International Business Center Newsletter
Volume 2 - Issue 3

Welcome to this issue of the

In this issue:


International Business Center Newsletter


Quick Intro

1) We received a lot of interest and positive feedback on Kimberley Roberts' International Success Tips article titled "Business Meeting Gifts - Part I" in the May IBC Newsletter.

With stability returning to the World, global business travel is beginning to increase and face-to-face meetings will occur more frequently.

Therefore, this month's Part II of "Business Meeting Gifts" has been expanded, with key information on gift giving and receiving you won't want to miss.

2) We received an e-mail asking, "Since you have an International Website what countries do your visitors come from?"

We did a tally, and in the past 60 days we had visitors from 122 different countries. We posted the list Here.

3) The International Association of Web Masters and Designers (I.A.W.M.D.) has presented a Golden Web Award for 2003-2004 to the InternationalBusinessEtiquette.com Website.

"The Web-Design-help4u.com team did an outstanding job and we're very pleased to be recognized by the I.A.W.M.D. for our work. As a relatively small organization focused on e-business solutions, we are proud to receive commendations for excellence in website development," said Stephen Taylor, Director of the International Business Center.


- Quick Into

- International Success Tips - Gift Giving
by Kimberley Roberts

- Geert Hofstede Q&A
by Stephen Taylor, Director IBC

- Geert Hofstede Site Gains Popularity


S P A M - Unfortunately we are seeing more aggressive filters being implemented by major ISPs such as Netzero, Yahoo, AOL, Compuserve, AT&T, MSN, and others.

Just like you, we hate S P A M that comes unsolicited to our e-mail boxes. But we also like to receive the free newsletters and e-zines that bring a wealth of knowledge and information to our lives.

More and more, our freedom to receive what we want is being compromised by Industry filters and blacklists that screen out the good, as well as the bad. The proverbial 'throwing the baby out with the bath water'.

We work to send you the highest quality international business newsletter each month, and we hope you will continue to receive it.

Please send your comments to: feedback@ibc-mail.com


International Success Tips by Kimberley Roberts

Business Meeting Gifts - Part II

Continuing from the gift giving overview in Part I last month, today's article will give you more details regarding cultural and religious traditions surrounding gifts, some of the reasoning behind the symbolism, and most important, helping you make the right decisions when it comes to business gift giving.

Cultures with detailed rituals for the ceremony of gift giving are the Japanese and the Chinese. And Nomadic cultures in the Middle East have a tradition of hospitality to travelers, while Latin cultures consider all relationships as personal. So any country with a population from these cultural backgrounds will exchange gifts as a normal part of building relationships and doing business.

Gifts are a symbolic way to show appreciation and further relationships and in European cultures they are given, but not as frequently. And there isn’t the detailed protocol for presenting a gift, except avoiding colors or flowers traditionally used for funerals, or romance. Australia, Canada, New Zealand, United Kingdom, United States, and Europe fall into this category.

In today’s world, with global companies, as well as countries populated and influenced by different religions and cultures, it’s important to develop good business relationships by taking the time to learn more about the person you’re doing business with. This knowledge will give you insight into choosing more meaningful gifts, that the recipient will know was specifically selected for him or her, and be more appreciated.

The following details on different cultures and religions are guidelines to follow when selecting and giving gifts.

Chinese Culture

Countries in the world with a Chinese cultural influence, a collectivist attitude, accept gifts with a reserved demeanor. In order not to appear greedy, a gift will not be immediately taken, but refused three times before finally being accepted. Each time it’s refused, you as the giver must graciously continue to offer the gift. And once it’s taken, tell the person you’re happy it’s been accepted.

The gift is offered using both hands and must be gift-wrapped; though it won’t be opened it front of you. It will be set aside and opened later. This tradition eliminates any concern that the recipient’s face might show any disappointment with the gift.

If you’re presented a gift, follow the same process of refusing it three times then accept it with both hands. You’ll also not open it, but wait until later.

In China, official business policy considers gifts as bribes, which are illegal. Though the policy is softening, there may be times when a gift you offer will absolutely not be accepted. Should you find yourself in this situation, graciously say you understand and withdraw it. Waiting until negotiations have concluded will eliminate the appearance of bribery when a gift is presented.

