Global Business Etiquette
Today, even the smallest or newest businesses address a global customer base. For most startups it actually happens from the start. Many entrepreneurs, however, treat everyone the same when in fact business and customer cultures differ by country.
We live in a global business climate but there is no one global business style. It is imperative to research and learn about business culture in another country before you engage in communication with someone from that country. Knowing the differences can help with how you approach marketing and sales.
The same is true when meeting with vendors and investors. A typical meeting has stakeholders from many countries. Knowing a few tips on each person’s business culture can mark you out from the crowd, build your reputation, and even be enough to get you the contract. After all, regardless of country, ‘people buy people first.’
More and more we do business through an online platform. Many people can fall into the trap of assuming it is a casual environment and show up both on camera and in words inappropriately. You should treat an online meeting the same way you would a face-to-face gathering. Dress appropriately. Speak appropriately.
This seems an obvious thing to say, but in my experience very few people in business actually do research on different business cultures and then they wonder why things didn’t go so well or why no one is responding to their texts or emails.
An obvious first step is to research how to greet someone from another culture. Then learn how to use a business card the correct way, how to set up a meeting room, how to conduct a meeting online and in person. In every culture there are unique protocols. Be prepared to adapt to their culture, timing, standards, and style. If you inadvertently show disrespect you will not get very far. It can be the difference between making and losing a sale, and can go a long way in making you stand out among the competition.
Some general pointers to get you started:
Every country encourages their entrepreneurs to conduct international business and provides free online guides on this subject that are written from that country’s perspective. In other words, they provide handy tips on the differences between you and others.
To help get you thinking this way, here are some tips for some of the bigger business cultures.
Don’t be offended if I missed your country, to include every one would make for a very long activity. These are the ones I have experience with. I am also generalizing.
You need to do a lot of study to get what is relevant and right.
China:
Business/name cards are common in Chinese business culture and will frequently be exchanged upon meeting a stranger in a business context.
The card should be held in both hands when offering to the other person; offering it with one hand is considered ill mannered. When receiving a card, use two hands and study it before continuing. I like to ask a short question when I receive a card and one that is triggered by what is on the card. I use an open-ended question (what) to get a conversation going such as, “What did you enjoy most about studying at Beijing University?”
With China’s shift towards a digital society, the exchange of contact information via WeChat is common – particularly among younger business professionals who may not even carry business cards. It is important to have business cards available, but also expect that a new contact may not have any to exchange.
Gift exchange on first meeting is expected. For westerners something simple like a baseball cap works.
Do not miss an opportunity to develop an appropriate new business contact, as relationships, (called guanxi in Mandarin), remain very important in China.
At the time of writing, WeChat is used for just about everything in China. Email is considered old fashioned and often gets overlooked.
Radio silence after an initial communication exchange does not mean lack of interest or inactivity. In China it is not common to ask for or to give updates. The ‘are we there yet’ email from an anxious American business person is considered unnecessary, rude, and amateurish.
In the meeting room the Chairman is the boss. When chairman speaks the rest simply listen. The Americans will not hesitate to challenge those in authority. In fact, in the modern American workplace, the atmosphere is collegiate and collaborative and the camaraderie is that of equals. However, in China, leaders are deeply respected and never challenged. The Chinese respect the decisions made by those above them and consider them final. There are also unspoken rules of deference to seniors and open respect.
Americans value expediency when making business decisions. Time is money in America, and so the faster you can close the deal, the better. In China, business decisions aren’t made that quickly. The Chinese tend to take their time discussing a business and deliberating on its pros and cons. They will also consult with many others that are higher than them on the hierarchy before they arrive at a decision. Putting them under pressure to make their decisions quicker will only lead to them shutting down and politely resisting you.
China effectively has two competing cultures known as new and old China. Old China negotiation styles can be confusing to westerners. Many (including me) have experienced executing a signed contract only for the money to not arrive and the Chairman to begin a new round of negotiations.
The greatest difference between the Americans and the Chinese is in their mentalities. Americans are highly individualistic and so they value personal achievement above collective achievement. They value personal identity far more than they value collective identity.
