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International
Success Tips by Kimberley Roberts
Business
Meeting Gifts - Part 1
Preparing
for a business meeting requires a working knowledge of the
information to be discussed or presented, careful attention
to all details on the printed material to be distributed, and
perhaps a gift. This gift is a social gesture that may be expected
in some countries, and could be considered a bribe in others.
Knowing the gift guidelines for the country you’ll be
visiting will help make your meeting a success.
Some
multi-national companies and some governments have very strict
policies
regarding their employees accepting gifts.
To avoid creating a problem, it’s imperative you learn
the policies for the companies you do business with.
Countries
like Malaysia and Paraguay, concerned with corruption, frown
upon any gift that could be construed as a bribe. In
Malaysia you wouldn’t give a gift until you had established
a relationship with the person. In Singapore, government employees
are not allowed to accept gifts, and the United States limits
the acceptable dollar value to $25.
However,
in some countries like Japan, Indonesia and the Philippines,
exchanging gifts is strongly rooted in tradition. Part of the
tradition is the gracious style used to present and receive
them. It’s important to plan time and focus on the process.
It’s
very important in Asia and the Middle East to only use your
right hand, or both hands, to offer or accept a gift.
In Japan and Hong Kong, use both hands.
In
Singapore a recipient may “graciously refuse three
times” before accepting your gift. But in Chile, gifts
are accepted and opened immediately. And in Indonesia, small
gifts are given on a frequent basis.
Always
be cognizant of religious laws when selecting gifts. For
instance, pork is prohibited in the Jewish
and Muslim religions, so you wouldn’t select a gift
made from pigskin. As in India, don’t
offer a gift made from cowhide. Another prohibition for
the Muslim faith is alcohol.
A
standard to keep in mind for any gift you select is quality.
Choose
quality items that are not ostentatious. If you have
gifts with your company logo, it’s better if the logo
is discreet. And don’t give company logo gifts in Greece,
Spain and Portugal.
Hosting
a meal at a nice restaurant is always a good business practice.
A fine dinner is a wonderful way to give a “gift
to your hosts”, to show your guests you appreciate the
business relationship you have with them, and an opportunity
to build rapport. People in Brazil, England, Panama, and Peru
enjoy being invited guests for a meal, and the Greeks look
forward to an evening filled with dining. In China, plan a
banquet, especially if you are being honored with one.
Next
month I’ll discuss gift giving in greater detail
by region and country, but following are some highlights to
use.
If
a country isn’t listed in a category, it means
gifts may or may not be exchanged. Should you receive
a gift, and don’t have one to offer in return,
you will not create a crisis. However, this is a good reason
for planning
to host
a meal. It becomes your reciprocal gesture.
Countries in which a gift is expected:
- Europe – Czech Republic, Poland, Russia, Ukraine
- Latin American – Bolivia, Columbia, Costa Rica
- Pacific Rim – China, Hong Kong, Indonesia, Japan, Korea,
- Taiwan, Malaysia, Philippines, and Thailand
Countries in which a gift is not expected on the first visit,
but would be expected on a subsequent visit:
-
Europe – Portugal,
Spain
- Latin American – Brazil, Chile, Guatemala,
Nicaragua, Panama,
- Peru, Venezuela
- Pacific Rim – Malaysia, Singapore
- Scandinavia – Finland, Norway
Countries
in which a gift is not expected, or gifts are less frequent
exchanged:
-
Africa
- Australia
- Europe - England, France, Hungary, Italy
- Latin America - Uruguay
- Scandinavia – Denmark
- Middle East – Pakistan, Saudi Arabia
- United States
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IBC
FOCUS ARTICLE: Why Don't We All Just Get Along Together?
by Stephen Taylor, Director of
the International Business Center 
As
the war in Iraq winds down and the reconstruction begins,
there continues to be a high level of disharmony among
Nations. Last month’s IBC Newsletter gave an overview
of how religion and Geert Hofstede’s Dimensions correlate.
In this month’s Focus Article we will look more closely
at the World’s people in terms of cultural ‘groupings’,
and how this may play a significant role in international
disagreements.
For the
purpose of this article, we will analyze the delta, or
difference between Geert Hofstede’s Power Distance
Index (PDI) and Individualism Index (IDV). We designed this
comparative analysis to determine what, if any, distinguishing ‘grouping’ characteristics
may be observed.
These
two Dimensions were selected based on their combined contributed
impact on a society or culture. However, before
examining the results, let’s briefly review these two
Hofstede Dimensions:
-
Power Distance (PDI) focuses on the degree of equality,
or inequality, between people in the country's society.
