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. 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. 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. 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. In Thailand, it is considered offensive to place one's arm over the back of the chair in which another person is sitting, and men and women should not show affection in public. The use of a palm-up hand and moving index finger signals "come here" in the United States and in some other countries but is considered vulgar in others. In Ethiopia, holding out the hand palm down and repeatedly closing the hand means "come here." Proper use of names and titles is often a source of confusion in international business relations. In many countries (including the United Kingdom, France, and Denmark), it is appropriate to use titles until use of first names is suggested. First names are seldom used when doing business in Germany. Visiting business people should use the surname preceded by the title. Titles such as "Herr Direktor" are sometimes used to indicate prestige, status, and rank. Thais, on the other hand, address each other by first names and reserve last names for very formal occasions, or in writing. When using the first name, they often use the honorific "Khun" or a title preceding it. In Belgium, it is important to address French-speaking business contacts as "Monsieur" or "Madame," while Dutch-speaking contacts should be addressed as "Mr." or "Mrs." To confuse the two is a great insult. Customs concerning gift-giving are extremely important to understand. In some cultures, gifts are expected, and failure to present them is considered an insult, whereas in other countries, offering a gift is considered offensive. Business executives also need to know when to present gifts -- on the initial visit or afterwards; where to present gifts -- in public or private; what type of gift to present; what color it should be; and how many to present. Gift-giving is an important part of doing business in Japan. Exchanging gifts symbolizes the depth and strength of a business relationship to the Japanese. Gifts are usually exchanged at the first meeting. When presented with a gift, companies are expected to respond by giving a gift. In sharp contrast, gifts are rarely exchanged in Germany and are usually not appropriate. Small gifts are fine, but expensive items are not a general practice. Gift-giving is not a normal custom in Belgium or the United Kingdom either, although in both countries, flowers are a suitable gift if invited to someone's home. Even that is not as easy as it sounds. International executives must use caution to choose appropriate flowers. For example, avoid sending chrysanthemums (especially white) in Belgium and elsewhere in Europe since they are mainly used for funerals. In Europe, it is also considered bad luck to present an even number of flowers. Beware of white flowers in Japan where they are associated with death, and purple flowers in Mexico and Brazil. Customs toward the exchange of business cards vary, too. Seemingly minor in importance, observance of a country's customs towards card-giving is a key part of business protocol. In Japan, it is particularly important to be aware of the way business cards should be exchanged. The western tradition of accepting a business card and immediately putting it in your pocket is considered very rude there. The proper approach is to carefully look at the card after accepting it, observe the title and organization, acknowledge with a nod that you have digested the information, and perhaps make a relevant comment or ask a polite question. During a meeting, spread the cards in front of you relating to where people are sitting. In other words, treat a business card as you would treat its owner -- with respect. When presenting a card in either Japan or South Korea, it is important to use both hands and position the card so that the recipient can read it. In any country where English is not commonly taught, the data should be printed in the native language on the reverse side of the card. These cultural variables are examples of the things that U.S. executives involved in international business must be aware of. At times in the past, Americans have not had a good track record of being sensitive to cultural distinctions. However, as business has become more global, Americans have become more sensitive to cultural differences. Some companies fail to do their homework and make fatal or near-fatal mistakes that could have easily been prevented. A number of firms have learned the hard way that successful domestic strategies do not necessarily work overseas and that business must be adapted to the culture. ***************************************************************** Publications on Cultural Aspects Of International Business The Asia Business Book. Written by David Rearwin. Published by Intercultural Press, Yarmouth, Maine. 1991. Big Business Blunders: Mistakes in Multinational Marketing. Written by David A. Ricks. Published by Dow Jones-Irwin, Homewood, Ill. 1983. The Cultural Environment of International Business. Written by Vern Terpstra. Published by South-Western Publishing, Cincinnati, Ohio. 1978. The Diplomat, a monthly newsletter for international business protocol and social etiquette. Written and published by Katherine B. Holmes, Cold Spring Harbor, N.Y. Do's and Taboos Around the World. Written by Roger E. Axtell. Published by John Wiley & Sons, New York. 1990. Do's and Taboos of Hosting International Visitors. Written by Roger E. Axtell. Published by John Wiley & Sons, New York. 1990. Doing Business In .... audio series. Produced by International Cultural Enterprises, Inc., Evanston, Ill., in cooperation with DRI International. A cassette (average 45 minutes), packaged with a booklet about the country. Encountering the Chinese, A Guide for Americans. Written by Hu Wenzhong and Cornelius Grove. Published by Intercultural Press, Yarmouth, Maine. 1991. The Global Edge: How Your Company Can Win in the International Marketplace. Written by Sondra Snowdon. Published by Simon and Schuster, New York. 1986. Good Neighbors: Communicating with the Mexicans. Written by John C. Condon. Published by Intercultural Press, Yarmouth, Maine. 1985. The International Businesswoman: A Guide to Success in the Global Marketplace. Written by Marlene L. Rossman. Published by Praeger Publishers, New York. 1986. International Negotiation: A Cross-Cultural Perspective. Written by Glen Fisher. Published by Intercultural Press, Yarmouth, Maine. 1980. Management in Two Cultures: Bridging the Gap between U.S. and Mexican Managers. Written by Eva S. Kras. Published by Intercultural Press, Yarmouth, Maine. 1989. National Negotiating Styles. Edited by Hans Binnendijk. Published by the Foreign Service Institute, U.S. Department of State, Washington, D.C. 1987. The Traveler's Guide to Asian Customs and Manners. Written by Kevin Chambers. Published by Simon and Schuster, New York. 1988. The Traveler's Guide to European Customs and Manners. Written by Nancy L. Braganti and Elizabeth Devine. Published by Simon and Schuster, New York. 1984. The Traveler's Guide to Latin American Customs and Manners. Written by Elizabeth Devine and Nancy L. Braganti. Published by St. Martin's Press, New York. 1988. Understanding Cultural Differences: Germans, French, and Americans. Written by Edward T. Hall and Mildred Reed Hall. Published by Intercultural Press, Yarmouth, Maine. 1990. When in Rome ... A Business Guide to Cultures and Customs in 12 European Countries. Written by John Mole. Published by AMACOM, New York. 1990.