This is not the case for the Chinese, who value their national and societal identity more than anything else. Americans do not have a problem bragging about their successes and personal achievements. They see it as an okay thing to do. The Chinese, however, see this as highly selfish because one should always consider themselves part of a whole and successes are associated with the nation or the company, rather than the individual who orchestrated the success. If you focus too much on your individual achievements in front of Chinese business person in a bid to impress them, you might end having the exact opposite effect.
Americans are very direct in their communication styles. They tend to be blunt, persuasive, and highly aggressive when they are pursuing a business deal. They want to have the upper hand in every negotiation. It doesn’t work as well in Chinese work culture. In fact, if you’re too direct with a Chinese business person, you will likely cause them to shut down and withdraw from negotiations altogether.
The Chinese prefer to be polite and courteous, showing deference to their business contacts and respecting them. They choose the indirect path to negotiations. If you show them this respect and politeness, they will match it and you will find it easier to negotiate your way to a middle ground where everyone is satisfied.
Despite the fact that the Chinese choose the indirect path to their negotiations, they also tend to ask highly personal questions of their business contacts, which might seem in contradiction to their polite nature at first. However, it isn’t. It’s just another illustration of how the Chinese value personal relationships far more than impersonal business relationships. In America you can do business with someone even if you would never consider being friends with them outside of the business setting. In China, it is inconceivable to do business with someone you don’t like in the first place.
The Chinese will ask you highly personal questions; questions that would be frowned upon in the American business setting and considered irrelevant to the deal. They will ask you about your family, your personal life, and so on. This is because the Chinese let their professional and personal lives overlap. This is a central aspect of Chinese business customs. They want to consider you a friend and not just a business associate. They, therefore, need to build their trust in you or they won’t be able to do business with you. Do not be mistaken, you should still maintain your formality, even in such situations. Be respectful and polite. You should not take this as an invitation to be informal and excessively familiar.
UAE:
The UAE is a tolerant, multi-cultural society with expatriates from over 150 countries forming over 80% of the population. While conservative, the Emirati Muslim culture welcomes foreigners. Both men and women work together in offices. Women hold high positions of responsibility at government bodies and private business. UAE nationals wear the traditional national dress and women usually dress conservatively and modestly. Western women traveling to the UAE for business may find business attire trends somewhat more conservative than the United States.
As in many Middle Eastern countries, meetings can run late, and projects may experience postponements and extensions. Business visitors, however, are expected to be punctual for all appointments. It is important to respond to emails and other communications promptly.
In a meeting, the host will offer tea or coffee upon arrival. It is rude to decline. If Arabic coffee is on offer, you will be handed a coffee cup which should be held in your right hand, and when the coffee is poured from an elegant coffee pot, you should accept at least one cup.
Your cup will be refilled at frequent intervals. If you do not want any more coffee, shake the cup slightly to show that you have had enough.
Formal greetings can take several minutes. It is considered impolite to begin addressing business topics without taking several minutes for small talk. Courtesy is more emphasized in the UAE than in typical U.S. business meetings and attention to titles is important. It is not customary to inquire about a person’s spouse. Business cards and gifts should be offered with the right hand.
Japan:
An understanding of Japanese business and social practices goes a long way in establishing and maintaining successful business relationships in Japan. Perceived indifference to local business practices may be interpreted as a lack of commitment on the part of the exporter and may lead to misunderstandings and lost business opportunities. One should not assume that because meetings and correspondence are carried out in English that Western social and business norms apply.
Japanese society is complex, structured, hierarchical and group-oriented. It places strong emphasis on maintaining harmony and avoiding direct confrontation. Japanese social and cultural norms tend to be group-oriented rather than focused on the individual. In building relationships (which often precede a first-time sale or an agreement) one should emphasize trust, confidence, loyalty, and commitment for the long term.
Group decision-making is important in Japan and has been generally described as a “bottom-up” exercise rather than “top-down.” Family businesses founded since WWII and smaller second-tier firms are often exceptions to this rule. However, even in large family firms, where decisions are made at the top, company members have a sense of participation. This type of group decision-making requires time. Recognizing that it takes a longer time to cultivate business relationships in Japan than in the United States, U.S. business executives should not expect to close deals in just a few days. Consistent follow-up is vital. Likewise, U.S. businesspeople should recognize the importance of working with the staff level of their Japanese counterparts and not exclusively with the executive level.
