6/16/2015 How many ways to peel a banana Cultural Considerations in International Trade JIM ELLIS ellijam@gmail.com www.linkedin.com/pub/james‐ellis/10/165/562/ 6/2015 And then which end is up? Cultural Perspective - Local/Global Cultural considerations • What cultures? • How do you define culture? • What are the components of culture? • How does your/their cultural knowledge impact business? International Expansion International Expansion Target markets Target markets Decide on the target languages for the translation of website(s). Decide on the target languages target languages for the translation of website(s). REGIONS COUNTRIES http://www.translated.net/en/languages-that-matter?sortBy=countries#results http://www.translated.net/en/languages-that-matter?sortBy=countries#results 1 6/16/2015 Culture defined. International Expansion Target markets Decide on the target languages target languages for the translation of website(s). LANGUAGES http://www.translated.net/en/languages-that-matter?sortBy=countries#results Culture components Aesthetics Physical environments Education Personal communication Culture It is the learned, shared, interrelated set of symbols and patterns of basic assumptions that are invented, discovered, or developed by a given group of peoples, nations, businesses or other institutions. businesses or other institutions. Culture is they myriad of patterned ways of thinking, feeling and reacting, acquired and transmitted. Culture is the guide for the selection of appropriate responses in social situations, social interactions, business interactions. The Culture Iceberg Values & attitudes Manners & customs Social structure Religion Understanding culture and managing culture awareness: a paradox Not all members of a culture have the same behavior. Make no assumptions! • Some differences can be based on – Age and its role in society – Religion (personal, local, national, global ) – Dialect/language spoken, pronunciation, terms, translations… – Gender identity and roles – Socioeconomic background – Geographic location of country of origin and/or national politics both internally and globally. – Amount and type of interaction between younger and older generations , people from other cultures – Degree of adoption of values and experiences with other values How is silence viewed in different cultures during discourse? In general it may indicate a lack of understanding, stubbornness, apprehension, or discomfort. But then – Among American Indian, Chinese, and Japanese cultures, it may be contemplation or “receptiveness”. – In Russian, French, and Spanish cultures, it may be In Russian French and Spanish cultures it may be used to indicate agreement between parties. – In Asian cultures, it may indicate a sign of respect. – Mexicans may use it when they disagree with a person of authority. http://www.napavalley.edu/people/pcarroll/Documents/cultural%20enthnic%20considerations.pdf 2 6/16/2015 It gets complicated ? How to prepare? Gestures Tapping your finger to your temple is a gesture to show memory in North America, but suggests insanity in Russia. Even nodding yes or shaking one’s head no can be misunderstood abroad. The yes‐no gestures are reversed in countries like Bulgaria and Albania. In Turkey, “no” is gestured by nodding the head up and back. M et ho ds Tr ai ni ng Interactive Language Training Factual Books Lectures Area Briefings Symbolic Verbal Culture Shock the-classic-5-stage-culture-shock-model Avoiding Blunders http://www.slideshare.net/levi22usa/international-marketing-mistakes-related-to-culture Participative Observational Verbal Behavioural Focus Indian Headshake https://www.youtube.com/watch?v=Uj56IPJOqWE http://www.telegraph.co.uk/education/educationadvice/10055769/International-body-language-a-language-with-no-words.html Field Experience Experiential Simulation Field Trips Role Plays Analytical Sensitivity Training Cultural Assimilators Low Eye Contact In many Middle Eastern countries, same‐gender eye contact tends to be more sustained and intense than the western standard. In many Asian, African, and Latin American countries, however, this unbroken eye contact would be considered aggressive and confrontational. These cultures tend to be quite conscious of hierarchy, and avoiding eye contact is a sign of respect for bosses and elders. In these parts of the world, children won’tt look at an adult bosses and elders. In these parts of the world, children won look at an adult who is speaking to them, and nor will employees to their bosses. Training Rigour High Touch: Britain, along with much of Northern Europe and the Far East, is classed as a “non‐contact” culture. An Introduction to the Cultural Aspects of International Trade Adjustment strategies References: Addressing Culture Shock THE CULTURAL DIMENSION OF INTERNATIONAL BUSINESS Comparing Cultures THE HOFSTEDE CENTRE 3 6/16/2015 Comparing Cultures Comparing Cultures THE HOFSTEDE CENTRE Comparing Cultures THE HOFSTEDE CENTRE Differences to consider Power Distance & Individualism vs. Collectivism THE HOFSTEDE CENTRE Business card culture to consider • • • • • • Business cards are recognized around the world as means of presenting not only your professional information but also as a personal form of contact, so ensure you have a plentiful supply. This is an evolving culture in itself and therefore makes sure to check before your meeting(s). Some tips: When travelling abroad for business it virtually a requirement to have your business card translated into the appropriate language of the