International Business

Part I

Working with multiple countries that have very different values, cultures, negotiation models and tactics, creates numerous unique challenges. Language barriers, verbal and nonverbal communications differences, pre-judgments are all variables that play a part in the cultural phenomenon, that involves the groups staying within their own groups and not mingling. Stereotypes of the U.S. culture are likely at play here and the fact that the meeting is being held on United States soil. Foreign countries find Americans to be informal in relationships, overly formal in business attire and workaholics whom do not spend enough time with their families. As far a business meetings and negotiations they view Americans as overly concerned with time and money, they find us to be unfriendly, impersonal and cold because we expect meetings to start on time, like to stick to agendas and like to get right to business discussions. The fact that rank, status and age do not play a large role in the business environment tends to make foreigners uneasy.

To obtain a better understanding of the dynamics in this meeting we need to look at each country involved.

United Arab Emirates economy included farming, crafts, modern industries and support services. They have a large population of well-educated people whom are very versed in the English language. Growth inhibitors in this are include, high illiteracy, weak infrastructure and fiscal deficit.

The UAE is a federation of seven emirates, the Federal Supreme Council is made up of seven emirate rulers. They elect the president and vice president for a five year term, the terms are unlimited.

In the UAE, children are required to go to school from age 6 to 12. After kindergarten boys and girls are sent to separate schools.

Extended family is very important in UAE. Women can own property and businesses and are the core of the family. The average family has 5 children and the government offers economic incentives to families to have children.

China's government supports the growth of its private sector. A large portion of China is employed in agriculture. China is the third largest trading partner of the United States.

In China the National People's Congress elects the president and the vice president for a five-year term. They can serve two terms.

In China children attend school six days a week. China has a very high literacy rate, although only 10% attend college.

In China family is more important than the individual, women whom work outside the home are still responsible for their home. Chinese are committed to helping each other should the need arise and place extremely high value to honor.

Germany is one of the largest economies in Europe and in the world. Free enterprise and private ownership are a large basis of their economy. Germany is one of the largest exporters in the world.

Germany is a federal republic, the president is elected by members of federal and state legislatures for five year terms, with a maximum of two terms.

Germans have an extremely high literacy rate, school is mandatory from age 6 to 15. Germans must choose technical training or college training at the age of 13.

In Germany families tend to be smaller, one to two children. It is common for both parents to work.

Brazil is one of the fastest growing economies with a sophisticated technological sector. Brazil develops projects that range from aircraft, space research and is a pioneer in ethanol production.

Brazil is a presidential and federative republic with considerable decentralized federalism. It is composed of twenty-six states and the Federal District (Brasília). ("Brazil structure," 2010)

Education in Brazil has an alarmingly low literacy rate of 32%. Steps have been taken in recent years to address this but many students drop out of school because they have to start working earlier to increase the family income.

Traditionally, family is the foundation of social structure in Brazil. Brazilian families tend to be large and when a couple married, the individuality of that couple as a new household is recognized and respected. Close family ties also carry over into the business world as well. Nepotism is actually encouraged and looked at as a way to hire employees you know and trust. However, it is such "positions of trust" that also open the door for corruption in the Brazilian government.

Cultural differences have lead up to this communication standoff and it is important to have researched how each county begins negotiation and relationships.

UAE's tend to want to spend some time wanting to getting to know and becoming comfortable with you prior to proceeding with serious business discussions. Talking about friends and family is important in building the relationship. They will expect you to be committed to the relationship for many years to come. Showing respect for others is critical, causing embarrassment to another person can be detrimental to your negotiations, as you caused a loss of face. UAE's tend to be very polite and friendly and prefer to do business with people whom treat them well and genuinely like them. The majority of business people in this culture speak English well, but one should speak in short, simple sentences. They tend to speak in gently, quite tones, so you should remain calm and speak softly.

Brazilian's expect strong bonds before closing any deals. They will only proceed with serious business discussions after they have become very comfortable with you. You will have to invest significant time and money into the relationship. Many business people from Brazil speak at least some English. Brazilian's also do not like loud and boisterous behavior.

Chinese like to build relationships first, they believe successful transactions come from successful friendships. Chinese do not like to be misled, once trust is lost, it is very difficult to restore. Chinese will only proceed with serious discussions when they have become comfortable with you. Chinese businesspeople speak at least some English but their command of the language may be limited. They also speak in quite, gentle tones and hold emotional restraint in high regard.

German's only consider business relationships as moderately important. They expect to get to know you as you do business together. They do however value trust and appear very cautious and reserved until trust has been established. Germans like to keep business and private life separate, it could take years to build a strong personal relationship with them. German's

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