Contemporary business culture

A Japanese team is a group of individuals who work together for the wider good of the company. The group is therefore superior to individual wishes. Harmony is crucial. One should avoid open confrontation, or criticizing superiors or subordinates. Allow all parties to save face, and reject nothing bluntly. The preservation of harmony is another feature of Japanese office life. The Japanese are extremely sensitive to what others think of them, are obsessively polite and will shower you with compliments. The team leader will make decisions, but will not act independently without internal support. The process tends to be slow to allow for consensus to emerge, and team members will be modest and self-effacing. It is important to keep to schedules, but deadlines can be extended if necessary.

Japanese women tend to have separate lifestyles to men, and control the household. It is still usual for them to give up work on marriage, and promotion for them is therefore restricted as they are not expected to stay in the workforce.

Japanese offices are quieter than continental ones. The Japanese are happy with silence, so just remain aware and soak in what's happening.

Appointments. Visiting party should be punctual at all times. Tardiness is considered rude. Making an appointment a personal call will be more effective than sending a letter. Moreover e-mail requesting an appointment might go unanswered. The Japanese usually use the initial meetings to get to know you, while at the same time asking to hear about your proposal.

Before you enter a meeting prepare a short introductory statement explaining why you're in Japan and how long you'll be there, the sort of people you're seeing, and your previous contact with the country. Decide on the five or six crucial points you want to make, and repeat them at each encounter. The Japanese believe that everyone who is in the loop needs to be at meetings. The most senior person may say little, but to learn who that figure is, note who is served tea first!

The younger members of the team should generally remain quiet and defer to their seniors during the meetings. Their real job will be to go out drinking with the Japanese team's young executives at night. The Japanese may ask international visitors many questions-- including information about your job, your title, your age, your responsibilities, the number of employees that report to you, etc. They need a lot of information in order to decide which form to use when speaking to you.

During holidays, banks and offices close, although some stores remain open. During three weeks of the year (New Year's holidays, December 28 to January 3; Golden Week, April 29 to May 5; and Obon, in mid-August), many people visit the graves of their ancestors. Conducting business and traveling are difficult during these periods.

When writing the date in English, the Japanese may write the year first, then the month, then the day (e.g., December 3, 2010, would be 10.12.3 or 10/12/3) or they may write the day first, then the month, then the year (e.g., December 3, 2010, would be written 3.12.10).

Negotiating. The Japanese negotiating style is impersonal and unemotional. But emotion lurks just below the surface, and logic alone will not work - the Japanese manager must like and trust you.

The Japanese negotiate in groups, usually in a team containing executives of different age ranges. A visiting team should have at least one senior member, and everyone must be sure to treat him with deference. The Japanese consult at all levels within a group before they reach the decision making stage. They then seek universal consensus to arrive at a decision. Japanese managers like to understand the background and reasons for decisions and proposals. One should be patient - they may be slow to decide, but once they do you can expect fast implementation. Japanese managers rarely give direct orders: they hint at what is needed instead. Courtesy for the other person controls all their dealings. They use polite, indirect forms of English such as the passive voice: “The company has decided”, rather than, “We have decided.” They also rely on impersonal forms of speech: “It has been found necessary to cancel...”: rather than, “We are canceling...”. The Japanese desire to save face becomes evident when they deliberate carefully and avoid taking risks in their statements and actions. Be patient in trying to get decisions: even routine issues may be subject to extensive discussion. Look for a contact who can keep you up to date informally on progress.

It is useful to get Japanese executives away from their home base. In Japan, they can wait you out, hoping that you will agree to a disadvantageous deal because you are anxious to go home. The Japanese often agree to hold negotiations at a midway point. For example, when negotiating with North Americans, the Japanese often agree to hold meetings in Hawaii.

A Japanese response “I'll consider it” may actually mean “no.” Negatively phrased questions typically get a “yes” if the Japanese speaker agrees. For example, a question such as “Doesn't Company A want us?” will be answered “yes” if the Japanese thinks that Company A indeed does not want you. In English, the answer would be “No, they do not want you.” Incorporate the words “I'm sorry “ into your vocabulary when you go to Japan. However, do not be ingratiating out of fear of offending; just be polite.

Negotiations are begun at the executive level and continued at the middle level (working level). One should choose the intermediaries carefully, because the Japanese will feel obliged to be loyal to them. Do not choose someone of lower rank than the person with whom he or she will be negotiating. Intermediaries should not be part of either company involved in the deal. Use an intermediary to convey bad news. Using a Japanese lawyer rather than a Western one indicates a cooperative spirit.

Do not make accusations or refuse anything directly; be indirect. At work the Japanese are very serious and do not try to “lighten things up” with humor.

When working with Japanese who know English, or when using an interpreter, be patient. Speak slowly, pause often, and avoid colloquialisms. Your interpreter may seem to be taking more time with the translation than you did with your statement; this is because she or he is using lengthy forms of respect.

