In Finland, firm handshakes are the normal greeting for men and women. In Finland, it is customary for women to be greeted first. So important is a firm handshake to the Finnish that even children are encouraged to shake hands. However, hugs and kisses are reserved for greetings with close friends and family. Introductions include first and last names or a title and a last name.
Gift Giving. Most Americans view gift giving in the business setting as a form of bribery, but in many cultures, gift giving is a standard part of business protocol. As such, it is important to know not only the views concerning gift giving, but also what gifts are appropriate for the culture in which you will be doing business.
Examples of gift giving in Japan can illustrate this point effectively. Gifts are very common in the Japanese culture. Business gifts absolutely must be given at midyear (July 15) and at year end (January 1). They are often given at first business meetings. It is also a standard practice to bring flowers, cakes, or candy when invited to a Japanese home. The ceremony of gift giving is more important to the Japanese than the gift itself, although both modest and elaborate gifts are prevalent. It is appropriate to allow your Japanese business colleagues to present gifts first, then match your gift with the same quality as theirs. Do not expect gifts to be opened directly in front of you because this may be construed as a sign of greed. In the rare instances where gifts are opened in front of you, expect restrained appreciation regardless of what they think of the gift. You should not open gifts in front of your Japanese business colleagues, but instead open them when you are alone and thank them later. The paper the gift is wrapped in is also very important to the Japanese. Rice paper is ideal; paper that Americans consider appropriate is distasteful to the Japanese. Although items made by well-known manufacturers are usually good gifts, you should avoid giving knives and scissors because these items symbolize the severance of the relationship. A clock also is an inappropriate gift because it reminds the recipient that time is running out. To give a clock as a gift is equivalent to saying, 'I wish you were dead.' (Dresser, 1996). Gifts with even numbers of components are also highly inappropriate in Japan, particularly in numbers of four, which could be considered the equivalent of the unlucky number 13 in our culture.
As the preceding example indicates, the rules for gift giving in Japan are very different from the rules for gift giving in the rest of the world.
If gifts are given at all in the United States, they usually conform to the $25 tax deductible gift allowed by law. Even when visiting a home in the United States, it is not customary to bring a gift, although a small token of flowers, a plant, or a bottle of wine is appreciated. Instead of gifts, letters of thanks are standard in the United States (Morrison et al.).
We have covered only a few elements of business protocol to make the point that business practices differ from culture to culture. This introduction to variations in protocol should amplify the importance of knowing and utilizing the business practices that are acceptable in the culture in which you will be doing business. As with protocol, there is cultural diversity in negotiation strategies and the communication surrounding negotiation. We now turn our attention to this important matter.
Negotiation
In the normal conduct of business, most agreements are achieved through the practice of negotiation.
Negotiation is a process in which two or more entities discuss common and conflicting interests in order to reach an agreement of mutual benefit. This is true whether the business goals are to arrange the purchase of products or services, agree to marketing protocols, reach licensing agreements, or to achieve a merger or acquisition. Consequently, people of many different cultures are busily engaged in negotiations worldwide, and the approach taken by each side is strongly affected by their culture. Cultural diversity in negotiation behaviors involves pacing, negotiating styles, notions of what constitutes evidence and truth, and social trust.
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