Gift giving is expected on some business occasions in Japan. Regional U.S. gifts or company-logo gifts are appropriate. Quality is important, but the gift does not have to be expensive – it is the sentiment and relationship implied by the gift rather than its intrinsic value that is significant. Therefore, the packaging of the gift is as important as the gift itself and should be done professionally. In Japan, sets of four are considered unlucky (the number four is pronounced the same as the word for death). Gifts that can be shared among a group are appropriate.
Business travellers to Japan should make sure to bring a large supply of business cards (with their title) when they come to Japan; printing bilingual cards is a nice touch. Business cards, still in wide use despite rapid digitalization, are exchanged to formalize the introduction process and establish the status of the parties relative to each other. Japanese bow when greeting each other but will expect to shake hands with foreign executives. A slight bow in acknowledgment of a Japanese bow is appreciated. Japanese executives deal on a last (family) name basis in business relationships, and initial business and social contacts are characterized by politeness and formality.
Business travellers visiting a Japanese firm for the first time should be accompanied by an interpreter or bilingual assistant. Many Japanese executives and decision-makers do not speak English, although they may be able to greet visitors in English and read English product literature relevant to their business or industry expertise. Although English is a required subject in Japan’s secondary school curriculum, generally, English listening and speaking skills tend to be weaker than reading and writing skills for Japanese. Thus, the Japanese side in a business meeting generally expects visitors to bring an interpreter if they are serious about doing business. Although the cost of hiring an interpreter can be high, bringing an interpreter shows that a visiting firm is serious in its commitment to the Japanese market.
The first visit to a Japanese firm generally serves as a courtesy call to introduce U.S. executives and their company and allows the U.S. side to begin to evaluate a target company and its executives as potential business partners. A request to meet only with English-speaking staff can mean missing the opportunity to become acquainted with higher-ranking executives.
Written contract, even if less detailed than a contract between two U.S. companies, is essential to meet legal, tax, customs, and accounting requirements in Japan. Contractual commitments are perceived as representing long-term relationships so the terms and conditions, for example, whether to grant exclusive rights, should be considered carefully.
Speak a few words in their native tongue. The effort will be appreciated. Words of welcome on your website, and maybe a currency converter, will further demonstrate your interest in doing international business.
India:
India is a diverse nation with 28 States, eight Union Territories, and dozens of major languages and cultural groups. This diversity gives rise to a variety of business customs. One factor common among them all is the importance of personal relationships. Building a strong personal reputation, establishing rapport, and cultivating goodwill are essential to establishing contacts and strengthening relationships in India.
In India, meeting times and schedules may not be followed as strictly as in the United States. It is not uncommon in India for people to arrive late, and last-minute cancellations for business events and meetings are possible. When arranging itineraries in India, it is important to build flexibility into your plans.
A handshake is typical upon meeting, although some Indians may use “nameskhar/namaste,” a common greeting in which the palms are pressed together with fingers pointing upwards accompanied by a slight bow. This greeting has become more common during the pandemic. Small talk at the beginning of a business meeting is common and may include questions about family or even one’s salary. At meals, it is considered polite in India to inquire about dietary preferences, as many Hindus abstain from beef, while Muslims abstain from pork, and Indians of many religions are vegetarian.
The business card ritual is not as formal in India as in other countries, though it is essential to carry a supply of presentable business cards. When offering your card, both hands should be used. Receive cards with your right hand. Cards in English are acceptable and it is not necessary to print business cards in local languages.
Singapore:
Business discussions are usually conducted in a very straightforward manner. English is widely spoken, and most business people are skilled and technically knowledgeable. Most agents and distributors have visited the United States and often handle several American product lines. Corruption is virtually non-existent.
Many Singapore business people are of ethnic Chinese background, and many of them will have “Western” first names. Those with only a Chinese name presented on business cards will list his/her family name before their first name. For example, a person whose card reads… “Mr. Chan Yiu Kei” would be addressed as “Mr. Chan.”
The names of business people of Malay or Indian descent are written and spoken as a given name followed by family names. For the sake of politeness and respect, it is wise to address a businessperson by the last name rather than the first name until invited to use a given name. When in doubt, it is not impolite to ask. The common and polite Singaporean phrase is… ‘How shall I address you?’
