Apr 27 2009
USA Export: Cultural Differences
Many people involved in USA export have read Thomas Friedman’s book, “The World is Flat.” Before the world became “flat” in the USA, it was already flat in Europe. Fifty years ago, European manufacturers were already looking to get their wares produced in Portugal, Greece, North Africa and Turkey. They discovered that in order to compete in the international market, it was becoming necessary to use cheaper labor. Then, they found they could generally export their products as well. So they started learning about cultures, languages, customs and business differences.
One of the first differences an international business person will mention is the extra time it takes to start doing business with a foreign prospect. Do not underestimate this. When a USA export manufacturer presents his wares to an international prospect, sometimes he underestimates the importance of building a personal relationship with his potential customer. However, the foreign prospect is very likely to be interested in the personal life of the American and will want to spend a lot of time talking, in order to get to the heart of his counterpart. And while the foreign business person very much appreciates that the American has taken the time to come and visit him, the American often just wants to maximize his time as much as possible and get on with the business at hand. However, plunging into business before spending enough time to get acquainted with your prospect will destroy many opportunities. Should the foreigner invite you for lunch, wait to talk business until he approaches the subject. It may very well be after the cognac or after the coffee.
Lothar Katz has written a book, “Negotiating International Business,” available at www.LeadershipCrossroads.com/ that’s very relevant to the USA export development efforts of any vendor. The book offers great suggestions for surviving and thriving in other cultures. Once you’ve read it, it’s still difficult to remember all the nuances, like:
- presenting your business card with two hands as an extension of yourself
- asking “How is the family?” instead of “How is business?”, etc.
- waiting for the other person to start eating
It’s appealing to start traveling and do all this yourself. But get some cultural education first, or hire someone to help you build you USA export business abroad. There are some mistakes you can’t put a number on, because some business cultures are so different you won’t even know you made a mistake.