A good guideline if there’s a concern is to offer a gift, saying you’re giving it on behalf of your company. It’s important to always honor the most senior person, so he will be the individual you actually present with the gift, stating you want him to accept it on behalf of his company. This gesture, company to company, will usually circumvent any problem regarding undue influence. If you have several gifts to present, never give the same item to people of different rank or stature. The more senior the person, the more expensive the gift.

Typically one person is not singled out to receive a special gift, especially in front of a group. If you’ve established a good working relationship with someone and want to give a gift, arrange a time when the two of you are alone to present it. Then when you do give it, be sure to say it’s being offered as a gesture of your friendship, not business.

A gift’s value should be commensurate with the level of the business dealings. This applies both to an individual’s gift and a corporate gift. There are times when an expensive gift fits the occasion and circumstance, but an overly extravagant one could create complications or embarrassment, as the recipient may not be able to reciprocate.

In Chinese culture symbolism is important, with colors and numbers having special meaning. For instance, at Chinese New Year, Money may be given in a red envelope; it must be even amount, using an even number of new bills.

Red is a lucky color; pink and yellow represent happiness; and the number 8 is the luckiest number. The colors black, white and blue and the #4, or four of anything, are negatively associated with death or funerals. Also included in this category are clocks, handkerchiefs, and straw sandals.

Sharp objects like knives or scissors represent a ‘severing of a friendship or relationship’- including a business relationship.

You don’t want to inadvertently select a gift that has a negative or unlucky association. And because of the symbolism, it can happen. For instance, a fine writing pen would be a good gift, unless it has red ink.

Early in your business relationships, you may want to make your gift selections from a local store where you’ll be given the proper information and direction. At least it’s wise to have items gift wrapped once you’ve arrived in the country, to eliminate incorrect choices for colors and types of paper.

Japanese Culture

In Japan gift giving is an art form, representing friendship, respect, and gratitude. The ceremony is important; the gift is always in a gift box, or beautifully wrapped in quality paper, and given with great respect. Because the symbolism is what’s important, frequently the actual gift may be very modest.

There’s an expectation a gift will be offered at the first meeting, and gifts will continue to be part of your business dealings. Come prepared to that first meeting with a beautifully wrapped, quality gift that’s not extravagant. It’s a gesture that you’re looking forward to a long lasting relationship.

One custom is to reciprocate with a gift that’s half the value of a gift received. If your gift is too expensive, it could create an awkward situation, even at half the value.

Don’t be surprised however, especially if you’re a high level executive, to receive a lavish gift. The Japanese executive will consider your status and the business relationship when selecting your gift. As I said, it’s an art form.

If you have a gift to present, don’t pop up at the end of the meeting with it. You don’t want to surprise your Japanese associate. The proper procedure is to tell him or her sometime during the meeting that you have a small gift, or gifts, you’ll want to present at the end of the meeting. This verbal cue respects the protocol, and allows the opportunity to make arrangements for any additional people who may need to come into the meeting for the presentation.

When you offer your gift, hold it in both hands and bow, saying words that let the person know, ‘this gift is insignificant in comparison to the importance of the relationship’. Saying it’s “a small thing”, even if the gift is expensive, conveys this sentiment.

The Japanese will politely refuse a gift once or twice before accepting it. And it will not be opened in your presence. When a gift is offered to you, follow this same ceremony. Politely refuse once or twice, and then accept it with both hands, saving it to open later.

In addition to gifts being routinely given for various occasions or meetings, there are two ‘gift giving’ seasons each year. One is mid-summer (O-Chugen) and the other at the end of the year (O-Seibo). A gift should be given during each of these seasons.

Gifts of food or liquor (cookies, expensive candy, and fruit) are always good choices especially for modest gifts. If you’re bringing a gift from your home country, make sure it’s not ‘made in Japan’. And don’t select company items with your logo that may be a promotional item and look cheap.

Because of the long held traditions, you may choose to shop for, or at least have your gifts wrapped by a store, after you arrive in Japan. This way you’ll know your gift will be correct.

In Japan symbolism is important. A gift with a pair of items is considered lucky, but sets of four or nine are unlucky.

Plus, the number 4 also means death; and the color red is associated with funerals, so don’t give a pen with red ink, and don’t write out a card using red. Books aren’t appropriate; and sharp objects like knives, scissors, and letter openers symbolize ‘severing a relationship’.