Business cards are a must as they are immediately exchanged during business and social meetings. The East Asian practice of presenting a business card with both hands is observed. There is no need to have special business cards printed in Chinese.
South Korea:
Knowledge of Korean history and culture is essential for U.S. businesses hoping to succeed in the country.
Korean history is characterized by a series of rich dynasties and conquests by neighboring East Asian countries, particularly Japan and China. In 1910, Japan annexed Korea and established a 35-year long period of colonial rule lasting until the surrender of Japan at the end of World War II. Following Japan’s surrender in 1945, the Korean Peninsula was divided at the 38th parallel into two occupation zones, with the U.S. in the South and the Soviet Union in the North. Despite initial hopes for reunification, the northern Democratic People’s Republic of Korea and Republic of Korea in the south soon became engulfed in a civil war (1950-1953), and the Peninsula has remained divided since.
Following the Korean War, Korea was one of the poorest countries in the world. However, due to the expertise of chaebols (conglomerates) and development of heavy industry, Korea was able to achieve significant growth and transform into what is now one of the world’s largest modern economies.
Today, Korea boasts significant strengths across multiple industries. While Korea’s historic heavy industries remain strong, the country is now known for being home to world-acclaimed electronic appliances, award-winning cars, healthcare and smart phones.
Korean popular culture, including idol bands and television dramas, has captured the hearts of fans worldwide in a phenomenon known as Hallyu, or the “Korean Wave.” Korea has also hosted numerous global events such as the Summer Olympics (1988), the Soccer World Cup (2002; along with Japan), the G-20 Leaders Summit (2010), and the 2018 Winter Olympics in Pyeongchang.
These major events, a source of pride and accomplishment, have intensified Korea’s push to have a first-rate infrastructure, hospitality, and transportation system.
Seoul, the capital of Korea, is a lively cosmopolitan city. The city is divided by the Han River, which is spanned by 27 bridges. Most international flights arrive at Incheon Airport, which is located about one hour from the city center. Traffic congestion, a persistent problem in Seoul, must be factored into arriving on-time for business appointments. Punctuality is critical when conducting business in Korea, so you should plan to arrive at least 20 minutes early to any meetings or appointments.
Other important business success factoids:
Last names and titles: Always use Mr., Mrs., or any title (like Director) followed by the last name. Also appropriate is: Mr. LEE (last name, followed by the first name) Ji-hoon (two syllables of the first name); in this order.
Business cards: Your business cards say a lot about you and your business and are extremely important in Asian and Korean cultures. Hand them out using both hands (thumbs at the top corners of your card) while giving a gentle and slight bow, while avoiding too much direct eye contact. Never put a newly received business card away or in your back pocket. Rather, look at it for a moment and place it on the desk or table where you are meeting. Bilingual cards are best.
Handshakes: Unlike the firm Western-style handshake, Korean handshakes are typically gentler.
Cold calls are generally unacceptable and seen as culturally inappropriate and disrespectful.
Negotiating: A rigid negotiating style does not work in Korea. Koreans interpret contracts as loosely structured consensus statements, broadly defining what has been negotiated/discussed, but leaving room to permit flexibility and adjustment. Koreans are subtle and effective negotiators.
Saudi Arabia:
While modern Saudi Arabia has adopted numerous business methods and styles of the West, many cultural differences remain. Most important is that business will generally only be conducted after a degree of trust and familiarity has been established. Considerable time may be spent exchanging courtesies, and several visits may be needed to establish a business relationship. Business visitors should arrange their itineraries to allow for long meetings, as traditional Saudis often maintain an “open office” in which they will sign papers, take telephone calls and converse with friends or colleagues during the engagement. Tea and traditional Saudi coffee are usually offered. One to three cups of Saudi coffee should be taken for politeness, after which the cup may be wiggled between thumb and forefinger when returning it to the server to indicate that you do not need more.
Despite Saudi Arabia’s deeply conservative culture, the role of women within the society is quickly changing and extending into the workplace following historic reforms introduced by Crown Prince Mohammed Bin Salman Al Saud. This has led to growth in the number of working women in Saudi Arabia and a rise in female entrepreneurship. Women in business or workplaces will shake hands with other women or place hands over the heart when greeting.