The negotiation process can be divided into four phases: 1) building a good relationship; 2) talking about the business deal; 3) persuading, bargaining, and making concessions; and 4) making a final agreement, In Japan the first two phases take the longest, especially since personal trust and mutual understanding are important to good business relationships. Thus the last two phases, bargaining and final agreements, come at the end of a long process of building a relationship and talking about the proposed deal. In Japan concessions are made only at the end of the negotiation process, After all the possible details of the business deal have been carefully discussed, the two parties begin to bargain and make concessions. They quickly come to a final agreement. Contracts do not play a central role in negotiations in Japan. In fact, a contract is usually a small detail at the end of a long process of negotiation. After all aspects of the deal have been discussed and all decisions have been made verbally, a contract is written up reflecting the decisions. A contract is presented at a meeting only after both parties have carefully discussed the final agreement.

In Japan, silence can be part of a conversation. If someone wants to think about an offer, silence gives that person time to consider it carefully.

4. JAPANESE BUSINESS ETIQUETTE

Business cards. Contrary to a widely-believed myth, bowing is not necessary for foreigners, but the business card ritual is. The exchange of business cards at the beginning of meetings is an important way of establishing this status for the Japanese, and should be carried out with proper respect. Have them prepared in advance and checked by a Japanese business representative. It is best to have one side printed in your native language, with extra information such as membership in professional associations included; the reverse side should be in Japanese. If your status changes, have new cards printed immediately.

Cards are presented after the bow or handshake. Present your card with the Japanese side facing your colleague, in such a manner that it can be read immediately. Read the card presented to you, memorizing all the information. Ask for help in pronunciation and in comprehension of the title; if you understand without help, make a relevant comment. Handle cards very carefully. Do not put them in your pocket or in your wallet if you plan to put it in your back pocket. Never write on a person's business card (especially not in his or her presence).

Business entertaining. Business entertaining usually occurs after business hours, and very rarely in the home. Midweek entertainment may stop at around 9pm to allow for the long commute home. You will be entertained often, sometimes on short notice. Evening hospitality offers an opportunity for personal revelation and more relaxed conversation, when you can discuss things off the record and reach decisions. These may include sumo wrestling or karaoke. Karaoke nights are important in team-building and have a popular song ready to perform if you're up for it. You might also be invited to expensive restaurants, and you will be expected to reciprocate. Keep alcohol under control: the Japanese may get drunk to let off steam, but they don't expect it of foreign business visitors.

When you are taken out, your host will treat. Allow your host to order for you (this will be easier, too, since the menus are in Japanese). Be enthusiastic while eating, and express your thanks afterward. While business entertaining is primarily for building friendships rather than for making deals, you may discuss business during the evening. If you are invited to a Japanese home, keep in mind that this is a great honor: show your appreciation.

For social occasions, it is appropriate to be fashionably late. When entering a Japanese home, take off your shoes at the door. In a home, you will sit cross-legged, or with your legs to the side, around a low table with the family. You may be offered a backrest.

Meals are long, but the evening usually ends at about 11:00 p.m. Never point your chopsticks at another person. When you are not using them, you should line them up on the chopstick rest. Use both hands to hold a bowl or a cup that you wish to be refilled. Eventually, you will wish to invite your hosts out. Be insistent, even if they claim that a foreigner should not pay for anything.

Good topics of conversation include families (yours and your Japanese counterpart's), Japanese art and inventiveness, Japanese hospitality, and sports. Popular sports in Japan include baseball, ski jumping, and football (soccer). Avoid bringing up the Second World War or Japanese militarism in general.

5. PROTOCOL

Greetings. The Japanese are very aware of Western habits and will often greet you with a handshake. Their handshakes will often be gentle; this gives no indication of their assertiveness of character. The handshake may last longer than customary in northern Europe or North America. The bow is their traditional greeting. If someone bows to greet you, observe carefully. If you are greeting an equal, bow to the same depth as you have been bowed to, because the depth of the bow indicates the status of the relation-ship between you. As you bow, quickly lower your eyes. Keep your palms flat against your thighs.

Titles/forms of address. Japanese is a complex language with many forms of address and honorifics. Use last names plus San, meaning "Mr." or "Ms." Do not immediately assume that the Japanese will call you by your first name. In correspondence, it is more respectful to add -dono or -sama to the last name. Titles are important in Japan.

Gestures. Japan is a high-context culture; even the smallest gesture carries great meaning. Therefore, avoid expansive arm and hand movements, unusual facial expressions, or dramatic gestures.

The American "okay" sign (thumb and forefinger curled in an O) means "money" to the Japanese. Some Western gestures convey nothing to the Japanese. These include a shrug of the shoulders or a wink between friends. Pointing is considered impolite. Instead, wave your hand, palm up, toward the object being indicated, as the Japanese do. Beckoning "come here" is done with the palm down. Moving the open hand, with the palm facing left, in a fanning motion in front of the face indicates a negative response.

Sniffing, snorting, and spitting in public are acceptable, but nose blowing is not. To get through a crowd, the Japanese may push others. There is also a gesture meaning "excuse me," which involves repeating a bow.

