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Asian Business Culture
In Asia, it is important to be aware of significant
cultural features. Apart from
having a general understanding of the historical and cultural
background of
the country you are dealing with, the more commonplace business
culture in
Asian countries includes toasting at banquets, handclasp, swapping
cards and after-dinner activities such as singing at Karaoke clubs.
Asian negotiators have a reputation for being forceful, determined,
and willing to take advantage of any weakness or opening. In order
to negotiate successfully in Asia, Western companies should be
sensitive to morals, behaviour patterns and psychology, as well
as business matters. The following is a list of points that companies
doing business in Asia should consider, and tactics they should
expect to come across during negotiations:
-
Asian businesspeople will react unfavourably
to a person they consider to be ill mannered, inconsiderate
or conceited and welcome someone who is honest, courteous and
determined in approach.
-
Asian cultures place an emphasis on establishing
a relationship, and so
will focus on learning about your company before concentrating
on the
agreement.
-
Avoid embarrassing people and causing them
to lose face in the presence of others. If possible, criticise
in private, or even better, use an
intermediary to convey.
-
Conduct a feasibility study on the Asian company
prior to your first meeting.
- Research current economic conditions and government policies
as
thoroughly as you can.
- Eating and drinking play a key role in business in Asia, and
it is often
during dinner that the most important business relationships develop.
- Gift giving is normal Asian business practice and only small
gifts are
necessary (e.g. bottle of alcohol, carton of cigarettes etc.).
Lavish gifts may indicate that a special favour is expected in
return, so beware.
- Good preparation is essential in order to achieve an acceptable
result.
- Expect your opposition to know your company, your products and
the
industry and to ask penetrating questions.
- In most negotiating sessions, businesspeople will speak both
their native language and English. Western negotiators should
therefore have available a native speaker on their team.
- Negotiations really only begin as the venture progresses, and
the real
substance of the relationship develops as the two parties negotiate
issues and events, which arise on a daily basis.
- For substantial investments, on the- ground representation is
particularly crucial to success.
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