Cultural Considerations in International Business

BY:

Tim Hiscock
Mar 24, 2023

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Culture is like breathing. It’s so automatic that we don’t even notice it. 

And yet cultural differences can be a significant obstacle to successful exporting. How we dress, speak, and interact with others can be unremarkable in our own country but might be considered peculiar or even offensive in another place. I think it’s a problem for an individual or business already operating successfully in their home market and seeking to win business in other countries for the first time.

 

There’s another thing that makes culture a stumbling block for exporters. It keeps changing. And people don’t necessarily conform to a supposed stereotype. So, while we might put ourselves at a disadvantage by not respecting social norms, other people can break their rules with impunity. It’s just not fair!

 

For people working in sales roles, it’s crucial to remember the old saying that you don’t get a second chance to make an excellent first impression. In many circumstances, people unconsciously judge us within about thirty seconds of meeting. So, when we expect to meet people whom we hope to do business with, we need to think ahead about the impression we’re making. We want to win the confidence of our contact, to put them at ease. Therefore, there’s an initial time called the ice-breaking moment when we can potentially make or break an opportunity.

 

The way that businesspeople dress varies considerably. In some countries, for example, Turkey and much of Eastern Europe, there’s a tendency for smart and formal attires, and how someone looks has a powerful impact. In some Scandinavian and Northern European countries, there is a tendency for much greater informality, to the extent that an expensive business suit and tie might give a negative impression. Even something as simple and natural as a smile can have connotations. In my experience, a smile is a warm and reassuring gesture, but in some cultures, such as Russia, it tends to portray weakness or immaturity.  

 

How people approach business meetings or conversations can be confusing, perhaps disconcerting. In Japan, a meeting might be very formal, with individual greetings, a strict regard for punctuality and the utmost respect for status. Contrast this with Italy, where work environments are often frenetic and distracted by other events. Don’t be surprised if your host arrives late, takes telephone calls during the meeting, and people enter and leave the meeting while it’s in progress.   

 

The rules of culture are complex, constantly changing, and likely to be ignored or even flatly contradicted by some people. Our chances of always getting them right are very slim at best. Time spent researching the culture of the country and the people you are visiting or hosting will be well spent. But don’t expect people to conform to a supposed stereotype. I once had a meeting with a new customer in Egypt, and I knew from experience that normal behaviour typically involved considerable small talk about family, home life etc. But my host was having none of it. He had a firm agenda for our meeting and wanted to focus on it. Luckily, I quickly read the signals and focused on our agenda.  

 

Culture goes beyond how we behave when meeting, however. A constructive, long-term business relationship needs mutual trust and understanding. Cultural misunderstandings can quickly get in the way of that. Directness, or the lack of it, can be a serious stumbling block. Some people’s cultural norms cause them to be wary of directly criticising or causing personal embarrassment or loss of face. Others can surprise us with their bluntness. The only way to resolve this is to take time to understand individuals. If we’re working in cooperation with a distributor or agent, for example, time spent ensuring that everyone is completely understanding and fully conversant with what’s expected of them goes a long way. In many Asian and Middle Eastern cultures, politeness can lead to people saying what they think we want to hear rather than what they believe. A Japanese contact may find it difficult to reject a proposal outright, and in those circumstances, a “maybe” or “I’m not really sure” is a gentle but absolute rejection. In other cultures, the exact words might mean they need more time.  

 

Norms of social distancing and physical touching will vary. In some cultures, showing emotions and using hand gestures are common. In others, such behaviour is likely to cause alarm. Try to take the lead from your host, and bear in mind that in most circumstances, being a little too polite or formal may be the best way to minimise offence, especially when you meet for the first time.

 

This can all become more challenging when the contact is remote, and communication is by email or video. Learn to read between the lines and remember that the contact may be finding it just as challenging to understand you!

 

So, take time to understand the culture of the people you’re dealing with. Prepare to meet traditional expectations of conduct, dress, punctuality and giving of gifts. But above all, listen and observe. Try to understand the vibe of a meeting or conversation and listen carefully and actively. If you aren’t sure whether you have been understood, ask open questions, invite your contact to describe what they think you will do, and speak openly. When travelling, remember you’re a guest in your host’s country. 


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