The Japanese do not approve of male-female touching in public. Men do not engage in backslapping or other forms of touching. In conversation, the Japanese remain farther apart than do North Americans. Prolonged direct eye contact is not the norm. A smile can mean pleasure, but it can also be a means of self- control, as when it is used to hide disapproval or anger. Keep a smile, even when you are upset. Laughter can mean embarrassment, confusion, or shock, rather than mirth. Silence is considered useful. People from other countries may not know that when Japanese audibly suck air through their teeth, they feel pressured. And while a hearty handshake may convey sincerity in New York or London, it makes Asians uncomfortable.

Gifts. If you are invited to a Japanese home, bring flowers, cakes, or candy. Gift giving is very common in Japan. Business gifts absolutely must be given at midyear (July 15) and at year-end (January 1). They are often given at first business meetings. For the Japanese, the ceremony of gift giving is more important than the objects exchanged. Do not be surprised by either modest or extravagant gifts. Take your cue from the Japanese with whom you are working. Allow them to present gifts first, and make your gift of the same quality as theirs.

The Japanese do not usually open gifts directly upon receipt. If they do, they will be restrained in their appreciation. This does not mean that they do not like your present. Again, follow their lead.

Good gifts are imported Scotch, cognac; electronic gadgets and toys for children of associates; or items made by well-known manufacturers. Always wrap your gifts in Japan. But remember that black and white paper is unacceptable. Avoid giving gifts with even numbers of components, such as an even number of flowers in a bouquet. Four is an especially inauspicious number; never give four of anything.

Dress. While you should expect to dress formally while in Japan, you can leave your handkerchief at home. Carry small facial tissues rather than a handkerchief. The Japanese consider the Western practice of blowing their nose into a piece of cloth, then folding up that cloth and preserving it in a pocket, to be grotesque. When a Japanese person blows his nose, he does so into a disposable tissue and throws the tissue away immediately.

Men should wear conservative suits. Avoid casual dress in any business meeting. Because shoes are removed frequently, many people wear shoes that slip on. Women should dress conservatively, keeping jewelry, perfume, and makeup to a minimum. Pants are becoming more common. High heels are to be avoided if you risk towering over your Japanese counterparts. Summer is usually very hot in Japan, so bring lightweight cotton clothing. Be sure to have plenty of changes of attire, because the Japanese are very concerned with neatness. If you wear a kimono, wrap it left over right! Only corpses wear them wrapped right over left.

Five Ways to Succeed	Five Ways to Fail
Spend time building a good relationship	Try and stand out as an individual in a land of consensus
Work hard and earn trust	Cause a Japanese person to lose face in front of others
Socialize - sing in a karaoke session even if you've got a lousy voice	Try to rush people into an agreement
Study Japanese business protocol -correct process is as important as a good result	Talk loudly, gesticulate extravagantly
Stress team achievement, not individual achievement	Ignore Japanese protocol and customs

SEMINAR PROGRAMME

Theme 1. Introduction to international business culture. Cultural traditions and business communication style of the USA. (2 hrs)

Questions

1. Why is culture awareness important for future legal professionals? (cross-cultural competence, cultural communication).

2. How can you disclose the notion of “culture” and “business culture”? (acculturation, cultural risk, basic dimensions of characterizing differences between world cultures.)

3. What is the role of culture in law and commerce?

4. What do you know about stereotypes and stereotyping?

5. Which functions does language perform in international business communication?

6. What background information concerning the country should a business traveler to the United States learn?

7. What characteristic of American business culture do you know?

8. What are the essential traits of American people?

9. What points of business entertaining and protocol are important to build relationships between business partners?

Case study

Japan and U.S. candy venture

A well-known U.S. candy company was interested in selling its product overseas. The company found a possible partner based in Tokyo, Japan. The Tokyo company seemed to be perfect for the deal. After many phone calls between the two parties, a decision was made to meet in Tokyo. The U.S. company chose one of their businessmen, Mike Waller, to represent it in Tokyo. He was the company's most persuasive negotiator.

Before Waller left the United States, he and the company lawyer worked together to write a detailed contract for the deal. The contract was fifty pages long. The deal would be advantageous for both companies. It promised big profits.

Waller left for Japan with the contract. He was pleased with his careful preparation. He thought his future partners would be satisfied with his work and would be ready to bargain about the details in the contract. He had studied their company interests and was sure they would want to change a few conditions in the contract. He planned to agree to those changes as concessions. He was certain the meetings would result in good negotiations and a quick final agreement.

On the day of the meeting in Tokyo, Waller entered the boardroom with copies of the contract for the Japanese businessmen at the meeting. He handed them each a copy and began discussing the details. The representatives of the Tokyo company did not open their contracts. They didn't discuss the contract at all, but instead spoke about general business issues. They spoke about the proposed cooperation between the two companies but they didn't make any promises.

Waller then went back to the United States. He felt extremely surprised and disappointed. The Japanese businessmen had never asked him one question about the contract. No agreements or commitments had been made. He wasn't even sure if there would be another round of negotiations.

Topics for essays.

1. Language and culture in international legal communication.

2. Communicating across cultural barriers.

3. How to empathize with Americans?

4. Tips for cross-cultural communication.

5. Short overview of US contract law.

Recommended sources:

1. Axtell, Roger E. Essential Do's and Taboos: The Complete Guide to International Business and Leisure Travel. Wiley, 2007.

