I should like to acknowledge the help that I received from those professors of Foreign Languages Department, Anhui University in my professional growth with respect to academic research ability and use of analytical tools. They are Hong Zhengliu, Zhou Fangzhou, Chen Zhengfa, Xiao Shuhui, Zhu Yue, Zhu Xiaomei and Hu Jian, whose high standard lectures in various fields of language studies shall benefit me for a long time.

I am very grateful to my classmates, Chen Haiyan, Wang Yuming, Feng Xiaoying, Peng Suping, Huai Xiufeng and Zhang Na for their encouragement in confronting difficulties in my graduate studies.

My special thanks are due to my supervisor, Professor Tian Debei, who guided me in information survey, enlightened me on the paper themes; made careful correction of, and offered valuable advice to my thesis An Analysis of Cultural Forces in International Business. Her tremendous help made completion of this thesis possible.

Intercultural Communication and International Business are two separate fields of studies. The former is carried out in three forms: interracial communication, interethnic communication and intracultural communication. In its most general sense, it occurs when a member of one culture produces a message for comprehension by a member of another culture. More precisely, intercultural communication is communication between people whose culture perceptions and symbol systems are distinct enough to alter the communication event. The latter is business whose activities involve the crossing of national borders. It includes not only international trade and foreign manufacturing but also comprises the growing service industry in areas such as transportation, tourism, banking, advertising, construction, retailing, wholesaling, and mass communications. The proposition of this thesis falls in the category of marginal subjects of studies.

The thesis first takes a look from international economics perspective at the three different business environments, i.e. the domestic environment, foreign environment and international environment, analyzes all forces in the environments and states that there is a definite role of culture in international business. To go a step further, the thesis demonstrates through an international business model that cultural forces affect all functions of international business, production, finance, marketing and personnel just as the other forces do.

The thesis then analyzes nine cultural components that are to the thesis author’s mind very important in international business namely, (1) aesthetics, (2) attitudes and beliefs, (3) religion, (4) material culture, (5) education, (6) language, (7) social institutions (8) legal characteristics, and (9) political structure.

Aesthetics is concerned with a culture’s sense of beauty and good taste and is expressed in the arts, drama, music, folklore, and the dances. Examples have been given to illustrate their importance in business. Attitudes and beliefs, especially those which are concerned with time, achievement, work, and change, can be radically different from those to which the businesspeople are accustomed. Being aware of their differences can often decide the outcome of a business venture. A knowledge of the basic tenets of other religions will contribute to a better understanding of their followers’ attitudes.

Material culture, especially technology, is of great importance to management contemplating overseas investments. Foreign governments are increasingly becoming involved in the sale and control of technical assistance. The education level will not only determine the kinds of people available to staff foreign operations but will also exert an important influence on the affiliate’s marketing mix.

Language is the key to culture and must be learned if a person is to understand its people. Generally, there will be as many as cultures in a country as there are languages. International businesspeople should learn both the spoken and unspoken language. A knowledge of how a society is organized is useful because it is the organization which defines and regulates the manner by which its members interface with each other. The extended family and responsibility of each member to it are especially significant.

Etiquette refers to manners and behaviors considered acceptable in social and business situations. When conducting business around the world or with someone of anther culture, a knowledge of certain rules of business and social etiquettes is important. Five countries (1) Australia, (2) Japan, (3) Saudi Arabia, (4) Germany, United States are cited in this thesis to exemplify etiquette differences of various countries in the world.

The seven cultural components mentioned in Chapter 3 and international business etiquettes mentioned in Chapter 4 of this thesis may serve as a helpful checklist and guidelines to managers who must make cultural assessments.

“跨文化交际”与“国际商务”分属两个不同的研究领域。前者是有着不同文化背景和符号系统的人们之间的思想交流。就其最通常的意义而言，它发生于由来自一种文化背景的人发出一个信息，再由来自另外一种文化背景的人对这一信息进行理解。跨文化交际的形式包括跨种族交际、跨民族交际和同一主流文化内不同群体之间的交际等。后者是人们跨越国界的商务活动。它不仅包括国际贸易、境外制造，同时还包括跨国经营的各项服务业，如运输、旅游、批发、零售、建筑、金融服务等。论文的命题属于前者与后者之间的边缘学科的范畴。

论文首先从国际经济学的视角审视了三种不同商务环境，即国内环境、国外环境和国际环境，分析了在此三种不同商务环境中的各种自然和人文力量，提出了文化作为一股力量，与其它力量一样在国际商务中起着同等重要作用的观点。接下来，论文通过建立国际商务模型的方法，论证了文化影响着国际商务的各个方面：生产、财务、市场营销和人事管理等的论点。

论文然后对影响国际商务交际九个文化因素逐一进行了分析。它们是（1）美学（2）人生态度和价值观（3）宗教信仰（4）物质文化（5）教育（6）语言（7）社会组织形式（8）执法特点（9）政治体制。

美学是一种文化对美的感受和对好品味的看法，体现在美术、戏剧、音乐、民谣和舞蹈等诸多方面。论文举例说明了美学对商务的意义。人生态度和价值观，特别是如何看待时间、成就、工作和变革，不同的文化相去甚远，了解这些差别能够使跨国经营企业受益匪浅。了解宗教的基本教规有助于理解教徒们的工作（生活）态度。

物质文化，特别是技术，对于管理层决策海外投资至关重要。各国政府愈来愈加强对技术输入、输出的控制。一个国家的受教育程度不仅决定企业员工的素质，而且还影响企业的营销策略。

语言是开启一种文化的钥匙。如果想要了解具有某种文化背景的一群人，则必须掌握他们的语言。通常在一个国度里，有多少种语言就有多少种文化。国际商务的从业人员既要学习有声的语言，也要学习无声的语言。了解一个社会的组织形式十分重要，因为它决定和制约了社会成员的交往行为。家庭的规模和每个家庭成员的职责对于商务活动的影响是重大的。

礼仪指的是社交和经营场合中人们普遍认同的举止行为。在进行国际商务活动和与不同文化背景的人交往过程中，了解一些商务和社交礼仪是大有裨益的。文中以具有代表性的五个国家为例展示了世界各国商业礼仪的差异。

论文第三章中述及的国际商务活动中应关注的7个文化因素以及第四章中所谈及的国际商业礼仪能使中国企业的管理者和国际商务从业人员受到启迪，帮助他们拓展国际市场，搞好国际化企业经营。

Acknowledgements贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩贩

1.Aesthetics··········· ·················································································6

Art···································································································6

　 Music and folklore···········································································6

2. Attitudes and Beliefs·············································································7

　 Attitudes toward time ·····································································7

　 Attitudes toward achievement and work········································8

　 Attitudes toward change································································9

3. Religion································································································10

　 Protestant ethic··············································································10

　 Hinduism························································································10

　 Islam ······························································································10

　 Animism·························································································11

　 The international motivator·····························································11

4. Material Culture ··················································································12

　 Technology·····················································································12

　 Economics······················································································13

　 Education yardsticks·······································································14

　 Educational mix··············································································14

　 Brain drain······················································································15

　 Adult literacy ··················································································16

　 Women’s education········································································16

6. Language·····························································································17

　 Spoken language ···········································································17

　 Unspoken language·······································································20

7. Society and organization ·····································································21

　 Kinship···························································································21

　 Associations··················································································36

　 Class mobility················································································37

1. Australia 24

1.1 Making Appointment 24

1.2 Business Dress 24

1.3 What You should Know before Negotiating 25

1.4 Entertaining for Business Success 26

1.5 Gift Giving 26

1.6 Public Behavior (Acceptable Public Conduct) 27

2. Japan 27

2.1 Making Appointment 27

2.2 Business Dress 28

2.3 What You should Know before Negotiating 28

2.4 Entertaining for Business Success 30

2.5 Gift Giving 31

2.6 Public Behavior (Acceptable Public Conduct) 33

3. Saudi Arabia 33

3.1 Making Appointment 34

3.2 Business Dress 34

3.3 What You should Know before Negotiating 35

3.4 Entertaining for Business Success 36

3.5 Gift Giving 37

3.6 Public Behavior (Acceptable Public Conduct) 38

4 Germany 38

4.1Making Appointment 38

4.2 Business Dress 39

4.3 Culture of German Management 39

4.4 What You Should Know before Negotiating 41

4.5 Entertaining for Business Success 45

4.6 Gift Giving 46

4.7 Public Behavior (Acceptable Public Conduct) 47

5United States 48

5.1Making Appointment 48

5.2Business Dress 48

5.3What You should Know before Negotiating 49

5.4Entertaining for Business Success 51

5.5Gift Giving 51

5.6Public Behaviour (Acceptable public conduct) 52

Chapter 5 Conclusion ·················································································54

Chapter 1

With China’s entry into WTO, more and more Chinese companies are engaged in international business. One of the difficulties they face is the necessity to work in cultures which are different from their own. The problems they encounter in dealing with a single culture and language in their own country are multiplied by the number of the cultures and subcultures they find in each of their foreign markets. No matter whether they are in marketing, finance, production, or personnel management, the more sensitive to the attitudes, feelings and opinions of others, the more competent they will be. Unfortunately, all too often, people who are familiar with only one cultural pattern may believe they have an awareness of cultural differences elsewhere, when in reality they do not. What is culture? Although there are as many definitions of culture as there are anthropologists, most professionals view culture as being the sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations. In other words, culture consists of learned patterns of behavior common to members of a given society – a unique lifestyle of a particular group of people. They also agree that (1) culture is learned, not innate, (2) the various aspects of culture are interrelated, (3) culture is shared, and (4) it defines the boundaries of different groups.

