Deciding to Export
Main Differences in Business Practices in Different Countries
In general, business practices are influenced by three main types of cultural differences:
- The relative importance of interpersonal relationships versus efficient task completion.
- The relative importance of social status.
- The degree of risk that people are comfortable taking.
Business manners and methods, religious customs, dietary practices, humour, and appropriate business attire vary widely from country to country. Before travelling to your target market, you will want to find out some basic groundrules such as:
- Greeting strangers
Cultures vary in the degree of formality used and the type of gestures that are appropriate (e.g., handshake, bow, hug, kiss, etc.). - Exchanging business cards
This is a key part of business protocol in some cultures. In some cultures, like Japan, the business card reflects the status of the person and needs to be treated with care (examined carefully, acknowledged, not written on). - Exchanging gifts
There are cultural norms both for gift giving and for whether or not the gift should be opened in the presence of the gift giver. - Socializing
Cultures differ regarding whether or not after-hours socializing is usual and whether or not business is discussed in that context. - Conducting business meetings
Cultures differ regarding the punctuality with which meetings start, the formality of the agenda, and pace at which the meeting proceeds. - Developing business relationships
Distance can “age” a relationship quickly. Be sure that you understand how best to maintain and advance business relationships once they are formed.
You will also want to research cultural differences in the meanings attributed to:
- Colour (e.g., for celebration, mourning, etc.)
- Particular words that have different meanings in different languages
- Images and symbols
- Human and gender-specific images (which may or may not be considered appropriate)
- Physical gestures (e.g., the OK sign)