- High Power Distance ranking indicates that inequalities
of power and wealth have been allowed to grow within the
society. These societies are more likely to follow a caste
system that does not allow significant upward mobility of
its citizens.
- Low Power Distance ranking indicates the society de-emphasizes
the differences between citizen's power and wealth. In these
societies equality and opportunity for everyone is stressed
- Individualism
Index (IDV) focuses on the degree the society
reinforces individual or collective achievement and interpersonal
relationships.
- Low Individualism ranking typifies societies of a more
collectivist nature with close ties between individuals.
These cultures reinforce extended families and collectives
where everyone takes responsibility for fellow members of
their group.
- High Individualism ranking indicates that individuality
and individual rights are paramount within the society. Individuals
in these societies may tend to form a larger number of looser
relationships.
By subtracting the IDV ranking from the PDI ranking we generate
either a positive or negative number, i.e. a country with
high Power Distance and low Individualism will produce a
higher net score. While a country with low Power Distance
and high Individualism produces a lower net score. The actual
positive or negative number is relative and has no correlation
to good or bad, better or worse, in terms of this analysis.
Therefore,
a high score on this combined index indicates a culture
that is collectivist with inequality among the
population. On the other end of the scale, a low score indicates
a culture that is individualist with equality within the
population. For example, although the United States has the
highest Individualism ranking at 91, it also has a moderate
Power Distance of 40, generating a net score of -51
(PDI – IDV).
On
lower end of the rankings, New Zealand has an Individualism
score
of 79 and a Power Distance of only 22, thus a net score
of -57.
On the upper end is Guatemala with an IDV of 6 and a PDI
of 95, and a net score of +89.
The combination of these two Dimensions highlights the unequal
and collectivist nature of the country.
By creating
a ranking continuum, each country becomes ‘grouped’ near
similar cultures, thereby more clearly differentiating each
one.
The above Chart is produced here by an I-Frame link to
the ITIM.org Website.
Country
listing begins in upper left with Guatemala, then
read across
each row from left to right. Lowest score is New Zealand.
We
have taken the results and created four groups of countries
based on the combine PDI and IDV scores, as follows:
Group
I
98 to 47
Guatemala
Panama
Malaysia
Ecuador
Venezuela
China
Indonesia
Philippines
West Africa
Colombia
Singapore
Mexico
Peru
El Salvador
|
Group
II
44 to 25
Thailand
Hong Kong
Arab World
South Korea
Pakistan
Taiwan
Chile
East Africa
Portugal
Brazil
India
Turkey
Greece
Uruguay
|
Group
III
20 to -26
Costa
Rica
Iran
Japan
Jamaica
Spain
Argentina
France
Poland
Belgium
Hungary
South Africa
Czech Republic
Italy
|
Group
IV
-30 to -57
Finland
Germany
Switzerland
Norway
Sweden
Canada
Israel
Ireland
Netherlands
Austria
United States
Australia
United Kingdom
Denmark
New Zealand
|
In
reviewing the four 'groupings' above, Group I countries
have a very strong Collectivist nature with a great deal
of inequality among the members of the population. Groups
II is more Collectivist with a moderate level of inequality,
while Group III trends toward Individualism and equality.
Finally, Group IV is predominantly Individualist and supports
a higher level of equality between members of the population.
Based
on this analysis, it could be anticipated that countries
within a "Group" would tend to relate to each other more
effectively than with members of other 'Groups' due
to their basic beliefs about equality and social structure.
It could also be anticipated that 'groupings'
farther away from their own (i.e. Group IV relative to
Group II
or Group
I) would have greater divergence and more difficulty in
"understanding" each others cultural values -
equality and social structure - Collectivism versus Individualism.
The
purpose of this article is help international business
people become more effective when working with people
from other cultures. Having an understanding and appreciation
for sometimes extreme differences is a critical
first step in building better rapport and understanding. As
with all social-psychological studies and analysis, care
must be taken when applying the results to any specific
business or social interaction, as this information is
based on generalized studies.
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us your feedback@ibc-mail.com
Global
Resource Spotlight?
Each
month we Spotlight a free resource for readers that focuses
on Global business. This month's Spotlight is on FASTCOMPANY.com.
Specializing in a broad array of business strategy articles
and resources, including their FASTCOMPANY
ONLINE GUIDES.
For those of us who tend to live
on the Internet, GOOGLE is well known. Here's a FASTCOMPANY
article titled How
Google Grows... and Grows ... and Grows.
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