2. Carte, Penny. Bridging the Culture Gap: A Practical Guide to International Business Communication. 2nd ed. Kogan Page, 2008.

3. Gesteland, Richard R. Cross-Cultural Business Behavior: Marketing, Negotiating, Sourcing and Managing Across Cultures. 4th ed. Copenhagen Business School Press, 2005.

4. Lewis, Richard D. When Cultures Collide: Leading Across Cultures. 3rd ed. Nicholas Brealey International, 2005.

5. Martin, Jeanette S., and Lillian H. Chaney. Passport to Success: The Essential Guide to Business Culture and Customs in America's Largest Trading Partners. Praeger, 2009.

6. Moran, Robert T., Philip R. Harris, and Sarah V. Moran. Managing Cultural Differences. 7th ed. Elsevier, 2007.

7. Morrison, Terri, and Wayne A. Conaway. Kiss, Bow, or Shake Hands: The bestselling guide to doing business in more than 60 countries. Adams Media, 2006.

8. Morton, Jill. Global Color: Clues and Taboos. Colorcom, 2004.

9. Olofsson, Gwyneth. When in Rome or Rio or Riyadh. - Intercultural Press, 2004.

10. Ricks, David A. Blunders in International Business. 4th ed. Blackwell Business, 2006.

11. Schmidt, Wallace V. Communicating Globally: Intercultural Communication and International Business. Sage Publications, 2007

Internet sources

1. http://www.worldbusinessculture.com/Business-in-The-USA.html.

2. http://www.cyborlink.com/besite/us.htm

3. http://www.discoverabroad.com/us/livingabroad/business/usbusinessculture.

4. http://www.immihelp.com/newcomer/work-culture-office-environment-usa.html

Theme 2. Cultural traditions and business communication style of the UK. (2 hrs)

Questions.

1. What background information about the United Kingdom of Great Britain do you know?

2. What are national characteristics of the British?

3. What points are essential for business practice in the UK?

4. What differences between English and American values did you notice?

5. How do British businessmen behave during initial meetings and negotiations?

6. What are the peculiarities of business entertaining and protocol in the UK?

Case study.

WHAT'S IN A HANDSHAKE.

Grand Metropolitan, a British drinks conglomerate, wanted to expand. Pernod-Ricard Company of France, another drinks company, also wanted to expand. They were both looking for new companies to invest in. Unfortunately, they both became interested in the same drinks company, which was called Irish Distillers and located in Ireland. But, in order to take over, or gain control of, Irish Distillers, they had to first gain control of another company. This company was called FII-Fyffes (pronounced ef-eye- eye-feyefs) and was also in Ireland.

A company takes over another company by buying the majority of shares, or stock, in that company. FII-Fyffes had the largest number of shares of Irish Distillers stock. The company that bought the most shares of FII- Fyffes would automatically become the largest shareholders of Irish Distillers, and in this way would gain control of Irish Distillers.

Grand Metropolitan and Pernod-Ricard were now in competition. Both companies sent representatives to Ireland to try to buy the shares from FII-Fyffes. In one meeting, the representatives of Pernod-Ricard and FII-Fyffes discussed acceptable prices for the FII-Fyffes shares. The French company offered to pay $4.30 per share. FII-Fyffes assessed the offer and then demanded $4.70 per share. Pernod then offered $4.50 per share. The two company representatives shook hands on the $4.50 per share.

The next day, Grand Metropolitan offered FII-Fyffes $5.25 per share. Later that day the Pernod-Ricard and FII-Fyffes representatives met. The FII- Fyffes representative said that the company was rethinking the situation. The Pernod-Ricard representative was shocked.

Pernod-Ricard brought FII-Fyffes to court. It demanded that FII-Fyffes honor the handshake the two companies made on the $4.50 per share offer.

Actual case Ending the FH-Fyffes and Pernod-Ricard Disagreement

The Irish judge honored Pernod-Ricard's interpretation of the handshake. He said that Pernod-Ricard's actions during the negotiation were more consistent than those of FII-Fyffes. The Irish judge said, "I have no doubt that the negotiations had in this case, ripened [developed] into an agreement." In other words, the Irish judge believed Pernod-Ricard was correct and that FII-Fyffes did not act fairly.

Topics for essays

1. Humour in business across frontiers.

2. Factors affecting cross-cultural business communication.

3. Short overview of UK contract law.

4. Business meeting: its etiquette, results and outcomes.

5. The art of introducing and polite conversation in Great Britain.

Recommended sources

1. Axtell, Roger E. Do's and taboos of humor around the world: stories and tips from business and life. John Wiley & Sons, Inc., New York, 1999.

2. Carte, Penny. Bridging the Culture Gap: A Practical Guide to International Business Communication. 2nd ed. Kogan Page, 2008.

3. Fox, Sue. Business Etiquette For Dummies, 2nd Edition. Wiley Publishing, Inc. Indianapolis, 2008.

4. Moran, Robert T., Philip R. Harris, and Sarah V. Moran. Managing Cultural Differences. 7th ed. Elsevier, 2007.

5. Morrison, Terri, and Wayne A. Conaway. Kiss, Bow, or Shake Hands: The Bestselling Guide to Doing Business in More Than 60 Countries. Adams Media, 2006.