The study of foreign cultures is of primary importance to those in international business because cultural differences exert a great influence on all of the business functions. The experience of Chinese companies engaged in international business shows the wide variation in attitudes and values which prevents many companies from using the same promotional appeals in all markets. And differences among other cultures require dissimilar promotional approaches. Personal problems can result from the difference in attitudes towards authority – another cultural variable. The acceptance of new production methods may be influenced by the attitudes towards new production methods. These are just a couple of examples that have shown that cultural differences do affect the business functions.

Learning the course Intercultural Communications in doing my graduate studies has brought about my interest in applying intercultural communication theories to international business. I started to collect information on the subject a year ago. Surprisingly, there is hardly any Chinese literature published so far addressing the issue of Chinese enterprises’ handling cultural problems in international business operations, although this topic is much talked about among business communities due to the fact that as China further and further opens up an increasing number of Chinese enterprises become foreign oriented and are deeply engaged in international business. We are overwhelmed with the scholars’ or practitioners’ publications on Chinese enterprises’ technical problems, financial problems, market problems, foreign currency risks, and even policy hindrance, etc. Little is said about social and cultural problems that the Chinese enterprises are encountering and resolving. This is because I think (1) intercultural communication is relatively new field of studies; (2) the experts in intercultural communication and international business are confined to their own separate subject areas. Now there is an obvious need to tear down the partition wall between the two disciplines to form a new subject of studies of what we may call intercultural business communications. My other finding is that although there are some sections of foreign literature on international business that discuss social and cultural aspects of international business, they are unexceptionally directed to and serve the needs of foreign multinationals. According to my research, such a thing “multinational” is non-existent in China both from scalar and conceptual viewpoint. I believe it is partially due to economic reasons and partially due to cultural reasons. I may go even a little further to say it is largely due to cultural reasons. China is a nation which lacks the cultural soil for multinationals to grow. What we see is numerous small and medium-sized enterprises, according to international standard, active in international business arena. So what is said in those sections of foreign international business literature about the cultural aspects of international business is in most times than not irrelevant to Chinese business practices. The following is my dissertation entitled “An Analysis of Cultural Forces in International Business”. It tries to apply the intercommunication theories to international business practice. It identifies and analyzes all the cultural elements in international business that I can think of with a wish to assist Chinese companies in their efforts to break into world markets and in their tough competition against their foreign competitors. To me it is blank filling, it is knowledge in action and it is Chinese small and medium-sized enterprises oriented. I hope this attempt of mine shall be considered academically feasible and practically meaningful.

Chapter 2

Forces in the environments

　

International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments – domestic, foreign, and international. In contrast, the company whose business activities are carried out within the borders of one country needs to be concerned essentially with only the domestic environment. Even in this case, however, no domestic firm is entirely free from the foreign or international environmental forces because the possibility of having to face foreign competition from imports or foreign competitors who set up operations in its own markets is always present. Let us first examine the forces and then see how they operate in the three environments.

　

Competitive 6. Physical

Distributive 7. Political

Economic 8. Cultural

Financial 9. Labor

Legal 10. Technological

　

The elements over which management does have some command are the internal forces such as the factors of production (capital, raw materials, and people) and the activities of the organization (personnel, finance, production and marketing). These are the controllable forces which management must administer in order to adapt to changes in the uncontrollable variables. For instance, when the government decreed that cyclamates could no longer be employed as an artificial sweetener (uncontrollable variable), canners responded by reformulating their products to eliminate this substance (controllable variable), The changes to occur to which they then react. In fact, the most successful administrators are those who are so knowledgeable about the environmental forces that they are not only prepared and waiting but may even contribute to these changes as they take place

　

Foreign environments

　

The forces in the foreign environments are the same as those in the domestic environment except they occur in a foreign nation. However, they operate differently for several reasons including the following.

　

Different force values. Even though the kinds of forces in the two environments are identical, their values often differ widely and at times are completely opposed to each other.

　

Changes difficult to assess. Another problem with the foreign forces is that they are frequently difficult to assess, especially the legal and political elements, A highly nationalistic law may be passed to appease a section of the population. To all outward appearances, a government may appear to be against foreign investment, yet pragmatic leaders may actually encourage it.

　

Decision making more complex. Decision making is more complex because of the multiplicity of the forces. Consider managers in the home office who must make decisions affecting subsidiaries in just 10 different countries. They must not only take into account the domestic forces but must also evaluate the influence of 10 foreign national environments. Instead of having to consider the effects of a single set of 10 forces as do their domestic counterparts, they have to contend with 10 sets, both individually and collectively, because there may be some interaction.

　

Forces are interrelated. This in itself is no novelty, because the same situation confronts the domestic manager. What is often different, however, is the types and degrees of interaction that occur. For instance, the combination of high-cost capital and abundance of unskilled labor in many less developed countries may lead to the use of a lower level of technology than would be employed in the more-industrialized nations.

　

International environment

　

The international environment is essentially the interaction between the environmental forces of the home country and those of the various foreign nations where the company does business. Personnel at the multinational enterprise headquarters work in the international environment, whereas personnel in a foreign subsidiary do not unless they too are engaged in international trade through direct exporting or management of other foreign affiliates. Also included in the international environment are the supranational organizations whose actions affect the business community. These are; (1) worldwide bodies such as the World Bank, (2) regional economic groupings of nations (European Community), and (3) organizations of nations bound by industry agreements of which the Organization of Petroleum Exporting Countries is an example.

　

International business model

　

The relationship of the forces in the three environments we have been discussing form the basis for our international business model.

The relationship and their interaction may be compared to a set of gears as shown in Figure 1-1, The external forces are represented by the gear teeth which must mesh properly or the system, the enterprise, cannot function. The internal, controllable forces drive the gears’ centers. The interaction of the domestic and the foreign environments (where the gears mesh) is the international environment.

　

The might of the cultural forces

From the international business model we can tell that the cultural forces are as important as the other forces in domestic, foreign and international environment. They contribute equally to the operational functions of a firm as the other forces can if they act to its advantage, i.e. production, finance, marketing and personnel. Especially in international environment, the wide variation of attitudes and values among cultures affects managers of all functions. Although executives normally do not have time to become thoroughly immersed in a foreign nation’s culture, they should be familiar with those aspects which affect with their business relationships. So in the following sections, I would like to first lay a theoretical ground for the analysis, then analyze in specifics those cultural forces which exist in international business in a full-round way.

　

Chapter 3

Aesthetics pertains to a culture’s sense of beauty and good taste and is expressed in the arts, drama, music, folklore, and dances.

　

　 Art. Of particular interest to international businesspeople are the formal aspect of art, color, and form, because of the symbolic meanings they convey. Colors, especially, can be deceptive because they mean different things to different cultures. In the west, people recognize black as the color of mourning, yet in China, White is the acceptable color. Green is a restful color to the Americans but is repugnant to those in Asian countries where it connotes the illness and death of the jungle. These examples illustrate that marketers must be careful to check if colors have any special meanings before using them for their products, packages, or advertisements. Equally important is to learn if there are local aesthetic preferences for form which could affect the design of the product, package, or even the building in which the firm is located.

　

　 Music and folklore. Musical commercials are generally popular world-wide, but the marketer must know what kind of music each market prefers because tastes vary. For instance, if the advertiser is looking to the aged market with a product of traditional production process, then Ancient Chinese music will help reinforce its image.

