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

visiting the homes of foreigners. Social etiquette is important in Japan and successful foreign businessmen are those who respect and follow that etiquette. Share time with Japanese but focus mostly on your sponsor relationships. Show him your compromising attitudes and long-range interests. Nothing will be obtained from Japanese top managers without passing through the sponsor or “contact”.Doing Business in the Mainland ChinaThere are many questions western businesspeople dealing with the Chinese often ask. Elashmawi (2001) argues that more than new technology and available capital will be needed to attain success in establishing business alliances and operating joint ventures with the Chinese. The cultural competency of foreign negotiators and managers will play a significant role in the Chinese market acquisition and growth. Fan & Zigang (2004) assert that China has become an appealing and largest market in Asia. They add that problems of cross-cultural management in China and doing business here continue to increase.        2.3.1        Chinese Cultural ValuesAccording to Elashmawi (2001), the Confucian ethics is in the heart of most Chinese cultural values. Historically, the core cultural teachings of Confucianism have been extremely normative for all Chinese sub-cultural groups, regardless of the country they live in. The attitudes that have been significantly influential in their world view include total loyalty to  a hierarchical structure of authority, duty to the parent, strict, and descriptively defined forms of conduct between children and adults, in the roles of husband and wife, and trust between friends. The Cultural Revolution and, more recently, the move toward the open market have deeply influenced the mainland Chinese culture. Lewis (2004) claims that Chinese people are proud to rank, per importance, their superior values as follows:Modesty, tolerance, filial piety, courtesy, thrift patience, respect for elderly, sincerity, loyalty, family closeness, tradition, trustworthiness, stoicism, tenacity, self-sacrifice, kindness, moderation, patriotism, asceticism, diligence, harmony towards all, resistance to corruption, learning, respect for hierarchy, generosity, adaptability, conscientiousness,  sense of duty, pride (no losing face), being undemanding, friendships, gratitude for favors, impartiality, purity, gentleness, and wisdom. Of course, some of the listed values are not anymore true. One might wonder, for example, about resistance to corruption, modesty and impartiality. But, in main the Chinese do go about their daily lives, exhibiting many of those characteristics. Anyway, that is how Chinese people see themselves and, indeed, the majority of the values are still present, as whatever they might think of us, they are courteous and compliant. Lewis 2004 adds that Chinese people think that the American and Western cultures are declining. Russia has never been admired and Japan is nothing, but a materialist island. Keep that in mind when you attempt to penetrate the Chinese vast and active market!2.3.2        Guidelines and Tips to Enhance First Meeting and First Entry:- A smile from a Chinese person may mean or indicate either of the following:She/he is nervous, she/he is embarrassed, or she/he is amused. It is important to watch other signals in order to distinguish between the three possibilities, why she/he is smiling. In any case, never take Asian smiles for a general agreement. - The Chinese don’t like to do business with strangers, so it is important to be properly introduced by a local “intermediary”. However, the intermediary is not as crucial as in Japan. In China, if you can’t get introduced, you just offer as much information as possible about your company and what you hope to accomplish in China. But, without intermediary and connections, your activities may suffer or go slowly, as connections are needed to get business matters processed quickly and smoothly through official channels. - “Guanxi” is a name for a network that binds people through the exchange of services and favors rather than through expressions of sympathy and friendship. Favors are paid for with return favors. It is not wise to ask for or to accept impossible favors unless you are able and prepared to reciprocate. - Names are very important in China- Chinese only use first names with close relatives and friends. It is important to greet business partners with their full titles and their names. - They shake hands very lightly. If a handshake lasts long, it may be a signal of warmer friendship and it may be followed by a closer contact with your partner. - Class distinctions are very strong and must be obeyed. Respect is a must for those who are in superior positions. Status and hierarchy have a high degree and are observed always. - When dealing with people in lower–ranking positions, it is not advised to treat them as inferiors. And, it is not wise to make anyone loose