Afzalur Rahman’s interest in international business began after he moved from Bangladesh to Canada to study at the University of Windsor. Hoping to benefit from a Canadian education, his international perspective quickly sparked a lifelong passion.

“I had a natural interest in global business activities. I was fascinated at how businesses work differently from country to country, how tastes and preferences contrast from one marketplace to another, and how variances in political economy may affect the way of doing businesses from culture to culture.”

Upon graduating, he continued his education by earning his MBA with a focus on finance in Bangladesh, and then his Doctor of Business Administration from Argosy University in Tampa Bay, Florida.

How teaching has shaped his views on intercultural decisions

Since earning his doctorate, Afzalur has served as an international trade professor and instructor at several different educational institutions. He initially taught at two universities in Bangladesh before moving to Shanghai to teach, which he found to be a fascinating cultural experience.

“I taught at the Shanghai Institute of Technology in China in the winter of 2014 and 2015. It was very interesting to observe some of the core differences between Chinese and North American cultures.”

“For example, while it was quite common in China that students would present their instructor some gifts at the end of the semester, in Canada it may consider unethical to accept gifts from the students. Remarkably, in China, many students would feel depressed if instructors do not accept gifts from them. While Gunaxi (which means “relationship” in Mandarin) is a popular approach to build strong networks between businesses and government, in Canada it is seen as a corrupt and morally repugnant way of doing business.”

This experience shaped the way he perceives how business professionals should adjust their cultural behavior in other markets.

“For many professionals, there’s a cultural dilemma in other countries – for example, should we act like the Chinese when in China? I’ve decided that no culture is good or bad – they are simply different from each other. It is very important to avoid an ethnocentric attitude. Failure to understand local tastes and preferences would jeopardize the business on a foreign soil. Success in the home country doesn’t guarantee success in a subsidiary.”

Moving back to Canada to share his knowledge

Afzalur has now spent the past several years living and teaching in British Columbia, including the University of British Columbia and Simon Fraser University. Since 2017, he has taught at Douglas College, one of FITT’s educational partners, as a full-time instructor in their Faculty of Commerce and Business Administration.

“As a full-time instructor at Douglas College, I teach eight classes in an academic year. Usually, I have classes four days a week. The class time varies from semester to semester.”

Above: Afzalur (front, middle) with one of his classes at Thompson Rivers University.

Along with his teaching responsibilities, he also continues to research a wide variety of topics related to his courses, and periodically publishes his work. One of his career highlights was his first case study publication in 2014, “Nevado Roses and the Ecuadorian Rose Industry” in the Journal of International Business Education.

“My research has focused primarily on the areas of international business, global management, and international marketing. Recently, I have concentrated on analyzing a variety of interdisciplinary topics such as international trade theory, regional economic integration (NAFTA, ATPDEA, BRICS), foreign direct investment, international entrepreneurship, international retail management, and cross-cultural communication. For last two years, I have also been a member of Douglas College’s International Education Committee.”

On top of his work at Douglas College, he has served as the chair of the Global Conference on Business Management and Economics (GCBME) for the past two years.

Continuing to add to his international trade credentials

In 2018, Afzalur earned his FITT Diploma in International Trade, earning all six credits through FITT’s Prior Learning Assessment and Recognition (PLAR) process. Shortly after, he successfully applied to earn his CITP (Certified International Trade Professional) designation.

Earning my CITP was one of my proudest and most rewarding career accomplishments. I already had a Doctorate degree in International Business, but I was lacking a professional certification – the CITP was the missing feather on my hat!

“The CITP is the world’s leading designation in international business and trade. Earning it will add value to my teaching and research at Douglas College, as well as my professional skills and abilities.”

Among the other benefits, he says the CITP will open new doors to his career and allow him to pursue additional opportunities on top of his current course load and research.

“Now, after having both my doctorate and the CITP, I have a wider range of options to work and research in different areas of international trade. In the future, I see myself consulting for multinational corporations and government agencies in addition to teaching international business courses.”

On top of his excitement about becoming a CITP, he also became a Canadian citizen in 2019, which he considers to be a personal highlight.

As he shares his knowledge with upcoming international trade professionals and expands his work into other areas, Afzalur is now perfectly placed to add new projects and achievements to his already impressive career.

The post Afzalur Rahman, CITP|FIBP – International Trade Instructor appeared first on Trade Ready.

Knowledge of cultural orientations and societal systems helps in understanding cultural differences and provides a solid foundation for researching the culture of a new target market. Research is essential to avoid cultural faux pas.

