Cultural Differences in Global Business

Study Notes

Cultural sensitivity is critical when conducting business internationally.
Understanding variations in behavior and language helps avoid embarrassment, offense, and potential loss of deals.
Navigating different national cultures adds complexity, so thorough preparation is a must.
Businesses should think about introductions, negotiations, discussions, and communications on a day-to-day level.
Initial meetings with individuals from different cultures can be awkward, with complex formal and informal procedures.
Not following established procedures can cause offense.
In Vietnam, people are expected to shake hands using both hands when first entering a room, upon meeting, and when saying goodbye, nodding the head slightly as a sign of respect.
Following the handshake, the two people must exchange business cards.
Each country and region has unique norms for introductions, necessitating thorough research before meetings.
Sources of cultural differences are discussed in Chapter 33.

Many countries use different languages with many text translations needed.
Businesses must present text in a language easily understood within the target market.
Hobbies and interests vary and are different in different countries.
Ice hockey and polo are not universally popular.
Religious beliefs vary globally, with some countries dominated by a specific faith; the Middle East mostly follows Islam.
Legal systems vary among countries, affecting business practices, with some practices being forbidden in certain countries.
Weather and climate influence customs, such as in parts of southern Europe like Spain, where businesses close during the hottest part of the day.
History and traditions influence buying patterns; for instance, people in Sweden eat pickled herrings on a specific day.