face or get ashamed. - Public displays of affection are not common, except among persons of a same sex.        2.3.3        Non verbal Messages:Elashmawi (2001) writes that the Chinese are very comfortable with silence, which may indicate politeness (paying attention) or a way of buying time during negotiations. Roundabout language is used to say no: “inconvenient”, “under consideration”, or “being discussed”. Another Chinese tactic of refusal is to simply not deal with a request at all.When a Chinese is furious or is in an uncomfortable situation, she/he will send either or some of the next signals: blank facial expressions with no smiling, impatient nodding and smiling, periodic glancing at a clock or watch, not questioning or saying nothing, avoiding eye contact, answering requests with cold silence, and/or waving a hand in front of face. At any of these signals, you should expect troubles in your discussions. It is advised then either to slow down or to attempt postponing the sale.Recommendations:According to the Economist and after Elashmawi 2001 conclusions, China is today one of the most promising markets in the world because of its size and because of the potentials available in this country. The Chinese, however, will usually only allow foreign firms to come in under specific joint venture agreements. To them, joint venture means that foreign firms bring in their technology and money and the Chinese authority will provide the land, the labor, and the promise of a potential market. The Chinese will usually follow with own brand name and sell through their own distribution channel in the Chinese market. Under such conditions, it is important to assure and maintain strong relationship between the foreigner (investor), the Chinese partner, his firm, and the Government. Whereas it is impossible to become a Chinese, there are ways of enhancing established relationship. If you do not know how or what to do it, it is just advised to find a mentor. Remember that nothing can be done in China without a government official’s involvement & control. It may be the Mayor, the Governor or a Minister, depending on the level. The mentor may be a local friend, who will put you in the right path of trade.2.4        Specificities of Taiwan and Singapore.Comparing priorities of values between China, Taiwan, Hong Kong and Singapore, Elashmawi (2001) found that in the mainland China, managers show high value for equality which is reflected by the current social system in the country. But, this should not be confused with Americans who also highly value equality in the sense of equal opportunity. The Chinese also value freedom, which may indicate a desire for change in the current system. Hong Kong, Taiwan and Singapore share many cultural values with the mainland China; but, they have, each, their own characteristics due to the influence from British (Hong Kong), from Americans (Taiwan) and from both British and Americans (Singapore). Hong Kong has been already explored in the beginning of this assignment. Let us look into what makes Taiwan and Singapore particular.Taiwan:According to Elashmawi (2001), the six top priorities of cultural values among the Taiwanese are competition, family, reputation, seniority, authority, and wealth. Thus, in Taiwan competition is highly regarded; it is a reflection of the Chinese emphasis on hard work. The Taiwanese put also emphasis on reputation or loss of face, seniority and respect for authority. In fact, these values are understood as a reflection of the fact that Taiwan is a small country that survives under strong leadership. Family security is still highly regarded because this is a common and very deeply acquired value. Taiwanese are more open to trade than the mainland Chinese. Unfortunately, Taiwan has a smaller and less growing market than the mainland.Singapore:Elashmawi 2001 has visited all those areas and he claims that in Singapore, you will still find that family, relationships, and cooperation are highly valued. However, Singapore is a country of Chinese, Malays and Indians. So, some ancestral Chinese cultural values have been eroded under the influence of all other ethnics, and by British and American cultures. For example, competition is not ranked highly due to the extreme ethnic diversity. Singaporeans are amongst the most open to new cultural values in Asia. They are open to freedom and equality in the American sense. As a result of the modernization process, Singapore represents a new society that embraces Western cultures but still maintains some Asian cultural values. It is a society with great potentials for global success as reflected in Singapore’s fast growing business environments. In May 2004, I spent almost a whole week visiting Singapore and I had transited several times through the International Airport. I found a country with all Western styles life, easily comparable to Switzerland. People are open and you can discuss easily with them about any matter. Business and