For example, an organization sending representatives to Japan to meet with a potential trade partner would be wise to research where Japanese culture falls on the various orientation scales, as well as its most valued social and business practices.

The research would reveal that gifts are an important aspect of Japanese protocol. To the Japanese, gift giving shows respect, friendship and appreciation and is a centuries-old ritual with a host of associated protocol. This information will help an international trade practitioner make a good impression when meeting a potential Japanese partner.

When seeking knowledge about a target culture include the following recommended research questions:

• What are the social norms and business protocols?
• What are the definite dos and don’ts?
• What are the key differences between this culture and ours?
• What are the key similarities?
• What stereotypes does this culture have about our culture?
• What stereotypes do we have about their culture?
• What events and trends are currently impacting the target culture?
• What is our shared history?

Know the do’s and don’ts of social norms and business protocols

Social norms and business protocols reflect the way people expect others to behave in particular situations. They are largely based on values and are reflected in cultural orientations and societal systems. Before interacting with an unfamiliar target culture, international trade practitioners can benefit from learning the generally expected behaviours in social and business situations.

Social practices are crucial to know, as many business decisions are made outside of meeting rooms. In addition, cultural differences can be more pronounced in social settings. As an example, the best Indian meals take days to prepare. To decline to eat dishes prepared for guests in such situations would be viewed as disrespectful and could erode any chance of a business relationship.

Some of the norms and protocols listed below are very important to a culture and should be noted as definite dos and don’ts. International trade practitioners should seek information about which behaviours are considered offensive by the target culture and add these to their “don’t” list as behaviours to avoid. They should also seek information about what is considered highly desirable and add these to their “do” list if the expectation also applies to foreigners.

Even when they do not adapt the behaviours themselves, knowledge of important norms provides insight into the other culture’s values, perceptions and behaviours.

For example, if international trade practitioners are hosting business associates from a culture where greetings are formal, the visitors should not be expected to adapt a more informal and personal form of greeting, such as kissing one another on the cheek or hugging.

Social norms: 

• Dress and appearance
• Greetings and goodbyes
• Gender roles
• Food and drink consumption habit
• Nonverbal communication e.g. gestures, personal space, facial expressions, touching
• Holidays
• Humour
• Acceptance of technology
• Freedom of speech and other liberties
• Religious practices

Business protocols

• Language used
• Exchange of business cards
• Greetings and goodbyes
• Introductions
• Appropriate time for and amount of socializing
• Dress and appearance
• Gender roles
• Gift giving
• Meeting protocols e.g. seating arrangements, turn-taking, presentation
• Ethical standards and degree of corruption

Stay on top of recent changes that impact cultures

Culture is changed by events and trends. The amount and speed of cultural change depends on how willing people are to accept it. Many people in the U.S. were motivated by fear to quickly accept an increased level of surveillance following 9/11. The types of events that can impact culture are numerous. Some examples include threats to public safety and property, changes in the type of government and environmental disasters.

There are also numerous trends that impact culture. Examples of these include societal changes in demographics, technology, dominant industries, standard of living, government policy, access to education, and the natural environment. As a result, international trade practitioners research the impact of events and trends in target markets.

For example, a distributor of communication products would investigate technology usage rates and the demographics of users. Such information helps determine if a potential market is viable and how to position marketing efforts. Once in a market, international trade practitioners monitor current events and trends to stay up to date on cultural changes.

Knowing the history can open doors as well

Before entering a new market, it is advisable to research its history, including history that the two countries have shared, particularly when that shared history has had a profound impact on one or both jurisdictions. The nature of the connections influences how a country’s image is perpetuated and how easily the doors of commerce will open for international trade practitioners.

As an example of how shared positive experiences can provide common ground for relationship building, consider the Netherlands and Canada. They share a military history, with Her Royal Highness Princess Juliana of the Netherlands and her family having lived in Ottawa during the occupation, and Canadian forces spearheading the liberation of the Netherlands at the end of the Second World War.

Canada and the Netherlands have also worked side by side in multilateral efforts around the world in support of peace and democracy. In addition, over a million Dutch people have immigrated to Canada, resulting in many business people with a relative in Canada—a great icebreaker for a first meeting. This shared history has contributed to positive trade relations between the Netherlands and Canada.

In 2011, Dutch Foreign Direct Investment (FDI) in Canada totalled CAD 56 billion, making the Netherlands Canada’s second largest source of FDI. The two-way merchandise trade was valued at CAD 8.1 billion in 2012.

The post Avoid awkward cultural faux pas by doing the proper research appeared first on Trade Ready.

