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Bob Mitchell, a retired military
attaché with considerable experience
in the Middle East, was hired by a
large U.S. computer software
company to represent them in a
number of Persian Gulf countries.
Having received an introduction from
a mutual friend, he arranged to meet
with Mr. Saade, a wealthy Lebanese
industrialist. Having spent many
years in the Middle East, Bob knew
they would engage in small talk
before getting down to business.

They talked about the weather, Bob’s flight
from New York, and their golf game. Then
Mr. Saade inquired about the health of
Bob’s elderly father. Without missing a
beat, Bob responded that his father was
doing fine, but that the last time he saw
his father at the nursing home several
months ago he had lost a little weight.
Saade’s demeanor changed abruptly from
warm and gracious to cool and aloof. Bo
was never invited back to further
discussions.
Negotiating Tips
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Concentrate on long-term
relationships
Focus on interests behind positions
Avoid overreliance on generalizations
Be sensitive to timing
Remain flexible
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Prepare carefully
Learn to listen
Be realistic about how others view us
Act ethically
Use interpreters

Betty Carpenter, president of a U.S.
cosmetics firm, decided to spend
several days in Paris talking to some
distributors. Upon arrival, she felt
quite confident about her proficiency
with French. She also knew that
trying to speak a foreign language
was often appreciated in
international business.

The next morning she met with
Monsieur DuBois, vice president of a
large French department store chain.
Although their initial conversation
went well, when the subject turned
to business Betty felt that she was
not communicating efficiently. He
seemed to be mildly annoyed and
showed little interest in continuing
the discussions.

Roger Brown, marketing VP for a
lumber company, was making a sales
presentation to a plywood wholesaler
in Tokyo. Roger had just proposed
what he considered to be a fair price
for a large shipment of first-quality
plywood. Much to his amazement,
the three Japanese executives did
not respond immediately.

They sat across the table with their
hands folded and their eyes cast
downward, saying nothing. Fifteen
seconds passed, then thirty, and still
no response. Finally, Roger became
so exasperated that he said with a
good deal of irritation in his voice,
“Would you like for me to repeat the
offer?” From that point on, talks
stalled and the contract was never
finished.
Adaptation Requirements

Imperatives
• Customs that must be recognized and
accommodated in order to be successful
• Ex: Friendship

Adiaphora
• Customs to which adaptation is optional
• Majority of customs
• Ex: Local dress
• May help establish a relationship

Exclusives
• Outsider must not participate
• Ex: Christian wouldn’t attempt to act
like a Moslem
If an international businessperson
were here…..
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Attend Church on Sunday morning
Refrain from belching in a business
meeting
Eat local foods

How do you know?
• Get to know culture
• Ask other businesspeople
• Reference materials
• Pay attention to others

Howard Duvall, an up-and-coming
accountant with a New York-based
firm, was on contract in Mombasa,
Kenya, for three months, setting up
an accounting system for a client.
Because he had never been out of
the U.S. before, he was interested in
learning as much as possible about
the people and their culture.

Every spare moment, he had the
company’s driver take him to see the
interesting sights both in town and in
the rural villages. To document this
for his friends at home, he took his
camera wherever he went. Although
Howard was able to get a good
number of pictures, he became
increasingly frustrated because
people turned their backs on him
when he tried to take their pictures.
Several people became quite angry.
Culture Shock
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Term coined in 1960’s to describe the
disorientation experienced by people
living and working in a radically
different culture
Includes anxiety, confusion, feelings
of loss, doubt about values,
withdrawal
Reducing Culture Shock
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Be prepared
Become familiar with local patterns
of communication
Understand your own culture first
Know as much about the other
culture as possible
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Become familiar with immediate
surroundings ASAP
Build “survival skills”
Learn to live with ambiguity
Keep your sense of humor
Take health precautions
Be flexible

Bernice Caplan, purchaser for
women’s apparel for a major U.S.
department store, had just taken
over the overseas accounts. Excited
and anxious to make a good
impression on her European
counterparts, Bernice worked long,
hard hours to provide info needed to
close purchasing contracts in a
timely manner. Stefan, one of her
Dutch associates, sent an urgent
message on May 1 requiring
information before the close of day
on 6/5.

Although she had thought it odd for the
message to barked URGENT for info
needed over a month away, Bernice
squeezed the request into her already
busy schedule. She was pleased when she
had whipped together the information and
was able to fax it by May 10, three weeks
before the deadline. She placed a call to
Stefan to make sure he had received the
fax and was met with an angry, hostile
response. The store lost the contract and
the Dutch office asked that Bernice be
removed from the account.

Business situations courtesy of
• The Cultural Dimensions of International
Business by Gary P. Ferraro
• Ferraro, G. (2006). The cultural
dimensions of international business.
5th ed. Upper Saddle River, NJ: Pearson
Prentice Hall.