6. Sabath, Ann M. Business etiquette. Career Press, 2002.

8. Schmidt, Wallace V., et al. Communicating Globally: Intercultural Communication and International Business. Sage Publications, 2007.

9. Trompenaars, F., Hampden-Turner, C. Riding the waves of culture: understanding cultural diversity in business. Nicholas Brealey Publishing Ltd. London, 1997.

Internet sources

1. http://www.kwintessential.co.uk/cultural-services/articles/business-culture.html

2. http://www.ukwelcomes.businesslink.gov.uk

3. http://www.worldbusinessculture.com/Business-in-Britain.html

Theme 3. Cultural traditions and business communication style of France. (2 hrs)

Questions.

1. What do you know about country background of France?

2. What values are basic for French society? What are the traits of the French?

3. What are the rules of arranging appointments and working days schedule?

4. What business behavior and negotiation peculiarities are typical for the French? (Attitude to women and their status in the society.)

5. How will you characterize French business practice ? What objectives do the French focus on?

6. What should a traveler to France know about business entertaining and protocols (dress code, gifts, etc.)?

Case study.

AN OFFICE PARTY

An American manager by the name of Bill Morris worked for an American multinational firm. One year he was transferred to France. When he began working in the French office, he wanted to get to know his employees and show them that he was friendly and interested in a good work relationship. He decided to throw a party for the whole office. He thought it would be a good way to get acquainted with everyone in a less formal environment. He invited everyone in his office, including secretaries and executives, for a big party in his elegant apartment. Everyone accepted the invitation. He was pleased that no one had declined his invitation.

At his apartment Morris served a buffet of snack foods and drinks. The employees could help themselves to whatever they liked. The manager liked this casual style of parties. As an informal and relaxed host of the party he could show them that he was an open person and easy to talk to. Morris feels these are important qualities of a manager and boss.

The party, however, was not a success. The employees were very uncomfortable as guests. They felt they didn't know Morris well enough to be in his home. They thought he was showing off his money by inviting them to his elegant apartment. They also were not comfortable with one another because they were not used to socializing together.

Topics for essays

1. Do's and taboos in protocol of different countries.

2. The role of entertaining in building if business relationships in different countries.

3. Keeping up with electronic (e-mail) etiquette.

4. Culture shock and how to cope with it.

Recommended sources

1. Axteil, Roger F. Do's and Taboos around the World. New York: John Wiley and Sons, 1990.

2. Copeland, Lennie, and Lewis Griggs. Going International. New York: Random House, 1985.

3. Fons Trompenaars and Charles Hampden-Turner: Riding the Waves of Culture. NB Books, 2003.

4. Gesteland, Richard R. Cross-Cultural Business Behavior: Marketing, Negotiating, Sourcing and Managing Across Cultures. 4th ed. Copenhagen Business School Press, 2005.

5. Lewis, Richard D. When Cultures Collide: Leading Across Cultures. 3rd ed. Nicholas Brealey International, 2005.

6. Maureen Guirdham: Communicating Across Cultures at Work. Palgrave Macmillan, 2005.

7. Milton J Bennett: Basic Concepts of Intercultural Communication. NB Books, 1998.

8. Moran, Robert T., Philip R. Harris, and Sarah V. Moran. Managing Cultural Differences. 7th ed. Elsevier, 2007.

9. Morrison, Terri, and Wayne A. Conaway. Kiss, Bow, or Shake Hands: The Bestselling Guide to Doing Business in More Than 60 Countries. Adams Media, 2006.

10. Tomalin, B. and Nicks, M.: The World's Business Cultures and How to Unlock Them. Thorogood Publishing. London, 2007.

Internet sources

1. http://www.expatfocus.com/expatriate-france-business-culture

2. http://www.cyborlink.com/besite/france.htm

3. http://dir.yahoo.com/Regional/Countries/France/Society_and_Culture/

4. http://www.worldbusinessculture.com/Business-in-France.html

Theme 4. Cultural traditions and business communication style of Germany. (2 hrs)

Questions

1. What essential features of Germany as a country and a federal state can you mention?

2. What details concerning making appointments should a businessperson traveling to Germany know? (punctuality, modes of arranging a meeting, working hours, vacation period, etc.)

3. What are the peculiarities of German business practice?

4. What is German business culture characterized by?

5. Can you characterize negotiation techniques and decision making in Germany?

6. What do you know about business entertaining and protocols in Germany? (greetings, titles, form of address, etc.).

Case study

FRENCH - GERMAN BREAKDOWN

A major French manufacturing company needed a new computerized system for its shipping and handling department. The French company hired a German software and engineering company to develop the computerized equipment. This equipment was going to be put in the French company's warehouses. The two companies agreed on a plan with the following four phases: 1) develop software specifications for the shipping and handling department, 2) design the software, 3) make the computerized machines using the software, and 4) put the new equipment in the warehouses. They also developed a general schedule of when each phase should be completed.

In the first phase, the two companies agreed on the preliminary specifications for the new software and began to write a more detailed description of these specifications. At first, these meetings were friendly and effective. The two teams used English in the meetings and had no difficulty speaking to each other. However, within three months there was a breakdown in communication and cooperation between the two companies.