trade are done by competent salespeople, who are used to international clients and to a diversity of foreigners. There are all churches and in addition to all kinds of temples, Islam is present and respected. Elashmawi (2001) gives this advice:Next time you meet a Chinese, it is worth trying to know where he is coming from.Competing and/or Trading with South-KoreansElashmawi 2001 suggests that the complexity of dealing with Koreans lies in their similarity to other Asian cultures and their assimilation of American business practices into their corporate cultures. Any executive working with Korean organization can see the influence of cultural values on business, particularly when looking at everyday business encounters such as personal introductions, telephone calls, presentations, and negotiations. And Korean culture is not uniform across the entire nation. Cultural values and their manifestations vary from region to region and from organization to organization. These values play an important role in Korean corporation, locally and globally: the values behind the actions will be the driving force for the Koreans, influencing the success or the failure of their global joint ventures.         2.5.1        Korean Cultural Values:Comparing the six top cultural values of Korean, Japanese and American managers, Elashmawi 2001 finds the following:Korean managers’ six prime cultural values are: family security, cooperation, relationship, group harmony and spiritual enlightenment.Japanese managers’ six top cultural values are: relationship, group harmony, family security, freedom, and cooperation.Americans highly value equality, freedom, openness, self-reliance, cooperation.Elashmawi (2001) concludes that looking at the differences in cultural values explain why cultural clashes exist between Americans, Koreans and Japanese. For Koreans, building strong cooperative relationships first between family members and close family links come first and before concluding any business or signing any contract/agreement. This explains why many Korean companies have been established, run, and maintained by family members or their close contacts. Entire companies and networks have been built based on family ties. Conducting business with group harmony within their culture is another tendency that is based on Korean values. Group harmony is the reason that they prefer to work only with groups that are connected through family ties: they want to minimize any conflicts they may have with outsiders, especially with people from different cultures. (Elashmawi 2001)In fact, Koreans and Japanese have more in common than with Americans. That is why American business people may have cultural friction with both Japanese and Korean counterparts. Clashes in business usually come from clashes in cultural norms. Scholars, including Elashmawi 2001 and Lewis 2004, mention what is called the “Kibun” or inner feelings, reputation, face, a very sensitive issue of Koreans. It is advised not to go to the boss if he/she is having a bad Kibun, for example. Elashmawi 2001 warns also about the Korean –isms: collectivism (family), authoritarianism (superior vs. subordinate), connectionism (personal relationships), conservatism (tradition), exclusivism (grouping), fatalism (acceptance), and secularism (worldly accomplishments). He concludes that negotiating business with Koreans may be very frustrating because of their military style of negotiating. Koreans are tough price negotiators and their subordinates must adhere to the boss’s request during negotiations. It is important. 2.6        Dealing with IndonesiansElashmawi 2001 suggests that in order to succeed in Indonesia, one must make an effort to understand the diversity of Indonesian cultural values. Indonesia consists of a great number of islands and a multitude of local sub-cultures. Although Indonesians, as a people, have basic values, it is advised to be aware of the local culture of the Indonesian partner, such as Javanese, Sundanese, Padang, Manado, or Ache. Morrison, Conaway & Borden 1994 inform us that Indonesia has at least 300 ethnic groups. My own example:I have made many journeys and visits to Bali, Jakarta, Ku-pang, Surabaya and Ban dung.Though they share a same language, “Bahasa”, people from those cities have different attitudes and treat foreigners differently.  Even the local main food may be different. 