Rather than looking at the ceremony and symbolism as obstacles, learn about them so you’re comfortable. Then this wonderful tradition of exchanging gifts will add to the enjoyment of your business relationships.

Latin Culture

Latin cultures don’t have formal or traditional ceremonies surrounding gift giving. However, business relationships are developed as personal relationships. And in order to build a strong and lasting friendship, gifts are a thoughtful way to make a good first impression, and socially continue showing generosity, appreciation, and kindness.

Because relationships become personal, find out about your Latin counterpart or client’s lifestyle. Then using these details, select insightful gifts that will reflect how important this person is. Always have the gift wrapped in a quality paper, as this is a subtle detail that can express the value of the relationship.

If you’re a man giving a business gift to a female, in order for the gift not to be construed as a romantic overture, tell her you’re delivering the gift to her on behalf of your wife, or your secretary.

Symbolism in this culture will also influence the choices you make for gifts and wrapping paper. Black or purple paper isn’t used because it’s used during Holy Week.

Items associated with death or funerals that wouldn’t be used include handkerchiefs, and yellow, red or white flowers.

As in other cultures, sharp objects such as knives or scissors should never be given, since they represent a ‘severing of a relationship’.

Jewish

Orthodox Jews are not allowed to eat pork and shellfish. The dietary laws are very specific regarding which foods are acceptable to eat, and their processing and preparation. The foods that meet these stringent regulations are called kosher foods and have kosher labels.

Because wine is used in religious ceremonies, it’s required to be kosher even for social drinking. So all wine and wine-based drinks consumed must be kosher, prepared and bottled by Jews.

Unlike wine, other types of alcohol are not required to be kosher. Therefore, you can select a fine bottle of liquor to give to a Jewish client or associate if he drinks.

If you want to buy a gift of food or wine, it’s best to shop at a kosher store to guarantee you’ll be giving an acceptable gift to your Jewish business associate. Even fruit should be purchased there to insure it’s been properly inspected.

Muslim

In the Muslim culture, the Koran forbids alcohol. Gifts of liquor or any product that contains alcohol, such as perfume, would never be selected to give. Also, forbidden are products or foods from scavengers, which includes pork, birds, and shellfish. So a leather item made from pig skin or ostrich could not be given, nor any food from these groups.

Other categories are also not appropriate for gifts. These include personal clothing items, which are far too personal to give as gifts. Dogs are considered unclean, so any dog item, even something with a picture of a dog would not be given. And knives because they have a sharp edge – severing relationships- are not appropriate.

Artwork that consisted of sculptures, drawings or photos showing the human body, especially a nude or partially nude female body, is not acceptable as a gift. And although nicotine is discouraged, it’s frequently used in the Arabic and Middle Eastern countries.

A good gift for a devout Muslim is a compass. Each day he must face Mecca for prayers. With a compass, no matter where in the world he happens to be, he can easily find the correct direction.

If you’re in a country that’s not predominantly Muslim, and you’ll be entertaining Muslim business associates, select a restaurant that serves halal food. And don’t have alcohol served, especially if any government or religious officials are attending, even if you know your guests may drink in private. It’s far better to stay more conservative when entertaining.

Gifts are presented using the right hand, or both hands. The left hand is never used alone to hand someone a gift, as it’s considered unclean.

Hindu

In the Hindu culture the cow is sacred, plus fish and all animal products except milk or butter are shunned. Therefore, you would never select any leather or food product from these categories.

Most Hindus also don’t drink alcohol. Though some will, especially if westernized, don’t ever offer a gift of liquor unless you know the person drinks, and you’ve verified with him that it would be an acceptable gift. In some cases, the person may drink when traveling abroad or in private, but will not drink in public when in his home country.

Gifts are given and accepted using your right hand, or both hands; never only your left hand, as the left is considered unclean since it’s used for personal hygiene. And gifts are not opened at the time they’re received.

European Root Cultures

Cultures without strong gift giving traditions, European cultures and countries influenced by these cultures, don’t use gifts as an integral component of a business relationship. This doesn’t mean an occasional and appropriate gift is not appreciated. It means, a person is not expected to present a gift on the first meeting, or on a routine basis.

