PRAXIS LANGUAGE SCHOOL

CULTURAL DIFFERENCES IN THE MAIN ECONOMIES WORLD BUSINESS CULTURE: AN IMPORTANT TOPIC WHEN YOU ARE DOING BUSINESS

DANNA JULIETH HIGUERA HURTADO STUDENT OF FINANCE AND INTERNATIONAL TRADE LA SALLE UNIVERSITY

NDEX

INTRODUCTION3 INTERNATIONAL BUSINESS CULTURE IN USA..4 TOP TIPS ON USA BUSINESS CULTURE..6 INTERNATIONAL BUSINESS CULTURE IN JAPAN.8 TOP TIPS ON JAPAN BUSINESS CULTURE11 CONCLUSIONS...15 BIOGRAPHY16

INTRODUCTION

When working in the global commercial environment, knowledge of the impact of cultural differences is one of the keys to international business success. Improving levels of cultural awareness can help companies build international competencies and create a company whit more globally sensitive. The cultural differences are very important in the international business due to between different countries can have many cultures that must be attended and researched by the businessman who wants to make incursions in the international trade. To have knowledge about other cultures means to understand the effects of cultural differences of the countries that practice international business, in other words, international business is a process that entailed the knowledge about social structure, religions and ethics systems, idiom, education and the work culture. If we know each one of these characteristics, we are going to have a successful business, because is not enough to know the market and the enterprise, it is essential to know the habits and traditions that differences one culture to other, because a silly mistake can throw to the junk a very important contract and many work and investigation.

INTERNATIONAL BUSINESS CULTURE IN USA

According to worldbusinessculture.com there are some important aspects that an enterprise has to take in account when is doing business with USA: In USA every aspect of commercial life is studied and analyzed; everything is quantified and assessed. All processes are analyzed in a detailed manner. USA is characterized by the constant search for better, more effective methods whit the presence of change as a constant factor, and the response to a changing environment with realignment of the organization and a state of constant flux. The relationships between employer and employee is a transactional one, members come and go, in the companies exists independently from its employees. Important decision might be discussed in open forum, but, the ultimate responsibility lies with the boss A word which describes the American meeting is aggressive. Time pressured, ambitious American do not have time for the vagueness, diplomacy and lack of focus. Meetings often include formal presentations. These presentations are a vital element in the demonstration of professional competence.

In the American teems, everybody is expected to be fully to the common goals and to work with dedication and the purpose to ensure that those goals are achieved. It is important to show enthusiasm for the project. When the project is complete, the team will rapidly dissipate, its members moving on the next task. To break up a team in this fluid employment environment of the USA is less traumatic than in other cultures.

Women play an active part in business in the US and have done so for many years. Although progress to the boardroom might still be more difficult than for a man, a large percentage of American executives are woman and this percentage is rising year on year. It is very important to treat a woman as you would treat a man in all business dealings.

The dress code in the US can vary form the formal, dark business suit, shirt and tie to literally T-shirt and shorts. The best advice would always be to check before departures with others, who have visited your particular destination, failing that, take a variety of types of clothes to meet all eventualities.

The timing of business meals in the USA can often come as a surprise to first time visitors. It is not uncommon to be invited to a breakfast meeting which might start as early as 7:00 am or to be invited for dinner as early as 6:00 pm. Mealtime is set apart from business

TOP TIPS ON USA BUSINESS CULTURE: 1. American value straight talking and getting to the point 2. Respect is earned through conspicuous achievement rather than through age or background. 3. Self-deprecation is often misunderstood by Americans as a sign of weakness. Sell your plus points. 4. Humor is frequently used in business situations but is unlike to be appreciated when matters become very tense. 5. Remember that time is money in the States- wasting peoples time through vagueness is lack of a sense of purpose. 6. Compromise is often sought 7. Do not be offended by seemingly overly personal questions 8. Dress code in the States is very variable. Check on the appropriate mode before departure. 9. Short-termism is endemic. Structure proposals to emphasis quick wins rather than long-term objectives (although these should be included) 10. You may encounter an American is best view to do things, be prepared to counter this with quantitative and qualitative counterarguments. 11. Many Americans never leave the States. Be prepared for a parochially American view of the world.

12. Enthusiasm is endemic in business. Join in. Do not exhibit a jaundiced, old world approach as this will be interpreted as defeatist. 13. New is good. Change is ever present in American corporate life and therefore so is the easy acceptance of new ideas, new models etc. 14. Gift giving is unusual in the States and many companies have policies to restrict or forbid the acceptances of presents. 15. Americans tend to work longer hours and take fewer days of vacations than their European counterparts. 16. Try to be punctual for meeting, if you are late apologize. 17. Despite the seeming lack of hierarchy within an American organization, the boss is the boss and is expected to make decisions and is held accountable for those decisions. 18. Americans often socialize with work colleagues outside the office and this often includes the family. 19. Titles are unreliable guide to relative importance within an organization due to their proliferation. 20. Business is a serious thing in the states and it is important that you be serious in your intent and commitment.

INTERNATIONAL BUSINESS CULTURE IN JAPAN

According to worldbusinessculture.com there are some important aspects that an enterprise has to take in account when is doing business with Japan: Of all the business culture in the world, japan is one of those most strongly rooted in the concept that relationships should come before business. In order to achieve success in Japan, it is important to put the maximum amount of time and resources into the early stages of relationship building. Japanese hierarchy is based on consensus and cooperation rather than the top-down decisions making process. In Japan individual personality and forcefulness are not seen as the prerequisites for effective leadership. It is often necessary to ask for clarification if task seem vague or unclear. It is better to seek clear understanding at the outset that to allow misunderstandings to produce poor results or tension in the relationship. Punctuality is important. It shows respect for the attendees. Always allow slightly more time than you think might be necessary to achieve your goals.

