Cross-Cultural Business Practices and Negotiations

Clearly there is a major impact of culture on business practices. There a various approaches to conducting business pertaining to culture. At an international level there is much more complexity than there is in the home markets. Factors effecting cross-cultural business include, time, thought patterns, personal space, material possessions, family roles and relationships. When dealing with time, some countries view this as an asset. America is a prime example with our famous expression, "time is money." This does not hold true for all countries however, such as Guatemala. These South American countries have a much greater appreciation of time, and may spend business meetings discussing things like nature and family. Time also applies to the decision making process which can take longer than normal. It is important to realize that each culture has a different perspective of time, and that one must appreciate that cultural difference when conducting business.

Thought patterns become an obstacle when conducting business. Some cultures have a circular thought process, meaning that since individuals can see what has happened in the past, their past is ahead of them, and since they cannot see into the future, the future is behind them. This ideology supports that change is bad. Therefore, decision makers may not be able to see the opportunities that lie ahead. Again referring to Geert Hofstede's cultural dimensions, individuals of different cultures will put higher or lower values on material possessions. The book describes the American notion of "money talks" is far from true in many cultures. On the subject of value, there are many cultures that put family matters before work matters. This strongly disagrees with the American way where family matters take the back seat to work. These relationships, as well as the deep friendships, provide some sort of social insurance.

Other cultural factors that can affect business are competitiveness and social behaviors. Individuality is sometimes highly valued in some countries, like America. This social Darwinism type style of living is stress in Americans as we grow. When conducting business internationally, it is definitely a possibility to offend European cultures with our aggressive manner in pursuit of business transactions. These cultures prefer business relationships that have a more relaxed atmosphere. In regards to social behaviors, cultures vary on habits such as eating, the types of food given, gift giving, and greetings from culture to culture. Somethings that Americans may find rude here, like belching, are considered completely acceptable in other cultures. When it comes to gift giving, some cultures will find this offensive if a gift is given and in others will not. Some cultures actually expect gifts.

As discussed business customs vary from country to country, due to culture. As discussed in earlier blogs there is a way to conduct business between high and low context cultures. Those in high context cultures have several steps before talking business. The first step is getting to know the person you will be doing business with. This may mean many meetings and conversations of irrelevant topics you want to pursue. Also be sure to never mention price and suppress the urge to do so. The topic of price will come much further down the road. When meeting with low context cultures, they are going to be of some intellect, and expect the same from you. These low context cultures want to meet with a person that is somebody. Also, there is strong heritage within these nations so be sure not to offend. Lastly, as Americans we shout whatever is on our minds. In these countries, they will find this a characteristic of impatience and egocentricity.

It is important to be sensitive to cross-cultural generalizations, as not all of them apply to everyone. For instance, in America the ideology that time is money may apply to many, but not to all. This applies to all cultures in that knowing the background is important, but may not be true for everyone. These generalizations maybe outdated due to the common practice of culture borrowing from nation to nation. Trying to fit in with these cultures may prove to be problematic, or successful. Research has found that those who attempt to adapt to the culture have shown to be favorable to the native. However, over doing it may result in a more negative relationship.

As discussed there are obstacles to overcome to successfully conduct business. Typically these obstacles include learning the local language and culture, and becoming well prepared for negotiations. If these are not options, then employ an effective language translator and/or a cultural translator. There is no need to completely learn a whole culture, and is actually impossible. However, one should learn enough about the local culture as to not feel uncomfortable before or after conducting business. The book gives an example of how Japanese business men have used their knowledge that Americans have a low tolerance for silence to their advantage.

All in all there is a lot that goes into a strategic plan for international negotiations. Preparation for face to face negotiations, where these should take place, settlement range, and more are all parts to successfully conduct business transactions. Even with a proper plan created by human resources, there is still going to be a chance of failure. Preparation and research are vital for success.