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Managing Across Cultures Chapter 5, pages 140 - 149
Cultural Aspects ofDoing Business Abroad • China • Russia • India • France • Brazil • Arab countries • Poland
Doing Business in China • Technical competence is the primary criterion for doing business in China *** • Time is a major cultural difference between many Western countries and China – Chinese are patient negotiators and may take advantage of American impatience or time constraints. • Guanxi :Good connections that result in lower costs, increased business, and better business opportunities.
Negotiating in China • Realize that China is a collective society. Older Chinese may place values and principles above money and expediency. They value the good of their country or group. • Age and rank are respected in China. Your negotiating team should be composed of mid-level and senior executives, middle aged or older. • Early negotiations are likely to focus on general principles. The Chinese will be reluctant to change those later.
Negotiating in China (2) • Understand that Chinese are slow to decide on a course of action, but stick to the decision once it is made • Chinese negotiators expect concessions but do not always make a concession in return. • China is a neutral culture. Do not display emotions during negotiations. • Take a long-term perspective toward business opportunities.
Negotiating in Russia • Build personal relationships with partners • Be careful to uphold your own business ethics and the policies of your company • Be patient • Stress exclusivity • Deal with just one firm at a time • Do not share your company's financial information
Negotiating in Russia (2) • Stress mutual gain • Clarify terminology • Be careful about compromising or settling things quickly – most concessions should be made at the end. • Russians believe that contracts are binding only if they are mutually beneficial. Continue to stress the benefits of the deal to them.
Doing Business in India • Many business people speak English. • When dealing with people from India, one should • Be on time for meetings • Avoid asking personal questions • Use formal titles when addressing others • Avoid public displays of affection
Doing Business in France • Social class and status are more important in France than in the United States • In contrast to Americans, the French are: • More tolerant of different points of view • More inclined to determine a person’s trustworthiness on the basis of personal characteristics rather than accomplishments • Less ambitious and competitive
Doing Business in France (2) • French workers are highly productive and do quality work. They value quality of life, and most do not like to work overtime. • Power distance is moderately high in France. Companies usually have highly centralized organizations. Top executives are usually autocratic. Their decisions are seldom questioned.
Negotiating in France • In negotiations the French try to find out what all of the other side’s aims and demands are at the beginning, but they reveal their own hand only late in the negotiations. • The French do not like being rushed into making a decision. They rarely make important decisions during a meeting. • The French tend to be very precise and logical in their approach to things, and will often not make concessions in negotiations unless their logic has been defeated.
Doing Business in Brazil • Form strong relationships before discussing business. • Face-to-face meetings are essential • Presentations should be informative, accurate, and expressive. • Be patient. Negotiations can be lengthy. • Appearance is important.
Doing Business inArab Countries • There are cultural differences among different Arab countries. • In most Arab countries, people gain status by family and social connections. Connections are very important in doing business. • Dignity and respect are very important. Do not display feelings of superiority or self-importance. Show even more respect to older people. • Power distance is high.
Doing Business inArab Countries (2) • Do not take credit for joint efforts. The importance of group efforts is emphasized. • Go through the necessary government channels to get approval for what you want to do. • Develop strong business relationships. • Stress the mutual benefits of doing business. • Important decisions are usually made in person. • Be patient. Do not make too many concessions in an effort to speed up negotiations.
Doing Business in Poland • Design products for Poland and use a Polish advertising agency. • Do your homework. Poles are often shrewd negotiators. • Be prepared to provide data. People are not impressed by "sales talk". • Be prepared to make a long-term commitment. • Take time to build relationships and gain trust. • Be willing to "give something back" to the community.
Doing Business in Poland (2) • Local governments have a large role in business regulation. Some areas are more conducive to business than others. • When dealing with older Poles, use professional titles (example: engineer), and do not call people by their first names until you are invited to do so. • Business entertainment is less elaborate than in the U. S. Entertainment should be reciprocated.