International Business Blunders
One U.S. company lost a major contract opportunity in Greece because its managers tried to impose U.S. customs on the Greek negotiators. Besides being too forthright and outspoken in the eyes of the Greeks, the Americans tried to set time limits for the meetings. The Greeks, however, considered time limits insulting and thus felt that the Americans showed a lack of finesse. The Americans also wanted the Greeks to first agree to principles and then allow their subordinates to work out all necessary details. The Greeks viewed this as a deceptive strategy; they preferred to directly handle all arrangements regardless of the time involved.
Protocol with regard to location is often the source of international blunders between cultures. A Chicago company was bidding on a public works project in Thailand and was waiting for the Thai contingent to arrive at their Chicago offices for the meeting. After hours of waiting, the Chicago company found out that the Thai group was still waiting to be picked up at the airport. They rescheduled a meeting for the next day, only to find out that the same communication problem existed. The Thai group waited for the Chicago company to pick them up at the hotel, while the Chicago company expected the Thai group to meet them at the Chicago office. Knowing what to do is as important as knowing what not to do. In India, for instance, it is considered a violation of sacred hospitality mores to discuss business in the home or on social occasions. And if a business executive from India offers “come any time,” it is an honest invitation, not just a polite expression as often used in the United States. The Indian is requesting a visit but is politely allowing the guest to arrange the time of the meeting. If no time is set, the Indian will assume that the invitation has been refused. The failure to understand this local custom has led to some serious misunderstandings. Even the rejection of a cup of coffee can cause major problems. While a very profitable opportunity wasbeing negotiated, one U.S. executive innocently made the mistake of refusing a Saudi Arabian’s friendly offer to join him for a cup of coffee. Such a rejection is considered an affront in Saudi Arabia. Naturally, the Saudi became much less sociable, and the negotiation process was much less successful than it might have been. Gift giving can also create troubles. Sometimes gifts are expected and the failure to supply them is seen as insulting. Other times, however, the mere offer of such a token is considered offensive. In the Middle East, for example, hosts are insulted if guests bring food or drink to their homes, because they believe that such gifts imply that they are not good hosts. (Liquor, of course, is an especially dangerous gift, as it is prohibited by the Islamic religion.) In many parts of Latin America, cutlery or handkerchiefs should not be given, because these gifts imply a cutting off of a relationship or the likelihood of a tearful event. And giving a clock to someone in China is not a good idea, either. The Chinese word for clock sounds similar to their word for funeral. In fact, even the way in which a gift is presented is important. In most parts of Asia gifts should be given privately to avoid embarrassing the Asians, but in the Middle East they need to be offered publicly in order to reduce the possible impression that bribery is being attempted.Ricks, D. (2006). Blunders in International Business (4th Ed.). Malden, MA: Blackwell Publishing.