{"id":604,"date":"2015-04-22T20:00:26","date_gmt":"2015-04-22T20:00:26","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&p=604"},"modified":"2015-07-11T03:44:50","modified_gmt":"2015-07-11T03:44:50","slug":"reading-the-global-business-environment","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/chapter\/reading-the-global-business-environment\/","title":{"raw":"Reading: The Global Business Environment","rendered":"Reading: The Global Business Environment"},"content":{"raw":"

The Global Business Environment<\/h2>\r\nIn the classic movie The Wizard of Oz<\/em>, a magically misplaced Midwest farm girl takes a moment to survey the bizarre landscape of Oz and then comments to her little dog, \u201cI don\u2019t think we\u2019re in Kansas anymore, Toto.\u201d That sentiment probably echoes the reaction of many businesspeople who find themselves in the midst of international ventures for the first time. The differences between the foreign landscape and the one with which they\u2019re familiar are often huge and multifaceted. Some are quite obvious, such as differences in language, currency, and everyday habits (using chopsticks, say, instead of silverware). But others are subtle, complex, and sometimes even hidden. Success in international business means understanding a wide range of cultural, economic, legal, and political differences between countries. Let\u2019s look at some of the more important of these differences.\r\n
\r\n
\r\n

The Cultural Environment<\/h3>\r\nEven when two people from the same country communicate, there\u2019s always a possibility of misunderstanding. When people from different countries get together, that possibility increases substantially. Differences in communication styles reflect differences in culture<\/span><\/span>: the system of shared beliefs, values, customs, and behaviors that govern the interactions of members of a society. Cultural differences create challenges to successful international business dealings. We explain a few of these challenges in the following sections.\r\n
\r\n

Language<\/h3>\r\nEnglish is the international language of business. The natives of such European countries as France and Spain certainly take pride in their own languages and cultures, but nevertheless English is the business language of the European community. Whereas only a few educated Europeans have studied Italian or Norwegian, most have studied English. Similarly, on the South Asian subcontinent, where hundreds of local languages and dialects are spoken, English is the official language. In most corners of the world, English-only speakers\u2014such as most Americans\u2014have no problem finding competent translators and interpreters. So why is language an issue for English speakers doing business in the global marketplace?\r\n\r\nIn many countries, only members of the educated classes speak English. The larger population\u2014which is usually the market you want to tap\u2014speaks the local tongue. Advertising messages and sales appeals must take this fact into account. More than one English translation of an advertising slogan have resulted in a humorous (and perhaps serious) blunder. Some classics are listed in Table 1 below.\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Table 1. Lost in Translation<\/th>\r\n<\/tr>\r\n<\/thead>\r\n
In Belgium, the translation of the slogan of an American auto-body company, \u201cBody by Fisher,\u201d came out as \u201cCorpse by Fisher.\u201d<\/td>\r\n<\/tr>\r\n
Translated into German, the slogan \u201cCome Alive with Pepsi\u201d became \u201cCome out of the Grave with Pepsi.\u201d<\/td>\r\n<\/tr>\r\n
A U.S. computer company in Indonesia translated \u201csoftware\u201d as \u201cunderwear.\u201d<\/td>\r\n<\/tr>\r\n
A German chocolate product called \u201cZit\u201d didn\u2019t sell well in the United States.<\/td>\r\n<\/tr>\r\n
An English-speaking car-wash company in Francophone Quebec advertised itself as a \u201clavement d\u2019auto<\/em>\u201d (\u201ccar enema\u201d) instead of the correct \u201clavage d\u2019auto<\/em>.\u201d<\/td>\r\n<\/tr>\r\n
A proposed new soap called \u201cDainty\u201d in English came out as \u201caloof\u201d in Flemish (Belgium), \u201cdimwitted\u201d in Farsi (Iran), and \u201ccrazy person\u201d in Korea; the product was shelved.<\/td>\r\n<\/tr>\r\n
One false word in a Mexican commercial for an American shirt maker changed \u201cWhen I used this shirt, I felt good\u201d to \u201cUntil I used this shirt, I felt good.\u201d<\/td>\r\n<\/tr>\r\n
In the 1970s, GM\u2019s Chevy Nova didn\u2019t get on the road in Puerto Rico, in part because Nova<\/em> in Spanish means \u201cIt doesn\u2019t go.\u201d<\/td>\r\n<\/tr>\r\n
A U.S. appliance ad fizzled in the Middle East because it showed a well-stocked refrigerator featuring a large ham, thus offending the sensibilities of Muslim consumers, who don\u2019t eat pork.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\nFurthermore, relying on translators and interpreters puts you as an international businessperson at a disadvantage. You\u2019re privy only to interpretations<\/em> of the messages that you\u2019re getting, and this handicap can result in a real competitive problem. Maybe you\u2019ll misread the subtler intentions of the person with whom you\u2019re trying to conduct business. The best way to combat this problem is to study foreign languages. Most people appreciate some effort to communicate in their local language, even on the most basic level. They even appreciate mistakes you make resulting from a desire to demonstrate your genuine interest in the language of your counterparts in foreign countries. The same principle goes doubly when you\u2019re introducing yourself to non-English speakers in the United States. Few things work faster to encourage a friendly atmosphere than a native speaker\u2019s willingness to greet a foreign guest in the guest\u2019s native language.\r\n\r\n<\/div>\r\n
\r\n

