Business across Cultures

Culture is the way we do things here, they say. Here may be a country, an area, or a company. We tend to assume that the way we see the world and the way we do things is best. However, doing business across cultures asks for a more flexible approach. Recent literature suggests that cultural awareness is absolutely essential for doing business abroad. What is considered acceptable behavior in Croatia doesn’t have to be so desirable in Saudi Arabia.

Western cultures are in general time-conscious, deadline-oriented, and focused on results. On the other hand, Latin and Eastern cultures are more interested in getting to know the people involved in the transaction and business is built on trust over a long period of time. The best way to build a business relationship in a Latin American country, China, Japan or even Spain and Italy, is through networking. Get yourself introduced by a trusted relation of your new client and expect many lunches and dinners before the deal is made.

Though it is impossible to fully master all the intricacies of other societies, it is worth learning at least the basics.

In America and most of Europe, handshake with good eye-contact is expected at introductions and departures. The Japanese often shake hands with westerners as sign of respect and appreciate when westerners bow out of respect to their culture. In most European countries, people like to be addressed by their academic and professional titles followed by their surname. The exceptions are the egalitarian societies of Scandinavia and the Netherlands, where every person is considered as equal and titles are usually not used.

If you don’t know the rules of non-verbal communication, you may transmit unintended messages. In European countries and America, a person who is reluctant to maintain eye-contact arouses suspicion. But in Asian countries, maintaining eye-contact is perceived as a sign of aggression. In Arab cultures, eye-contact and other gestures of openness are important and welcome. Europeans and Americans feel uncomfortable with silent moments but in Japan long pauses in conversation are normal.

Americans and northern Europeans may be made uncomfortable by the close conversation distance of Arabs, Africans or southern Europeans, who also tend to touch each other on the arm, back and shoulder. If you feel uncomfortable with that proximity, don’t step back as that would be considered impolite.

In North America or the UK, gift-giving is rare in the business world and may be seen as bribery. In many other countries gift giving and its etiquette are very important, especially in Asia.