A Tip for American Business People Dealing With International Trade

A good tip for business people in international trade dealings is relating to your trading partner and understanding their business methods. Giving importance to that will lead you to an axiom in business relationship which is the common knowledge of and interest in language, religion, or ethnicity of your business partner. American business people that would put this into serious consideration would have an edge over others.  Before venturing in an international trade, it would be valuable to have a basic knowledge of the formalities that apply to a foreign country one is about to deal with. Observance of cultural etiquette specific to the business partner’s country will show respect and care that is seldom expressed in the  international business scene.

It is inevitable nowadays, given its size and power in the business world, for the United States to be a trading partner for almost every nation entering in the international trade. American businesses could be more successful in international trade if they directed their efforts to providing a form of cultural training that could go hand in hand with international trade. Perhaps integrating the discipline of Anthropology would helpful.  Anthropology is the study of people, their culture and how they function in all facets of society, often with a concentration in one particular part of the world. A person with culturally specific knowledge as well as trade knowledge will be an important asset in being a portal to a foreign company’s business and trade methods. Having sufficient cultural knowledge of a foreign country that one is about to deal with would help in understanding their business practices.  This will enable one to do business with them more economically and more sensitively, much more so than someone lacking the cultural training. In effect, this will bring in more business opportunities in the future.

This article is made available so that no business company would have the same pitfall as Chevrolet experienced as it marketed its Chevrolet Nova in Mexico. It is a familiar story in the business industry where had the company had a representative who was familiar with the language of Mexico, they would have learned sooner that Nova in Spanish means “no go”.  If Chevrolet had involved people with knowledge of the customs and language in Mexico when doing business there, they could probably have avoided this mistake, perhaps by simply marketing the car under a different name.

As an American businessman may know what product is important to a specific country, it is clearly useful to note that knowing how that product works in their society and what investments they have in the market that is centered around the product will give the US company a definitive advantage over its competitors. Obviously, further advantage will transpire if a company is willing to invest in the cultural education of their representatives specifically targeting the country with which they are dealing. Chinese businessmen, for example, would most likely prefer a business representative who speaks their language and shows an interest in the cultural attributes of their society. 

Some other examples of cultural differences and formalities: In China, it is rude to begin eating before the host picks up his or her chopsticks. In Japan, it is a norm to show respect for the Japanese culture by offering a slight bow when being introduced. And, in Brazil, it is considered very impolite to cut food with the side of the fork; a knife is required to be used at all times. These and millions of other small cultural practices can be observed, exhibiting an interest in the cultural practices of the country and improving business dealings between international business partners. Because of this, a method of cultural training is becoming increasingly important in trade relations, as the world continues to shrink with technological advances in communication. A system of updating business people interested in keeping up with changing trends in the business world is necessary.  Basic knowledge of language, religious practices, food, and history is already proven (in this article) to be  helpful when interacting in the business world of a country abroad. Now, as the American business will incorporate efforts to become familiar with the specifics of that foreign business, the trade relationship is expected to run suaver.