Those who wish to steep themselves in culture would find it useful to study its folklore, which can disclose much about a society’s way of life. However, this is usually more than the foreign businessperson has time for, although, at times, the incorrect use of folklore can cost the firm a share of the market. For example, if, in the United States, the firm has associated its product with the cowboy, it would not obtain the same results in Chile or Argentina because in these countries, the cowboy is a far less romantic figure – it’s just a job. In another instance, a U.S. company may be paying handsome royalties to use American cartoon characters in its promotion only to find they are considerably less important in other markets. In Mexico, songs of the “Singing Cricket” are known to all youngsters and their mothers, and a commercial tie-in with that character would be as advantageous to the firm as the use of Black Cat Police Officer or Mickey Mouse. In many areas, especially where nationalistic feeling is strong, local firms have been able to compete successfully with foreign affiliates by making use of indigenous folklore in the form of slogans and proverbs. As Herskovits states, “tales of folklore are valuable in maintaining a sense of group unity.” (Herskovists, 1979, p.414) To know them is an indication of belonging to the group which recognizes that the outsider is unfamiliar with its folklore.

　

Every culture has a set of attitudes and beliefs which influence nearly all aspects of human behavior and serve to bring order to a society and its individuals. The more managers can learn about certain key attitudes, the better prepared they will be to understand why people behave as they do, especially when their reactions are different from what the managers have learned to expect in dealing with their own people.

Although attitudes and beliefs cover the widest variety of subjects, some are of prime importance to the businessperson such as the attitudes toward time, achievement and work, and change.

　 Attitudes toward time This cultural characteristic probably presents more adaptation problems for Americans overseas than any other. Time is important in the United States, and much emphasis is placed on it. If they must wait past the appointed hour to see an individual, they feel insulted. This person is not giving the meeting the importance it deserves. Yet the wait could mean just the opposite elsewhere. Southeastern Asian or Middle Eastern executives may be taking care of the minor details of their business, so that they may attend their important visitor without interruption.

Manana Probably one of the most vexing problems for the newcomer to the Philippines is the manana attitude. Ask the maintenance man when the machine will be ready and he responds manana. The Chinese makes a literal translation to mean tomorrow, but the maintenance man meant some time in the near future, and if he is reprimanded for not having the machine ready the next day, he is angry and bewildered. He reasons that everyone knows manana means “in the next few days.” If we don’t know it, we had better learn.

Germans, be prompt Few cultures give the same importance to time that Europeans and Americans do. If any appointment is made with a group of Germans to see them at 12 noon, we can be sure they will be there, but to get the same response from a Filipino, we must say noon Chinese hour. If not, the Filipino may show up anytime between noon and two o’clock. Since the European and American craze for punctuality is well known in the Middle East, they are expected to arrive on time because lateness from Europeans and Americans is considered impolite. The Arabian executives, however, will usually not arrive at the appointed hour. After all, why should they change their lifetime habits just for a stranger?

Directness The Americans pride in directness and drive is interpreted by many foreigners as being brash and rude. Although we believe it expedient to get to the point in a discussion, this attitude often irritates others. Time-honored formalities are a vital part of doing business, and any attempt to move the negotiations along by ignoring some of the accepted courtesies invites disaster.

Deadline Americans’ emphasis on speed and deadline is often used against them in business dealings abroad. In far Eastern countries such as Japan, the American may be asked how long he or she plans to stay at the first meeting. Then negotiations are purposely not finalized until a few hours before the American’s departure when the Japanese know they can squeeze extra concessions from the foreigner because of his or her haste to finish and return home on schedule. Russian negotiators reportedly employ a similar strategy.

　

　 Attitudes toward achievement and work There is a saying in Mexico, “Americans live to work, but we work to live.” This is example of the extreme contracts among cultures in their attitudes towards work. Where work is considered necessary to obtain the essentials for survival, once these are obtained, people will stop working. They do not make the accomplishment of a task an end in itself.

To the surprise of the production manager with a huge backorder, the promise of overtime often fails to keep the workers on the job. In fact, raising employees’ salaries frequently results in their working less (economists call this effect the backward-bending labor curve). This attitude is in sharp contrast to the belief in many industrial societies that work is a moral and even religious virtue.

However, it is important to note that an attitudinal change has occurred repeatedly in many less developed countries as more consumer goods become available. The demonstration effect (seeing others with these goods) and improvement in infrastructure (roads to bring the products to them and electric power to operate them) cause workers to realize they can have greater prestige and pleasure by owning more goods. Thus, their attitude toward work changes, not because of any alteration of their moral or religious values but because they now want what only money can buy.

　

A Mexican distributor came to one of the writers to complain that a number of his salesmen were producing well for the first week or two of the month but were then slacking off. Investigation showed that commissions plus salary earned during the periods of high production were about the same as each time. It was apparent that the salesmen had earned what required to live so that they could loaf the rest of the month. By instituting contests and informing their wives about the prize to be won, considerable improvement was obtained. (Higgin, 1968, p.241)

　

In the industrial nations, the opposite trend is being observed. There is a tendency toward long vacations and shorter workweeks with greater emphasis on leisure activities. One-month vacations are common in Europe.

Religion and achievement Researchers have found that there are differences among cultures with respect to achievement motivation, and attempts have been made to explain these differences on the basis of religion. Although religion is not the only and may not be the principal explanatory variable, the correlation between the predominate religion and a nation’s per-capita income is too high to disregard altogether the influence of religion on past economic growth.

Prestigious jobs Another aspect of the attitude toward work is the prestige associated with certain kinds of employment. In America, some types of work are considered to be more prestigious than others. The result is an overabundance of attorneys and economists and a lack of toolmakers and welders even when the wages are higher for the latter. The distinction between the blue-collar workers and office employees is especially great as typified by the use of two words in Spanish for worker – obrero (one who labors) is a blue-collar worker whereas empeado (employee) signifies an office worker.

Source of recruits The lesson to be learned from this discussion is that there are generally sharper differences in the attitudes toward work and achievement among other cultures than Chinese managers find here among their workers. Their problem when they go abroad is to recruit subordinates with a need to progress, whatever the underlying motive. Many firms have been successful in locating this kind of person among the relatively well-educated but lower-social class who view work as a route to the prestige and social acceptance which have been denied them because of their birth.

　

　 Attitudes toward change The American firm, accustomed to the rapid acceptance of something new, is frequently surprised to find that new does not carry that kind of magic in other markets where something tried and proven is preferred to the unknown. Europeans are fond of reminding them that they are a young nation lacking traditions. The near reverence for traditional methods makes it more difficult for the American production manager to install a new process, the marketer to introduce a new product, or the treasurer to change the accounting system.

The new idea Yet, undeniably, international firms are agents of change, and their personnel must be able to counter resistance to it. The new idea will be more readily acceptable the closer it can be related to the traditional one while at the same time being made to show its relative advantage; in other words, the more consistent a new idea is with a society’s attitudes and experiences, the more quickly it will be adopted.

Economic motivation In these times of worldwide inflation and rising expectations, economic motives can be a strong influence for accepting change. Thus, if factory workers can be shown that their income will increase with the new machine or housewives can be convinced that the new frozen food will enable them to work and still provide satisfactory meals for their families, they can be persuaded by the gain in their economic welfare to accept ideas that they would otherwise oppose.

　

Religion, an important component of culture, is responsible for many of the attitudes and beliefs affecting human behavior. A knowledge of the basic tenets of some of the more popular ones will contribute to a better understanding of why people’s attitudes vary so greatly from country to country.

　

　 Protestant ethic We have already mentioned the marked difference in the attitudes toward work and achievement. Europeans and Americans generally view work as a moral virtue and look unfavorably on the idle. The view stems in apart from the Protestant work ethnic as expressed by Luther and Calvin, who believed it was the duty of Christians to glorify God by hard work and the practice of thrift.

　

　 Hinduism In Hindu and Buddhist societies, however, this attitude is not common because these religions teach that if the followers have no desire, they will not suffer. From this, it follows that if they have no desires, they have little motive for achievement and the acquisition of material goods.

Another aspect of Hinduism which is of importance to managers in the caste system by which the entire society is divided into four groups plus the outcasts. Each group is assigned a certain class of work. An individual’s position in a caste is inherited as is that person’s job within the caste, and movement to a higher caste can be made only in subsequent lives. If the gods choose to punish a person, his or her next life will be at a lower caste level. Eventually, the person may be reborn as an animal. Although Indian has officially outlawed discrimination based on the caste system, it still exists. The manager who places e member of a lower caste in charge of a group from a higher one does so at a considerable risk of employee dissatisfaction.

　

　 Islam With the growth of the Middle East markets, more Chinese are coming into contact with Islam, a religion found in North Africa and the Middle East. Of importance to the businessperson is the Moslem belief that the future has already been ordained by Allah. This fatalistic attitude acts as a deterrent to change, economic development, and long range planning.

