With so many Asian centres of trade these days, it’s difficult enough to learn how differences in culture affect various areas in the workplace, such as management, decision-making, negotiation, etc.

With the tremendous opportunity to expand into new, lucrative markets at stake, business owners and executives really can’t afford to create misunderstandings or insult their prospective partners or clients when trying simply to communicate.

Second language speakers of English outnumber native speakers

For those who have not travelled abroad extensively, it may be a surprise to you that a group of Asians hailing from Singapore, China and Korea are unlikely to be heard speaking Chinese to one another at a conference in Europe.

They communicate with one another in English, and they are probably better understood by each other than you would be, despite the fact that you grew up speaking English.

That is because English is one of the only languages in the world where the number of people speaking it as their second language far outnumbers those who speak it as their first (505 million vs. 330 million at last count).

The prominence of English as a second language has prompted repeated attempts by various linguists to develop what they call a ’standard’ or ’basic’ English, and even the proposal of a new language all together, which would be called ’Globalish’.

So far, those attempts have failed. Native English speakers, however, do not need to learn a new dialect of English as a second language in order to successfully communicate better in global markets and with people speaking English as a second language. That is, if you can follow these rules:

1. Slow down and pronounce clearly

The first rule of communicating with those speaking ’English as a second language’ (ESL speakers) is to slow down and try to pronounce every word clearly. Keep in mind, this does not mean you should speak as if someone just tapped your ‘slow-mo button’—that will just confuse people, and may come across negatively.

And if you project your voice while in slow motion, then you will only succeed in letting everyone in the room know that yooooou aaaaare A Big Jerk—not good. What you would like to do is to avoid ’running words together’. For example, say: “Do you want to go now?” Instead of: “Do ya-wanna-go-now?” See the difference?

2. Leave the puns and other fun language at the water cooler

If you are using colloquial expressions, idioms, or other unfamiliar words, you are also bound to run into trouble. Avoiding these types of expressions will make it much easier for others to understand your message:

Negative Tag Questions. Oh wait, you don’t know what a ‘tag question’ is, do you? There, I just used one, and it confuses the heck out of ESL speakers even though they otherwise seem to speak the language proficiently. Rather than asking “You aren’t hungry, are you?” Simply state a question more directly: “Are you hungry?” Now that wasn’t so hard, was it?

Idioms. “The ball is in my court? I thought we were negotiating a contract?” “You pulled an all-nighter? Did it hurt?” If your intention is to confuse, idioms are by far the best strategy. So do your listener a big favour and cut it out.

Puns. I know, I know. Your witty rhetoric probably draws a crowd at the water cooler; and you would like nothing more than to share your authentic North American humour with a global audience (wouldn’t that be pun!). Too bad they will have no idea what you are talking about.

3. Brush up on your vocabulary

Removing the aforementioned types of expressions may be difficult. Fortunately, while ESL speakers may not have learned the language you learned growing up in your local neighbourhood, they do surprisingly well when it comes to vocabulary, especially since in many Asian countries, foreign assignments and trips to conferences abroad are usually awarded based in part upon English language test scores.

So while an expression like “Don’t jump the gun” may evoke a blank stare (or perhaps fear); conversely, you would be surprised at how clearly an phrase including words like “don’t rush prematurely” will come across.

4. Confirm understanding and repeat when necessary

Everyone has been guilty of nodding their head when they, in fact, do not truly understand the speaker; this is especially common among those communicating in a second language.

Be sure to ask whether your listener understands and be ready to repeat and rephrase if necessary.

If you are with an individual or small group, you might even want to try writing important things down on a piece of paper. Remember: If your eyes are bulging out of your skull, nose flaring and voice raised while you ask “Do you understand what I am saying?,” chances are you will not get a straight answer. You will, however, have hurt the chances of eventually gaining respect from anyone within earshot.

5. Be explicit and remove the noise from your speech

Finally, avoid filling empty space with meaningless words and get to the point. If you are asked a question do not reply with “I kinda. Well, ummm. I sort of think that…” Consider that it is quite possible that your listener(s) are putting forth some effort to understand each and every sentence you utter.

With that in mind, lose the filler and when possible state your answer in explicit terms.

Recognize that you are going to need more time to communicate, and don’t blame your listeners if your message doesn’t get across the first time. It may not seem like much, but following these simple rules will make a world of difference for your foreign counterparts.

Interested in government funding to help you expand into new markets?