2.6.1        Indonesian Cultural ValuesMost of them are Muslim and the majority of the others are Hindu. Indonesians are very status-oriented and they put a great attention to their good dress and posture. Like in any other Asian business place, a good intermediary or a good reference will ease the first contacts. As a Nation, Indonesians have three basic national cultural values: Pancasila (their basic beliefs), Gotong Royong (cooperative spirit) and Bhineka Tunggal Ika (unity in diversity). National beliefs (Pancasila) are: belief in God, democracy under one nation, social justice, respect for human rights, and unity/consensus. Indonesians value group harmony and good relationships. They show respect for and address seniors and elders by the proper title, such as Pak Warso or Pak Buddi. They will exhibit friendly and cooperative attitude. Indonesians will welcome the idea of lunch or dinner to discuss business issues. They may expect the foreigner to pay the bill even if they initiated the invitation. It is advised to be generous with waiters and taxi drivers. (Lewis 2004)Recommendations:Elashmawi (2001) and Lewis (2004) give some recommendations to Western Businessmen dealing with Indonesians: Greet people with smiles, respect, and friendly attitude. Greetings are always courteous. Show respect for the boss or senior person, and show kindness toward subordinates. Respect government officials, and the importance of ceremonies, seniority, and formality in the Indonesian culture. Identify always the senior person (s) who can recommend you and your services to an Indonesian business community or to the government officials. Dealing with the government officials may be more complicated than dealing with the private community. During negotiations, relationships, reputation, group harmony, and cooperation are more important than are product prices or even technological advancements. It is important to identify and work smoothly with internal lobbyists who will influence the decision on your proposal. Don’t be misled by immediate positive feedback. Indonesians often say what they believe you’d like or want to hear! And, deals with Indonesians are effective only when the top boss has signed. So, don’t be surprised by last minute cancellations. In such case, it is better to remain patient. And never forget than Indonesians expect you to share the fruit of your deal if you with to get again their service in future.Conquering Thailand 2.7.1        Thai Cultural Values:According to Elashmawi (2001), Thais value mostly seniority, reputation, cooperation, authority and relationship. But, Lewis 2004 notes that they also value pragmatism, fatalism (karma), and dislike of pomposity, family (filial piety), simplicity, and love of freedom, form of properness, compassion and kindness. The Thai Culture has been built from Confucianism, Buddhism and a lot of Hinduism. In communication, Thais consider that: people who keep cool are respected, Buddhist moderation is a good thing, when angered, people should use only subtle method of revenge, it is wise to avoid unpleasant truths, it is wise to describe only 20% of one’s problems, social cosmetics (giving face to others) are vital, hypocrisy is not always a negative thing, humor should be used largely, and smiles cover tragic situations. (Elashmawi 2001 & Lewis 2004) During meetings and negotiations with Thais, it is important to remember that:-Buddhism discourages competition and therefore, Thais are not very ambitious and re reluctant to initiate any change. For Thais, an easy work with low pay is better than a hard work with a high pay. Social affairs are discussed during work hours and business is pursued after hours of social discussions. Thai decisions may seem ambiguous, so that nobody looses face. Negotiations are not hurried; 3or 4 days of building relationships are acceptable and even advised. The central part of business is approached slowly and concentrically. Giggles mean that favor is to be asked for or withheld.Elashmawi (2001) notes that a cultural clash will clearly exist between Thais and Americans because of contrasts in the two national cultural values. For example, in a business meeting, an American manager, with openness and self reliance, will most likely have a culture clash with a Thai who looks for a senior person to lead and make decisions. These differences will have an impact on most communications, negotiations, persuasions, and daily business activities between Thais and other cultures. Following what is said above, it is important to build a network of cooperative relationships. Furthermore, it is crucial to keep in mind that: A. Thais value the kingdom and serve the king: they are generally patriotic people dedicated to their king. The king, while enjoying his absolute sovereign power, would like a father, look after his subjects and personally pay close attention to their well-being. (Lewis 2004, page: 168). B. Respect for Seniority is a top Thai Value: we have explored this concept above. C. Most Thais are polite, non-hostile, and accommodating, soft-spoken, and not very materialistic. D. Thais don’t like conducting business over the phone and prefer short phone calls. Recommendations:Don’t get into an open conflict with a Thai; show your dissatisfaction, if any, indirectly. When negotiating, propose, follow up, and compromise. Encourage counterparts to be more risk takers. For example, incite them not to postpone deals.When dealing with government organizations, try to reach the higher authority. With Thai employees, it is better to show your interest in them and in their families.         