The German engineers complained that the French team changed the software plans too frequently. Every time the German team thought they had an agreement on the detailed specifications of the computer software, the French team came up with new ideas and changes which delayed the project. The German team complained that the French were often late and therefore the deadlines were not being met.

The French team also had complaints. They said that after the preliminary specifications were made, they thought of some basic ideas that would lead to great improvements. The German team rejected the new ideas even though the new ideas might be important because they said they were finished with that step in the process. The French team complained that the German team required fixed dates for everything and only cared about keeping the schedule.

The Solution

The French and German teams decided to live for a short period of time in each other's countries. In this way they could learn to appreciate the time value differences in each country and learn more about each other's cultures.

Topics for essays

1. Compare laws regulating international trade in civil and common law systems.

2. Lex Mercatoria and its application.

3. Concept of time and its impact on business relationships in different cultures.

4. Short overview of contract law in Germany.

Recommended sources

1. Brown, Robert. "Swatch vs. the Sundial: A Study in Different Attitudes towards Time," International Management, December 1987.

2. Moran, Robert T., Philip R. Harris, and Sarah V. Moran. Managing Cultural Differences. 7th ed. Elsevier, 2007.

3. Moran, Robert T., and William G. Stripp. Dynamics of Successful Business Interactions. Houston: Gulf Publishing, 1991.

4. Ricks, David A. Blunders in International Business. 4th ed. Blackwell Business, 2006.

Internet sources

1. http://www.germany-info.org.

2. http://www.salesaideurope.com/Germany.htm

3. http://www.cyborlink.com/besite/germany.htm

4.http://www.kwintessential.co.uk/resources/global-etiquette/germany-country-profile.html

Theme 5. Cultural traditions and business communication style of China. (2 hrs)

Questions

1. What should a business traveler to China know about the country background?

2. How can you describe Chinese national character?

3. What are the principles of Chinese business behavior?

4. What do you know about scheduling of appointment and negotiation strategies in China? (The role of hierarchy in Chinese business culture; key points of decision-makingin).

5. What is the attitude to contracts in China?

6. What is it important to know about business entertaining and protocol in China?

Case study

1. Read the information about attitudes to contracts in some countries over the world and try to guess the name of the country which suits each extract.

1._______________The executives from this culture tend to establish contractual relationships based on trust and honor without any reliance on the enforcement powers of law. “A contract is considered unnecessary, sometimes offensive, when rules of loyalty and mutual obligation structure the business environment.” They will frequently ignore the written contract and treat it as a mere formality. Even if a contract is ultimately signed, a signed contract means the beginning of a relationship, not the “be all and end all” document which controls the parties' economic relationship, as in the eyes of U.S. contract law.

2.___________________The Civil Code declares contracts even non-written contracts legal, for example, in situations such as purchase, rent, booking a journey etc. Written contracts are serious matters in this country and tend to be lengthy. Legal aspects may be reviewed repeatedly. In most companies, only high-ranking managers have signature authority. Oral agreements and statements of intent may already be legally binding and are usually dependable, though they do not substitute for written contracts. Actions that have been agreed upon are usually implemented immediately, even if a final contract is still pending. The law of this country makes offers binding unless otherwise noted. It is best to mark your offers with `good until …' or to add a `subject to change' clause.

3.___________ Capturing and exchanging written understandings after meetings and at key negotiation stages is useful since oral statements are not always dependable. Although interim agreements are usually kept, do not consider them final. Only a final contract signed by both parties constitutes a binding agreement. While your counterparts will expect you to keep all your commitments and respond harshly if you fail to do so, they may not always fulfill their own obligations to the letter.

4.___________ Many people of this nationality pride themselves with being consistent, so they will likely keep their commitments, at least if they are sufficiently documented. While you should not consider interim agreements final, avoid the impression that you are not willing to hold up your commitments. Nevertheless, only a contract signed by both parties constitutes a binding agreement. Negotiators sometimes request to document the progress of a negotiation by both parties signing a Letter of Intent (LOI) or Memorandum of Understanding (MOU). While much weaker than signed contracts, these documents may have legal implications. Contracts are almost always dependable, and strict adherence to the agreed terms and conditions is expected. The companies from this country may prefer to resolve disputes in court, which can become very costly. It is highly advisable to fulfill your contractual obligations to the letter.

5.____________ Capturing and exchanging written understandings after meetings and at key negotiation stages is useful since oral statements are not always dependable. The representatives from this country may insist on having a protocol (meeting minutes) signed by both parties at the end of a meeting. It serves to record what was discussed, is not a contract, and should not be mistaken for a ?nal agreement. Any part of an agreement may still change signi?cantly before both parties sign the ?nal contract. Written contracts should be clear and concise, without too many detailed terms and conditions. Your counterparts may request that details of the contract be kept secret. Your legal rights may not be enforceable, while local companies often have a better chance in court (or ?nd ways to circumvent laws). You should de?nitely consult a local legal expert, ideally throughout the negotiation or at the very least before signing a contract. For the time being, it is wise to recognize that the country's legal system is in a transitional mode, so be prepared for laws to change on short notice. Even local businessmen may not be very familiar with applicable laws and regulations.