No matter which culture you may be doing business with, it’s always professional to be attuned to opportunities for developing a more comfortable business relationship by hosting a meal, an evening at the theater or a sporting event. These opportunities may present themselves when you travel to the other person’s home country, when the other person comes to your country, or when the two of you are attending a meeting or an international conference in a third locale.

General Gift Categories

There are some countries in which a small gift is expected at the first meeting. These include Japan, Indonesia, Philippines, South Korea, Taiwan, Bolivia, Columbia, Costa Rica, Russia, Poland, and Ukraine.

And in other countries you don’t want to give an item with your company logo. These are Belgium, France, Greece, Italy, Portugal, and Spain.

- Sharp Objects
In many cultures, items with a sharp edge symbolize the severing of a friendship or relationship. In these cases, you wouldn’t select a knife, pair of scissors, or a letter opener for a gift. Because of this common symbolism, it’s better to select a gift from another category, rather than risk making a bad choice.

- Locally Produced Product
If you’re doing business in a country known for producing a particular product, local pride and quality dictate that you wouldn’t offer that item as a gift, especially if it were manufactured elsewhere.

Good examples are: leather and wine in Argentina; leather in Brazil and Uruguay; beer and wine in Germany; wine in France and Italy; vodka in Russia and Poland; scissors in Finland; and silver in Mexico, because it’s considered too common.

- Electronic Gadgets and Office Accessories
Business gifts that are useful for a businessperson, whether an executive or a staff member, are electronic items such as laser pointers, PDAs, calculators, and address books.

- Desk and office accessories that make good gifts include fine quality pens, or pen and pencil sets, business card holders, good leather briefcases or leather organizers for use in the office or in a briefcase.

If the person smokes cigarettes, a nice cigarette lighter could be given.

-
Liquor
A quality bottle of liquor or wine always makes a good gift for someone who drinks alcohol, unless the person lives in a region noted for producing the product.

- Chocolate
Universally, this is a good choice. There are many fine quality chocolates that make exquisite gifts for a business meeting, for taking with you to someone’s home as a hostess gift, or for a thank you to a staff person who’s helped you on a project. Because it can be boxed in various sizes, it also works if you need a gift for a large group.

There’s even kosher chocolate for you to give to your Jewish business associates and clients.

- F
lowers
Flowers can be frequently used as a gift, especially if you’ve been invited to someone’s home. You may want to bring flowers with you to the house, send them prior to the dinner party, or have them sent the following day as a ‘thank you’. It’s best to advise the florist that the bouquet is to be a gift, and the reason for the occasion, so an appropriate selection can be made.

In Europe, the old European tradition of always giving an odd number of flowers is still followed today (all except 13 which is considered unlucky).

In some cultures a particular color or type of flower is associated with romance or funerals, and would not be chosen to give a hostess. Red roses are frequently considered romantic. Funeral associations frequently occur with lilies or calla lilies, chrysanthemums, Frangipani, white roses, marigolds, carnations, heather, and white or purple flowers. In some Latin countries, yellow flowers symbolize contempt.

Conclusion

How do you become known as someone others want to do business with, whether across the street, or around the world? Besides being knowledgeable about your product or service, develop a rapport that builds long-term relationships.

A good resource to help build that rapport is a personal reference book you create and use throughout your career. A key category is filled with information you learn about the people you interact with. Many times it’s the small details that can make the best impression.

By recording these details – preferences, hobbies, interests – when it’s time to buy a gift, you’re gift will reflect the person receiving it. A preferred brand of whiskey, dinner at a favorite restaurant, a special or custom made item for frequent sporting activity, like personalized golf balls or a fishing pole.

The recipient will know through subtle details that he or she is important, and the business relationship will flourish.

Feedback Requested

Giving and receiving gifts properly is an important part of international business. Therefore, Kimberley would very much like to receive input from our global newsletter subscribers on gift-giving suggestions for their country. Please send your ideas directly to Kimberley Roberts at

CLICK HERE to receive Kimberley's new ClassyTips newsletter each week


Geert Hofstede Q&A
by Stephen Taylor, Director of the International Business Center

We encourage and receive a number of questions submitted by visitors to the International Business Etiquette, International Business Center, International Business Careers, and Geert Hofstede Websites. We periodically share some of these questions and answers here for the IBC Newsletter subscribers.

Question from Canada - What are the possible shortcomings of the individualism/collectivism classification for international marketers?

