How to Do Business Overseas in Different Cultures

First, it is crucial to understand that different cultures around the world have distinct norms and behaviors when it comes to business activities. What is considered polite in one culture might be perceived as rude in another.

As our world becomes increasingly globalized, the barriers of time and distance between countries are shrinking. Technological advancements over the past century have made it possible to access places and opportunities that were once out of reach. However, cultures are not evolving at the same pace.

For example, in some countries, it is customary to drink alcohol to celebrate the completion of a business deal, while in others, this is forbidden. Additionally, the negotiation process can vary significantly between Western and Eastern cultures.

So, how can you know the best way to behave in order to succeed in business with customers from different cultures?

Research is Key, as a first step, I would suggest doing thorough research. There is a wealth of information available online. For instance, before I traveled to Japan, I read about Japanese culture and the specific business practices that are important when engaging with them. Another option is to use a translator with cultural expertise, a translator who is familiar with both your own culture and that of your customer. I recommend meeting with the translator beforehand to learn about the "Do's" and "Don'ts" of the culture. Choosing the right translator is one of the most important steps I can advise. It can truly make a difference. Ideally, find someone you already know and trust.

It is important to understand your customer's existing Cultural Connections, so before meeting with a company or organization from a different culture, I suggest researching which cultures they have already had successful business relationships with. This can often be found in company reports and will help you understand the cultural context they are familiar with.

Cultural differences are characterized by a variety of factors such as language, communication style, dress code, manners, introduction methods, values, motivations, and more.

The following tips are my personal impressions and based on my personal experiences with different cultures. These impressions may differ for others, and if anything here offends anyone, please know there was no intention to do so.

• Italy: Even within Italy, there is a cultural divide between the north and south. In southern Italy, customers are generally more open, and you should adopt a simpler dress code compared to the north. In the north, you can be more direct and less formal. Italians are highly competitive and define themselves by success and prestige, so how things appear is important. Non-verbal signals are crucial—how you behave is often more important than what you say. They also prefer quick results.
• Germany: Employee participation in decision-making is common. Germans prefer solutions that are acceptable to most participants. They value straightforward discussions and also like to see results quickly.
• Netherlands: The business atmosphere promotes independence, autonomy, equality, and well-being. Like the Germans, they prefer straightforward discussions and quick results.
• United Kingdom: In the UK, the opinions of employees and colleagues are valued in decision-making processes. They also prefer to follow procedures.
• France and Spain: Both have a business culture that is neither too formal nor completely open and direct. They tend to be calculated in decision-making, and cooperation is an important value.
• Russia: Business culture in Russia is more authoritarian, with a strong hierarchy. Many Russians are patriotic, and people tend to be close-knit and reluctant to reveal too much.
• United States: Employee input is valued, and there is an appreciation for independence and autonomy. Americans are competitive, flexible, and innovative, and they like quick results.
• India: India has a very hierarchical structure, so it is crucial to speak with the right person in discussions. The general mindset is one of uncertainty, with little advance planning. The negotiation process is focused on the long term.
• China: Business culture in China is characterized by respect. Communication is indirect, with a preference for subtlety over straightforwardness. The Chinese are also long-term thinkers, which influences their approach to negotiations.
• South Africa: South Africans tend to be more straightforward and prefer face-to-face meetings. Personal communication is central to their business culture.
• Israel: Israelis are direct and prefer an assertive negotiating style. They value honesty, and what you see is often what you get. They also expect immediate results.

??Navigating Cultural Differences for a Win-Win Situation Synchronizing different cultures to achieve a win-win situation requires both art and sensitivity. The more you understand the culture of the person you're working with, the more effective the relationship will be.

??Conclusion To summarize, my advice is to keep an open mind and avoid viewing people as inferior simply because they behave differently. Do your homework before entering a new culture, be sensitive to the unique communication style of the person in front of you, and sometimes it’s better to observe their behavior before speaking or acting.

?Good luck,

Erez Bar

Overseas business development Manager

TDK-Lambda Israel Ltd.

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