As an international trade and FDI consultant, I’ve been to over 40 countries in my career and had to set-up multiple B2B meetings, many in places I’d never visited before. So, over the years I’ve developed a finely-tuned approach for achieving in-market meeting success. Here are eight tips to help you get the most out of your meetings!

1. Do your research.

Before going in-market, remember to do your research – in other words, due diligence. This includes learning everything you need to know about the country: political leaders and environment, history, culture, imports and exports, GDP etc.

2. Contact a trade commissioner.

They are the experts who are there to provide knowledge, guidance and advice, and can really help with gaining the right contacts abroad.

3. Book the appointment.

Next, either through an email, phone call or LinkedIn, reach out to the executive you want to meet with and state your reason for requesting the meeting in a few sentences – less is more. Understand that “time is money,” so try to request a 30 minute meeting (not an hour!), that works around their schedule, not yours. Also, make sure you have booked the meeting in the correct time zone of the country in which you are doing business.

4. Figure out the lay of the land.

Use Google Maps to look up where you are staying in relation to the location of the companies you want to meet. Also look into local transportation and infrastructure, as this will allow you to gauge how many appointments you can fit into each day. Simultaneously, perform research on the company; product, service offering, competitor intelligence and past and present news releases.

5. Make solid connections.

One of the greatest challenges in business is making long-lasting solid connections. Take an interest in the person you are meeting with. Try Googling your contact’s name and review their LinkedIn profiles to find out where they went to school, what boards they sit on etc. & don’t forget to follow your contact (and the company) on Twitter. You never know how you may be connected.

6. Re-confirm the appointment.

The day before the in-market meeting, I always re-confirm the appointment. I used to do this a week ahead of time, but this seemed to give the person an out. So trust me, reaching out one day before is reasonable and more effective.

7. Be memorable!

From the start of the meeting, be personable and interesting. Provide information about your country and ask questions about theirs, as well as possible shared historical ties. This creates a commonality.

Be a great listener by trying to identify what challenges they face and how you can help them overcome these challenges. Do this by asking probing questions and be ready to provide solutions to their problems with evidence-based answers.

When the meeting is coming to a close, I ask… “Is there anything I can do to assist and help grow your network?” This seems to shock executives who are constantly being asked “for” something.

However, you never know within your network, if you can connect them to someone they might want to meet with, thus creating goodwill.

8. Follow-up.

Finally, within 24 hours of the meeting, follow-up with a personalized note that should include a short summary of the meeting (action items), next steps and a “Thank You”. As a sincere gesture of hospitality and good business etiquette, I also like to include an invitation to host them in my country anytime at their convenience.

A well-researched, planned and executed strategy will achieve the results-based outcomes you’re looking for from any in-market visit.

The post 8 secrets to a successful in-market meeting appeared first on Trade Ready.

Researchers point out that cross-cultural shortcomings are a major reason for failure in international business. The development of cross-cultural competencies therefore deserves the attention of those who want to achieve positive commercial outcomes in the international arena.

If you are considering taking your business into a new global market, building cross-cultural competency in that region is crucial to your success in entering that market.

Here are the top five reasons why you should develop cultural knowledge early on in your market entry plan.

1. Consumer behavior

Consumer behavior continues to evolve. At present, targeting potential clients requires an increasing level of accuracy. People are busy. Their attention spans have decreased dramatically (to an average of 20 seconds), and they’ve become more selective and more receptive to personalized customer service.

Whether you choose to connect with them in-person or digitally, identifying their concerns and challenges in advance will enable you to better cater to their needs.

Understanding the nuances and history of your target audience’s particular culture is key to identifying their needs.

2. The costs of cultural unawareness

Cultural forces play a significant role in business operations. Serious conflicts and loss of revenue are often the results of cultural unawareness. As early as 2006, James P. Johnson et al. reported that the costs of cultural shortcomings by executives at international companies ranged from $250,000 to $1 million.

Later in 2011, executives from 68 countries named cross-cultural leadership as their greatest management challenge for this century in a survey run by “The Economist” Intelligence Unit. If you look closer at your past failed projects or present relationships with international vendors, partners, leads and customers, you may also find hidden costs that are already taking a toll on your business.

3. Costly, embarrassing false assumptions

Mutual understanding is our first and foremost goal in intercultural business interactions, right? You might assume that having a lingua franca such as English in the international arena, or Spanish in the Spanish-speaking countries of South America, should be enough to efficiently conduct business. Well, basic understanding doesn’t always mean agreement.

