International Business Etiquette

If you have ever traveled internationally, you know that cultural values differ in every country. When traveling, it is easy to assume that the people around you have the same values and standards that you do; however, this assumption puts an international traveler in troublesome situations.
The same presumptions apply when dealing in international business. Populations from each country throughout the world have their own unique expectations, value systems and unwritten rules of business. Your success depends on how well you understand the differing business practices.

The Importance of Practicing Proper Business Etiquette

You’ve heard it before - and maybe even said it yourself - "In some cultures, burping after a meal is considered a compliment." This is true in China, but in other parts of the world, burping at the dinner table is considered rude and offensive. Whether you take offense or laugh it off, you would likely be taken aback if a Chinese business colleague started belching enthusiastically after the dessert course.

Consider some commonly assumed business etiquette practices in your native country. Perhaps it is customary to shake hands before a meeting, arrive promptly, dress in a suit, or avoid showing the soles of your shoes to a colleague. Now, imagine if you had arranged a meeting with a client who refused to shake hands, arrived a half-hour late without apology (wearing a t-shirt), and sat with his foot resting on his knee for the duration of your meeting. Would you be offended? It is likely. Would you be inclined to do business with this new colleague? Probably not.

While these standards of business etiquette may be obvious to you, business people from other countries may not share the same set of rules and values. Similarly, if you are dealing in international business, some of the business etiquette rules of foreign countries may be completely unfamiliar to you, but come as second nature to your international colleagues. Therefore, learning about business etiquette in the country you are visiting is of the utmost importance to ensure a smooth and successful business transaction.

Tips for Dealing in International Business

No matter the country in which you are doing business, you will want to keep a few tips in mind. Practicing the following suggestions will help put you well on your way to a smooth and successful international business transaction.

  • Avoid hand gestures, as they have different meanings in different countries. For example, the American Sign Language gesture for "I love you" is used as a curse in Italy; the American "a-OK" symbol is a very offensive gesture in other countries, indicating intense dislike.

  • Be patient. Different countries have different customs, and patience with these differences is paramount. Business people in some countries (particularly in Latin America and Asia) may want to go out for lengthy dinners, or get to know you personally, before beginning a business transaction. Many cultures also do not adhere to strict time schedules when conducting meetings.

  • Before you meet, learn some key phrases in your international colleagues’ native language. Correctly using (and pronouncing) a simple greeting or phrase will help to demonstrate your knowledge of a country’s language and culture, as well as show your colleagues that you are motivated to go the extra mile for them.

  • Find out if talking business over meals is an acceptable practice. This varies from country to country. In some places, discussing business during dinner comes across as pushy and offensive; in other countries, this is expected.

  • If you are not sure about your colleagues’ fluency level, hire an interpreter.

  • Obtain translations of your business card, meeting agendas and any other relevant documents. Whether or not your international business associates speak English, translations will likely be welcome, and will demonstrate your dedication to working with these new colleagues.

  • Prepare as much as possible before the meeting. Visit an international business etiquette and manners Web site to learn more about the specific country you will be visiting. Learn the ins and outs of business transactions in that country, and be sure you know what practices are particularly offensive to that culture.

  • Read up on current events in the country you are visiting. If you are attending a social function or having dinner with your international business associates, they will likely appreciate it if you are knowledgeable about their country and can engage in conversation about their current events.

This will be appreciated if any of the meeting attendants are not fluent in your native language, and will help you overcome any communication barriers you may encounter.

Interesting Facts About International Business Etiquette

Practices that are considered standard in some countries may seem bizarre in others, which is why you can not make assumptions about what is considered appropriate when dealing in international business. Here are some examples of some different cultural nuances in countries around the world:

  • In Argentina, men should wait for a woman to offer a handshake.
  • In Brazil, purple flowers are customarily given at funerals, so they should be avoided as a gift.
  • In Panama, businesswomen should bring their spouses to business dinners.
  • In Indonesia, hooking your finger in a "come-here" gesture is considered offensive, and should be avoided; the same is true for the "thumbs-up" sign in Saudi Arabia.
  • In Saudi Arabia, men commonly walk hand-in-hand as a sign of friendship.

International Gift Giving Etiquette

Gift giving etiquette is different in every country. If you plan on presenting your international business associates with a gift, ensure that you present it properly and do not give them anything that could be considered offensive. In some countries, such as Australia, gift giving is not a common business practice.

The Chinese consider it rude to open a gift in front of the giver, but in Africa, this is expected. South Africans will likely be offended if you present a gift with your left hand. Many Chinese cultures have very strict gift-giving rules, and some gifts that are customary in many countries have a strong negative connotation in China (for example, giving an umbrella means that you do not want to see the recipient ever again). If you plan on giving a gift to an international colleague, avoid things with large company logos on them, or items so expensive they could be considered a bribe.