Globalization is a term that we hear quite frequently, but do we really know what it means? Simply put, it is the integration and interaction of people, businesses, and organizations operating worldwide (Oxford Languages, n.d.). “Globalization is exposing most countries to more interactions and relationships with people and products from other countries, yet many people from different countries are not prepared to work, live, and prosper in a global and highly competitive new world” (Moran et al., 2014, p. 10). Because so many organizations are conducting business internationally, it has become necessary to collaborate with various countries, each with their own set of customs and beliefs otherwise known as their culture.
As most of us know, culture varies significantly from country to country which can complicate the already complex process of communication. Familiarizing yourself with the culture from the country where you’ll be doing business will provide you with guidance and knowledge of expected norms within that particular nation (Moran et al., 2014). Failure to research foreign culture could result in disaster. For instance, in America, we use a hand signal of our thumb and index finger enclosed in a circle while the other three fingers are held upright as a symbol for ‘ok’. In Brazil this same gesture is considered vulgar (Moran et al., 2014). Another example is that Asians feel that a letter requesting a meeting is considered cold and would much prefer a phone call. They also find it disrespectful for superiors to send staff in place of themselves to a first meeting (Moran et al., 2014).
The United States is considered a transaction-oriented society, meaning we tend to be direct and to the point during business meetings. In countries such as India, who are relationship-based, they prefer to take things slower and get to know the people they are doing business with on a personal level (Moran et al., 2014). Obviously, entering a meeting without knowing any of the above-mentioned customs could create a tense environment and affect the outcome of a business transaction tremendously. You may find yourself asking what you can do to prevent putting yourself in a similar situation.
Dr. Geert Hofstede, a European research consultant, provided a framework for understanding cultural differences; important dimensions of national character have been identified in his six-dimension model (Moran et al., 2014). The model https://geerthofstede.com/research-and-vsm/vsm-2013/ includes dimension maps of the world broken down by individualism, power distance, masculinity, uncertainty avoidance, and those found later, long-term orientation and indulgence (de Toekomst, n.d.). Each of these maps reflects the positions of the country in each dimension on scale that ranges from 0 to 100. Another valuable resource is The World Factbook published by the Central Intelligence Agency (CIA) and available at https://www.cia.gov/library/publications/the-world-factbook/. The World Factbook provides a wealth of information about countries around the world that is useful for conducting business and/or traveling (CIA, n.d.).
While no one can be expected to be knowledgeable on every culture in every country, doing research on those that you will be interacting with is wise. Spending the extra time learning a specific culture just might give you a competitive advantage over those who are ill prepared for the next business meeting.
References
Central Intelligence Agency (n.d.). The World Factbook. Retrieved November 19, 2020, from at https://www.cia.gov/library/publications/the-world-factbook/
de Toekomst. V., (n.d.). Geert Hofstede. Retrieved November 19, 2020, from https://geerthofstede.com/research-and-vsm/vsm-2013/
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences (9th ed.). Routledge.
Oxford English Dictionary. (n.d.). https://www.oed.com/
