General considerations that impact international business dealings include: - Time differences and working hours - Language differences - Currency exchange rates - Cultural differences - Political and economic climates of countries - Religious differences in countries.

1. General considerations
A number of general considerations impact on international
business dealings,
including:
■ time differences and working hours ■ language differences
■ currency and exchange rates ■ cultural differences
■ political and economic climate ■ religious differences.

2. Time differences and working hours
 Look at fig 2.9 page 120.
 Question
 Pg 121 Q1 and 2 and 3. Use the table you just
looked at to help you.

3. Currency and exchange rates
When transacting international business, many deals
are calculated on a particular country’s dollar value.
For example, Australian dollars (AUD) may need to be
converted to United States dollars (USD) or to euros
(EUR).
Depending on the strength of our dollar, the conversion may cost
Australian businesses more Money than what appears on paper. A
Currency converter is a useful tool for quickly calculating exchange
rates.

4. Political and economic climate
 In the world economy, Australia has experienced the impact of
poor economic decisions through its own governments but also
as a result of a downturn in international markets, caused by
events that, in the past, would have been considered far
removed from our own shores.
 A good example of this was the global credit crunch—a
tightening of monetary policies—which devastated many
largecorporations during 2008 and beyond, impacting on the
lives of many millions
of workers
What does this mean????

5. Language Differences
While many of our foreign counterparts speak
fluent English, most westerners who venture
into the Middle East, East Asia, China and
Europe with the hope of transacting business
do not speak the local language. At the very
least, you should be able to introduce yourself
and participate in some social ‘small talk’ using
the host nation’s language.
WHY???

6. Language Differences
 To help overcome some of the problems
caused by language barriers, it is
recommended that businesses employ a
translator or interpreter
 In class question?
 What is the benefit of a translator when doing
business in another country

7. Cultural differences
To achieve intercultural effectiveness, which
means
working or living successfully in another culture,
employees must demonstrate the ability to:
■ adapt to local conditions—no matter how
challenging they may be
■ communicate effectively in order to gain trust
■ immerse themselves and be at ease in the
host culture.

8. Religious differences
When preparing for international business dealings, it is essential to
research the country and its main religions, which can impact upon
customs, diet, meeting times, choice of business gifts and dress, as well as
help explain the significance of certain colours within that culture.
As the host of a meeting—whether in Australia or the host country—
consideration of these differences will be welcomed. Lack of research and
ignorance will most likely result in offence.
For example, the food ordered to cater for meetings must take into account
The dietary requirements of the participants’ religions, such as kosher or
Halal meals. Conversely, if you have daily meetings during Ramadan,
Muslims will not wish to eat or drink. Out of respect, non-Muslims should
also avoid eating or drinking during these meeting times.

9. Religious differences
It can sometimes appear almost impossible not to make mistakes
when dealing internationally. To achieve that success, businesses
should:
■ avoid cultural stereotypes; instead, treat everyone as individuals
■ be culturally sensitive
■ have clear goals
■ avoid the use of gestures and signals that can cause
miscommunication
■ be aware of their own prejudices and assumptions
■ listen carefully and patiently without interrupting
■ try to see things from another perspective
■ be respectful

10. Questions
 Page 128
 Q2, Q3 and Q5