Understand and heed cultural differences - cultural variables in transacting international business

Business America, Jan 28, 1991

Understand and Heed Cultural Differences

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 critical to success in international business. 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.

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. firms make the mistake of rushing into business discussions and "coming on too strong" instead of nurturing the relationship first.

Attitudes toward punctuality vary greatly from one culture to another and unless understood can cause confusion and misunderstanding. Romanians, Japanese, and Germans are very punctual, while 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. When crossing cultural lines, something as simple as a greeting can be misunderstood. The form of greeting differs from culture to culture. Traditional greetings may be a handshake, hug, nose rub, kiss, placing the hands in praying position, or various other gestures. Lack of awareness concerning the country's accepted form of greeting can lead to awkward encounters.

Should You Bow

Or Shake Hands?

The Japanese bow is one of the most well-known forms of greeting. The bow symbolizes respect and humility and is a very important custom to observe when doing business with the Japanese. There are also different levels of bowing, each with a significant meaning. Japanese and Americans often combine a handshake with a bow so that each culture may show the other respect.

Handshakes are the accepted form of greeting in Italy. Italians use a handshake for greetings and goodbyes. Unlike the United States, men do not stand when a woman enters or leaves a room, and they do not kiss a woman's hand. The latter is reserved for royalty.

The traditional Thai greeting, the wai, is made by placing both hands together in a prayer position at the chin and bowing slightly. The higher the hands, the more respect is symbolized. The fingertips should never be raised above eye level. The gesture means "thank you" and "I'm sorry" as well as "hello." Failure to return a wai greeting is equivalent to refusing to shake hands in the West.

American intentions are often misunderstood and Americans are sometimes perceived as not meaning what they say. For example, in Denmark the standard American greeting, "Hi, how are you?" leads the Danes to think the U.S. business person really wants to know how they are. "Hi, I'm pleased to meet you" is preferable and conveys a more sincere message.

People around the world use body movements or gestures to convey specific messages. Though countries sometimes use the same gestures, they often have very different meanings. Misunderstandings over gestures is a common occurrence in cross-cultural communication, and misinterpretation along these lines can lead to business complications and social embarrassment.

The "OK" sign commonly used in the United States is a good example of a gesture that has several different meanings according to the country. In France, it means zero- in Japan, it is a symbol for money; and in Brazil, it carries a vulgar connotation.