An aspect of Islam which can be vexing to the Western manager is the prayer life. Moslems are required to pray five times daily, and when they do, all work stops. Factory managers who fail to take this into account soon fall behind their production schedules. They must also cope with the religious requirement of fasting from dawn to dust during the month of Ramadan. Production drops sharply during this period as workers use their normal sleeping time to eat.

　

A Chinese manager in Pakistan for the purpose of getting a new tire factory into production came to the plant on the first day, saw that production had started as it should, and went into his office to do some work. Suddenly, all machinery stopped, and he rushed out expecting to encounter a power failure. Instead, he found the workers on their prayer rugs. The manager returned to his office and lowered his production estimates. (Ball, 1985, p.189)

　

Many Moslems, realizing that religious requirements can be a handicap in doing business with Westerners, are finding ways to circumvent some to the requisites. When Arabian banks, which do not pay interest on deposits because Islam forbids it, began to compete in world markets, they found that they would have to pay something for the use of money. The Arabian solution to the dilemma was to pay “commission”.

　

　 Animism In a number of African and Latin American countries, Animism, a kind of spirit worship which includes magic and witchcraft, is a major religion which is often combined with Catholicism to present a strange mixture of mysticism, taboos, and fatalism. Animists believe that their dead relatives are ever present and will be pleased if the living act in the same way as their ancestors. The resultant strong tendency to perpetuate traditions makes changes which the marketers and production managers wish to initiate extremely difficult. To be accepted, these changes must relate to the Animists’ beliefs. The foreign manager must also be aware of the proper religious protocols in situations such as factory and store dedications. Note the aircraft dedications by the High Lama in Bhutan. If the evil spirits are not properly exercised, they will remain to cause all sorts of problems, such as worker injuries, machinery breakdowns, and defective products.

　

　 The international motivator We have seen that religion is a major influence for shaping the attitudes, beliefs, motivations, and values of a culture. The international manager, accustomed to the Protestant ethic which extols the virtues of industriousness and thrift, often is frustrated to find that in areas where other religions predominate, buyers and workers do not react to incentives as they do in his own country. Fortunately, aspirations for material goods are emerging as an international motivator which is overcoming many of the religious prejudices.

　

Material culture refers to all man-made objectives, and its study is concerned with how man makes things (technology) and who makes what and why (economics), Of all the cultural components, material culture is the one for which more hard data are available and is the aspect of culture with which international firms are most familiar. The market study, essential for any foreign investment decision, investigates the state of a nation’s material culture – the products which people own or would like to own and the economic variables such as level of income and its distribution which determine whether the market can afford them.

　

　 Technology Technological superiority is frequently the prime motive for overseas investment, but before committing resources, management will assess the general level of technology. This provides them with information about a number of variables which can affect their investment, such as the availability of raw materials and energy, the types of workers they can hire, and the state of the transportation system.

Technology requires change. Technology not only covers the basic sciences and their application to production but also includes skills in marketing, finance, and management. Its cultural aspects are important to international managers because new products and production methods often require people to change their beliefs and ways of living. The self-employed farmer frequently finds the discipline required to become a factory worker excessively demanding. Workers, accustomed to the production conditions of small village industries where each individual performs all of the production operations, find it difficult to adjust to the monotony of tightening a single bolt. The “throw away instead of repair” philosophy behind the design of so many new products necessitates that people who are accustomed to repairing something to keep it operating until it is thoroughly worn out change their use habits. Generally, the greater the difference between the old and new method or product, the more difficult it is for the firm to institute a change.

High GNP – high level of technology. The differences in levels of technology among nations are used as a basis for making comparisons as to whether a country is advanced or retarded. Generally, a nation with a large GNP/capita utilizes a high level of technology than one whose per-capita income is smaller. However, because of technological dualism, analysts must be wary of assuming that the particular industry they are examining is employing a simple technology just because the general level is low.

Technological dualism. Technological dualism is a prominent feature of many LDCs. In the same country, one sector may be technologically advanced with high productivity while in the other sectors, production techniques are old and labor intensive. This condition may be the result of the host government’s insistence that foreign investors import only the most modern machinery rather than bring in used but serviceable equipment which would be less costly and could create more employment. Sometimes the preference is reversed with the government beset by high unemployment arguing for labor-intensive processes while the firm prefers automated production not only because it is the kind with which the home office is most familiar but also its use lessens the need for skilled labor which is usually in short supply. To understand which policy the government is following, management must talk with host-country officials and study its laws and regulations.

Government Controls. The influence of technology is so widespread because the level of the employed affects the size of the foreign investment, the quality and number of workers employed, and even what a particular country can produce. For these reasons, plus what many LDC governments consider to be abuses in the sale of technology by the multinationals, many of these countries have enacted strong laws controlling the purchase of technical assistance. The Andean Group nations, Mexico, India, S. Korea and to a less extent, Argentina and Brazil, now have investment laws which limit the amount of royalties paid and prohibit many of the restrictions regularly used by the multinationals such as those which oblige the users to purchase raw materials from the licensor, prohibit the licensee from exporting, and require them to transfer to the suppliers any improvements they have made in the technology. This worldwide trend by developing nations toward severe limitation on the after-sale control which an MNE has over its own technology has caused many of these firms not only to cut back on licensing but also to reduce new foreign investments.

Cultural aspects of technology. Another factor which multinational managements must now consider when selling technology to the less-developed countries is its cultural aspects. Will the new technology require massive cultural changes which the public is not yet prepared to make? Increasingly, LDC government leaders are realizing that immaterial basic needs must also be considered along with the desire for material goods. In other words, what is produced is no longer the public’s sole consideration; people are also looking critically at how it is produced.

　 Economics. The decision as to the kind of technology to be used by a firm in a subsidiary will, within any constraints imposed by the host government, depend on various measurements of the material culture. Economic yardsticks such as power generated/capita, number of high school graduates, and so on can uncover possible problems in the distribution and promotion of the product, help determine market size, and provide information on the availability of resources such as raw materials, skilled and unskilled labor, capital equipment, economic infrastructure (communications, financial system), and management talent.

　

Although education in its widest sense can be thought of as any part of the learning process which equips an individual to take his or her place in the adult society, nearly everyone in the Euroamerican culture equates education with formal schooling.

　

　 Education yardsticks. The firm contemplating foreign investment has no indicators of the educational level of a country’s inhabitants except the usual yardsticks of formal education, literacy rate, kinds of schools, quantity of schools and their enrolments, and possibly the amount per capita spent on education. Such data underestimate the size of the vocationally trained group in many developing countries where people learn a trade through apprenticeships starting at a very early age (12 – 13 years). Like other international statistics, the published literacy rate must be suspect. Often the literacy census of asking respondents if they can read and write, and the signing of their names is taken as proof of their literacy. Nonetheless, these data do provide some assistance. Marketers are interested in the literacy rate because this helps them to decide on the type of media to employ and at what level they should prepare advertisements, labels, point-of-purchase displays, and owner’s manuals. The personnel manager will also use the literacy rate as a guide in estimating what kinds of people will be available for staffing the operation.

As with most kinds of data, the trends in education should be studied. It is important to realize that the general level of education is rising throughout the world. In the last 20 years, the percentage of the population aged 20 – 24 that is enrolled in higher education has doubled in industrialized nations and tripled in the developing countries. The implications for marketers is that they must prepare to meet the needs of more-sophisticated and wiser consumers.

While these data are indicative of the general level of education, unfortunately they tell us nothing about the quality of education, nor do they indicate how well the supply of graduates meets the demand.

　

　 Educational mix Until the 1970’ management education in Europe lagged far behind what was available in the United States. There was a feeling that managers were born, not made, and that they could only be trained on the job. Thus, there was little demand for formal business education.

However, a combination of factors has caused a booming of business schools patterned on the American model:

　

Increased competition in the European Community resulting in a demand for better-trained managers.

The return to Europe of American business school graduates.

Establishment of American-type schools with American faculty and frequently with the assistance of American universities.

　

This trend has been much slower to develop in the LDCs where, historically, higher education has emphasized the study of humanities, law, and medicine. Engineering has not been popular because, with the exception of architecture and civil engineering, there have been few job opportunities in these pre-industrial societies. Furthermore, business education has not prospered because of the lack of prestige for a business careers.

As these nations industrialize, there is greater competition in the market place and the job opportunities for engineers and business graduates increase. Not only do the multinationals recruit this kind of personnel, but the local firms do too when they find that the new competition forces them to improve the efficiency of their operation.

