Cultural Etiquette in Business Negotiations

International business is just as much about cultural respect as it is about the deal.

World globalization is making it easier to deal with cultural differences in business. Still, unfamiliarity with a country's culture can cause issues to arise in any business negotiation. Learning basic cultural business etiquette can help make a business transaction or negotiation successful. To get basic etiquette practices, call the American embassy in the country where you would like to do business. You can also call the U.S. Department of Commerce, which has offices in every country in the world. They can guide you as to the proper etiquette practices.

Appreciation

When building business relationships abroad, it is important to recognize the foreign associates business and cultural practices. Avoid talking negatively about the business partner's country, principles, religion, or business practices. Instead, talk of the advantages of the country and their positive cultural customs and beliefs. Your appreciation of a country will make up for any etiquette mistakes you make during a meeting or conversation.

Time of Year

Depending upon the country in which you are meeting, you should determine the best time to hold an important business meeting. For instance, in Scandinavia, it is inconsiderate to hold important business meetings in July or August as many companies close for extended periods during these months for holiday purposes. Just about every country has a particular time in the year when business transactions should not be conducted.

Meeting Formalities

In some countries, formalities are extremely important. Proper greetings are expected, and asking about family and personal well-being can be crucial. In some areas, etiquette requires a proper handshake, while others prefer no handshake or touching at all. Others believe a handshake is too formal and impersonal and prefer an embrace or other personal greeting. In some areas it is important to address a person by his title, while in others it is a sign of arrogance. Determine the best greeting practices by speaking with people from that country, if possible.

Communication

Body language and communication will also differ in other countries. Although the entire conversation may be conducted in English there may still be communication differences. For instance, in some countries the physical communication is done at a much closer proximity than you may be used to, and pulling back from a person may be seen as an insult. In some countries a "yes" answer may only be an acknowledgement of a conversation, but not an authorization of a transaction. In other areas a shaking of the head from side to side (as Americans do to indicate "no"), may indicate agreement or acknowledgment. In these cases it is best to simply address the cultural difference and explain your conclusion of the conversation. Always apologize for your misunderstanding, and make it clear that it is a misunderstanding. The foreigner is more likely to help you understand when you have expressed your lack of cultural knowledge.

References

• Buy USA: Cultural Business Etiquette
• 123 Etiquette: Business Etiquette