          
          
          
          
                 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.
          
          
          
