ‘best’, the
‘greatest’ the ‘finest’, & ‘incredible’. Anyone dealing
with them may also use similar language. Apologetic
language with no superlatives is likely to be
interpreted as a lack of capability or weakness
5. Americans have fetish for quantification for all facts.
Therefore, present any business project/proposal or
any achievement with accompanying numbers,
statistics & measures, charts, graphs & other
quantification aids
6. What impress them are the specific measurable
results – Tangible profits or what appears like
tangible benefits
7. Be clear in any communication. Clarity & trans-
parency will be much appreciated
8. Written contracts have to be made perfectly, with
every detail spelt out, in order to avoid any mis-
understanding & confusion later on
9. Connections, relationships & contacts do not have
the same meaning & weightage with American as in
India or other Asian countries
10. They take pride in ‘quality’ within their society.
Therefore, approach them as equals, with no
inhibitions regarding position & power
11. Eye contact is very important for them; if that is
lacking, they may surmise that there is lack of
interest or that there is something fishy about the
person talking to them
12. Americans have much pride in their own country &
fellow countrymen. If possible, it may be better to
conduct business with them as an insider. They
would trust an India-born American citizen or
permanent resident considerably more than a
British or a Dutch or a Belgian. Someone who has
studied in their universities would also be considered
worthy of their trust.
2. Business with the Europeans

• As was mentioned in the earlier section, there is a


difference in the European & American cultures.
While as ‘Westerners’ they have many similarities, it
would be incorrect to club their cultures.
While doing business with the Europeans the
following points may be noted :-
1. Some European countries like, Sweden,
Denmark & France do not exhibit
‘competitiveness’. While dealing with business
men from such countries, it would be
advisable not to appear highly competitive. They
may feel threatened
2. Europeans – British, French, Dutch or German – do
not like loud people. It would be better to be
subdued
3. It is better to be formal in Europe because some
Europeans, Germans in particular, may not like
business to be mixed with socializing; they think that
it may cause s conflict of interest
4. Organizations in Europe tend to be more rigid.
Important decisions are, most often, made by the top
management
5. Despite the huge industrial & business corporations,
the government have a large role to play. Therefore,
in Europe, may not always be one business
corporation to another;there may be the government
to deal with
6. The Western Europeans are private people but
believe in more permanent relationships; this would,
naturally, take time
7. Quality of products & services is very important for
them. They appreciate the qualitative issues to a
business problem
8. Punctuality is very important & they would always
make prior appointment
9. Educational attainments elevate one’s status in
Europe. Just as education is respected, the
refinement in the personality of a man is also highly
respected, particularly in Western Europe & they
indicate their refined tastes through the collection of
antiques & heirlooms, tasteful furniture, decorative
objects & by their knowledge & selection of wines.
3. Business with the Japanese

Here are a few tips for communicating or doing


business with the Japanese :-
1. Everything has to be done in a methodical
way. Method or process of doing things is
extremely important to them. They abhor the
lack of orderliness. Follow their orderliness in
business meetings/interactions with them
2. Their orderliness is seen in their
organizational hierarchy as well. Do not offend
them by dealing with inappropriate
individuals. Otherwise, the negotiation may
suffer
3. Japanese people, generally, believe in long-term
associations. It gives them a sense of security. Along
with the long-term association comes their long-term
commitment. But, once the decision is taken they
give their full commitment. Japanese get persuaded
by long-term business associates
4. Although they have a hierarchy, the decisions are
taken by the consensus. Do not rush them for
decisions; rushing & pushing would only make
them extremely uncomfortable & it will be counter-
productive
5. Japanese have an obsession towards cleanliness.
Therefore, while dealing with them the dress, the
office, the surroundings, the actions during the
meetings should project cleanliness
6. For the Japanese, the organisation is more
important than an individual. The company is
valued the most; then comes the department; the
individual is the last. While speaking to them &
while doing a business transaction with them, one
should show respect for their company; one should
also express similar respect for one’s own company
7. During a business presentation with the Japanese it
is good to be polite, modest, apologetics, & thankful,
in contrast to what should be done while negotiating
with the Americans
8. When the Japanese discuss business, one person –
the head of the delegation – speaks; the others
supply information or assist him; on the contrary
Indians, have a tendency of a number of people
speaking, sometimes as cross-proposes
9. In business meetings between two parties, it is
customary to introduce each member of the
delegation. Exchange of visiting cards is an
important process & should not be hurried. It may
even be a good idea to make a booklet containing a
brief introduction of each of the members attending
a meeting. Preferably, be in both English &
Japanese. Accompanied by the individuals photo-
graphs for easy identifiability.
10. During any interaction do not make a Japanese
business partner or counterpart lose face. Japanese
are very sensitive to what others think of them
11. Personal relationship are important for the Japanese
Future business dealings depend upon how one
responds in the first business interaction. Business
relationships should be cemented by social relation-
ships. Social relationships does not mean taking the
Japanese business counterparts home. Japanese
executives, have a large budget for entertaining a
guest in town. They may expect a similarly grand
entertainment. Grand entertainment does not mean
a ‘loud’ entertainment. They look for delicateness,
artistry & honour in these matters
4. Business with the Arabs

Despite, disparities, there is a common thread of a


Arabic way of behaviour patterns, attitudes & of looking
at the world outside of them.
the following points may be of interest in doing business
in the Arab world :-
1. The Westerners are always looked up to by the
Arabs, whereas the South Asians are mostly looked
down upon.
2. The local laws in most Arab nations prohibit any
foreigner/s to conduct business in those nations
without a local citizen as a partner. Many of these
local business partners would be ‘absentee owners’,
in any case, the foreign investor has to ensure that
the local Arab partners is least obtrusive.
3. Arabs have a huge sense of honour. Shame is a
terrible thing to happen to an Arab. At all costs it
must be avoided. To save their honour, the Arabs
would do anything
4. It is not surprising to find the tribal people to be
friendly, affectionate, generous & very loyal to one
another within their tribe & within their country.
A member of his extended family or as his guest, he
is not considered as a member of his extended
family, the Arab may not mind too much to cheat or
trick him or to take some advantage of him. One
has to carefully cultivate the Arab business partners.
5. Arabs have their own sense of justice. When things
go against that sense of justice, Arabs are likely to
get morally outraged & indignant. An Arab can be a
great friend & terrible enemy as well. It all depends
upon how well a foreigner wins his confidence &
retains it
6. They place a great value on the recommendations
from the tribesmen or other Arabs or friends &
loyal employees. Therefore, in doing business with
Arabs, connections are vital - particularly
connections with people of influence. So, if he wants
to start a business or further a business in one of the
Arab countries, a good reference from someone who
works in the same office – preferably someone in a
top position – would work wonders
7. Socialization in business is common; but, business
deals are not supposed to be discussed at social
occasions. The decisions are taken only by the top
person. They tend to be feudal (which is natural in a
tribal society). Developing contacts at the top level
might help the business
8. It is difficult to make out the position of an Arab in
an organization based upon his dress or his office
size or the furnishings in his office. They can be
differentiated by their knowledge, manner of speech,
etiquettes, skills, their family & friends. A junior
Arab participant would not speak up & ask queries/
doubts. Unless the top boss or a person senior in
position or in age has spoken, out of deference to the
senior person
9. Arabs have a sunny disposition & are always
optimistic. This is very encouraging in doing
business with them
10. Arabs are a very sensitive people. There are many
do’s & don’ts beyond what has been mentioned
herein. Foreign businessmen have to be careful not
to put a wrong foot forward.

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