Attend a free Government Funding for Small Business webinar, co-hosted by the Canada China Business Council taking place Monday November 10^th from 11:30am-1:00pmEST.

The post 5 crucial tips to help you communicate better in global markets appeared first on Trade Ready.

No, he was not invited to give trading tips. In fact, the convict turned author and motivational speaker was there to talk about how Mongolian government officials and business representatives can help speed along the country’s success “by effectively telling its story”.

Ironically, Mongolia is far from lacking in qualities that make for a good story; the trouble might just be choosing which to share.

Embracing Tradition while Looking Ahead to a Bright Economic Future

Accented with lush and serene vegetation in the summer months, parts of Mongolia could easily be confused for Switzerland, according to Lonely Planet.

Known the world over for Genghis Khan (Chinggis Khaan) and the traditionally nomadic lifestyle that is still purportedly led by more than 30 percent of the population, Mongolia is looking to capitalize on its unique culture and attractive scenery in a bid to open the world’s eyes to many of its strengths as a place to visit and do business.

With more than 1.5 million square kilometres of land inhabited by just under 3 million people, Mongolia is the world’s most sparsely populated independent country in the world; although that would be difficult to believe for someone visiting the nation’s capital of Ulaanbaatar, which nearly half of the country’s citizens call home.

Since its democratic government toppled the communist regime in 1990, the country has been reinventing itself as a unique place where old traditions meet modern life.

As a country rich with natural resources and a well-established mining industry, Mongolia has been actively promoting itself to investors and business owners around the globe, including in Canada through its newly established Canada Mongolia Chamber of Commerce, located in Toronto. I had the opportunity to speak with the Chamber’s Executive Director, Bolor Sambuu.

“After 70 years of Russian influence ending in 1990, the new generation in Mongolia is not ignoring its past steeped with Tibetan tradition,” he said. “It is also in search of new opportunities to share the talents and hard work of Mongolians with the world.

These days, Mongolian cashmere and sea-buckthorn berries have been two of the latest Mongolian exports to gain popularity on the world stage.

And likewise, as a country that has seen regular double-digit growth, its emerging middle-class enjoys travelling to other countries and imported goods.”

Opportunities for Canadian Businesses in Mongolia

Canada is the second largest investor in Mongolia, and Export Development Canada (EDC) is actively pursuing business there, having assisted 28 Canadian firms from its regional offices in Moscow, Russia.

Canadian businesses already export nearly $72 million to Mongolia, and according to EDC, the business environment ranks quite favorably compared to similarly rated markets as denoted by the World Bank Ease of Doing Business or World Economic Forum competitiveness indicators.

Furthermore, the Canadian government has taken an important step to offer additional support to Canadian businesses by opening up a Canadian Embassy in Ulaanbaator.

Learn about government funding programs for export development and find out more about doing business in Mongolia and making it part of your international business strategy by visiting www.canadamongolia.ca or by contacting Bolor Sambuu.

Have you ever done business in Mongolia? What was your experience? Share your insights below!

The post Is Mongolia the next emerging market for your international business strategy? appeared first on Trade Ready.

South Korea is an exciting, dynamic place. It’s home to some of the proudest, hardest working, and most hospitable people I’ve encountered during all of my extensive travels throughout Asia and the world.
This small country is ‘the most-wired’ nation in the world (highest percentage of citizens online), and boasts the fourth fastest download speed globally. It has been more than three years since my return from Korea and I still haven’t become re-accustomed to waiting for webpages to open.

With Korea being home to electronics giants like Samsung and LG you’ll also find that South Koreans in general tend to be more tech savvy than the average Westerner and typically show greater interest in emerging trends in both electronic gadgetry and fashion.

Of course I knew little about South Korea before moving to the nation’s capital of Seoul in August of 2003, where I spent the majority of the next seven years.

Upon arriving in what was to become my second home, I was cautiously optimistic about my chances of eventually fitting in.

I’m curious by nature, with a general open-mindedness rooted in my belief that people are fundamentally the same; we all have similar wants and desires, whether we use forks or chopsticks to consume them.

But after several months I noticed that, like many other foreigners in Korea, I went through a stage where I threw down those chopsticks I’d tried so hard to become accustomed to and resorted to using a knife and fork to cut up everything I found backward and illogical about Korea and its culture—especially that which pertained to the work environment.

