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.

Hoda Ahmed, CITP®|FIBP®, is currently a Marketing Manager with the Business Development Group at Export Development Canada (EDC).

EDC provides insurance, financing and bonding solutions to Canadian exporters and their international buyers in up to 200 markets worldwide, helping Canadian companies stay in control in situations beyond their control.

Hoda is passionate about international trade and development; she has always had an international mindset.

Having completed her post-graduate and undergraduate studies in International Business Management and Historiography, with a focus on Research and African Economic History, Hoda saw the global economy expanding and knew she wanted a borderless career.

Hoda has also had the opportunity of being selected as the Ambassador of Ontario and recipient of the Ontario Global Edge grant provided by the Ministry of Economic Development and Innovation—a program dedicated to encouraging entrepreneurship in young people.

“International opportunity gives companies the chance to expand their business; the word opportunity, however, does not always translate directly into success,” she says.

“Readiness and due diligence are central, and my curiosity of different countries, cultures, diverse markets and different types of risk have facilitated my passion for international trade and development.”

Hoda’s international exposure began at a young age. She has family all over the world directly engaged in international business and trade, particularly in Middle Eastern, Asian and African markets.

Upon completing her studies, Hoda lived and volunteered in Bermuda. Her curiosity then took her to China, where she lived on and off for two years. While there, she also worked for a small consulting firm in Sichuan. Already speaking several languages, she taught herself Mandarin in just seven months.

Her fascination and deeply vested interest in the Asia Pacific markets grew significantly with her experiences in China, giving her a great perspective and understanding of how business is conducted in China.

Since then, and in addition to having been exposed to how business is conducted in Africa and Bermuda, Hoda often emphasizes the importance of being culturally aware when entering a market.

“A central element that is often overlooked is knowing the importance of having a cultural understanding of the market you are entering,” she says.

“Culture defines every aspect of a society’s norms, business practices, communication standards and negotiations methods. In the same capacity no two countries are the same, no two cultures are the same. It is important to have this cultural element reflected in the early stages of a market entry strategy.”

She feels that her CITP®|FIBP® designation will help her be a trusted business partner!

“Being young in my career, it is essential to find ways to diversify your background,” she says.

FITTskills training and the CITP®|FIBP® designation not only gives you the core competencies and knowledge needed in trade, but they also connect you to a community of industry leaders and innovators!

“The Forum for International Trade Training has a dedicated team that helps you explore the possibilities of the FITTskills program.”

With an enterprising spirit and a young career fuelled by curiosity and a natural drive, Hoda is setting herself up for a fruitful career in international trade.

The post Hoda Ahmed, CITP|FIBP – Marketing Manager appeared first on Trade Ready.