International Business
International expansion outside United States implies an insightful consideration of the business etiquette of the targeted location. For this report, the focus will be on United Arab Emirates, a Middle East country, China, an Asian society, and Mexico, a Latin America nation. From a business standpoint, there must be understood specific cultural aspects, such as the meet and greet protocol, the dress codes, gender relations, communication patterns, the negotiation style, socializing and business behavior. An important specificity for country analysis is also the economic profile, which will be investigated. Based on these aspects and the specificities for each country, there will be further assessed whether there can be applied a U.S. management style in these countries and whether if the business plan should be advanced in these states or not.
UAE is a Middle East country, with an Islamic tradition and Muslim culture, which is rapidly emerging towards modern business environment and a modern society, being considered a luxurious touristic destination due to its 6 star hotels and its global openness (Global Negotiator 1-2). In terms of meet and greet protocol, it is required previous recommendation, but the actual meetings, called “majlis” (translated as “to sit down”) or “diwan” (reunions held at the host’s home) are friendly, with the host deciding when to introduce the business topic in the discussion (Global Negotiator 3). In terms of communication, the discussions are carried on in English, and the words have different meaning than in Western countries, for instance “yes” does not represent a firm confirmation, but rather a possibility (Global Negotiator 4). It is also important to know that UAE business people do not appreciate anxiety, expressed through gestures, or aggressive communication, exerting and expecting for a calm, warm and polite conversation. The dress code for non – Arabic business partners, men and women, should be conventional and conservative. In terms of negotiation, Emirati take time to make decisions and expect things to be delivered quickly once they made their mind; they are known for inquiring the price per unit for a large order, trying to maintain the same price for a smaller quantity, but also for changing the supplier even if the first order was delivered in good conditions, hence a presence in the market and competitive offers are required (Global Negotiator 4). The dining etiquette requires Emirati to invite their business partners in their homes, while when the invitation is launched by the business partners, they should invite the Emirati partners to hotels, where they will start the business discussion after the dinner ends (Global Negotiator 7). Gifts giving is an usual habit in UAE, and this occurs generally during the first meeting. Important aspects to consider include: the transportation is mainly possible with taxi or personal cars, the weekend starts in Friday and ends Saturday evening and praying is an important traditions, with Arabic leaving meetings to dedicate to their praying (Global Negotiator 7).
Specific consideration to maintaining collaboration should be addressed, and also the inclination for the better offer, instead on the business relations needs to be carefully considered. Communication and demonstration of high competency are supervisor skills appropriate for responding to these challenges.
Mexico
A Latin country, Mexican business style can be considered passionate, due to the arduous negotiation style. Mexicans address their foreign counterparts formally, in a polite manner, using gender adapted appellatives: “Senor/Senora/Senorita”. They expect the business partners to be on time, although the meeting will start even hour later than the scheduled time. The greetings imply a firm hand-shake and a small talk before discussing business, followed by another small talk after finalizing business talks (Focus on Mexico para 9). The dress code is conservative, with a preference for the dark business suits for men, and feminine, yet formal attires for women (Focus on Mexico para 2).
In terms of gift giving, for business executives this habit is not required, but small presents, usually pertaining to one’s company, can be offered during the first meeting, nicely wrapped. When invited to dinner to a Mexican’s house, the guest should bring flowers (not yellow or red), chocolate and/or wine and should consider the invitation a sign to further develop friendship (Focus on Mexico para 5).
Regarding the communication style, Mexicans speak indirectly, generally avoiding eye contact as a sign of respect. Close proximity is preferred to the Western space barriers when talking, and touching is also considered a normal behavior in Mexican business reunions, demonstrating emotional approach, which is favored to the logical one (Martin & Chaney 197). Status is important in Mexican business culture, hence senior managers should be integrated in the negotiation process and doing business in elegant hotels and restaurants is expected (Martin & Chaney 197). During the negotiation processes the Mexican animation should not be mistaken for aggression, which should be avoided as a negotiation tactic. Conflict and confrontational situations while selling are disliked in Mexican culture. Agreements should be made in written, otherwise they may be void (Martin & Chaney 196).
