The marketplace is becoming global - Are you ready for it?
Are you ready to play in the global marketplace?
Do you understand what this implies?
If you have been paying attention over the past few years, you understand that there are massive changed happening in world output and the world trade picture.
- The U.S. no longer dominates the world economy
- Large U.S. multinationals no longer dominate international business
- The centrally planned communist economies that made up roughly half the world suddenly become accessible to Western businesses
- The global economy has become more knowledge-intensive
I'd like to address the last point - becoming more knowledge-intensive.
It is no longer enough to have the latest or best knowledge. Further, the idea that "knowledge is power" has become somewhat of a attitude that is off-putting to others.
Let me provide context for this statement.
I recently completed arranging a foreign trade deal for a US firm that knew that they needed to be sourcing from China, but didn't have a clue as to how to begin. This is not an uncommon situation, as increasingly, international business is a critical necessity of business.
It's not simple, nor straightforward, but is doable for those that want to spend the time to become smarter about the situation, and required processes regarding foreign trade.
One area that I have noticed that is often unfamiliar to those westerners seeking to establish trade/business relations with people/organizations in other cultures is the western tendency to "pigeonhole" people by our existing cultural beliefs.
Not only does this get you into trouble (quickly), such incorrect generalizations can damage potential for future relationship development.
Here's come suggestions to help you when dealing with people of different cultures:
- Do not try to identify the counterpart’s home culture too quickly. Things that you believe represent "cues" to the other's cultural orientation (e.g., name, physical appearance, language, accent, location) may be (and increasingly are) unreliable.
- Be particularly aware of the Western bias toward “doing.” Ways of being (e.g., comportment, smell), feeling, thinking, and talking can shape relationships with people of other cultures more powerfully than doing.
- Resist the western tendency to formulate simple, consistent, stable images. These may not translate the same in other cultures.
- Do not make the assumption that all aspects of the culture you are dealing with are equally significant.
- Strive to recognize that the norms for interactions involving outsiders (e.g. YOU) may differ from those for interactions between compatriots.
- Never overestimate your familiarity with your counterpart’s culture. More often than not, you will be wrong.
Please trust me on these points. I have learned the hard way that global trade is based on relationships, and is not entirely price driven. In the fastest growing economies of the world, the relationship takes precedence in negotiations. And relationship development doesn't happen quickly (by design)
There are many places where westerners (across many industries) have screwed up by trying to apply western values and practices to other cultures. Here are a few examples:
- An American oil rig supervisor in Indonesia shouted at an employee to take a boat to shore. Since it is no-one berates an Indonesian in public, a mob of outraged workers chased the supervisor with axes.
- Pepsodent tried to sell its toothpaste in Southeast Asia by emphasizing that it "whitens your teeth." They found out that the local natives chew betel nuts to blacken their teeth which they find attractive.
- A company advertised eyeglasses in Thailand by featuring a variety of cute animals wearing glasses. The ad was a poor choice since animals are considered to be a form of low life and no self respecting Thai would wear anything worn by animals.
- The soft drink Fresca was being promoted by a saleswoman in Mexico. She was surprised that her sales pitch was greeted with laughter, and later embarrassed when she learned that Fresca is Mexican slang for "lesbian."
- When President George H W Bush went to Japan with Lee Iacocca and other American business magnates, and directly made explicit and direct demands on Japanese leaders, the American representatives violated basic Japanese etiquette. To the Japanese (who use high context language) it is considered rude and a sign of ignorance or desperation to lower oneself to make direct demands. Some analysts believe it severely damaged the negotiations and confirmed to the Japanese that Americans are barbarians.
- U.S. and British negotiators who you might think are the most able to communicate well, found themselves at a standstill when the American company proposed that they "table" particular key points. In the U.S. "Tabling a motion" means to not discuss it, while the same phrase in Great Britain means to "bring it to the table for discussion."
- When Pepsico advertised Pepsi in Taiwan with the ad "Come Alive With Pepsi" they had no idea that it would be translated into Chinese as "Pepsi brings your ancestors back from the dead."
- In Italy, a campaign for Schweppes Tonic Water translated the name into "Schweppes Toilet Water."
So it's important that your actions and words are carefully considered, when dealing with anyone of another culture. Remember, this is not just about dealing with people in foreign lands; increasingly, individuals from other cultures are all about us, and the sooner we learn how to deal with our "cultural colleagues", the better we will be at expanding into the global business community.
Think about it.















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