6.____________ Handshakes and verbal agreements are often considered binding. They are normally kept, even though they are not legally binding. Nevertheless, it is best to con?rm agreements in writing. The representatives from this country generally prefer to resolve disputes out of court, but they will not shy away from taking legal action if deemed necessary. However, do not bring the person to the negotiation table until you have reached the ?nal stages of the contract discussions. Contracts are almost always dependable, and strict adherence to the agreed terms and conditions is expected. Requests to change contract details after signature may be considered as bad faith and will meet with strong resistance.

Topics for essays

1. The ways to increase the chances for accurate understanding international partners within business communication.

2. Basic differences in Contract Law in common and civil law systems.

3. Religious beliefs that influence Chinese public and business behavior.

Recommended sources

1. Copeland, Lennie, and Lewis Griggs. Going International. New York: Penguin Books, 1985.

2. Harris, Philip R., and Robert T. Moran. Managing Cultural Differences. Houston: Gulf Publishing, 1991.

3. Kennedy, Gavin. Doing Business Abroad. New York: Simon and Schuster, 1985.

4. Moran, Robert T., Philip R. Harris, and Sarah V. Moran. Managing Cultural Differences. 7th ed. Elsevier, 2007.

5. Moran, Philip R„ and William Stripp. Dynamics of Successful Business Negotiations. Houston: Gulf Publishing, 1991.

6. Morrison, Terri, and Wayne A. Conaway. Kiss, Bow, or Shake Hands: The Bestselling Guide to Doing Business in More Than 60 Countries. Adams Media, 2006.

7. Ricks, David A. Blunders in International Business. 4th ed. Blackwell Business, 2006.

8. Victor, David A. International Business Communication. New York: HarperCollins, 1992.

Internet sources

1. http://www.china-embassy.org.

2.http://www.kwintessential.co.uk/resources/global-etiquette/china-country- profile.html

3. http://www.cyborlink.com/besite/china.htm

4. http://www.kwintessential.co.uk/etiquette/doing-business-china.html

5.http://www.worldbusinessculture.com/Business-in-China.html

Theme 6. Cultural traditions and business communication style of Japan. (2 hrs)

Questions

1. What background information about Japan (history, type of government, language, religion) are you aware of?

2. What are the most distinctive Japanese national characteristics?

3. What is common Japanese business behavior?

4. What are the rules of making appointments and exchanging business cards in Japan?

5. What negotiating strategies of Japanese businessmen do you know? (The importance of intermediary in doing business.)

6. What are the essential points of business entertaining and protocols (greetings, form of address, dress code etc.) in this Asian country?

Case study

An American-Japanese encounter.

A U.S. airplane manufacturer and a Japanese airline company were negotiating the price of some airplanes. The American negotiating team suggested a price. In response, the Japanese were quiet. The American team then lowered the price. The Japanese team again were quiet. The American team lowered the price again. The Japanese team continued to keep silent. In the end, the Japanese team came away from the negotiation with a price lower than they ever expected. The Americans were disappointed because they sold the planes at a very low price.

Topics for essays

1. Ukrainian negotiation strategies (pace of negotiations, sharing information, decision making, agreements and contracts).

2. Culture and negotiations.

3. Comparative overview of Ukrainian and Japanese negotiation culture.

4. International business negotiations: definition, strategies, outcomes and performance.

Recommended sources

1. Charles Mitchell: A Short Course In International Business Culture. Building Your International Business Through Cultural Awareness. World Trade Books. 2000.

2. Gesteland, Richard R. Cross-Cultural Business Behavior: Marketing, Negotiating, Sourcing an Managing Across Cultures. 4th ed. Copenhagen Business School Press, 2005.

3. Lewis, Richard D. When Cultures Collide: Leading Across Cultures. 3rd ed. Nicholas Brealey International, 2005.

4. Pervez N. Ghauri International Business Negotiations, 2nd.Edition (International Business & Management) Elsevier Ltd. Oxford, 2004.

Internet sources

1. http://hstalks.com/main/browse_talk_view.php?t=2129&s=2129&s_id=6

2. http://www .us.emb-japan.go.jp.

3. http://www.worldbusinessculture.com/Business-in-Japan.html

4. http://www.cyborlink.com/besite/japan.htm

5. http://www.kwintessential.co.uk/resources/global-etiquette/japan-country-profiles.html

Questions for credit

1. Why is culture awareness important for future legal professionals? (cross-cultural competence, cultural communication).

2. How can you disclose the notion of “culture” and “business culture”? (acculturation, cultural risk, basic dimensions of characterizing differences between world cultures.)