　

　 Brain drain. Most developing nations are convinced that economic development is impossible without the development of human resources, and for the last two decades especially, governments have probably overinvested in higher education in relation to the demand for students. The result has been rising unemployment among the educated which has led to a “brain drain” – the emigration of professionals to the industrialized nations. UNCTAD’s study showed that from 1960 to 1972, over 300,000 scientists, engineers, and physicians left the developing countries. The United States, Great Britain, and Canada received 75 percent of the total. Fifty percent of the professionals came from Asia, particularly India and the Philippines. The international Labor Organization estimates that each emigrant signifies a loss of $20,000 to the country, so on that estimate, the cost of the brain drain to the LDCs would be over $6 billion.

The prime minister of Jamaica made an interesting observation. During the period 1977 – 1980, over 8,000 top professionals, 50 percent of the country’s most highly trained citizens, emigrated, primarily to the United States. He estimated that the education of these people cost this nation $168.5 million. During that same period, U.S. aid to Jamaica totaled only $116.3 million.

Developing countries are now demanding that the industrial nations pay compensation for the loss of revenue due to the outflow of skilled people. In rebuttal, a U.S State Department economist told a UN conference that “the proposal tends to ignore the fact that people are people. They aren’t commodities and they aren’t traded.” (The Wall Street Journal, September 3, 1982, p.30) Obviously, he knows nothing about professional basketball – NBA.

Government authorities are deeply concerned about the loss of skills and have come to realize that there must be faster new job creation, not only to stop the costly loss but also to avoid serious political repercussions.

Many current developing plans encourage labor-intensive exports and discourage the introduction of labor-saving processes. The pressure of the unemployed educated is forcing officials in many areas to soften the terms for foreign investment.

　

　 Adult literacy. Governments also are questioning the wisdom of spending funds to highly educate a few, and many are giving priority to primary education as a means to achieving universal literacy. While this emphasis will reduce the literacy problem of the young, it does little to the adults. Evidence of this is the fact that, in spite of heavy spending on primary education, adult illiteracy declined just 4 percent worldwide between 1960 and 1972.

Inasmuch as the results of an adult literacy program are immediate as compared to waiting 10 to 20 years for the primary-school generation to be productive, more attention is being given to adult education, an important trend for MNE managements to note. For example, Brazil, in only four years, was able to reduce the illiteracy rate for adult Brazilians by one third, and the cost, allowing for dropouts, was only $11 per student. The program’s annual budget was $26 million, which is less than New York City spends just to repair and maintain its school buildings.

　

　 Women’s education. One other important trend, especially for marketers, is the fact that the illiteracy rate for women is falling and the literacy difference between older and younger female age groups is striking. Nearly every government now has a goal, if not an actual policy, of providing free and compulsory primary education for both sexes. In many LDCs, the number of female university students has risen quickly. In Libya, the percentage of female students rose from 2 percent in 1960 to 11 percent in 1970, and in some African nations, university enrollments have multiplied from 7 to 16 times.

In Latin America, the enrollment of women in universities has risen from 24.6 percent of the students population in 1960 to 41 percent in the 1970s. The number of women entering the workforce, according to an Inter-America Development Bank study, is doubling every 20 years. In almost every country, educated women have fewer, healthier, and better-educated children than do uneducated women. They achieve higher labor force participation rates and higher earnings. Undoubtedly, this is leading to an increased share in the family’s decision making which will require marketer to redo their promotional programs in order to take advantage of this consequential trend.

　

Probably the most apparent cultural distinction which the newcomer to international business perceives is in the means of communication. Differences in the spoken language are readily noticable, and after a short period in the new culture, it becomes apparent that there are variations in the unspoken language (manners and customs) as well.

　

　 Spoken language. Language is the key to culture so that without it, people find themselves locked out of all but a culture’s perimeter. Likewise, there is no way to learn a language so that the nuances, double meanings of words, and slang are understood unless one also learns the other aspects of the culture. Fortunately, the learning of both goes hand in hand; a certain feel for the people and their attitudes naturally develops with a growing mastery of the language.

Language delineate culture. Spoken languages demarcate cultures just as physical barriers do. In fact, there is nothing equal to the spoken language for distinguishing one culture from another. If two languages are spoken in a country, there will be two separate cultures (Belgium), four languages – four cultures (Switzerland), and so forth. What is occurring in Canada because of the sharp divisions between the English and French speaking regions is ample evidence of languages’ force to delineate culture. The differences among the Basques, Catalonians, and Spaniards or between the French and Flemish of Belgium are other notable examples illustrating that there are sharp cultural and often political differences between language groups. However, it does not follow from this generalization that cultures are the same wherever the same language is spoken. As a result of Spain’s colonization, Spanish is the principal language of 21 Latin American nations, but no one should believe that Chile and Mexico are culturally similar. Many words in both the written and spoken languages are completely different. Even within the country, words vary from one region to another.

Foreign language. Where many spoken languages exist in a single country (India and many African nations), there is one foreign language which serves as the principal vehicle for communication across cultures. Nations which were formerly colonies generally use the language of their ex-rulers; thus French is the lingua franca of former French and Belgium colonies in Africa, English in India, Portuguese in Angola. Although they serve as a national language, these foreign substitutes are not the first language of anyone and consequently, are less effective for reaching mass markets or for day-to-day conversation between managers and workers than are the native tongues. Even in countries with one principal language, such as German and French, there are problems of communication because of the large number of Greeks, Turks, Spaniards, and others who were recruited to ease labor shortages. A German supervisor may have workers from three or four countries and be unable to speak directly with any of them. To alter this situation, managements try to separate the work force according to origin; that is, all Turks in the paint shop, Greeks on the assembly line, and so on, but the preferred solution is to teach managers the language of their workers. Invariably, such training has resulted in an increase in production, fewer product defects, and higher worker morale.

Must speak the language. It goes without saying that marketers must be able to speak the language if they are to attain any reasonable measure of success. Even when customers speak the sales representative’s language, they will accept as a compliment the visitor’s efforts to converse in their tongue. In many countries, it is a social blunder to begin a business conversation by talking business. Most foreigners expect to establish a social relationship before doing business, and the casual, exploratory conversation which precedes business talks may take from 15 minutes to several meetings, depending on the importance of the translation. Obviously a better rapport can be established in a one-to-one conversation than through an interpreter.

Translation. The marketer’s ability to speak the language well does not eliminate the need for translators. The smallest of markets requires technical manuals, catalogs, and good advertising ideas, and a lack of local talent to do the work does not mean that the organization must do without these valuable sales aids. The solution, even when the parent firm does not insist on international standardization, is to obtain this material from headquarters and have it translated if the costs are not prohibitive and there are suitable reproduction facilities available locally. If the catalog or manual cannot be reproduced there, the translation can be made and sent to the home office for reproduction. They already have the art work, so the only additional cost is setting the type for the translation.

Allowing headquarters to translate can be extremely risky because words from the same language frequently vary in meaning from one country to another or even from one region to another as was mentioned earlier. A famous example which illustrates how only a single word incorrectly translated can ruin an otherwise good translation occurred in Mexico. The American headquarters of a deodorant manufacturer sent a Spanish translation of their international theme, “If you use our deodorant, you won’t be embarrassed in public.” Unfortunately, the translator used the word embarazada for embarrassed which in Mexican Spanish means pregnant. Imagine the delight that the Mexican subsidiary had with that one.

Use two translations. To avoid translation errors, the experienced marketer will prefer what are really two translations. The first will be made by a bilingual native whose work will then be translated back by a bilingual foreigner to see how it compares with the original. This work should be done preferably in the market where the material is to be used. No method is foolproof, but the double translation approach is the safest way devised so far.

Technical words. One problem that the usual run of translation have is with technical terms that do not exist in a language and common words which have a special meaning for certain industry. Portuguese, for example, is rich in vocabulary pertaining to fishing and marine terms, a reflection of their material culture but, unlike English, is exceedingly limited with respect to technical terms for the newer industries. The only solution is to employ the English word or literally fabricate a new word in Portuguese. Translators, unless they have a special knowledge of the industry, will go to the dictionary for a literal translation which frequently makes no sense or is erroneous.

Resolving such problems by using English words may not be a satisfactory solution even if the public understand them, especially in France or Spain, which have national academies to keep the language “pure.” The French have gone so far as to ban by law over 300 Anglicisms, and Belgium is considering doing the same. An example of this purification move is the change from le hot dog to le saucisson de francfort (the sausage of francfort). Although the French government has admitted defeat in getting rid of the old standby such as le weekend, le parking, and le jogging, it has drawn the line on the scientific use of American computer terms as le hardware and le databank. The French Academy has asked to create French substitutions.