2.8        The Fast Growing Indian Market                                                        Morrison, Conaway & Borden (1994) sustain that the Indian subcontinent has been home to advanced civilizations since before recorded history. Lewis (2004) claims that during the second half of 21st century, India will outnumber Chine in population, becoming the most populated nation on Earth. Its land is also immense, with 3,287, 000 Km2 being 7th in the World. Though India’s economy was only 14th in 1999, the country is developing rapidly in the technological and service sectors and its growing middle class numbers over 300million. Therefore, investing in Asia without reaching the Indian market would be missing potential and promising opportunities. That is the reason why I advise ITC to consider seriously implementing deals in India. Lewis 2004 and Morrison, Conaway & Borden (1994) provide enough information on how cultural differences can complicate business deals between Indian companies and American or other foreign firms. I, myself, know Indian business styles since I was a kid, as they live and control quite all business channels in Kenya, Uganda, Tanzania, Rwanda and Burundi.Indian Cultural ValuesIndia, Pakistan and Bangladesh share the colonial history and Indians live also in Nepal and Sri Lanka where Hinduism is predominant. Indians have a special and unique culture that varies considerably from those of East Asia. They make little attempt to conceal their feelings-Joy, disappointment and grief are expressed without inhibition. Indians are very active and they have created a society where privacy is rarely indulgent. Their values evolve around a strong family orientation as well as loyalty to a “group”, which often has to do with their profession. 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.Recommendations and TipsIf 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 TradeMorrison, Conaway and Borden 1994 sustain that Malaysia has been for long a center for international trade. The country is on the route between India and China and islands around have been involved in that kind of trade for centuries, especially since the 16th century when the British installed their commercial links with Malays. Over 50 % of the population (20 million) is Malays, 36% are Chinese and the rest is composed of Indians and other races. Lewis 2004 argues that the balance of power between Malays and Chinese requires a close cooperation between Malay and Chinese cultures. In majority, Malays are Muslim and they want everybody to respect this religion.Malay Cultural Factors, Values and Taboos.Lewis (2004) cites respect, courtesy and especially gentleness towards others as the most important elements of Ideal Malay behavior. This is known as budi. In Malaysia family and friendship takes precedence over self-interests and love of children is very strong. Trust is fundamental to the development of relationships: family, friendship, and business with respectable partners. Conversations are roundabout, avoiding giving any offence. Malays are skilled at indirect references. Some British influence is evident in debating, however. Malays are respectful, especially to seniors and elderly people and they listen without any interruption for any virtues and caring comments. Most taboos are Muslim. Shake hands are normal but, usually women greet men by bowing and saying: “salaam”. The index finger is never used for pointing; it is more polite to use the thumb, with fingers closed. Avoid any gifts of knives, any cutting tools such as scissors. Due to Hindu presence, avoid the use of anything related to cow or beef.          2.9.2        How to Empathize with Malays.Malays are more group oriented than many other people. Lewis 2004 advises applying synergic skills to the relationship. This is a good approach to people who think in terms of divisions between Malay-Chinese-Western-Muslim-Buddhist and Christian! It is important to get some familiarization with Islam. Show always respect to their cultures, but especially for seniors and religious beliefs. Younger Malays are very proud of the modern Malay orientation towards industrialization and high-tech. Smart foreigners are those who share with them this enthusiasm.         