Market Strategies: Cultural Considerations
Are you visiting a new market? Are you ready? Knowledge of cultural differences can make or break a deal!
Cultural Etiquette
How you handle yourself when visiting a foreign country, or when you receive foreign visitors in Canada, is an important element of conducting international business. The handing over of a business card is almost a ritual in some cultures, and improper behaviour during the process constitutes a major insult, with predictable consequences. Where to sit, when to sit, when to speak, or not at business meetings and social functions, is another critical component of doing business with foreigners.
Colours on your business card, brochures, company logo, even on your clothes, play a major role in the way you are perceived and treated. For example, in some parts of the world the colour of death is black, while in other places it is white.
Want to know more? Go to Sources of Information.
Is it OK, or not?
You find yourself at a business luncheon and your host asks how your meal is. You flash him the "OK" sign. He is visibly upset. Faux pas! What just happened?
If you are in China or the south of France, it means "worthless" or "zero". In Germany, it is a major insult, in Mexico, it means "sex" and in Japan it means "money" because the circle formed by your thumb and index finger resembles a coin.
Italy, Argentina, Brazil, Tunisia, Russia, Paraguay, Malta, Singapore, Spain, and Greece are other markets where it's not a good idea to flash the "OK" since it is considered an insult. So before you venture off to a new destination, make sure you understand the local customs, OK?
Language
If you know the language of the foreign market you immediately enhance your business environment. You can communicate with anyone you wish, eliminate the chance for "loss in the translation", reduce the cost of doing business, and offer your potential client a convenient way to deal with you.
If the language in the foreign market is different, master at least a few words and greetings. Your efforts will be worth it and appreciated.
If you are not able to fully function in the foreign language, there are several options for bridging the communication barrier, such as by choosing a partner/client who may be able to communicate in your choice of language, using translators, hiring students there and/or students here.
Popular Greetings
- Arabic - Al salaam a'alaykum
- Bosnian - Zdravo
- Bulgarian - Dobarden
- Chinese - Ni hao
- Croatian - Dobro jutro
- Czech - Nazdar
- German - Guten tag
- Greek - Kalimera
- Hebrew - Shalom
- Hungarian - Servusz
- Indonesian - Selamat pagi
- Italian - Buon giorno
- Japanese - Konichiwa
- Portuguese - Bom dia
- Romanian - Buna ziua
- Russian - Zdravstvuite
- Spanish - Buenas dias
- Turkish - Merhaba
- Swahili - Jambo
- Zambian bemba - Mwapoleni
Business Practices
The customs, laws, regulations and the practical conducting of business is very different in most markets outside of Canada. The foreign market is no place for assumptions, particularly when it comes to commercial transactions. You must know about local business practices.
For example, in the United States, as in Canada being on time for meetings and events is the accepted practice. In African countries the starting times are often as late as one or two hours which, by local standards, is perfectly acceptable.
The standard response time to messages, e-mails and phone calls in some parts of the world is days, and often weeks longer than the standard practice in North America.
When in Rome...
When visiting a foreign market, you are the foreigner. You are the one who needs to adapt.
Quick Tips
- Be humble, culturally-sensitive, and willing to expand your knowledge of the country.
- Adjust your vocabulary, slow down, and avoid jargon and colloquial expressions.
- Have a high level of personal and professional commitment and promote a positive atmosphere in the workplace.
- Encourage two-way dialogue for the purpose of building mutual understanding of anticipated results.
- Develop a clear process to promote collaboration on goals, roles, responsibilities and accountabilities.
- Work on building relationships and welcome differing views before coming to conclusions on issues.
- Respect the cultural differences while embracing the enriching experiences.
Sources of Information
- Your foreign and/or Canadian business partners.
- Foreign exchange students
- Local ethnic communities
- Bilateral trade organizations, trade centres and industry associations
- Embassies and trade offices in Canada and in your target market
- Centre for Intercultural Learning
Insights based on most frequently-asked questions from two distinct perspectives: a national of that country, as well as a Canadian who has lived there.
- Centre for Intercultural Learning – Courses for Canadians Working Overseas
The Centre offers Pre-departure and Intercultural Effectiveness courses for Canadians departing on both short and long-term overseas assignments. The Centre is operated by the Department of Foreign Affairs and International Trade and the courses are open to both business and government. For publications, call 1-800-852-9211 or e-mail cultures@dfait-maeci.gc.ca
- Country Insights
E-thologies is a collection of links to the most current country information available on the internet. The site offers access to information on more than 200 United Nations recognized countries.
- The Lonely Planet – Destinations
Maps, guides, practical advice summarized from thousands of travelers.
- World Travel Guide
An invaluable source of comprehensive and detailed information for every country in the world.
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