Time and Sociability<\/h3>\r\nAmericans take for granted many of the cultural aspects of our business practices. Most of our meetings, for instance, focus on business issues, and we tend to start and end our meetings on schedule. These habits stem from a broader cultural preference: we don\u2019t like to waste time. (It was an American, Benjamin Franklin, who coined the phrase \u201cTime is money.\u201d) This preference, however, is by no means universal. The expectation that meetings will start on time and adhere to precise agendas is common in parts of Europe (especially the Germanic countries), as well as in the United States, but elsewhere\u2014say, in Latin America and the Middle East\u2014people are often late to meetings.\r\n\r\n<\/div>\r\n
\r\n

High- and Low-Context Cultures<\/h3>\r\nLikewise, don\u2019t expect businesspeople from these regions\u2014or businesspeople from most of Mediterranean Europe, for that matter\u2014to \u201cget down to business\u201d as soon as a meeting has started. They\u2019ll probably ask about your health and that of your family, inquire whether you\u2019re enjoying your visit to their country, suggest local foods, and generally appear to be avoiding serious discussion at all costs. For Americans, such topics are conducive to nothing but idle chitchat, but in certain cultures, getting started this way is a matter of simple politeness and hospitality.\r\n\r\nIf you ever find yourself in such a situation, the best advice is to go with the flow and be receptive to cultural nuances. In high-context cultures<\/span><\/span>, the numerous interlocking (and often unstated) personal and family connections that hold people together have an effect on almost all interactions. Because people\u2019s personal lives overlap with their business lives (and vice versa), it\u2019s important to get to know your potential business partners as human beings and individuals.\r\n\r\nBy contrast, in low-context cultures<\/span><\/span>, such as those of the United States, Germany, Switzerland, and the Scandinavian countries, personal and work relationships are more compartmentalized: you don\u2019t necessarily need to know much about the personal context of a person\u2019s life to deal with him or her in the business arena.\r\n\r\n<\/div>\r\n
\r\n

Intercultural Communication<\/h3>\r\nDifferent cultures have different communication styles<\/em>\u2014a fact that can take some getting used to. For example, degrees of animation in expression<\/em> can vary from culture to culture. Southern Europeans and Middle Easterners are quite animated, favoring expressive body language along with hand gestures and raised voices. Northern Europeans are far more reserved. The English, for example, are famous for their understated style and the Germans for their formality in most business settings. In addition, the distance<\/em> at which one feels comfortable when talking with someone varies by culture. People from the Middle East like to converse from a distance of a foot or less, while Americans prefer more personal space.\r\n\r\nFinally, while people in some cultures prefer to deliver direct, clear messages, others use language that\u2019s subtler or more indirect. North Americans and most Northern Europeans fall into the former category and many Asians into the latter. But even within these categories, there are differences. Though typically polite, Chinese and Koreans are extremely direct in expression, while Japanese are indirect: They use vague language and avoid saying \u201cno\u201d even if they do not intend to do what you ask. They worry that turning someone down will result in their \u201closing face,\u201d and so they avoid doing this in public.\r\n\r\nThis discussion brings up two important points. First, avoid lumping loosely related cultures together. We sometimes talk, for example, about \u201cAsian culture,\u201d but such broad categories as \u201cAsian\u201d are usually oversimplifications. Japanese culture is different from Korean, which is different from Chinese. Second, never assume that two people from the same culture will always act in a similar manner. Not all Latin Americans are casual about meeting times, not all Italians use animated body language, and not all Germans are formal.\r\n\r\nIn summary, learn about a country\u2019s culture and use your knowledge to help improve the quality of your business dealings. Learn to value the subtle differences among cultures, but don\u2019t allow cultural stereotypes to dictate how you interact with people from any<\/em> culture. Treat each person as an individual and spend time getting to know what he or she is about.\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"