Seoul survivor: It takes a balanced approach to attain business success in South Korea

The problem with my initial approach was that while finding similarities may be important, you must also respect the many differences—a roundabout way of saying that you need to do your research. I wasn’t adequately prepared, and I learned the hard way.

Which is not to say I wasn’t eventually successful, and that’s why I wrote a book to help others from making the same mistake I did. So for those considering visiting South Korea and/or doing business with Koreans, here’s a crash course on the main cultural obstacles standing between you and success in ‘the land of the morning calm’. I’ve also included some direction to additional resources, including information that might help pay for as much as half of your first trip to South Korea.

Confucianism: A crash course on what makes the Korean workplace different

Thomas Coyner’s examination of Korean culture in his book, Mastering Business in Korea highlights the need for expatriates to improve their understanding of the cultural dimensions of the host country.

In order to begin to understand how Koreans think and behave differently in the workplace you need to learn to appreciate the cultural underpinnings of Korean society, meaning the basic virtues of Confucianism.

‘Injeong’ (Humanity), Filial Piety, Modesty, and ‘Social Relations’. I add one more aspect, which is the paternalistic nature of employee-company relationships.

1. The higher Korean moral standard: Humanity, or “Injeong”

“It is important to understand that Koreans are often motivated by what they feel is a higher standard than what the law, or even what simple logic may dictate,” writes Coyner.

On one hand, minor legal infringements can often be ignored so long as no one’s feelings are hurt, while if a business, especially a foreign one, stirs a negative public reaction there are likely no legal considerations that will be able to save them from ensuing punishment.

A few quick searches will uncover many of the most famous examples of multinational companies that suffered as a result of rubbing the Korean people the wrong way. One that immediately comes to my mind is Lone Star, which after attempting a hostile takeover of a well-known Korean bank aroused suspicion over some of the firm’s tax payments and fund transfers abroad.

I had been working part-time at Lone Star while the firm was being targeted by protests and later an investigation. Every morning I took a secret elevator surrounded by what looked like secret-service agents to get to the company’s headquarters on the top floor. I also narrowly avoided having my laptop confiscated by federal police when the office was later raided—that was my last day working at Lone Star.

2. Age and how it affects relationships inside & outside the office: Filial piety ‘Hyo’

Another important aspect of the same principal of vertical relationships is Filial Piety or ‘Hyo’. Most Korean social units strive for harmony, usually with a strong top-down authoritarian structure.

You’ll hear people in a Korean office referring to people as their seniors (‘seonbae’), or their juniors (‘hubae’).

Juniors will most often listen to their seniors without hesitation, and positions within a company are usually reflective of an employee’s age.

Not only would it be embarrassing to have a supervisor who’s your junior, but it would also cause some confusion as age dictates how people interact socially.

In fact there’s even a different (honorific) form of speech to be used for strangers and for when speaking to elders, and that’s why asking one’s age is important in establishing a relationship. In the event that a Korean finds that you’re the same age a look of relief will often sweep across their face and they’ll say: we are ‘friends!’ (or ‘chin-gu’).

Also note: when you go out eating or drinking, it’s usually the oldest member of the group who pays, so consider this before inviting the entire administrative staff out to lunch on your first day.

3. Collectivism: And a reminder to Westerners that like touting their achievements

Another characteristic of Korean society definitely worth considering is their group orientation. Koreans are somewhat like the Japanese in that they tend to identify themselves as a member of a group as opposed to as individuals.

You’ll rarely hear Koreans say “my home,” “my company”, or even “my family”. Instead you’ll hear them say “our home,” “our company,” and “our family”. In fact, they may even say “our mother” and “our wife” which can be misleading to those unfamiliar with the culture.

What’s important for westerners to appreciate is that in accordance with this virtue, Koreans tend to speak about themselves much more humbly than westerners.

If you’re a member of the marketing department or a sales team it’s very unlikely that you’ll hear a Korean talk about their own individual achievements without attributing them to a group effort.

As a matter of fact, I’m willing to bet that even if you were the sole member of a particular department they’d attribute their accomplishments to “our company” before saying “I’ve achieved this, or that on my own”.

4. Special relationships: Yes, sometimes the elementary school you attended really does matter

The importance of special relationships and their impact on decisions such as who gets hired or promoted, and whether a deal is struck always amazed me.

These relationships are often dismissed by most Westerners doing business in Korea. Soon after two Koreans that have just met ask one another’s age and where they work they’ll often delve into such seemingly inconsequential relationships as hometown, extended family relationships (Koreans trace their lineage back hundreds or even thousands of years), and the schools they attended. In Korea ‘class reunions’ take on a whole new dimension.