According to Nancy Adler,

There is the false assumption that just because we can reach anyone in the world so easily, through e-mail or Skype, we are, therefore, all the same.

You may start a conversation by finding a common ground and/or addressing similarities. Appealing to your audience’s complicity is an effective strategy at the beginning, but don’t dwell on it too much.

You need to bring something worth their time if you don’t want to lose their attention. You should get past this stage by showing respect and genuine interest for their culture. Otherwise, you’ll be perceived as reckless, unthoughtful, rude and even prejudiced. Projecting the status quo and stereotyping are perhaps the most harmful behaviors hindering effective communication in a new global market.

4. Cultural awareness

For a long time, we’ve seen multinationals like Coca-Cola land their products overseas, almost always with success, yet this kind of effort was almost unthinkable for small-medium businesses. This was particularly true in emerging markets like in South America, until more recent years. The Internet, as a faster and more cost-effective means of showcasing products and services overseas through digital media, and public development programs have encouraged more companies to plunge into exporting goods and services.

However, intercultural competencies still elude many SME owners and their staff. Knowing how to speak a language is not enough to perform effectively in cross-cultural contexts, whether at home or abroad. For the most part, a comprehensive understanding of what globalization implies for local businesses, in terms of opportunities and competition, is still missing.

A global mind-set and cross-cultural competencies don’t develop overnight, they’re part of an ongoing process of research and learning experiences. So, look for ways to better tune in to cultural sensitivity. Be open to new ideas and tolerant to diversity, because globalization has already knocked on your door.

5. Professionals with cross-cultural competence

You might be thinking, “But I’m already internationalizing my company. How can I make up for lost time and stop draining my efforts?”

My suggestions:

• Surround yourself with professionals with cross-cultural competence. They should not only have cultural literacy, but also the ability to uncover unfamiliar concepts, to change their perspectives in context and have the drive to adjust their behavior to achieve successful business
• Provide your personnel with cross-cultural training programs. Becoming aware of unfamiliar or already assimilated familiar concepts of another’s culture requires constant coaching and practice. Take, for example, the difference in risk perception between British and American oil exploration teams uncovered by Marcelo Baudino, Cross-Cultural Consultant for Latin America at Iceberg Cultural Intelligence. This made me realize that my own cultural knowledge on Anglo-Saxon cultures is very specific, yet bringing cultural differences into consciousness still eludes me in many circumstances.
• Do you know that “an early bird gets the worm in U.S. and EU, but the first bird in the flock gets shot down in China”? Values tend to differ between cultures as well (Frano Ljubić et al., 2009).

Finally, some food for thought. President Obama recently visited Argentina and held a town hall with young leaders. During his introduction he tells the audience about his fascination for Argentine authors like Jorge Luis Borges and Julio Cortázar, as well as for Buenos Aires City, and that he’s taken mate for the first time. Why do you think he chose these topics, and not soccer, politics, religion?

My guess is you don’t set the tone for a friendly conversation by being controversial.

Remember these tips:

• Cultural similarities and differences go hand in hand. Avoid stereotyping and respect individualities as well.
• Different ways of perceiving reality can be a deterrent to development. Detach yourself from your own cultural boundaries to be able to meet and embrace other people’s views.
• Training and exposure to other cultures will enable individuals, not only at the management level, to perform more effectively when necessary.

The post 5 reasons why you should address cross-cultural shortcomings sooner appeared first on Trade Ready.

However, when you decide to take advantage of the global supply chain to build your business, there will inevitably be challenges along the way. Knowing how to manage your international vendor relationships becomes key to ensuring your international business sails smoothly.

Unlike arm’s length transactions, building international vendor relationships is a long-term strategy that needs to be enriched and maintained on an ongoing basis.

In 2009, my husband and I started our own small international business. Since then we have developed some successful partnerships with our overseas suppliers, yet at the same time we have also had some frustrating experiences.

I would like to share some painful but formative lessons we have learned along the way that could be valuable to your start-up international business.

1. Never underestimate the importance of relationships

First of all, you have to be mentally ready to engage in an international relationship. Being open-minded and understanding of cultural differences is a prerequisite.

As my husband once said:

Understanding culture is not about knowing when to bow or how to eat the food, it’s about appreciating your partner’s worldview enough to anticipate how they might be inclined to perceive you and your actions.

Ultimately you can only put yourself in that person’s shoes if you have some feeling for the life experiences that person has had before they encountered you.

For instance, you don’t have to speak Chinese in order to do business with people in China.

English is an international language and any Chinese companies which trade internationally will have people who can communicate in English proficiently.

