Recognizing and heeding cultural differences can be key to international business success - includes directory

Business America, Oct 15, 1994

Never touch the head of a Thai or pass an object over it, as the head is considered sacred in Thailand. Likewise, never point the bottoms of the feet in the direction of another person in Thailand or cross your legs while sitting, especially in the presence of an older person.

Avoid using triangular shapes in Hong Kong, Korea, or Taiwan, as the triangle is considered a negative shape in those countries.

Remember that the number 7 is considered bad luck in Kenya, good luck in Czechoslovakia, and has magical connotations in Benin.

Red is a positive color in Denmark, but represents witchcraft and death in many African countries.

A nod means "no" in Bulgaria, and shaking the head side-to-side means "yes."

Understanding and heeding cultural variables such as these is one of the most significant aspects of being successful in any international business endeavor. A lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a company's position in the market, prevent it from accomplishing its objectives, and ultimately lead to failure.

As business has become increasingly international and communications technology continues to develop, the need for clearly understood communication between members of different cultures is even more crucial.

Growing competition for international markets is another reason that companies must consider cultural distinctions.

Business executives who are not alert to cultural differences simply cannot function efficiently overseas. They may not even understand something as basic as what signifies closing a deal in a particular country--a handshake, a written contract, or a memorandum of understanding.

Taking the time to learn something about the culture of a country before doing business there is also a show of respect and is usually deeply appreciated, not to mention rewarding for the company. Those who understand the culture are more likely to develop successful, long-term business relationships.

Customs vary widely from one country to another. Something with one meaning in one area may mean the opposite somewhere else. Some of the cultural distinctions that U.S. firms most often face include differences in business styles, attitudes towards development of business relationships, attitudes towards punctuality, negotiating styles, gift-giving customs, greetings, significance of gestures, meanings of colors and numbers, and customs regarding titles.

American firms must pay close attention to different styles of doing business and the degree of importance placed on developing business relationships. In some countries, business people have a very direct style, while in others they are much more subtle in style. Many nationalities value the personal relationship more than most Americans do in business. In these countries, long-term relationships based on trust are necessary for doing business. Many U.S. business people make the mistake of rushing into business discussions and "coming on too strong" instead of nurturing the relationship first. According to Roger Axtell in his book Do's and Taboos of Hosting International Visitors (see list of publications on page 15), "There is much more to business than just business in many parts of the world. Socializing, friendships, etiquette, grace, patience, and protocol are integral parts of business. Jumping right into business discussions before a get-acquainted interlude can be a bad mistake."

This cultural distinction is the greatest area of difference between the American and Guatemalan styles of doing business. The inexperienced American visitor often tries to force a business relationship. The abrupt "always watching the clock" style rarely works in Guatemala. A better informed business executive would engage in small talk about Guatemala, indicate an interest in the families of his or her business associates, join them for lunch or dinner, and generally allow time for a personal relationship to develop. Solid business opportunities usually follow a strong personal relationship in Guatemala. This holds true for Latin America in general.

Building a personal rapport is also important when doing business in Greece, according to Sondra Snowdon, President of Snowdon's International Protocol, Inc., a firm that trains and prepares executives in cross-cultural communications (see lead article). Business entertaining is usually done in the evening at a local taverna, and spouses are often included.

Attitudes toward punctuality vary greatly from one cluture to another and unless understood can cause confusion and misunderstanding. Romanians, Japanese, and Germans are very punctual, while people in many of the Latin countries have a more relaxed attitude toward time. The Japanese consider it rude to be late for a business meeting, but it is acceptable, even fashionable, to be late for a social occasion.

In Guatemala on the other hand, a luncheon at a specified time means that some guests might be 10 minutes early, while others may be 45 minutes late.