At first thought, this may seem to be another bureaucratic garbage, but on further reflection, one comprehends that these countries have good economic reasons for maintaining a pure language as part of their global campaign to teach to foreigners. Those learning French are not only potential tourists but also become more empathetic toward anything French. The Argentine engineer who reads French and not English will turn to French manuals and catalogs before specifying the supplier for the new power plant he is designing. However, if he constantly finds English technical terms in the French text, which forces him to go to his Spanish-English dictionary, he may decide to learn English and read American manuals and catalogs.

In Japan, the situation is reversed probably because for decades, the country coveted foreign products while it struggled to overtake the more advanced West. Even now, most Japanese apparently like to see English written on their products. For example, Japanese cars sold in the domestic market have almost nothing but English on them. A Nissan official explains that English is thought to be more attractive to the eye. “Perhaps this is why people quench their thirst with best-selling soft drink called “Pocari Sweat” and order from menus announcing “sand witches’ and ‘miss Gorilla” (mixed grill). They also puff away on a cigarette called Hope.

　

　 Unspoken language. Nonverbal communication or the unspoken language can often tell businesspeople something that the spoken language does not if they understand it. Unfortunately, the differences in customs among cultures may cause misinterpretations of the communication.

Closed doors. Americans know that one of the signs of an important executive is a large office with a door that can be closed. Normally, the door is open as a signal that the occupant is ready to receive others, but when it is closed, something of importance is going on. Contrary to the American open-door policy, the Germans regularly keep their doors closed. Hall says that the closed door does not mean that the person behind it wants no visitors but only that he or she thinks open doors sloppy and disorderly.

Office size. Although office size is an indicator of a person’s importance, it means different things to different cultures. In China, the higher the executive, the larger and more secluded is the office, but in the Arab world, the president may be in what for us is a small, crowded office. In Japan, the top floor of a department store is reserved for the “bargain basement” (bargain penthouse) and not for top management. The French prefer to located important department heads in the center of activities with their assistants located outward on radii from this center. To be safe, never gauge peoples’ importance by the size and location of their offices.

Conversational distance. Anthropologists report that conversational distances are smaller in the Middle East and Latin America. Whether or not this generality is true, we must remember that generalities are like arithmetic means, perhaps more people do than do not act in a certain way in a culture, but the businessperson will be dealing just a few nationals at a time. Luck may have it that he or she will meet those who are exceptions to the stereotype.

Language of gift giving. Gift giving is an important aspect of every businessperson’s life both here and overseas. Entertainment outside office hours and the exchange of gifts are part of the process of getting better acquainted. However, the etiquette or language of gift giving varies among cultures just as the spoken language does, and although foreigners will usually be forgiven for not knowing the language, certainly they and their gifts will be better received if they follow local custom.

Acceptable gifts. In Japan, for example, one never gives an unwrapped gifts nor visits a Japanese home empty handed. A gift is presented with the comment that it is only a trifle which implies that the humble social position of the giver does not permit giving a gift in keeping with the high status of the recipient. He in turn will not open the gift in front of the giver because he knows better than to embarrass him by exposing the trifle in the giver’s presence.

Japanese use gift giving to convey one’s thoughtfulness and consideration for the receiver who, over time, builds up trust and confidence in the giver. Japanese never give four of anything or an item with four in the name because the word sounds like the one for death. White and yellow flowers are not good choices for gifts because in many areas, they connote death. In Germany, red roses to a woman indicate strong feeling for her, and if you give cutlery, always ask for a coin in payment so that the gift will not cut your friendship. Cutlery are friendship cutters for the Russians and French also. Traditions vary greatly throughout the world, but generally safe gifts everywhere are chocolates, red roses, and good scotch whisky (not in the Arab world – instead bring a good book or something useful for the office).

　

Every society has a structure or an organization which is the patterned arrangement of relationships defining and regulating the manner by which its members interface with each other. Anthropologists generally study this important aspect of culture by breaking down its parts into two classes of institutions – those based on kinship and those formed on the basis of free association of individuals.

　

　 Kinship The family is the basic unit of institutions based on kinship. Unlike the American family which is generally composed of the parents and their children, families in many nations – especially in the developing ones – are extended to include all relatives, both by blood and by marriage.

Extended family. The extended family’s impact on the foreign firm derives from the fact that it is a source of employees and business connections. The trust that people place in their relatives, however distant, may motivate them to buy from a supplier owned by their cousin’s cousin even though the price is higher. Local personnel managers are prone to fill the best jobs with family members regardless of their qualifications.

Member’s responsibility. Although the extended family is large, the feeling of responsibility of each member to it is strong. An individual’s initiative to work is discouraged when he or she may be asked to share personal earnings with those who are unemployed no matter what the kinship is. Responsibility to the family is frequently a cause of high absenteeism in developing countries where the worker is called home to help with the harvest. Managements have spent large sums to provide comfortable housing for workers and their immediate families only to find them living in crowded conditions when members of the extended family have moved in.

Pedro Diaz Marin. Latin America where the extended family form is common, individuals use the maternal surname (Marin) as well as the paternal (Diaz) to indicate both branches of the family. It is a common sight to find two businesspeople or a businessperson and a government official, when meeting for the first time, exploring each other’s family tree to see if they have common relatives. When they do find any kinship at all, the meeting goes much more smoothly – after all, they’re relatives.

　

　 Associations Social units not based on kinship, known as associations by the anthropologists, may be formed by age, sex, or common interest.

Age. Manufacturers of consumer goods are well aware of the importance of segmenting a market by age groups which often cut across cultures. This fact has enabled marketers to succeed in selling certain kinds of products such as clothing and records to the youth market in both developed and developing nations. However, international marketers may go too far if they assume that young people everywhere exert the same buying influence on their parents as they do here. Kellogg’s attempt to sell cereals in Great Britain through children was not successful because English mothers are less influenced by their children than are American mothers. The senior citizen segment is an important separate group in the United States where older people live apart from their children, but where the extended family concept is prevalent, older people continue to live with and exert a powerful influence on younger members of the group.

Sex. Generally, the less developed the country, the less equal are the sexes with respect to job opportunities and education. As nations industrialize, more women enter the job market and thus assume greater importance in the economy. This trend is receiving greater impetus as the women’s movement for equality of the sexes spreads to the traditionally male-dominated societies of lesser-developed countries.

A word of caution, however, must be given to those who, noting the apparently sequestered life of women in some areas, conclude that they have little voice in what the family buys or how it acts. Despite the outward appearance of male domination, behind closed doors, women exert a far more powerful influence than what the unknowing outsider might suspect.

Common interest. The common-interest groups are composed of people joined together by a common bond which can be political, occupational, recreational, or religious. Even before entering a country, management should identify and assess these groups for their political and economic power. So firms have been forced to change their product, promotion, and prices by consumer organizations, and investments have been supported or opposed by labor unions, which are often a powerful political force.

　

　 Class mobility The ease of moving from one social class to another for most countries lies on a scale from the rigid caste system of India to the relatively flexible social structure in the United States. Lesser developed countries tend to be located nearer India, whereas the industrial nations are closer to the American position. As industrialization progresses, barriers to mobility become weaker. Mobility between classes must be assessed by management because an interclass rigidity, especially when it is accompanied by low social status for business, can make it extremely difficult for the firm to obtain good management personnel locally

　

　

Chapter 4

When conducting business around the world or with someone of anther culture, a knowledge of certain rules of business and social etiquettes is important. Etiquette refers to manners and behaviors considered acceptable in social and business situations. Five countries are cited in this chapter to exemplify etiquette differences of various countries in the world. And the advice given can be hopefully serves as guidelines for Chinese international business managers

Australia

　

Appointments are relatively easy to schedule at practically all organizational levels. You'll find that many executives will be pleasant, approachable, and willing to meet to discuss business. The best policy is to arrange an appointment one month in advance. Business hours are 9:00 a.m. to 5:00 p.m., Monday through Friday. For the business traveler, the best time to visit is from March through November, since the tourist season occurs from December through February. Avoid scheduling visits around Christmas and Easter, since many executives will be on vacation during these periods. While you should strive to be punctual, understand that Australians sometimes have more of a casual attitude toward time. In some cases, if you are a few minutes late to a meeting, it will be overlooked. In other instances, however, your late arrival may cause you to be perceived as a careless, unreliable businessperson. On the other hand, if you find yourself waiting for your Australian counterparts to arrive, remain patient and accommodating. If you are an employer, it's not enough to insist that your Australian employees arrive on time; you will have to give convincing evidence that their tardiness is harming the organization.

