Don't Lose International Business Because of Inexperience

Have you ever come across a deal that looks too good to be true? Many times international deals are passed by because of doubt and unfamiliar processes.

As global business continues to expand and bring people closer, the most important element of successful business outcomes may be the appreciation and respect for cultural diversity, says IBBA member Edwin Lee of Hong Kong Business Intermediary Co. Ltd. The best way to learn how to be successful in the international market is to research the culture of the country that you are interested in making a deal with and possibly experiencing that country first hand.

There are many cultural dynamics that can come into play in the business world, including:
Eye Contact: In the United States, United Kingdom and much of northern Europe, direct eye contact conveys confidence and sincerity. In South America it is a sign of trustworthiness. However, in some cultures such as the Japanese, prolonged eye contact is considered rude and is generally avoided.

Personal Space: In Europe and North America, business people will usually leave a certain amount of distance between themselves when interacting. In South America or the Middle East, business people like to get up close. In Japan or China, it is not uncommon for people to leave a gap of four feet when conversing.

Time: For some time is money, punctuality is crucial and being late is taken as an insult. However, being on time for a meeting does not carry the same sense of urgency worldwide.

Meeting and Greeting: Most international business people meet with a handshake. Some may view a weak handshake as sign of weakness whereas others would perceive a firm handshake as aggressive. In addition, how an individual is addressed and the amount of small talk are key components to communication.

Gift Giving: In several countries giving gifts is an integral part of business protocol and in others it has negative connotations.

Clearly there are many factors to consider when approaching cross cultural negotiations. Doing or saying the wrong thing at the wrong time, having poor communication and/or cross cultural misunderstandings can all have harmful consequences, says Rob Firestone, IBBA board member and principal and general manager of Bluestem Resources Affiliated Group of Tulsa, Oklahoma. By preparing yourself with the appropriate knowledge and tailoring your behavior to the negotiation process, you can succeed in maximizing your potential.

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The International Business Brokers Association (IBBA) is the largest international non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of a business brokerage and mergers and acquisitions. Today, the IBBA has more than 1,950 cooperative business brokers and intermediaries across Canada, Mexico, Asia, Europe, Australia, New Zealand and the United States. For more information, go to www.ibba.org.