country(ies) you will be doing business in. Business cards are generally exchanged at the beginning of or at the end of an Business cards are generally exchanged at the beginning of or at the end of an initial meeting and the formality of the ceremony varies around the world. Minimally it is always advisable to give and receive cards with the right hand. In Asia in particularly you should hold the card with both hands when exchanging cards, bowing slightly as you do so. RECEIVE the card from your host in the same way. It is best to formally introduce yourself and exchange cards with the most senior person first and move down in the order of seniority if evident or known. Good business etiquette requires you present the card so the recipient's language is face up so they can read the card upon receiving it. See handout for more …. THE HOFSTEDE CENTRE Crossing Cultures and Managing Expectations Before first contact: FIRST KEY - Global Awareness Research • Pre-meeting Strategies • Negotiating • First Impressions are Lasting • Importance of Rank & Status • the Role of Gender in International Business • Business Card Protocol • Business Customs & Terminology • Gift Giving Protocol Work towards Proactive Cross-Cultural Communication - Avoid Reactive Communication, become familiar with the role of technology in Communication Etiquette. Be aware of the role of language, idioms, etc…. Humor does not necessarily translate. SECOND KEY - Bridge the Cultural Gap Third party introductions, In Person, On the Phone, by Email, Video conference For you first meeting prepare for and learn about: business Introductions • Handshakes • Forms of Address • Role of Eye Contact Across Countries • Communication Styles & Interaction protocol (i.e. seniority, interrupting, etc,) • Conversation Skills • general protocol for meals, tours, etc. (i.e. when to conduct business and when not to!), 4 6/16/2015 Crossing Cultures and Managing Expectations Perceptions/Perspectives and Reality After first contact: THIRD KEY ELEMENT - Organize for Productive Interactions Review what you learned, Strengthen your understanding of cultural sensitivities, Avoid conflict and misunderstanding. Follow-up, in person, etc.. build FOURTH KEY ELEMENT - Your staff! Work with your staff at home to help them develop strategies to help strengthen the relationship, help them understand: Cultural Beliefs, Values, Rules, High-and-Low Context Communications & Cultures, Strategic Dos and Don’ts FIFTH KEY ELEMENT – Challenges Leave Clues Review what happened, why it happened and how to proceed. Including the humorous mistakes you or others made. If they did not happen the WILL happen, be ready for them. Handouts 1.Crossing Cultures with Business Cards When you change the way you look at the world, the world you look at changes. Cultural Considerations in International Trade 2.General Cultural rules for International Cooperation 3.From the news, examples – some excerpts and resources 4.Sample resource information Remember: cultures do change over time always keep up to date Our Alumni ‐ Our future ‐ Our world Thank You – Questions? JIM ELLIS ellijam@gmail.com www.linkedin.com/pub/james‐ellis/10/165/562/ Persons Obtaining Legal Permanent Resident Status During Fiscal Year 2012 by State of Residence and Selected Characteristics State: Alabama Jonathan Hursh USA Grad & Boren Sch. http://included.org/ http://www.cmcchina.org/index.php?page=home&hl=en_US • Videos: http://v.youku.com/v_show/id_XMjc3NzUyMDQ4.html the original video - is in English...5:16) • http://vimeo.com/4655760 (3:58) http://www.youtube.com/watch?v=3P0pHx-QC4 (7:19) http://www.chinadaily.com.cn/video/2011-02/16/content_12025727.htm (6:53) 2014 JUNE The Economist: Doing good Business: http://included.org/the-story/partners A• foreign charity shows how to thrive in https://jpmorganchasecc.com/events.php?city_id=25&page=events083112 China Characteristic Total Total 3,873 Male Female 1,816 2,057 New arrivals Adjustments of status 1,702 2,171 725 1,091 Age Under 18 years 18 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 years and over Unknown 797 498 1,015 754 440 215 154 ‐ 404 222 463 373 195 97 62 ‐ 977 1,080 393 276 552 381 245 118 92 ‐ Marital status Single Married Other Unknown 1,277 2,438 145 13 692 1,083 34 7 585 1,355 111 6 Occupation Management, professional, and related occupations Service occupations Sales and office occupations Farming, fishing, and forestry occupations Construction, extraction, maintenance and repair occupations Production, transportation, and material moving occupations Military No occupation/not working outside home Homemakers Students or children Retirees Unemployed Unknown 407 134 114 38 287 75 54 34 38 38 ‐ 142 ‐ 1,940 595 1,067 24 254 1,060 115 ‐ 698 23 547 11 117 515 27 ‐ 1,242 572 520 13 137 545 Broad class of admission Family‐sponsored preferences Employment‐based preferences Immediate relatives of U.S. citizens Diversity Refugees and asylees Other h 530 815 2,096 142 225 65 258 430 883 82 125 38 272 385 1,213 60 100 27 Leading countries of birth Bangladesh Canada China Colombia Ethiopia Germany Guatemala India Iraq Jamaica Japan Kenya Korea, South Mexico Nepal Nigeria Pakistan Philippines Russia Vietnam Other Unknown 68 61 299 73 50 78 134 330 56 56 45 143 325 561 45 67 45 145 47 153 1,086 6 30 25 114 26 29 30 65 178 38 29 13 76 161 271 26 41 24 38 19 60 520 3 38 36 185 47 21 48 69 152 18 27 32 67 164 290 19 26 21 107 28 93 566 3 120 59 60 4 http://www.economist.com/news/china/21604609-foreign-charity-shows-how-thrivechina-doing-good 5