2.9.3        Other Tips and Recommendations:The Malaysian Anti-corruption Agency is tough and has strict laws on bribery and corruption. So, be careful when offering gifts. Avoid any gift that could be interpreted as a bribe. Malaysia is hot and very humid. So, be careful of what you wear. Just observe local people dress and make a choice accordingly. Taka advantage of many invitations to social events and build your relationships through those events. Remember that a written invitation is answered to in writing. In Malaysia, the exchange of business cards a formal ceremony. So, have always your business cards ready when you go for meetings or ceremonies. Remember that Malaysia has several distinct communities. (Lewis 2004)        2.10        Building Hopes in Vietnam Lewis 2004 claims that even though it has been devastated by warfare and economic chaos, Vietnam will emerge ultimately as a major player in the South-East Asian region.Its substantial land area makes it bigger than Italy or UK, and its more than 75 million of population are real potential arguments. Currently, Vietnamese are trying to solve their internal problems by following the Chinese model and opening their doors to more capitalism. Economic Liberalization is underway, but political control is also still tight.2.10.1        Vietnamese Culture and Cultural Features.The north has been always categorized as a “yang” subsystem while the south follows definitely the “yin” concept. Yang concept comes from the neo-Confucian philosophy and expresses tough order and discipline while yin concept is a kind of free-wheeling, flexible and commercially-minded system. The yin-yang struggle was launched with the flourishing Buddhism in 1076 and it persisted up to the present. The following list of values and core beliefs straddles the northern (yang) and southern (yin) concepts: work ethic, duty, morality, filial piety, resistance to foreigners, nationalism, forbearance, collectivism, pride, self-respect, pro-western, respect for learning, theme of sacrifice, resilience, tenacity, restraint, sense of proportion, women important role in society and entrepreneurism. There is a tradition of collective leadership according to Confucian tenets. In Vietnam the facial expression is more evident and more open than in, for instance, in Japan, Korea, and China and some body features from the French style are visible. Emotional factors can be used in argument or in negotiations. Good education and high rate of literacy lend people confidence in communication. The literary tradition is strong, particularly in poetry. People in the south tend to be more open and frank than many Asians. Vietnamese are good listeners, expecting speakers to be clear and logical. They are well versed in French-style debate. Vietnamese negotiators use both the French rationality and the Vietnamese tenacity. Although they are basically courteous, negotiations can be very cautious and not giving anything big away. The Vietnamese have no trust for Chinese, Japanese or Westerners, being suspicious of all. They are now open to Americans because they think that Americans can represent a counterweight to Chinese and to Japanese. Bureaucracy is tortuous and corrupt, according to most standards. 2.10.2        Recommendations:Consider everything from the Vietnamese viewpoint: their long struggles against the Chinese, French and American “invaders”; their resistance, the suffering they sustained at the hand of Khmers Rouges and their current difficulties. Remember they have all Asian characteristics combined with some Western influences from France and USA. They do not deal with strength but, they have their pride and self-respect is important for them. The Vietnamese are always tenacious and will surrender anything with reluctance. One must always appear just and correct in their eyes and decision making is on consensus. Remember that in Vietnam time means exactly what it means, thanks to the French and American influences. They are a group-oriented society in life and at work. (Lewis 2004)        2.11 Trading in the Philippine IslandsNote: We close Part # 1: Asia, by exploring possibilities of doing business with Filipinos.According to Morrison, Conaway and Borden 1994, the Philippine Islands have been inhabited throughout human history. Filipinos live in modern, bustling Pacific Rim cities, while others live in jungles far from the modern civilization. The country has a cultural diversity, resulting from local cultures, Chinese, Arabic, Spanish, Portuguese Japanese and even Americans. For example, English and Filipino are the two official languages.Approximately 83% of Filipinos are Roman Catholics but traditional beliefs also remain strong, while only 9% are Protestant. Lewis 2004 claims that Filipinos are far different from other East-Asians: they are talkative in the Latin manner, demonstrate warmth and emotion openly; they are cosmopolitan and travel the world; they are comfortable with Americans and Westerners in general; they are committed to democratic institutions, including freedom of speech; they distrust and reject authoritarianism whenever they are able to. Their values derive from the 100 year contact with Americans and the 350 year period of Spanish colonization. Indeed, the islands were named after Philip II of Spain. Filipinos are dialogue-oriented a little bit like Spaniards, but their oratory communication can generate too long speeches. Their Asian side makes them very good and polite listeners, which makes them fine and agreeable negotiators. There is a general commitment to free trade and enterprise and friendly relations with the West. Business efficiency, however, is