Chapter 4

Business Customs and Practices in Global

Marketing
Required Adaptation
Adaptation is a key concept in
international marketing, and willingness to
adapt is a crucial attitude.
Guide to Adaptation

Open Tolerance
Flexibility
Humility
Justice/Fairness
Adjustability to varying tempos
Curiosity/Interest
Knowledge of the country
Liking for others
Ability to command
Ability to integrate oneself into the
environment

Degree of Adaptation
Essential of effective adaptation is
awareness of ones own culture and the
recognition the differences in others can
cause anxiety, frustration, and
misunderstanding of the hosts intentions.
Key to Adaptation
Remain American but to develop an
understanding and willingness to
accommodate differences that exist.
Imperatives, Adiaphora, and Exclusives
Business customs can be grouped
into imperatives, customs that must be
recognized and accommodated; adiaphora,

customs to which adaptation is optional and

exclusive.
Cultural Imperative
Refers to the business customs and
expectation that must be met and conformed
to if relationships are to be successful.
Cultural Adiaphora
Relates to areas of behavior or to
customs that cultural aliens may wish to
conform to or participate in but that are not
required.
Cultural Exclusives
Customs or behavior from which the
foreigners is excluded.
Relationship Between Culture and
Business Customs
Culture not only establishes the
criteria for day-to-day behavior but also
forms general patterns of attitude and
motivation.
Sources and Level of Authority
Business size, ownership, and public
accountability combine to influence the
authority structure of business.
Management Objectives and Aspiration
These cultural influences affect the
attitude of managers toward innovation, new
products, conducting business with
foreigners.

Personal Goals- emphasize profits and high

wages while in other countries security,
good personal life, acceptance, status,
advancement, or power maybe emphasize.
Security and mobility- Personal security in
job mobility relate directly to basic human
motivation and therefore have widespread
economic and social implications.

More time-bound culture than

Middle Eastern and Latin cultures. Mtime (monochromic) typifies most
North Americans, Swiss, Germans, and
Scandinavians. P-time, or polychronic
times, is more dominate in high-context
cultures where the completion of a
human transaction is emphasized more
than holding to schedules.

Personal Life- For many individuals, a

personal life takes priority over profit,
security, or any other goal.

Negotiation Emphasis- to confer,

bargain, or discuss with a view toward
reaching an agreement

Social Acceptance- Acceptance by

neighbors and fellow workers appears to be
a predominant goal within business.

Three Steps of Negotiating Process

Power- Although there is some power

seeking by business managers throughout
the world, power seems to be a more
important motivating force in South
American countries.

2. Reflection

Communications Emphasis
No language readily translates into
another, because the meanings of words
differ widely among languages.

Formality and Tempo

Breezy informality and haste that
seem to characterize the American
business relationship appear to be an
American exclusive that business people
from other countries not only fail to
share but also fail to appreciate.
P-Time versus M-time

1. Positioning

3. Adjustment
BUSINESS ETHICS
Bribery- money or favor given or
promised in order to influence the
judgement or conduct of a person in a
position of trust
Lubrication- involves a relatively small
sum of cash, gift, or service made to a
low-ranking official in a country where
such offerings are not prohibited by law
Subornation- involves large large sum
of money, frequently not properly
accounted for, designed to entice an
official to commit an illegal act on
behalf of the one paying bribe