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Dealing with cultural differences in international business

Drs. G.J. (Gerrit Jan) Kerkdijk

“When in Rome do like the Romans do!”

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Agenda 1. Cultural differences in communication

– Quiz

– Exercise 1: prepare 1st meeting abroad

– Definition and importance for business

– Four tips for intercultural communication

– Some deadly sins to avoid

2. Regional cultures: sources and measurement

– Geert Hofstede’s 6 dimensions

– Exercise 2: deeper understanding

3. Concluding remarks

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Quiz

What do you know about

Business Etiquette?

Source: http://international-business-etiquette.com

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1. In all of these countries you are expected to bring a gift to a business

meeting EXCEPT one. Which one?

• China

• Japan

• Czech Republic

• Denmark

• Bolivia

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2. Which behavior is a common gesture of friendship between men

in Saudi Arabia?

• a high-five

• holding hands while walking

• a handshake

• winking

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3. In Great Britain, tapping your nose indicates that something is:

• confidential

• inappropriate

• very important

• incredibly boring

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4. Which of the following should not be given as gifts in the Chinese culture?

• clocks

• straw sandals

• a handkerchief

• all of the above

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5. When treating a client to a business meal in China, the most appropriate tipping

strategy would be:

• 15% tip

• 20% tip

• 50% tip

• no tip at all

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6. In Iran, while doing business, a woman should cover her:

• mouth

• eyes

• arms and legs

• arms, legs and hair

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What is culture?

• Definition: A group’s system of learned values and norms.

• “Group” what group? : nation, region, organization, family, profession, socker-supporters ..

• Culture is mythical, both vague and visible, changing all the time!

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Why is culture-awareness important?

Globalization causes large increase in multi-cultural diversity and international business relations and an increased need for intercultural communication skills.

Intercultural communication skills are fundamental for your business success!

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In international relations..

•Speak at least 2 languages –and know some words or expressions ..

•Make sure you know local rules –religious, legal and political aspects ..

•Study folkways=>business etiquette –learn about rules for interaction

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Excercise 1

1. Chile

2. Africa

3. Japan

4. New Zealand

5. Indonesia

6. China

7. France

8. Saudi Arabia

9. Mexico

10.Denmark

First: each group, please select

a different country from list.

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The assignment

• Your firm is going to sent a team to the selected country to establish business contacts.

• Preparing yourself for the trip you ask yourself: “What would be (un)appropriate behavior when meeting with business partners in that country”?

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How to do this?

1. Visit: http://international-business-center.com

2. Find “business etiquette” (left - bottom).

3. Look up the selected country in the list.

4. For this particular country:

– Find answers to 9 questions (see next slide).

– Find surprising/shocking example (question 10)

5. Share your findings with the class.

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How should I behave at.. a general meeting:

1. Timeliness?

2. Dress code?

3. Last/First names?

4. Female participation?

5. Gifts giving: – Type of gift?

– Colour of wrapping?

– Wait for unpacking or not?

6. Making eye contact?

7. Best moment for making a business deal?

a dinner meeting:

8. Seating order? Type of conversation: social or business?

9. Right hand/left hand?

More do’s and don’ts?

10. Surprising/shocking?

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Three “deadly sins” Being unaware => denying cultural influence

– Assuming all behavior is personal and intended.

– “I don’t know why my behavior should shock you”.

Ethnocentrism => I am the center of the world ..

– My behavior & norms are standard for everybody else.

– So, I don’t need to understand others. They must adapt!

– “If English was good enough for Jesus Christ then it is good enough for me”.

Amnesia => we have no history, yes?

– All civilizations/nations: good + bad, past + present.

– “Our civilization is and has always been superior”.

Source: http://ed.ted.com/on/lLJQX8SU

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Four tips for interacting

1. Observe body language and mirror it

– Mirroring behavior builts rapport

2. Appreciate differences

– Show “courting behavior”

3. Respect individuality (avoid stereotyping)

– A person is not his nationality nor his culture !

4. Be patient, listen and ask

– When you don’t understand reactions, ask!

Source: http://www.youtube.com/watch?v=ZDvLk7e2Irc&feature=related

Dr. Snéha Khilay on intercultural interaction on YouTube

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“National” cultures: sources and measurement

• Huntington: 7 civilizations

• Geert Hofstede: 6 dimensions

Kom verder. Saxion. Huntington: Clash of civilizations

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Hofstede: 6 dimensions Power Distance: acceptance of hierarchy in society

– Respect for social and organizational position

- CEO not easily approached, sits first etc.

Individualism/Collectivism: center of identification

– “I”:Me & my family, “We”: I am part of larger society

– Promotion based on loyalty or initiative?

Masculinity/Femininity: hard or “soft” interaction

– Low/high interpersonal skills

– Achievement/Rewards versus Caring/Cooperating

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Hofstede: 6 dimensions Uncertainty Avoidance: by the book/taking initiative

– Low vs Moderate to High risk behavior

– Ritualistic behavior vs open for new experiencs

Pragmatic/Normative: adapt/obey strict norms

– Adapting/respecting social obligations + traditions

- Truth depends on situation & time/TRUTH is eternal.

Indulgence/Restraint: tolerance/intolerance

– allowing hedonistic behavior or not

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Exercise 2

• Your firm wants to do business in the country you selected. Compare this country’s culture with your national culture following Hofstede’s theory.

• http://geert-hofstede.com/cultural-tools.html

• First: select the foreign country.

• Next: select your own country or the country of one or more members of your group.

• Compare: what are the most striking differences?

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Avoid error of Level Confusion

• The concept of Culture applies to collectives: nations, regions, groups, professions, organizations, families, genders, age-groups...

• Individuals don’t have cultures but Personalities For the individual “culture” is the answer to the question: “what behavior (of others) is familiar and makes me feel safe and at home”?

• But there is always room for personal choices.

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An intercultural attitude

Hey, those differences are fun!

Disrespectfulness is never Ok!

If a person’s behavior seems odd to you it does NOT necessarily follow that this person’s intentions are disrespectful.

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Some interesting Links

Gestures:

• http://www.youtube.com/watch?v=fa_GCK-Czqs&feature=related

International business and culture

• http://www.youtube.com/watch?v=wxrp7u86SGs

Hofstede: seven deadly sins

http://ed.ted.com/on/lLJQX8SU

I and WE cultures

• http://www.youtube.com/watch?v=CW7aWKXB5J4

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Evaluation

• Get your “proof of attendance”

• Please fill out the evaluation form.