Many Saudi business person have been educated in or have traveled extensively in the West and are sophisticated in dealing with Americans. For the most part, travelers can rely on Western manners and standards of politeness in dealing with business counterparts, with a few additional rules that may be observed. One should avoid sitting at any time with the sole of the foot pointed at the host or other guest. Unless one is on familiar terms with a Saudi, it may be discourteous to ask about a man’s wife or daughters; ask instead about his family.
Shoes are often removed before entering a Saudi living room (majlis). If you are invited to the home of a Saudi for a party or reception, a meal is normally served at the end of the evening, and guests will not linger long after finishing.
Israel:
Israel’s business environment shares U.S.-style conventions, which makes most U.S. businesspeople feel very comfortable in doing business in Israel.
American business travelers will find the dress code in both the public and private sectors to be much less formal than in the United States. A business suit is appropriate in meetings with high level executives and government officials, and ties are optional.
Appointments can be made on fairly short notice; however, reconfirming appointments is advised, given that most Israelis tend to have busy, dynamic schedules. Israelis arrive well prepared for meetings and are very direct. It is preferable to provide your hosts with an agenda outlining your objectives in advance. Exchange of business cards is common, although some may be less accustomed to this practice. Therefore, provide your business card early on and politely request one in return, if not offered.
English is widely spoken in the business community and in government offices, but knowing and using a few Hebrew words, especially introductory phrases and greetings, can be useful.
Brazil:
As with any other market, business travelers should be aware of several customs specific to Brazil when doing business in the country. When compared to the United States, the negotiating pace tends to be slower and is heavily based on personal contact. It is rare for important business deals to be concluded by telephone, e-mail, or letter. Many Brazilian executives do not react favorably to quick and infrequent visits by foreign sales representatives, or to changes in the negotiating team. They often prefer a continuous working relationship, ideally involving multiple visits/meetings with the same person or group of people. The Brazilian buyer is also usually interested in receiving after-sales service provided by the exporter.
Persistent traffic issues in most major Brazilian business centers mean that sufficient time should be scheduled for transportation, as well as other possible delays. It is advisable to be punctual but to avoid showing signs of frustration or impatience with delays, some of which may be attributed to a less formal approach to time.
During a first visit to a company, it is customary to give a gift, usually promotional items without great material value. Expensive gifts can be misunderstood as bribes and are not welcome. Be aware that business dress is often formal and conservative despite the apparent informality while conducting business.
Argentina:
U.S. business people should take the time to develop a close relationship with their agents, representatives, distributors, or other business partners. Argentine business customs are generally more formal than those in the United States.
Courtesy is very important, and efforts to rush a business deal are unlikely to meet with success. No encounter starts with a business discussion. To establish trust, some time spent discussing family members, sports, and social activities are fundamental to the development of a solid business relationship. It is customary in Argentina to shake hands with everyone in the room upon arriving and leaving. It is also customary for men to kiss women on the right cheek.
Contacts and introductions are important. Therefore, it is advisable to use the services of the U.S. Commercial Service at the U.S. Embassy in Buenos Aires, as well as other organizations such as the American Chamber of Commerce, industry associations, and other intermediaries, for introductions to potential business partners and customers. The U.S. Commercial Service in Argentina offers services such as the “Gold Key” to meet with potential business partners.
It is recommended to be prompt to business meetings with a pre-arranged appointment, even if your Argentine contact may be slightly late. Be sure to have an ample supply of business cards. Although not essential, it is beneficial to have cards printed in Spanish as well as English.
One cultural note is that it is better to identify yourself as being from the United States (Estadounidense) and avoid saying you are from “America.” In Latin America, the term “America” denotes both North and South America, not just the United States.
Germany:
Punctuality is an important part of German business culture. The norm is to arrive about five minutes early to an appointment. If you show up more than five minutes after the appointed time, you would be perceived as late, and more than fifteen minutes are considered impolite. However, if there is a delay, you can always call ahead and explain the situation.
Germans generally act and communicate in a direct and structured way; they want things to be done as efficiently as possible.
It is not about being rude, but this behavior can include honest and constructive criticism.
It also means to them that they value your time as much as theirs.
Appointments are made for most matters. The usual times for business appointments are between 9:00am – 12:00pm or between 2:00pm – 5:00pm. You should avoid scheduling on Friday afternoons as some offices might already be closed during that time.