Groups of former elementary, middle school, high school and university classmates have regular meetings that often include activities like mountain climbing or golf, and always lots of food and alcohol.

When your Korean counterparts break into chatter about where they come from, which military post they served (military service is mandatory for Korean men), and so on—take note.

5. Paternalism: In Korea your office is your home away from home—literally

Another aspect of Korean work-culture that tends to surprise most westerners is the paternalistic nature of employee-company relationships.

Companies tend to run much like a family: loyalty and long-term service are expected from employees in return for a secure position and a sense of belonging.

While job security and a family-like atmosphere may sound desirable to many from the west, the long hours and time spent away from your own family needed to cultivate and maintain this familiar bond is often objectionable to the majority of employees that come from North America or Europe—unless you are single or don’t care much to spend time with your spouse and or children.

Mandatory late nights spent eating, drinking, with maybe some karaoke (while drinking of course), followed by, more drinking? For those who are weary of being forced to drink I must add that a lot has changed as the Korean economy has continued to open up to the world over the last few decades.

During my last year in Korea in 2010 I even encountered a few companies (usually multi-nationals) that had enacted policies forbidding employees from forcing their juniors to get drunk, and some companies went as far as replacing the usual outings with healthier activities like team sports.

But still, if I were assembling a team to visit Korea I couldn’t imagine not picking out at least a couple people that I knew liked to sing, dance and drink. In Korea it’s still the best way to build a good relationship fast, whether you like it or not.

Helpful information and resources worth checking out before you plan your first trip to Korea

Aside from reading a good book on living and working in South Korea, I’d suggest looking into country specific information and other support services provided by Export Development Canada (EDC).

And if you’re from Ontario and are planning to visit an international trade show or conference, definitely look into Ontario government grants for marketing that will pay for up to 50 percent or $30,000 of your expenses including flights and accommodations. Learn more about this and other funding in my previous article: Top 3 Ontario Government Grants for Export Growth.

Have you worked or done business in Korea? You probably have one or more stories of your own to share with us in the comments section below!

The post 5 Confucian virtues to understand for business success in South Korea appeared first on Trade Ready.

Canada and South Korea ink monumental trade deal

Fortunately, in Canada when it comes to trade agreements there does not exist significant opposition to the basic principles of ‘free’. In South Korea, while such opposition does exist, support for the anti free trade movement usually means only sporadic outbursts in reaction to misleading documentaries appearing on prime-time television.  Koreans are otherwise a fairly well-informed group of folks.

“There are no jobs here because no one buys made in Canada anymore”

Still, from time to time we hear intelligent people bemoan free trade agreements. While I am certain that with time the majority of us will learn through experience that free trade improves life for us all, I’d like to shed some light on a few myths about free trade so we can all enjoy the benefits of freer trade without resentment.

5 Myths about free trade agreements

Myth #1: Free trade must yield a winner & a loser (which usually means one strong nation “exploiting” the weaker one).

In fact, understanding comparative advantage, you do not need to be a global leader in producing anything in order to benefit from free trade. A nation only needs to have an advantage in producing a particular good or service relative to the country with which they are trading.

Myth #2: Free trade forces us to consume cheap, low-quality goods.

This objection mystifies me. In fact, free trade does nothing but expand purchase options for consumers, usually resulting in less money spent for a larger basket of goods and services. For example: While living in South Korea I loved eating Korean rice, enough that I had no problem paying a lot more for it than I was used to paying in Canada. But not everyone can afford to eat Korean rice. Opening trade with other countries gives Koreans the opportunity to purchase different kinds of rice at a variety of price points leaving room for consumption of other goods with the savings.

Myth #3: Free trade is a boon to competitiveness because it puts local firms out of business.

Quite to the opposite effect, free trade requires businesses to adapt to shifting global demands. Policies that shield businesses from competition (over the long run) are at the expense of consumers that are paying inflated prices. Inflated prices means less money to spend on other goods and services. Additionally, competition promotes innovation within the industry, which advances production methods, product specifications, and creates new product classes, all benefiting the end consumer as well as businesses.

Myth #4:  Buying foreign-made goods is eliminating jobs & killing the economy at home.

For a small open-economy, this argument is inconceivable. Consider the size of the Canadian economy in proportion to the global economy. Unless you are solely manufacturing goods or services that are only of interest to Canadians, a moderate share of the global market is far more desirable than even a virtual monopoly over a Canadian market.