1.2 Business Dress

Australia is in the Southern Hemisphere, so the seasons are opposite to those of North America. Most of the country is tropical, but with Australia's vast size, this varies greatly. Southern Australia has warm summers and mild winters, so light clothing is recommended. During winter months, warmer clothes and rain gear will be necessary. Business dress is conservative. Men may wear a dark suit and tie; during the summer, the jacket can be removed. Suits, skirts and blouses, or dresses are standard for women. Business dress, however, may be more informal in very tropical climates. Some workplaces have a 'casual Friday' policy where casual dress may be worn on Fridays

It is appropriate to present a business card at an introduction. Before a meeting proceeds, there is usually some preliminary “small talk.” Establishing rapport is important in Australian business culture. Speak plainly and expect what you say to be taken literally. In turn, interpret what Australians say to you in the same direct manner. Often, Australians will be initially trusting of people they consider their equals. Australians are usually distrustful of authority and of people who think that they are somehow “better” than others. Remain modest at all times; in conversation, refrain from drawing attention to your education, professional experience, business success, and related achievements. Cynicism is an important part of the national character. A great deal of cynicism is directed at people who seem too wealthy or powerful. In this culture, there is greater respect for the “underdog.” Australians generally dislike negotiating and aggressive sales techniques. Since they value directness, presentations of any kind should be straightforward, with an emphasis on both the positive and negative outcomes. An overly enthusiastic or earnest presentation that appears to be filled with exaggerated claims will only cause the speaker to become an object of ridicule. Keep your presentation simple and “to-the-point,” since digressions or excessive details will not be well-received by an Australian audience. Modesty, casualness, and an air of nonchalance are characteristic attitudes in Australian business culture. Australians tend to be receptive to new ideas. Generally, they are analytical, conceptual thinkers.

Established rules or laws usually take precedence over one's feelings. During negotiations, company policy is followed at all times. Empirical evidence and other facts are considered the most valid forms of proof. Feelings of any kind are usually regarded with suspicion, particularly for decision-making purposes. In presentations and conversation, Australians are often receptive to sporting analogies. Australian businesspeople may emphasize profit over market share. Refrain from discussing your personal life during business negotiations. Generally, Australians do not like or trust people who appear to give excessive praise. This behaviour sometimes raises the suspicion that they are being set up to be embarrassed or misled in some way. Moreover, Australians dislike being pressured and will only resent the stress that accompanies high expectations. The work environment in Australian business culture tends to be collaborative. Before a decision is made, top management will consult subordinates and their input will be given careful consideration. Consequently, decision-making will be slow and protracted. It will be in your best interests not to try to rush this process. Deadlines and producing results are the main sources of anxiety in this culture. Decisions of any kind must be in accordance with company policy. Australians do not find it difficult to answer “no.” Informing against one's “mates” is regarded with disgust in this culture. If you are teased, take it good-naturedly; you may tease back in an affable, rather than mean-spirited, manner. Australian women are still struggling for increased salary and positions of authority. In the workplace, men may not always treat women as equals. Work is sometimes perceived by Australians as a “necessary evil.”

If you are invited out for a drink, don't bring up the subject of business unless your host does so. In an Australian pub, bear in mind that each person is expected to pay for a round of drinks which is called a 'shout.' Neglecting your turn to pay for a round will only create a bad impression. When hosting a dinner at a restaurant, you might have to bring your own supply of alcohol, since some establishments may not have liquor licenses. These restaurants will have 'BYO' status which means 'Bring Your Own' (alcohol). When in doubt, make inquiries ahead of time. Moreover, your Australian guests will likely be displeased if alcohol is not served with meals. Wine is the usual preferred drink at meals, although beer may be drunk beforehand. Australians do not pick up the tab automatically when they invite people out to dinner. The exception would be if it's a special occasion and they offer to pay either before the meal or at the conclusion of the meal. Australians assume they will go “Dutch” when making casual arrangements to go out. Australian table manners and settings are similar to those in North America, only more relaxed. Australia is one of the most multicultural locations in the world and Australian food reflects this diversity. 'Australian' food is increasingly difficult to define, as Australians commonly eat Italian, Thai, Chinese or European food. Kangaroo meat is considered a delicacy in this country, although most Australians have never tried it. You may be invited to an Australian's home, even after a relatively brief acquaintance. Australian hospitality tends to be very informal, particularly when you are invited to a home for a barbecue. At a BBQ, you will be encouraged to serve yourself. Hesitation will only cause your hosts to feel annoyance, if only because they genuinely want you to feel “at home.” It is customary for guests to bring a bottle of wine for their hosts.Barbecues, affectionately known as “barbies,” are a very popular form of home entertaining. Guests will be required to dress casually and engage in lively socializing. Unannounced visits are not part of Australian culture; always make it a point to phone ahead. Tipping is not customary for taxi travel in Australia, however, tourists and business travelers in Australia may leave tips, if they wish, and this gesture will be accepted with gratitude. Tips in restaurants are more common, however, do not generally exceed 10% of the entire bill cost.

1.5 Gift Giving

The handshake is the preferred greeting. Men should refrain from being too physically demonstrative with women. It is the custom to shake hands at the beginning and end of a meeting. It is acceptable for visitors to introduce themselves in social situations. “G'day, mate” is a popular casual greeting, particularly between individuals who have already established a cordial acquaintance. When speaking to an Australian, keep an arm's length distance from the person. Maintaining personal space is important in this culture. Don't break eye contact with an Australian when he or she is talking to you. Touching, patting or hugging other men in public are considered socially unacceptable. It is common for men to open doors for women, as well as employees for bosses and youth for elders. Men should refrain from winking at women.our best approach is to remain friendly, relaxed, modest, and unpretentious. Moreover, try to control any behaviour such as nervousness, officiousness, or self-importance. Australians are very difficult to impress; even if you do manage to impress them, they may not openly admit it.Although it is customary in this culture for men to sit in the front with the taxi driver, this is not the case for women. A woman traveling alone should sit in the back left passenger seat of the car; the driver will be on the right.

Japan

　

2.1 Making Appointments

2.2 Business Dress

In Japanese business culture, men traditionally wore conservative suits, typically in blue or gray, with a white shirt and dark tie. Suits are still conservative in medium-sized and larger Japanese companies and government offices, but pastel shirts are now common. Pastel shirts, and some even more colorful versions, are rapidly becoming common in Japan's business world. The foreign businessman in Japan can wear whatever shirt he usually wears...without any negative impact. You may be expected to take your shoes off in temples and homes, as well as in some ryokan [inn] style restaurants. Consequently, it’s a good idea to wear slip-on shoes, since they can be taken off easily. Since your socks will be seen more than usual, ensure that you pack a supply of clean, conservative socks.

Business women should dress conservatively and use jewellery, perfume, and makeup only sparingly. It is now common for many Japanese women to wear slacks, pant suits and high heels at work, depending on the kind of work they do. In factories, they generally wear uniforms. Office workers in many companies dress very much like female employees in Western countries. Some old-line companies continue to dictate a conservative style.

Summers in low lying areas of Japan are hot and humid. It's a good idea to pack several changes of clothes, as this culture places an emphasis on maintaining a clean, neat appearance. Business meetings are sometimes held in inns [“ryokans”], where you may be expected to wear a yukata robe to dinner. The inn provides the yukata.Wrap a yukta [or kimono] left over right. Only corpses wear a kimono wrapped right over left.

2.3 What you should know before negotiating

An invitation to lunch or dinner is important in Japan. Businesspeople are not likely to accept invitations from people they do not trust. When you are taken out, the host always pays, in accordance with Japanese business protocol. It is sometimes acceptable to be late for social occasions. When in doubt, however, arrive on time.

In a traditional Japanese style restaurant, your host will generally order for you...but if you are familiar with Japanese dishes, it is perfectly acceptable for you to let the host know what you like. Expressing thanks to your host after a meal is an important part of the ritual.

When taking a Japanese businessperson to lunch, it’s best to select a restaurant of your own culture, if possible. Introducing one’s culture, and talking about it during the meal, is often an effective way of establishing rapport and a personal relationship. Then, it is likely that your guest will invite you to a Japanese restaurant and explain to you some aspects of Japanese culture. People who focus only on work-related matters will find that they cannot make friends or successfully conduct business in Japan. During meals, use as many Japanese sentences as you can. Bow often, when appropriate.

In Japanese business culture, bars are popular venues for business entertaining, particularly “karaoke” bars where patrons are encouraged to sing along to taped popular songs. Plan on staying out until the early hours of the morning.

If you are invited out to a karaoke bar, you will be expected to sing along. It doesn’t matter if you can’t carry a tune, but remaining gracious and co-operative is essential.

