Learn the Business Culture Before Hitting Foreign Turf

Carolyn DicksonPosted by Carolyn Dickson on March 29th, 2010 | 0 Comments

Many Americans make four common mistakes when doing business abroad. They tend to react negatively to unfamiliar customs. They expect to do business “the American way,” no matter what. They often misinterpret the nonverbal behavior of other cultures and then treat that faulty interpretation as reality. And they tend not to do their homework, barging into a country without the foggiest notion of what that culture is really like. Even if unintended, the result of this miscommunication can be hurt feelings, damaged relationships, and stalled negotiations.  

The global economy is ever expanding, and those of us who do business abroad can’t afford to jeopardize our foreign relationships through inexperience or lack of knowledge. Here are some tips to help you avoid these pitfalls.

  • Be mindful of how meeting and greeting differs from country to country. Knowing exactly what to expect in an initial introduction will eliminate the potential for embarrassment.
  • Learn when and how to “get down to business.” It’s customary for North Americans to want to make the deal, shake hands, and move on. In many countries, acting this way is offensive; moderate your preoccupation with deadlines and take the lead from your hosts.
  • Be mindful of nonverbal signals. Americans are often considered too open and expansive. To counteract this, maintain an initial reserve and observe the customs of the country before jumping in.

  In addition, before you leave home, find the answers to the following questions. 

  • What is their concept of time? Do they like small talk or do they want to get down to business? How long does it take to make decisions? Are they punctual? Other countries move at a much different pace than the United States. It’s best to check this out before leaving home.
  • What is the importance of hierarchy and authority? Some countries are team-oriented, others are individualistic, and others much more formal.
  • What are their rules of interpersonal behavior? What do they consider a violation of personal space. Do they make eye contact? Is a firm handshake a sign of self-confidence or an overt use of power?
  • What are their core values? How much importance do they place on family, social status, income? What is their code of honor? How does this code impact their way of doing business?

While this information can enhance any business relationship, it’s absolutely critical when doing business in other countries. Observe the business practices of your foreign business associates, respect their customs, and adhere to their practices with courtesy and understanding. Following this advice may well smooth the path to lasting and lucrative relationships abroad.

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