The obstacle is not the language; rather, it’s the way people think about business problems and how these ideas influence their conduct.

2. Don’t lose focus as you make your first steps

China is a fast-growing economy and, as such, the rapid pace of business development often brings about problems. Sometimes, people only focus on the final results, while paying less attention to details and quality.

This is especially true for new companies and SMEs that often lack the resources to cope with unforeseen challenges.

So when you first start doing business with Chinese companies, you have to be patient, flexible and forgiving; even though you know the outcome may be less than ideal, you must be willing to give it a try.

It may take multiple attempts to get a product right, but it’s possible for those who are persistent.

3. Take the time to choose your future suppliers carefully

Once you’re mentally ready, it’s time to find the right suppliers for your business. It’s much harder to find the right suppliers overseas than locally.

Sometimes you may need to take an overseas business trip, but even visiting a lot of factories in person will not guarantee success. Conducting plenty of research beforehand is of absolute importance.

Your choice of country shouldn’t depend on your own preference. It should be based on a country’s competitive advantage.

For example, many textile products in North America were produced in China during the 1990s, because of the abundance of low-cost labour and the technological capabilities of China’s textile industry.

However, as labour costs in China have increased in recent years, more and more textile companies have shifted their manufacturing from China to other developing countries such as Vietnam and Cambodia.

This shift means, compared to other countries where labour is less expensive, China no longer enjoys an overwhelming competitive advantage in the textile industry.

When it comes to choosing the right suppliers, it’s important to narrow down your choices and qualify your options based on a set of criteria.

For example, the quality of a company’s website, trade references, product samples, and communication are all important indicators for qualifying a potential supplier.

A third party’s onsite evaluation or factory audit can often save you the expensive costs of an overseas visit.

4. Plan ahead to ensure the quality your customers demand

Finding the right supplier is only the first step towards a successful international vendor relationship. There are also many risks associated with long distance relationships.

One of the biggest risks, in my opinion, is quality control. It’s important to articulate clear specifications and standards to your suppliers.

Equally important is your willingness and ability to foresee and pre-emptively mitigate any problems that might occur.

It’s crucial to insist that pre-production samples be delivered to you prior to production. Hiring a third-party agency to perform a quality inspection during production and/or before shipment is an effective way to ensure products meet specifications.

Be sure to inform your supplier of the inspection before they start production, as this will make them more cautious during production.

5. Reduce risk by diversifying your suppliers, but not at the expense of building trust

As mentioned earlier, building successful international relationships requires a long-term commitment. At the same time, it’s very risky if you only have one supplier for your key product lines. Don’t put all your eggs in one basket.

It’s necessary to have more than one supplier, especially in an unstable economy. Your key supplier could go out of business in a year or even a month.

This has happened to us several times over the years. Each time we had to start all over again to find and qualify a new supplier. Therefore, it’s smart to have at least one other supplier as a backup.

Although having multiple suppliers is important in managing risks, reducing the number of suppliers and focusing on your key supplier will help you build and manage a long-term relationship.

Just as you evaluate your suppliers, your suppliers will evaluate you as a customer. Overseas suppliers often assess their customers based on the importance to their business.

If your business is of significance to your supplier, they will value you as an important partner.

Keeping your promises, such as consistently paying on-time, is one of the ways you prove to your supplier that you are a good customer with whom it’s worth building a relationship.

Although it takes a lot of time and effort, developing and building trust is not only worthwhile ­­­– it’s absolutely critical to your success.

6. A strong contract can help prevent expensive legal disputes

The reality is that disputes can and will happen even with your best suppliers.

To resolve an international dispute through legal means is much more complicated and expensive than with domestic disputes. Most of the time, it’s easier to negotiate and settle disputes privately rather than through legal action.

That said, you should always have some sort of contract in place in order to set clear expectations.

Once a purchase order (PO) is accepted, it becomes a simple but effective form of contract between a buyer and a seller. Any terms and conditions should be stated clearly in your PO to your supplier to avoid the possibility of a dispute.

Again, an understanding of cultural differences plays an important role in avoiding and settling disputes. Sometimes, there is a way to find a win-win solution to minimize the harm for both parties.

There are many more strategies and tactics in managing international vendor relationships which you will learn through experience.

All in all, having an open-minded and understanding approach is essential for small businesses interested in building relationships with international vendors.

What have your experiences with international vendors been like? How can you apply these lessons to your current or future vendor relationships?

The post Six ways you can effectively handle your SME’s international vendor relationships appeared first on Trade Ready.