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Wednesday, January 19, 2011

What are the business etiquette principals when doing business abroad ?

Respecting culture of the foreign targeted market is one of the key element for being successful globally. Undoubtedly, it is best to search in the market customs and traditions before starting the business mission. 


Despite the foreign buyer will often realize that the exporter is a foreigner and forgive any unsuitable cultural fault , the buyer will be more delighted by the exporter's knowledge of cultural norms. If something is considered ethically objectionable, culturally insensible , or socially offensive , the exporter should try to understand why a foreign culture acts as it does before judgment. The best rule of business etiquette is to be open-minded, non-judgmental, and flexible.
Before travelling to the foreign country, the exporter must be more formal and polite . Respect the entertainers must be shown by making formal introductions with full names and titles.

Exporters travelling abroad should be familiar with foreign markets 's customs and practices as possible. Here is some examples:

Punctuality: It is advisable to respect the time value of business partners while coming for business discussions. This should be done even if the other side is known not to be on time for appointments.

Addressing individuals: Some countries have different practices of addressing people, for example using first names is considered a friendly gesture, but in some others, it is preferred to be formal and even use titles as a matter of course. An exporter should never call an individual by the first name unless invited to do so. The correct pronunciation of the names of each of the members of the delegation that are likely to be encountered should also be known before hand in order to avoid embarrassment for both parties. There may also be special rules about addressing women.

Dress codes: In some countries, the dress code is formal and in others informal or causal. It may be helpful to know if there are any special tips for dressing in this country . Sometimes formal discussions are followed by informal dinners or get-together. Here again, customs differ on the dress code, going from formal to casual.

Greetings: Different forms of greetings are used in different places. Shaking hands may be accepted in one country, but refused in another. Bowing may be the formal greeting. It may be useful to know the correct practice about greeting .

Conversation: Some business people are serious by nature and are not in the habit of cracking jokes or narrating stories during business discussions while other would consider conversations dry and uninteresting otherwise. It is also a good idea to be well informed about sensitive topics to avoid (political situation, recent scandals etc) and of topics to which it would be polite to refer (World Cup victory, health of the President etc).

Socializing: In some cultures business men will frequently invite customers to their homes and extend hospitality, while others keep the personal side of their lives away from all business transactions.

Gift Giving: Many countries practice this custom and one must know if a gift is expected or not. The exporter should know to whom the gift should be directed (e.g., the entertainer , the wife of entertainer , the family, the business contact, or the company head). A gift to a government official may appear to be a bribery, therefore it is important to make sure the gift is appropriate and will be well-received before giving it.

Negotiating styles: Some negotiators to haggle over the terms of any transaction. Others prefer a firm and accurate proposal so that they can earnestly evaluate it and respond to it.

Business (Name) Cards: An exporter should always carry business cards with information printed in the native language on the reverse side. In some countries, businesses cards are treated high regard, as a declaration of status of that person. It is important not bend, write on, or put away the business card while in the company of the presenter of the card.

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