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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
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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