affected negatively by having to seek contacts in high places to cut through bureaucratic red tape and bribery is rampant. (Lewis 2004)Recommendations and Tips:Although Filipinos are so friendly to the West and are prone to the free trade and enterprise, there are still some cultural barriers that must be described in order to make the best of business deals in the Philippines or with Filipinos. Here are some recommendations:Politeness, especially to older people and persons of senior rank, is absolutely essential. The tone of discussions and negotiations must remain conciliatory and heated debates or opinionated expressions are to be avoided. Filipinos are conformist and will seldom say “no” openly. They conceal their feelings very well and one should try to read the hidden signals they give at meetings. The fatalistic phrase “Bahala Na” (God will it) is often used! Taboos include open confrontation and topics such as corruption, foreign aid, religion and poverty. It is not advised to discuss (or to open discussion on) these issues. Public criticism of any person is not allowed. As Asians, Filipinos like modesty, gentleness, and courtesy.  While living in the Philippines, attempt to adapt to their time concept-they will not change it. Shake hands without too much firmness or energy. Show respect for their education and qualifications, connections and personality. Be very polite to all seniors and elderly. Above all, ask regularly about their family and their well-being. Take an interest in Filipino culture and language. Leaving something unsaid can also be a subtle way of indicating mild disapproval. Remember that Filipinos live now in all countries.Always be professional in look, manner and competence: they expect it. (Lewis 2004).        3.        Part Two: The Middle East and the Arab Countries.Note: It is now time to explore cultural environment and business opportunities in the Middle East and within the Arab World. We start by the latter: the Arab countries.How to do Business with ArabsElashmawi 2001 sustains that some companies, including Mobil Oil, IBM and GE have been relatively successful in the Middle East and in the Arab market as a result of their patience and perseverance. It took them very long to get rewarded. Some other organizations and their executives have been discouraged completely because they took the wrong clues on the Arab cultural values or, they did ignore them altogether. It is not easy doing business or expanding business in Arab countries. Let us look into the issues. Elashmawi 2001 and Lewis 2004, each separately, describe very well the Arab countries and give many examples per country. Let us briefly explore both descriptions. Westerners and Arabs have very different views about what is right and wrong, good and evil, logical and illogical, acceptable and unacceptable. They live in different worlds, each organized in its own manner. Unless one gains a deeper understanding of how these two mindsets differ, one group will end up with unfavorable impression of the other.         3.1.1        Arab Cultural Values:Comparing Arab cultural values to those of Americans or/and Germans,  Elashmawi 2001 finds out that Arabs value mostly seniority, spirituality, reputation, family and authority, while Americans value equality, freedom, openness, self-reliance and cooperation and Germans -time, competition, privacy, openness and reputation.Therefore, concludes Elashmawi 2001 (page 153), in order to succeed in dealing with Arabs, you must show respect for seniority of the father, boss, and/or leaders of the country. Bosses again will use their authority to dictate what they believe is the way to go, and their reputation will be on the line if they fail. Others will depend on the boss, who therefore often has to make decisions with minimal information. Arab values will clash with those of Americans. On their first encounter, the Americans’ sense of equality and freedom will clash with the Arabs’ emphasis on seniority and authority. American self-reliance will clash with the Arab dependence on the boss. On the other side, Germans will also clash with Arabs because they don’t value the same way punctuality and timeliness and Germans’ love for privacy will clash with the Arabs’ hospitality. It is important to keep this in mind when expanding business to any Arab country. For example, Arabs are often put off by Americans who quite never have time for long discussions because Arabs enjoy building first long relationships. Such clashes are frequent at workplaces, in telephone conversations, clubs, shops, etc. Examples are many; let me give one: I was attending Airlines Management training in Montreal in summer 1989, where participants had been invited from some African and Arab French speaking countries. At the end of the first day, Arab participants decided that they will go to visit Montreal by night. And, they approached each of us, Africans, and invited each to go with them. I could not accept going