Women guests are not welcome at geisha houses and Sumo wrestling rings.If you would like to propose a toast, the standard term is “Kampai” (kahm-pie), which is the equivalent of “Cheers.” Then, your companions will repeat your toast and clink glasses before taking a sip of sake, whiskey or beer. Traditionally, the host takes the first sip. If a toast is proposed to you, ensure that you reciprocate with a toast of your own.

If you are invited to a Japanese home, consider it a rare honour and express sincere appreciation to your hosts. You may be expected to take your shoes off in temples and homes, as well as in some traditional style Japanese inn restaurants. Consequently, it’s a good idea to wear slip-on shoes, since they can be taken off easily. Since your socks will be seen more than usual, ensure that you pack a supply of clean, conservative socks. When invited to a Japanese home, you will be expected to remove your shoes and wear the slippers that are provided.When invited to a dinner party in a home, you may be expected sit cross-legged or with your legs to the side, around a low table with the family. Additionally, a backrest may be offered. Although meals tend to be long, an evening in a home usually ends relatively early, around 11:00 p.m.

2.5 Gift Giving

Gift-giving is an important part of Japanese business protocol. Moreover, gifts are exchanged among colleagues on July 15 and January 1 to commemorate midyear and the year's end respectively. It is a good policy to bring an assortment of gifts for your trip. This way, if you are unexpectedly presented with a gift, you will be able to reciprocate. The emphasis in Japanese business culture is on the ritual of gift-giving, rather than the gift itself. For this reason, you may receive a gift that seems too modest, or conversely, extravagant. An expensive gift will not be perceived as a bribe. A wrapped gift is often carried inside a shopping bag to avoid ostentation and minimize any hint that a gift is about to be presented. The best time to present a gift is toward the end of your visit. You can discreetly approach the recipient, indicating that you have a small gift. Avoid giving a gift early in a relationship or at any conspicuous moment. A gift for an individual should be given in private. If you are presenting a gift to a group of people, have all of the intended recipients assembled. Present gifts with both hands. It is customary to comment that the gift you are presenting, even if it is extravagant, is ““tsumaranai mon” [“an uninteresting or dull thing”]. This statement is meant to convey, “Our relationship is more important than this trivial item.”

It is a mistake to give the same gift to two or more Japanese of unequal rank. People will also take offense if you are in the presence of a group of people and give a gift to one person, but fail to give one to the others who are present. Gifts are opened in private, because if the gift turns out to be a poor choice, “loss of face” will result. Also, if several gifts are presented to people of different status, opening them privately prevents any possible comparisons.

Before accepting a gift, it is polite to modestly refuse at least once or twice before finally accepting. Ensure that your gifts are wrapped. It's safest to leave this task to a store or hotel gift-wrapping service.

The safest gift-wrapping choices are pastel-coloured papers, without bows. Avoid wrapping a gift with brightly covered papers or bows. If you are invited to a Japanese home, bring flowers [an uneven number], cakes or candy. If you receive a gift, be sure to reciprocate. Gifts in pairs are considered lucky.

? foreign, prestigious name-brand items

? imported scotch, cognac, bourbon, brandy or fine wines [top-quality brands only]

? frozen steaks

? gourmet foodstuffs, fresh fruit

? electronic toys [if children are on your gift-list]

? cuff links

? pen and pencil sets

? something that reflects the interests and tastes of the recipient

? a simple commemorative photograph [i.e.,taken from a gathering that the recipient attended]

Gifts to Avoid

? Lilies, lotus blossoms, and camellias are associated with funerals. White flowers of any kind should be avoided. There is also a superstition that potted plants encourage sickness.

? Giving four or nine of anything is considered unlucky.

? Red Christmas cards should be avoided, since funeral notices are customarily printed in this colour.

2.5 Public Behaviour (Acceptable public conduct)

? Maintain a quiet, low-key, and polite manner at all times.

? A bow,“ojigi” [oh-jee-ghee], can be a way of greeting someone, acknowledging a person, expressing thanks, saying “I’m sorry” or even asking for a favour.

? The bow is an important part of Japanese business protocol. Bows are used for expressing appreciation, making apologies and requests, as well as for greetings and farewells. Bows convey both respect and humility.

? Meanings will be read into even the slightest gestures. Consequently, avoid displaying unusual facial expressions and motioning in ways that are remotely dramatic or expansive.

? The American “O.K.” sign (thumb and forefinger shaped into an “O”) actually means “money” in Japan.

? Instead of pointing, which is considered rude, wave your hand with the palm facing up.

? In Japanese business culture, men don't engage in backslapping; but, again, it is common in drinking situations after hours.

Saudi Arabia

　

Generally, businesses in the Kingdom open at about nine in the morning, close for Dhuhr prayer, open afterwards for half an hour or so, close for the afternoon and then re-open for the hours from five to ten pm [closing for Maghrib and Isha' prayers during these hours]. Government offices and banks open an hour or so earlier with the former not re-opening in the evening and the latter closing finally after Isha' prayer. Government offices are open Saturday to Wednesday, inclusive. Banks are open Thursday mornings as well and most retail businesses observe a seven-day working week.

As in China, the basic working week is 5 _ days, save that the week begins on Saturday instead of Monday. The importance Saudis attach to courtesy and hospitality can cause delays that prevent keeping to a strict schedule. It is therefore customary to make appointments for times of day rather than precise hours. Although prayer times vary around the year, current ones are always printed in the daily newspapers.

As it is exceptional for meetings to span a prayer time, one can usually rely on punctuality for appointments immediately after prayers. Add to that the universal advantage of booking the first appointment in the morning and one should comfortably be able to schedule a minimum of three daily appointments.

Whenever possible, however, it is better not to book an appointment but merely turn up on the off chance. If you already know the person, you would be expected to pay an impromptu social call whenever in the area anyway. Of course this works both ways, so that one must be prepared to tolerate others popping in to eavesdrop on his own business as well. Within reason, the higher the level, the better this works. A minister's diary is likely to be full well ahead, but by going around and being prepared to wait, there is a good chance of exploiting an unanticipated gap between appointments. It is always a good idea, however, to take along a letter that you can leave with the man's secretary should you not see him.

The only absolute requirement of dress code in the Kingdom is modesty. For men, this means covering everything from navel to knee. Short sleeves are therefore acceptable but not short trousers. Anything with a waistband makes one feel unnecessarily warm in an already hot climate. Not only is local garb more practical, most Saudis take the concession to custom of wearing it as a cultural compliment. Apart from undergarments [pants, vest and skull cap], the ensemble consists of three items; thobe [body garment], ghuttera [head scarf] and aqal [head rope].

A good quality mishla [gold-edged woollen cloak] for wear at important social functions is a reasonable, though relatively expensive, investment. Whilst the female dress code requires covering everything except the face, hands and feet in public, a woman can wear literally anything she wants providing she covers it with an abaya [standard black cloak] and headscarf when she goes out.

The standard greeting is “As-salam alaikum,” [peace be upon you] to which the standard reply is “Wa alaikum as-salam,” [and upon you be peace]. On arrival at the reception room, the visitor should stand in the doorway and utter the former of these phrases. Only after receiving the reply is he entitled to enter. In the event of no reply, he may repeat the greeting but continued failure to reply means that he is not welcome.

If the room is carpeted, the visitor should remove his shoes and leave them outside to avoid bringing in impurities and thereby rendering the carpet ritually unclean for prayer. Once inside the room, he should shake hands with the most senior person first [usually but not invariably the host]. Then he should make his way around the room in an anti-clockwise direction, shaking hands with each person in turn before taking his seat and joining in the conversation.

The visitor should not change the subject of conversation except by logical opportunity or invitation. If there are more than fifty or so people in the room or if the seating is inconvenient, there may be consensus permission for him merely to shake hands with the host and wave a greeting to the others.

Once seated, crossing legs is perfectly acceptable, provided one does not direct the sole of the foot to an individual, which is a “go away” gesture. Whenever two men arrive at the same doorway, the one on the right always goes first, regardless of respective rank.

Business Cards and Promotional Literature

Business cards are common but not essential in the Kingdom. If used they should be in Arabic. Common practice is to have English and Arabic printed one on each side [this way, neither language is then perceived as less important by being on the reverse] of the same card. If one prefers the elegance of an engraved card, however, it is equally acceptable to have both languages on the same side or a separate card for each language.

Brochures and other promotional literature should always be printed in Arabic, either with or without an English translation.

Pace of Business

? Business proceeds at two rates in the Kingdom--snail's pace and light speed. There seems to be nothing in between, which discourages foreigners by making it impossible to judge progress until work is in hand. After several lengthy but fruitless visits, the western businessman may suddenly arrive to find his work required “overnight.” Negotiations must therefore be swift, but not necessarily easy.