Myth #5: Free trade means becoming dependent on other nations; and that could be dangerous.

I once heard an argument that if a particular nation allowed imports of fruits and vegetables from other countries that their dependence on foreign food could later be used against them as a weapon of terrorism. Unless you’re country is run by a tyrannical dictator, it’s difficult to conceive that any nation could ever face such a plot from a united front of countries around the globe. But I thought it was such an imaginative theory that I should share it with you.

The recent free trade agreement between Canada and South Korea is great news

The trade agreement with Korea is a first for Canada in the continent of Asia. Since I myself have a great deal of affection for South Korea and its people (my son is half Korean), I am happy that our two nations can have the opportunity to work together in order to build stronger, more robust economies. Consumers will immediately begin to reap the benefits of lower prices and higher quality goods and services; and on an annual basis, Canada alone is expected to save hundreds of millions of dollars in hidden taxes.

Please feel free to share other myths about free trade!

The post 5 Free trade agreement myths debunked & Canada’s newest FTA with South Korea appeared first on Trade Ready.

Despite this renewed optimism, Canadian business owners and leaders remain cautious, and compared with other OECD countries have been slow to make investments required to take advantage of the improving global economy.

Fortunately, federal and provincial governments have stepped up to offer funding programs that help Ontario businesses that manufacture goods in Canada and are currently engaged in or planning to export in 2014.

Here are three of the top Ontario government grants to support growth of Canadian exporters 2014:

Ontario Exporters Fund Support the Hiring of an Experienced Export Manager

The Ontario Exporters Fund (OEF) is a program established by the Ontario Chamber of Commerce (OCC) to help encourage international export activities. The program funds up to $40,000 per year (for 2 years) in salary costs to hire an experienced export manager.

OEF Ontario Business Grants –Details:

• Amount: $40k (50%)/ year grant for 2 years ($80k max.).
• Timeline: Open and accepting applications. Must apply 3-4 months in advance of your hire; incentive lasts for the first 2 years of the position.
• Eligibility: 10-50% of total sales in exports, $1M-20M in annual revenue, $2M+ in liability insurance, company’s goods/services must be produced in Ontario and they must fall inline with one of the following focus industries: advanced manufacturing, aerospace, building products and construction, cleantech, exportable professional services, ICT, or life sciences.

CME SMART Prosperity Now Canadian Grants for Capital Expenditures

The CME SMART Prosperity Now program is funded by FedDev Ontario and distributed by Canadian Manufacturers & Exporters (CME). This grant program offers up to 33% or $75,000 to fund projects aimed at improving operational efficiency and/or waste reduction, and focuses on supporting businesses that are engaged in global expansion efforts.

• Amount: Projects selected for funding will receive 33.3% of eligible project costs, up to a maximum of $75k.
• Timeline: Funding expected to launch in April 2014. Projects must be carried out over less than 1 year.
• Eligibility Factors: Incorporated for 2 years, actively exporting or with an intention to as a result of the project, 15-1000 payroll employees, and with a manufacturing operation in Southern Ontario.

Export Market Access: Ontario Small Business Grants to Support Accessing New Global Markets

Through the Export Market Access program (EMA) SMEs are able to improve their position in accessing global markets such as China, Hong Kong, India and the U.S. EMA enables companies to access existing export markets with new products or new export markets with existing/new products.

Activities covered by this program include international trade shows, fairs and exhibits, and marketing tools for foreign audiences to sell products.

• Amount: Max of $30k non-repayable or 50% of project. Can be applied for twice in 12 month period.
• Timeline: Only one project open at any one time. Must allow 30 business days for approval prior to first payment of booth rental or airfare expenses.
• Eligibility: Between 5-500 people on payroll, >$500k in revenues and 2 years incorporated, business must be located in and products/services produced in Ontario.

Take Advantage of Government Money Set Aside to Help Grow Businesses like Yours

These three programs represent only a few of the hundreds of funding programs established to help Canadian SMEs.  The competitiveness of each application process varies, but for each program it is important to be proactive in your strategic business planning.

Over all, the process is not easy but can be simplified by linking strategic goals to funding programs and being ready to complete and submit the applications when funding is released.  In the end, you can be like many Canadian businesses that receive tens of thousands to hundreds of thousands of dollars in funding annually by essentially replicating the same or similar applications every year.

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