Answer: We're not sure what you mean by 'shortcomings'. However, the implications of the individualism versus collectivism ranking can be significant for international marketers.

If a culture is individualist, then marketing to this style would include emphasis on how the product or service will enhance the individual's recognition and differentiation. It may also include segmentation/differentiation by age, income, education, etc. An example is the US where the teenage segment is marketed products that differentiate
them from other groups - even sub-segmentation by specific ages of the teen. The bottom line, people want to be recognized for their uniqueness, even if that means joining others around them in a similar way (I want to be
different, but not too different).

The antithesis of the above is the collectivist culture, where the market is penetrated by emphasis on 'joining' with others, and the subsequent benefit to the entire society by that 'joining' and participation that takes place. Again, an example would be the history in China where everyone wore virtually the same design of clothes, the Mao look. It is important to show that by buying the product or service, a person does not 'stand out', but 'fits in' to the group. Obtaining 'buy-in' from top societal leaders can be an important step in cultivating these markets.

Question from Jamaica - What impact does culture have on International Business?

Answer: This is a very good question because it underlies the purpose of Geert Hofstede's work to establish cultural Dimensions through research with IBM employees at facilities around the world.

His research demonstrates the significant differences between cultures and therefore the way people behave differently based on their culture, i.e. Power Distance, Individualism versus collectivism, Masculinity versus Femininity, Uncertainty Avoidance, and of course Long-term versus Short-term orientations.

Differences in each of these areas can create potential problems in the workplace, both between individual employees, as well as between managers and corporate operations in different parts of the world.

Based upon Hofstede’s research, and that of subsequent scholars, Culture, which closely correlates to religion, is a primary motivational driver that can impact virtually every decision an individual makes. Therefore, to practice international business without clearly understanding the importance and impact of a culture on the people you are conducting business with can be a prescription for failure – both business and personal.

Question from the Netherlands - Do you have information about the level of "masculinity" and "femininity"
in the Hungarian and Czech culture?

Answer: Based on Geert Hofstede's cultural Dimensions, Belgium has a Masculinity index of 54 and the Czech Republic has 45, compared to a world average of 50, and a European average of 59.

Using these scores, we can hypothesize that the male populations in these two countries are not "overly aggressive or assertive", yet not "modest". Therefore, neither country has an exaggerated, or over compensated position in the area of Masculinity and Femininity.

On the other side, women do have the ability to take on some level of masculinity, as the male population does have a moderate level of strength in their masculine positions.

That is, the women do not over-compensate to the masculine side due to an excessive amount of masculinity within the male population. This type of over-compensation can be seen in countries such as Austria (index of 79) and Hungary (index of 79), see these European locations:

http://www.geert-hofstede.com/hofstede_austria.shtml
http://www.geert-hofstede.com/hofstede_hungary.shtml

or, Japan (index of 95) and Venezuela (index of 73) , see these locations:

http://www.geert-hofstede.com/hofstede_japan.shtml
http://www.geert-hofstede.com/hofstede_venezuela.shtml

The high Masculinity ranking among the four countries above (Austria, Hungary, Japan, and Venezuela) is indicative that they will experience a higher degree of gender differentiation of roles. The male dominates a
significant portion of the society and power structure. This situation generates a female population that becomes more assertive and competitive, although not at the level of the male population. In the case of Japan, although the male controls the 'public' arena, the female compensates by having a very strong and dominant position in the 'private' arena - the home.

There is some additional information at these locations:

http://www.geert-hofstede.com/hofstede_belgium.shtml
http://www.geert-hofstede.com/hofstede_czech_republic.shtml

***


Geert Hofstede site gains popularity

The new Geert Hofstede Website is receiving more visitors each day since its introduction in April. The site has taken one of the favorite components of the International Business Etiquette Website, the Hofstede graphs, and made them better, added more countries, and incorporated new information with a new site design.

We encourage schools, organizations, and businesses to link to this new site and its great resources. If you're a business school student, talk to your professor about this new site and incorporating it into the lesson plan resources.


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About the International Business Center newsletter
The IBC Newsletter is sent monthly to international executives, managers, supervisors, and international business school students. The Newsletter focuses on issues, information, and trends of importance to conducting business on a Global perspective.

For more information and resources for Global Business visit our website at: International Business Center

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