The Global Business Environment<\/h2>\n

In the classic movie The Wizard of Oz<\/em>, a magically misplaced Midwest farm girl takes a moment to survey the bizarre landscape of Oz and then comments to her little dog, \u201cI don\u2019t think we\u2019re in Kansas anymore, Toto.\u201d That sentiment probably echoes the reaction of many businesspeople who find themselves in the midst of international ventures for the first time. The differences between the foreign landscape and the one with which they\u2019re familiar are often huge and multifaceted. Some are quite obvious, such as differences in language, currency, and everyday habits (using chopsticks, say, instead of silverware). But others are subtle, complex, and sometimes even hidden. Success in international business means understanding a wide range of cultural, economic, legal, and political differences between countries. Let\u2019s look at some of the more important of these differences.<\/p>\n

\n
\n

The Cultural Environment<\/h3>\n

Even when two people from the same country communicate, there\u2019s always a possibility of misunderstanding. When people from different countries get together, that possibility increases substantially. Differences in communication styles reflect differences in culture<\/span><\/span>: the system of shared beliefs, values, customs, and behaviors that govern the interactions of members of a society. Cultural differences create challenges to successful international business dealings. We explain a few of these challenges in the following sections.<\/p>\n

\n

Language<\/h3>\n

English is the international language of business. The natives of such European countries as France and Spain certainly take pride in their own languages and cultures, but nevertheless English is the business language of the European community. Whereas only a few educated Europeans have studied Italian or Norwegian, most have studied English. Similarly, on the South Asian subcontinent, where hundreds of local languages and dialects are spoken, English is the official language. In most corners of the world, English-only speakers\u2014such as most Americans\u2014have no problem finding competent translators and interpreters. So why is language an issue for English speakers doing business in the global marketplace?<\/p>\n

In many countries, only members of the educated classes speak English. The larger population\u2014which is usually the market you want to tap\u2014speaks the local tongue. Advertising messages and sales appeals must take this fact into account. More than one English translation of an advertising slogan have resulted in a humorous (and perhaps serious) blunder. Some classics are listed in Table 1 below.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Table 1. Lost in Translation<\/th>\n<\/tr>\n<\/thead>\n
In Belgium, the translation of the slogan of an American auto-body company, \u201cBody by Fisher,\u201d came out as \u201cCorpse by Fisher.\u201d<\/td>\n<\/tr>\n
Translated into German, the slogan \u201cCome Alive with Pepsi\u201d became \u201cCome out of the Grave with Pepsi.\u201d<\/td>\n<\/tr>\n
A U.S. computer company in Indonesia translated \u201csoftware\u201d as \u201cunderwear.\u201d<\/td>\n<\/tr>\n
A German chocolate product called \u201cZit\u201d didn\u2019t sell well in the United States.<\/td>\n<\/tr>\n
An English-speaking car-wash company in Francophone Quebec advertised itself as a \u201clavement d\u2019auto<\/em>\u201d (\u201ccar enema\u201d) instead of the correct \u201clavage d\u2019auto<\/em>.\u201d<\/td>\n<\/tr>\n
A proposed new soap called \u201cDainty\u201d in English came out as \u201caloof\u201d in Flemish (Belgium), \u201cdimwitted\u201d in Farsi (Iran), and \u201ccrazy person\u201d in Korea; the product was shelved.<\/td>\n<\/tr>\n
One false word in a Mexican commercial for an American shirt maker changed \u201cWhen I used this shirt, I felt good\u201d to \u201cUntil I used this shirt, I felt good.\u201d<\/td>\n<\/tr>\n
In the 1970s, GM\u2019s Chevy Nova didn\u2019t get on the road in Puerto Rico, in part because Nova<\/em> in Spanish means \u201cIt doesn\u2019t go.\u201d<\/td>\n<\/tr>\n
A U.S. appliance ad fizzled in the Middle East because it showed a well-stocked refrigerator featuring a large ham, thus offending the sensibilities of Muslim consumers, who don\u2019t eat pork.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Furthermore, relying on translators and interpreters puts you as an international businessperson at a disadvantage. You\u2019re privy only to interpretations<\/em> of the messages that you\u2019re getting, and this handicap can result in a real competitive problem. Maybe you\u2019ll misread the subtler intentions of the person with whom you\u2019re trying to conduct business. The best way to combat this problem is to study foreign languages. Most people appreciate some effort to communicate in their local language, even on the most basic level. They even appreciate mistakes you make resulting from a desire to demonstrate your genuine interest in the language of your counterparts in foreign countries. The same principle goes doubly when you\u2019re introducing yourself to non-English speakers in the United States. Few things work faster to encourage a friendly atmosphere than a native speaker\u2019s willingness to greet a foreign guest in the guest\u2019s native language.<\/p>\n<\/div>\n