For facilitating collaboration across cultures, there should be considered an adaptation to Mexican cultural specificities, including the negotiation style, and the openness to becoming friends with the business partners. Supervisory qualities that can be appropriate for responding to these considerations include interpersonal skills and emotional intelligence.
China
Chinese business etiquette requires appointments should be done previously to the meeting, and during the meeting they usually address various personal questions, which is a sign of consideration, and should not be considered intrusive (Huang 196). They receive and give business cards with both hands, and greet their guests with a hand shake, usually accompanied by a nod. They do not expect gifts and when offered, they should be symbolical; usually refuse them several times before receiving them, as an indication of politeness (Huang 198).
The dress code is conservative for business meetings, while conventional attire (jeans and jackets) are also allowed, although not in formal meetings (Martin & Chaney 85). Time is elastic in Chinese culture, which implies that senior managers are allowed and expected to be late, as a sign of their importance, while other business counterparts are expected to be on time (Huan 198). The same is the case for decision making, as Chinese consider it a timely processes, which may require a favorable day
In terms of communication, the Chinese expect the business executives with the highest seniority to initiate the discussion, a reflection of Confucian tradition. They use indirect language, with more intense connotations than it would appear, speaking humbly and politely, while also delivering criticism using vague terms in an indirect manner (Martin & Chaney 165). he avoidance of gestures of any kind is recommended, as they might be considered disruptive and difficult to interpret, considering that Chinese show no sign of emotion in their public discussions (Martin & Chaney 67). The negotiations should be carried on between representatives of different companies with similar positions, otherwise it might be considered insulting to the Chinese tradition (Huan 197).
Things to consider for facilitating collaboration across cultures include adjusting to the Confucian business style, respecting seniority and valuing discipline. Attentive listening skills, systematic organization and cultural adaptation are the supervisory qualities that should be demonstrated.
The Emirati economic system is an open one, the country being the second economy in the Gulf area, after Saudi Arabia (Global Negotiator 2). Mexican’s economic system is an emerging one, focused on manufacturing development, but also on developing free trade agreements (Index Mundi “Mexico”). China practices a socialist market economy system, targeting the improvement of resource allocation (Peilin xxix).
Considering the cultural and economic specificities of the targeted countries, a U.S. leadership style might be complex to attain, considering the differences between the capitalist, western culture of doing business of U.S. and the targeted three countries. Nevertheless, the friendly business approach exerted by the Emirati professionals might represent a benefit for multinational teams. Similarly, developing long – lasting relations with Mexican businessmen can lead to developing successful teams and sustainable collaboration. On the other hand, multinational teams could also benefit from the Chinese discipline and sense of structure.
The analyzed countries represent solid economies, with potential to sustain further business growth. While the cultural differences and the distinct economic systems should be carefully considered, the business plan should nevertheless be advanced. One can learn from differences and improve resources and capabilities.
Works Cited
Focus on Mexico. Mexico Business Culture Guide. [Online]. June 12, 2006. Available from < http://www.focusonmexico.com/News-and-Views/Articles/Miscellaneous/Mexico-Business-Culture-Guide.html > [Accessed July 19, 2016].
Global Negotiator. Business Culture & Etiquette Guide United Arab Emirates (UAE). [Online]. No date. Available from < http://www.iberglobal.com/files/2016/emiratos_protocolo.pdf > [Accessed July 19, 2016].
Huang, Liangguang. Cross-Cultural Communication in Business Negotiations. International Journal of Economics and Finance. 2(2): 196-199. 2012. Print.
Index Mundi. Mexico. [Online] June 30, 2015. Available from < http://www.indexmundi.com/mexico/economy_overview.html >. [Accessed July 19, 2016].
Martin, Jeanette, S. & Chaney, Lillian, H. Global Busines Etiquette. Second Edition. Santa Barbara: Praeger. 2012. Print.
Peilin, Li. Great changes and social governance in contemporary China. London: Springer. 2016. Print.
