The art of doing business is always based upon people deciding to deal with one another. People who share a common background have few problems making the decision to deal, or not to deal when they understand exactly where the other person's position in dealing. There is always the right way, and the wrong way to go about doing business with each other.

International trade requires an understanding of appropriate business etiquette, or business dealings are likely to be difficult. Within the western world, the United States and Europe, business is likely to be quick, and to the point. Time efficiency is usually important to both parties, and deals that make good sense are easy to accomplish. Part of the reason for that is the commonality of backgrounds, and ethics.

Within the realm of international trade, dealing with countries from the Orient can be complicated by what is considered to be proper etiquette from the Oriental background. A close friend of mine remarked to me, "I had to make a trip to Japan just to get to know them. They wouldn't even talk business with me!" A month later he returned to Japan, and completed a deal successfully. On his return trip, they felt comfortable to deal with him because he was then a friend.

In reality, doing business with many eastern countries involves establishing a relationship first, and doing business later. Often, this is more important than the profit motive. To try to deal on the basis of money alone has no honor. Above all else, honoring the person with whom you wish to deal is to establish a relationship first, and leave the business deals until a later date.

The Chinese use the term Guanxi to describe the business relationship. Chinese perceive the significance of a contract differently, and an understanding of their negotiating tactics is essential to achieving the desired results from any business meetings.

Just as there are particular areas of proper business etiquette in China, South American countries can be just as tricky. Showing respect for your potential trading partner is extremely important. Late evening business meetings at social events may include female companions of the South American businessman who are not necessarily his wife. Many important Latino businessmen socialize with girlfriends, and conversations relating to wives and families are a no-no.

The bottom line regarding business etiquette when dealing at the international level is simply to make sure that you are well-informed as to local peculiarities in business dealings. An old Chinese proverb sums this subject up quite well, "You can hardly make a friend in a year, but you can easily offend one in an hour."

Learn more about this author, Bob Schmidt.
Click here to send this author comments or questions.

---

Add your voice

Know something about Understanding business etiquette in international trade?
We want to hear your view. Write now!