\n

Time and Sociability<\/h3>\n

Americans take for granted many of the cultural aspects of our business practices. Most of our meetings, for instance, focus on business issues, and we tend to start and end our meetings on schedule. These habits stem from a broader cultural preference: we don\u2019t like to waste time. (It was an American, Benjamin Franklin, who coined the phrase \u201cTime is money.\u201d) This preference, however, is by no means universal. The expectation that meetings will start on time and adhere to precise agendas is common in parts of Europe (especially the Germanic countries), as well as in the United States, but elsewhere\u2014say, in Latin America and the Middle East\u2014people are often late to meetings.<\/p>\n<\/div>\n

\n

High- and Low-Context Cultures<\/h3>\n

Likewise, don\u2019t expect businesspeople from these regions\u2014or businesspeople from most of Mediterranean Europe, for that matter\u2014to \u201cget down to business\u201d as soon as a meeting has started. They\u2019ll probably ask about your health and that of your family, inquire whether you\u2019re enjoying your visit to their country, suggest local foods, and generally appear to be avoiding serious discussion at all costs. For Americans, such topics are conducive to nothing but idle chitchat, but in certain cultures, getting started this way is a matter of simple politeness and hospitality.<\/p>\n

If you ever find yourself in such a situation, the best advice is to go with the flow and be receptive to cultural nuances. In high-context cultures<\/span><\/span>, the numerous interlocking (and often unstated) personal and family connections that hold people together have an effect on almost all interactions. Because people\u2019s personal lives overlap with their business lives (and vice versa), it\u2019s important to get to know your potential business partners as human beings and individuals.<\/p>\n

By contrast, in low-context cultures<\/span><\/span>, such as those of the United States, Germany, Switzerland, and the Scandinavian countries, personal and work relationships are more compartmentalized: you don\u2019t necessarily need to know much about the personal context of a person\u2019s life to deal with him or her in the business arena.<\/p>\n<\/div>\n

\n

Intercultural Communication<\/h3>\n

Different cultures have different communication styles<\/em>\u2014a fact that can take some getting used to. For example, degrees of animation in expression<\/em> can vary from culture to culture. Southern Europeans and Middle Easterners are quite animated, favoring expressive body language along with hand gestures and raised voices. Northern Europeans are far more reserved. The English, for example, are famous for their understated style and the Germans for their formality in most business settings. In addition, the distance<\/em> at which one feels comfortable when talking with someone varies by culture. People from the Middle East like to converse from a distance of a foot or less, while Americans prefer more personal space.<\/p>\n

Finally, while people in some cultures prefer to deliver direct, clear messages, others use language that\u2019s subtler or more indirect. North Americans and most Northern Europeans fall into the former category and many Asians into the latter. But even within these categories, there are differences. Though typically polite, Chinese and Koreans are extremely direct in expression, while Japanese are indirect: They use vague language and avoid saying \u201cno\u201d even if they do not intend to do what you ask. They worry that turning someone down will result in their \u201closing face,\u201d and so they avoid doing this in public.<\/p>\n

This discussion brings up two important points. First, avoid lumping loosely related cultures together. We sometimes talk, for example, about \u201cAsian culture,\u201d but such broad categories as \u201cAsian\u201d are usually oversimplifications. Japanese culture is different from Korean, which is different from Chinese. Second, never assume that two people from the same culture will always act in a similar manner. Not all Latin Americans are casual about meeting times, not all Italians use animated body language, and not all Germans are formal.<\/p>\n

In summary, learn about a country\u2019s culture and use your knowledge to help improve the quality of your business dealings. Learn to value the subtle differences among cultures, but don\u2019t allow cultural stereotypes to dictate how you interact with people from any<\/em> culture. Treat each person as an individual and spend time getting to know what he or she is about.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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