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Inter-Cultural Management: Part II: Asia and The Middle-East

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Introduction

For Publishing Purpose: "Inter-Cultural Management: Managing and Doing Business Across-Cultures" Part II: "ASIA & THE MIDDLE-EAST" By Samuel Sinayigaye, Eng, MSc, MBA Participant in the ISM PhD Program & Candidate to the ISM Ph D Degree July, 2008 With acknowledgement to Dr Peter Horn of ISM. Indeed, without Pr Horn's Help and Guidance, this paper would never exist: 1. Table of Contents: Item title............................................................................................Page(s): 1. Abstract:............................................................................................3 2. Part I: Managing Cross-Cultural Differences in Asia......................................4-16 2.1 Conducting Business and Living in Hong Kong...........................4 2.2 Doing Business or/and Dealing with Japanese...........................5-6 2.3 Doing Business in the Mainland China......................................7-8 2.4 Specificities of Taiwan and Singapore.......................................9 2.5 Competing and/or Trading with South-Koreans...........................10 2.6 Dealing with Indonesians......................................................11 2.7 Conquering Thailand..................................................................12 2.8 The Fast Growing Indian Market.............................................13 2.9 Malaysia: The Land of Eternal Trade.......................................14 2.10 Building Hopes in Vietnam......................................................15 2.11 Trading in the Philippine Islands...............................................16 3. Part II: The Middle-East and the Arab Countries....................................17-23 3.1 How to do Business with Arabs................................................17-19 3.2 Some Particularities..............................................................19-20 3.3 Business Practices in Israel.....................................................21 3.4 Dealing with Iranians..............................................................22 3.5 Turkey is both in Europe and in Asia..........................................23 4. Important Observations and Conclusions.................................................24 5. List of References................................................................................25 1. Abstract This second document in Intercultural Management is a brief research report on doing business in the Arab World and in Asian Continent and highlights prerequisites for successfully doing business in each of the two mentioned areas. It attempts to develop and broaden a deep understanding of the concepts of international business and international management by giving a documented exploration of multicultural management and the idea of doing business across cultures, especially in Asia and the Middle East. The paper presents a good understanding of the characteristics of each region and outlines the challenges met by firms doing business across cultures and, in particular, the obvious particularities observed or/and encountered in doing business in Asian and Middle East markets. The paper borrows mainly from the recommended textbook Elishmawi (2001)1, from Francesco & Gold (2005) ...read more.

Middle

It is important to do well in business as this brings increased status. Honesty is not a major issue as a value. For example, stealing crops is not a big deal, if growing them brings a new status to the persons involved. It is even an honorable thing! Indians are very tough negotiators and can use even hypocrite manners such as: "I don't want to sell at all and I don't need any money right now", when in fact, the person is really in need of that sale to survive! Or, "I am willing to give the deal to you because I find you are a good man and I promised to sell only to a good man". They will try anything and play any game in order to make the price higher. In negotiation with Indians, there is no limit at all, including even dishonest procedures. Indians are terrible when it comes to gaining any single more cents! So, be aware when you negotiate with Indians; it may be tough! Their tactics don't change even if you are an old fellow. 2.8.2 Recommendations and Tips If treated with respect, Indians will put the past behind, especially where good business is the offing. To play the Indians at their own game, be reasonable, solicitous and flexible. Learn to cope with Indian bureaucracy; it is slow, huge and tedious. Maintain multiple channels of communication, both with government and commercial entities. Develop your own linkages, independent of your partner. Try not to criticize their failings and /or limitations. Remember that truth has many aspects: most Asians, including Indians, believe there exists no absolute truth, and truth, facts and appearances are often subject to negotiation. Show sympathy and empathy with Indians and it will reward you later. 2.9 Malaysia: The Land of Eternal Trade Morrison, Conaway and Borden 1994 sustain that Malaysia has been for long a center for international trade. ...read more.

Conclusion

Hofstede's research (1991) on cultural differences and their impact on management suggests that Arab countries and Japan share a high collectivist orientation and this can be one of the many sources of clashes between the individualism of Western business people and the collectivism of both Japanese Arab counterparts. Cultural similarities between Arab countries and Japan are also found with respect to context as both are known to be high-context cultures (Munter 1993: 72). Similarities between Japanese and Arab cultures are also evident in verbal interaction and non verbal communication. They both avoid getting directly to the topic and start always with a small talk, not getting to business right away and with respect to non-verbal communication, Japanese and Arabs have high-contact cultures. There are also huge differences between the two cultures; but, we are interested in similarities as they may be useful to know for any Western managers going east. B. China as a Very Interesting Case Redferm and Crawford (2004) have investigated the influence of modernization on the moral judgments of managers in China (mainland) and conclude that in China the process of economic modernization is still in its infancy and that the social ramifications of a country struggling with the competing ideologies of socialism and anew capitalist-style market system create a controversy and yet are to be fully discovered. They suggest that the adoption of elements of the market system in some regions of China has had some influence on the ethical perceptions of Chinese managers in Chinese Organizations. C. Training Employees to work in the Mid East Safely Avitabile & Kleiner (2002) sustain that living in Middle-East present a variety of challenges and that safety and security are issues that need mostly to be addressed. The best advice for any new expatriate is to prepare while still at home using books, tapes, and by having inter personal contact with repatriated or otherwise cultured personnel or individuals. This advice is good also for any new region of the world as no one is expected to learn and memorize all the complex cross-cultural aspects. 5. ...read more.

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