week three - culture and business in europe

Question 1

how do the British make contacts

Answer 1

being introduced by third parties can be option, however should not be boasted about

Question 2

how do the British negotiate

Answer 2

• they tend to be cold, distant and professional
• avoid excessive gestures
• meetings start with small talk
• they dislike aggressive tactics such as criticising competitors
• they adopt a problem solving approach
• not influenced by emotion
• they rarely make a decision at the first meeting
• honest, reasonable, caring and considerate

Question 3

what is the bargaining range in Britain

Answer 3

• experienced in doing business abroad
• they may insert a safety margin but they don’t like haggling

Question 4

what is time in british culture like

Answer 4

• they are interested in long term relationships
• punctuality is respected but arriving a bit late is understood

Question 5

what are the social norms in Britian

Answer 5

• wuite hierarchal but teamwork is important
• not a gift-giving culture
• business lunches may take part in pubs or restaurants

Question 6

what are the irritators in Britain

Answer 6

• queues are important
• loud conversations in public should be avoided
• Royal family

Question 7

what doe it mean by France has a ‘regulated’ economy in Europe

Answer 7

• the state has an important role in the economy
• it is one of the most centralised economies in Europe

Question 8

difficulties of doing business in France

Answer 8

• business is highly concentrated
• market is highly competitive
• business structures are hierarchal
• one of the highest productivity rates

Question 9

business culture in france

Answer 9

• they are proud of their language
• they have an air of superiority
• professional relationships prevail over personal relationships
• level of education is important
• highly critical
• negotiation environment is formal and reserved
• arguments tend to be analytical and logical
• not gift-giving culture

Question 10

negotiating in france

Answer 10

• point by point: they are precise
• price is final in negotiations
• they avoid saying no even if they don’t agree
• treatment is formal
• eye contact is frequent and intense

Question 11

economic outlook in germany

Answer 11

• larget European market
• strong purchasing power
• market is saturated
• entry strategies must be planned well
• unemployment is lower than other European countries
• strong exporting industries

Question 12

business culture in germany

Answer 12

• ordnung (order), rules, codes and regulations
• quality of products and services
• using local commercial agents is recommended
• appointments must be requested
• monochronic culture: tardines signal unreliability
• small talk first
• language is clear and direct

Question 13

negotiating culture in germany

Answer 13

• presentations are not interrupted
• detailed contracts (signal end of negotiations)
• little physical contact besides a handshake
• praise can be embarrassing

Question 14

business in italy

Answer 14

• highly regionalised area: adapt to each area
• industry is concentrated in the north (leading to inequalities in the north and south)
• personal relationships are critical, doing business with people they trust
• punctuality is expected in the north, more relaxed in the south

Question 15

negotiating culture in italy

Answer 15

• conducted in familiar environments
• very expressive
• presentation must be aesthetically immaculate
• they value their product so it I better to show how yours could complement theirs rather than competing
• they may make unexpected requests in order to confuse you
• they take a long time
• decisions are based on past experiences
• decisions may require a consensus

Question 16

economic outlook in russia

Answer 16

• crises and imbalance since the fall of the communist regime in 1991
• strong dependence on export of energy and raw materials
• corruption is widespread
• protection of intellectual property is weak
• educational systems have high standards for maths and science
• many joint ventures have failed due to over-regulation or corruption

Question 17

business cultures in russia

Answer 17

• appointments are often cancelled
• first meeting is usually cold
• important to highlight the benefits of cooperating
• better to make a good impression: presentation should be simple and clear
• materials should be presented in russian
• meetings are often interrupted
• homosexuality can affect business

Question 18

negotiating culture in russia

Answer 18

• harsh and aggressive
• they negotiate as if playing chess (highlighting the weaknesses)
• decision making is low (requiring several visits)
• hierarchal meaning seniors have the final say
• legal framework is not well developed

Question 19

what is the ‘BLAT’ business culture in Russia

Answer 19

• BLAT is a system of interpersonal relationships that operates in Russia
• origins back to the Imperial era
• it is the use of personal networks to access scarce resources in exchange of gifts
• individuals are calculating
• blatmeisters (the key people)

Question 20

the do’s and dont’s of russian business

Answer 20

• never shake hands or kiss someone on the threshold of a door
• it is unlucky to return home to retrieve something you forgot
• always bring a gift for someone hosting
• don’t give an even number of flowers, they are for funerals
• offer to take your shoes off when entering a russian home
• take a headscarf when visiting a russian orthodox church, and dress conservatively
• be prepared to give a toast at dinners or presentations, it is very rude to refuse
• always carry your ID to show the police

Question 21

what is the language and alphabet or russia

Answer 21

• Russian
• Cyrillic alphabet
• 33 letters, some are latin

Question 22

what is the religion of russia

Answer 22

• russian orthodox church is the traditional Christian community
• other Christian communities exist
  some jewish communities
• resurgence of roman catholism and Protestantism

Question 23

business culture in portugal

Answer 23

• influence of family is significant
• appointments should be established in advance and in writing
• punctuality in area like Lisbon is essential
• the Portuguese are most and reserved meaning they have a tendency to mistrust, you should use gestures sparingly
• professional status I important
• strong nationalist feeling especially against spain

Question 24

negotiating culture in portugal

Answer 24

• presentations should highlight benefits for the company
• efforts to speak in portugeuse would be appreciated although not necessary
• pace is slow
• decisions are made slowly
• price is a key argument in negotiations
• risk of default is high (Italy and Portugal have the highest rate of returns and payments)