3. What is the role of culture in law and commerce?

4. What do you know about stereotypes and stereotyping?

5. Which functions does language perform in international business communication?

6. What background information concerning the country should a business traveler to the United States learn?

7. What characteristic of American business culture do you know?

8. What are the essential traits of American people?

9. What points of business entertaining and protocol are important to build relationships between business partners?

10. What background information do you know about the United Kingdom of Great Britain?

11. What are national characteristics of the British?

12. What points are essential of business practice in the UK?

13. What differences between English and American values did you notice?

14. How do British businessmen behave during initial meetings and negotiations?

15. What are the peculiarities of business entertaining and protocol in the United Kingdom?

16. What do you know about country background of France?

17. What values which are basic for French society? What are the traits of the French?

18. What are the rules of arranging appointments and working days schedule?

19. What business behavior and negotiation peculiarities are typical for the French? (Attitude to women and their status in the society.)

20. How will you characterize French business discussion behavior? What objectives do the French focus on?

21. What should a traveler to France know about business entertaining and protocols (dress code, gifts, etc.)?

22. . What essential features of Germany as a country and a federal state can you mention?

23. What details concerning making appointments should a businessperson traveling to Germany know? (punctuality, modes of arranging a meeting, working hours, vacation period, etc.)

24. What are the peculiarities of German business practice?

25. What is German business culture characterized by?

26. What type of language should be used at the meeting?

27. Negotiation techniques and decision making on Germany.

28. What do you know about business entertaining and protocols in Germany? (greetings, titles, form of address, etc.).

29. What should a business traveler to China know about the country background?

30. How can you describe Chinese national character?

31. What are principles of Chinese business behavior?

32. What do you know about scheduling of appointment and negotiation strategies in China? (The role of hierarchy in Chinese business culture; key points of decision-making in).

33. What is the attitude to contracts in China?

34. What is important to know about business entertaining and protocol in China?

35. What background information about Japan (history, type of government, language, religion) are you aware of?

36. What are the most distinctive Japanese national characteristics?

37. What is common Japanese business behavior?

38. What are the rules of making appointments and exchanging business cards in Japan?

39. What negotiating strategies of Japanese businessmen do you know? (The importance of intermediary in doing business.)

40. What are the essential points of business entertaining and protocols (greetings, form of address, dress code etc.) in this Asian country?

41. The ways of introducing people in business communication. Give examples of expressions.

42. What are the rules of greeting and farewell when meeting with business partners? Give the examples.

43. What a businessperson should do to express disagreement during negotiations? Dive the examples of polite and less polite formulas.

44. How a businessperson should behave closing a meeting and signing up a contract? Give examples of expression used in these situations.

GLOSSARY

Acculturation - explains the process of cultural and psychological change that results following meeting between cultures.

Agenda - the list of topics to be covered during the negotiation sessions.

Bona Fides - Latin from “good faith”, it refers to documents, materials and promises that show commitment by a company or individual to a peculiar line of business, a deal or an outcome.

Buddhism - a religious teaching propagated by the Buddha and his followers, which declares that by destroying greed, hatred, and delusion, which are the causes of all suffering, man can attain perfect enlightenment.

Christianity - religion based on the person and teachings of Jesus Christ, or its beliefs and practices.

Collectivism - a cultural value that places great emphasis on the harmony of the group and appreciates individuals who cede their needs and wants to that of the group.

Confucianism - the ethical system of Confucius, the Chinese philosopher and teacher of ethics (551-479 BC), emphasizing moral order, the humanity and virtue of China's ancient rulers, and gentlemanly education.

Corporate culture - a blend of the values, beliefs, taboos, symbols, rituals and myths all companies develop over time.

Cross-cultural - a comparison of beliefs and attitudes of different cultures and nationalities with another set of beliefs and attitudes. In management it is a concept that deals with the challenge of managing a team of workers from different cultures.

Cultural imperialism - is defined as the cultural aspects of imperialism. Imperialism, here, is referring to the creation and maintenance of unequal relationships between civilizations favoring the more powerful civilization. Cultural imperialism can take various forms, such as an attitude, a formal policy, military action, so long as it reinforces cultural hegemony.

Cultural risk - the risk of business blunders, poor customer relations, and wasted negotiations that results when firms fail to understand and adapt to the differences between their own and host countries' cultures.

Cultural universals - a cultural universal (also called an anthropological universal or human universal), is an element, pattern, trait, or institution that is common to all human cultures worldwide. Taken together, the whole body of cultural universals is known as the human condition.

Culture shock - a mental and physical condition that affects a traveler when everything that was once familiar to them - language, food currency, values, - suddenly vanishes because they have traveled to a new culture.

Ethics - moral principles and values of an individual or company in personal and business relationships. Cultural influences and attitudes usually have a great impact on ethics.

Ethnocentrism - belief in the intrinsic superiority of the nation, culture, or group to which one belongs, often accompanied by feelings of dislike for other groups.

Etiquette - the codes and practices prescribed by social convention that govern correct behavior in all social situations and interactions from personal to business.

Focus group - a group of people assembled to participate in a discussion about a product before it is launched, or to provide feedback on a political campaign, television series, etc

Go-between - a third party that may or may not be known to one or both parties to conduct business transactions. The role of the go-between is usually to set up an introduction for a foreign business in the go-between's country.

High context culture refers to a culture's tendency to use high context messages over low context messages in routine communication. In a high context culture, many things are left unsaid, letting the culture explain. Words and word choice become very important in higher context communication, since a few words can communicate a complex message very effectively to an in-group but less effectively outside that group.