Addressing people: respect formal introductions and the use of official titles, for example: Dr., Prof., Ing., among others. Your professionalism will be highly valued. In general, acting in a formal way is important, particularly at first, but following the examples of others is a good rule. After several meetings, they might prefer a more informal interaction, but this varies depending on the people and the company so, it is polite to remain formal in tone unless they invite you to do otherwise.
Business attire is generally formal and conservative. This means suits (not necessarily with tie) for men and suits or conservative dresses for women.
First approach: A greeting usually consists of a smile (even when covered by a mouth and nose covering) and ‘elbow bumps’ or ‘fist bumps’ which have largely replaced handshakes as hygiene controls came into place due to the pandemic. Do not greet with a hug nor a kiss on the cheek, as in other European cultures. Allowing for adequate personal space is important throughout the meeting. The question, “Wie geht es Ihnen?” [“How are you?”] is used as a literal question and a literal answer is appropriate. The common English usage of it simply as a formality or greeting feels strange to most Germans. Not replying in the expected way or moving on without waiting for an answer could therefore be considered superficial and impolite.
Giving compliments is not common and can cause embarrassment. The same can be said about giving gifts, which may even be viewed as inappropriate. Only after negotiations or agreements, a small gift may be acceptable. The gift should not be overly expensive, but of good quality.
France:
The most important characteristic of French business behavior is its emphasis on courtesy and a certain formality. Appointment schedules and hierarchical titles are to be respected and correspondence, whether by mail or by fax, should be acknowledged promptly. A handshake is customary upon initiating and closing a business meeting, accompanied by an appropriate greeting. Professional attire is expected. Today, many French executives put less emphasis on long, heavy business lunches for reasons of health and time. Nevertheless, informal business discussions in restaurants where everyone appreciates a good meal are one of the best ways to promote good working relations.
Italy:
In general, similar business practices in the United States apply when doing business in Italy. The “golden keys” of customary business courtesy, especially replying promptly to requests for price quotations and orders, are a prerequisite for success. Business people in Italy appreciate prompt replies to their inquiries and expect all correspondence to be acknowledged. We recommend conservative business attire at all times. Business appointments are required, and visitors are expected to be punctual.
European business executives are usually more formal than their U.S. counterparts; so it is best to refrain from using first names until a solid relationship is formed. Italian business executives tend to use titles indicating their position in the firm. During the first stages of conducting business, it is best to let the prospective buyer take the lead since the U.S. approach of “getting down to business” is considered abrupt. Avoid commenting on political events or making negative comments about the country. Some positive and sincere observations about the Italian culture, style, art, history, cuisine, or music are always appropriate.
Italian buyers appreciate style, quality, and service, but are also interested in delivered price. Take care to assure that stated delivery dates are maintained and that after-sales service is promptly honored. Italians, and Europeans in general, expect that, after placing an order with a supplier, the delivery date be honored. While many factors may interfere with prompt shipment, the U.S. exporter must allow for additional shipping time and keep in close contact with the buyer. Meeting delivery schedules is of prime importance. It is much better to quote a later delivery date that can be guaranteed than promise an earlier delivery that is not completely certain.
Spain:
Spaniards tend to be more formal in personal relations than Americans, but less rigid than they were 10 years ago. It is a mistake to assume doing business in Spain is just like doing business in Mexico or Latin America. Italy or France would be a better comparison. Traditionally, a handshake is customary upon initiating and closing a business meeting, accompanied by an appropriate greeting. ‘Air’ kisses on each check are also a traditional greeting between men and women, even if only a casual acquaintance (likely not for a first-time meeting). Professional attire is expected: business dress is suit and tie, and business cards are customary.
Spaniards expect a personal relationship with suppliers; there is no substitute for face-to-face meetings with Spanish business representatives to break into this market. It has yet to be determined how/if cultural norms will change because of the recent global pandemic. Traditionally, initial communication by phone or video conference is far less effective than a personal meeting, and mail campaigns generally yield meager results. Spanish proficiency is important to do business in Spain as less than 30 percent of local managers are fluent in English.
Spaniards tend to be “conservative” in their buying habits. Large government and private sector buyers generally are more comfortable dealing with other large, established organizations or with firms recognized as leaders within their sectors’, so known brands do well.