Do not become exasperated for the use of your time; it is an essential element of relationship building process. Never show your impatience.

The concept of WA, which is probably best described by the English word harmony never can be affected, Japanese decision are concerned with preservation of WA.

It is important when doing business in Japan that you have a plentiful supply of business card, with information printed on the back in Japanese. Cards are presented at an early stage in a formal manner. Present and receive the card with two hands.

Treat your Japanese contact card with respect, the card is the man. Do not write in it or leave it behind, this would show disrespect. During the meeting, place the cards carefully on the table in front of you.

Gift giving is an endemic part of Japanese business and should not be confused with notions of bribery and corruption. Gifts should not be too but should always be of good quality. Alcohol, especially good single malt whiskey, is always an appreciated gift.

It is also important that group members maintain face in front of other group members.

Self-promotion in the western sense is seen as childish and embarrassing behavior.

Communication difficulties are compounded by the fact that few foreigners speak good Japanese and that level of English is very patchy.

The combination of Japanese vagueness and lack of comprehension leads to enormous problems wick make problem-solving and decisionmaking very tortuous.

In Japan remains a strong unspoken discrimination towards women in the workplace. Western women working in Japan will probably only encounter difficulties when trying to manage Japanese male colleagues.

Appearance is vitally important in Japan and people are often judged on the way they are dressed.

The business convention of dark suit, shirt and tie is very much the norm Japanese in Japanese mainstream business. For woman, business dress should be restrained and formal; women do not commonly wear trousers in business Japan. Accessories should be upmarket but not ostentatious. Take into account that the climate in Japan is very varied through the seasons, so take appropriate wear for the season.

Business meals form an integral part of commercial life in japan and should be seen as an important facet of the all-important relationship building process.

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If you are invited out for lunch or dinner (rarely breakfast), it is important to accept. Do not offend by offering to pay if you have been invited by them.

When using chop sticks, never point them at anybody sticking into your rice. When not in use, rest your chop sticks on the holder which will be provided on the table.

It is considered to leave some food on your plate (or in the bowl) at the end of the meal to show that have eaten enough.

When taken to a traditional Japanese restaurant , it is customary to remove your shoes when entering

If you invite a Japanese guest for dinner, take them to a restaurant which reflects your own culinary heritage and you can then explain your own culture and custom to them.

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TOP TIPS ON JAPANESE BUSINESS CULTURE: 1. Relationships drive business in Japan. Without the right depth of relationships with the right people, it can be very difficult to achieve things. 2. It is important to show respect appropriately. Age represents dignity and should be respected. It is probable, therefore, that more will be achieved with a delegation that contains come older members. 3. Try to be polite and diplomatic at all times. Avoid showing irritation, annoyance or impatience. These negative emotions could put a strain on the development of the relationship. 4. Avoid putting the Japanese in situations where they might be forced to lose face. Do not try to push for decisions or deadlines. 5. It is almost impossible to speed up the business, patience is needed. 6. Perform as many favors for people as possible. Favors must always be repaired. 7. Be humble and apologetic rather than arrogant and brash. Modesty is a characteristic much admired whereas forwardness and being overly self-confident can be seen as childish behavior. 8. As the Japanese are loath to say no or disagree, it can be very difficult to be completely confident that a decision or agreement has been reached.

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9. Do not overestimate the levels of comprehension when speaking English in Japan. There are many fluent speakers of English but many people do not understand even when they indicate that they have. 10. Go over the same point several times from different angles to check the situation. Ask lots of open questions to test for understanding. 11. Oral agreements carry as much weight as written contracts. In a relationship-driven society, it is the quality of relationship which will determine events rather than legal niceties. 12. Do not speak well of yourself but be very polite about your organization and the department or team to which you belong 13. Humor should be avoided during serious meetings where it will be viewed as out of place. Humor will, in any case, probably not be comprehensible. 14. Avoid strong eye contact which can be seen as threatening or hostile behavior. 15. Body language is minimal and it can be very difficult to gauge progress made or the general sentiment of a meeting. 16. Show an interest in your contact as a person. An interest in family, hobbies, health, etc. can help to cement a relationship. 17. Always take gifts to give to key contacts, gifts need not to be too expensive but should always be wrapped. 18. Dress well, but conservatively. Appearance is very important and you are likely to be judged on how you look.
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19. If entertaining, entertain as well as possible. Remember that a good deal of the relationship-building process takes places over meals. 20. If you are confused or in doubt when working in Japan, try not to react immediately. Try to buy some time and reflect on the situation overnight or seek advice from colleagues or other Japanese contacts.

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CONCLUSIONS To Work in the global commercial environment implicate to know the impact of the cultural differences to get the international business success. When we are on a business trip or when we are receiving a foreign guest, we need to have a lot of information about the culture of the person, the enterprise and the place. The main determining factors of the culture are: social structure, idiom, religion, education, policy and economy. In the western societies the individual is the main element of the social organization, the individuals achievements are very important, on the other hand, the group is the main element in the Japanese culture. Groups bring benefits for the enterprises. Improving levels of cultural awareness can help companies build international competencies. American value straight talking and getting to the point, in contrast in Japan is important to put the maximum amount of time and resources into the early stages of relationship building. Americans likes an aggressive attitude, whereas Japanese prefer humble and apologetic people.

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BIOGRAPHY

Comexpanda S.A; 20/Jun/2011; International business: expression and custom. <http://www.comexpanda.com/es/editorial-gestos-costumbresnegociaciones-internacionales/>

Encolombia.com; 22/Jun/2011; International business: cultural differences. <http://www.encolombia.com/economia/Diferenciasculturales.htm>

Internationalbusinessculture.com; 25 /Jun/2011 <http://www.worldbusinessculture.com/>

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