with them because even before coming to Montreal, I had arranged to visit a Canadian family that same evening. I promised my colleagues that next time, I would go with them. They never invited me anymore and they never trusted me till the end of the training. I was shocked and disappointed because I had done nothing wrong. That is it! If an Arab invites you and you cannot make it, it is bad for your business.Main Cultural Divergences between Arabs and WesternersThe following is only a summary: A. The West sees Arab society as one which is in decline, propped up temporarily by oil revenues. The Arabs, by contrasts, are very conscious that their civilization once led the world and believe they are capable of doing so again, in a moral sense. B. The West generally separates Church and State. Most Islamic countries do not and religion strongly influences social behavior, politics and even business. C.  In the west, the individual is the basic social unit; with the Arabs it is the family. D.  In the West, status is gained by achievement; in the Arab world by class. E.  Westerners like to deal in cold facts; Arabs will not let facts destroy their honor. F.  Westerners like to use official channels to further their business interests; Arabs use their personal relationships. G.  Men and women mingle freely in western societies; in most Arab countries they do not. Muslim sexuality is a territorial one. Women can never trespass into public places, unless they wear a veil, making them invisible. H.  Unlike Westerners, Arabs prefer arranged marriages. On the whole, their families are more stable, involving mutual respect.        3.1.3        Enhancing Business Success with ArabsTo enhance business success in Arab countries, it is recommended to follow next Elashmawi 2001 (some) advices:Avoid rushing or pushing through the first business trip to an Arab country. It is wise to stay in the country at least one whole week, during which it is helpful to get interested in the local Arab culture. Don’t begin discussing business until the subject is broached by the Arab host. -Always greet and welcome the guests of your Arab client if you come into contact with them. - If an Arab offers you a cup of tea or coffee, accept it even if you don’t want to drink it. This applies also to snacks and other beverages. Arabs offer all that to display their hospitality. Refusing would be frustrating them. -Understand that Arabs value authority and respect. -An Arab worker will always call his/her supervisor, instead of fixing the problem. Serious business will never start before you establish trust. So, be prepared to convince them by strong references and recommendations. -When you receive a gift, don’t open it in front of the giver. And, when you give one, don’t expect the recipient to open it immediately. –Arabs do not argue with foreigners and may withdraw from the deal if they face serious disagreement. Do not leave a meeting before the Arab most senior or boss has left himself. It may be seen as a lack of respect. Try being the last one to shake his hand when he leaves.Some Particularities: Note: We will limit our exploration on 2 countries: Egypt and Kuwait. What was just described above is true in general for all the Arab World. However, as Scholars, such as Francesco and Gold (2005) have put it, no two countries have exactly 100% same cultural features. There is always a room for some divergences. Let us see two examples below (Egypt and Kuwait):Doing Business with Egyptians:One of the most interesting issues within the Arab countries is the fact that each Arab person believes that his/her country is certainly the best amongst the Arab region! So, when you are negotiating a business deal with an Egyptian, for example, avoid mentioning that you have a same business with a Kuwaiti, or a Syrian, or any other Arab.Main Cultural Characteristics:Morrison, Conaway and Borden (1994) sustain that nearly all Egyptians speak only Arabic, but Egyptian business people, who deal with foreigners speak either English or French or both, in addition to Arabic. About 90% of the population is Sunni Muslims and most of the remaining 10% are Coptic Catholics. Egyptians are open to any information that doesn’t conflict with Islamic values. They are the most open to the Westerners amongst all other Arabic cultures. Economically, Egypt suffers from its high birth rate that reduces most development efforts and part of investment. Egypt is very universalistic, but Islam teaches that you must trust first your brothers and sisters, before trusting anybody else. Thus, Egyptians will give priority to deals and firms led by other Arabs or from other Arab countries before dealing with Westerners. It is therefore advised that when you seek opening or expanding in the Egyptian market, it would be wise to use Arab negotiators or, at least, intermediaries with Arabic cultural background. What is worth knowing when dealing with Egyptians?Faith in Islamic Law is the primary source of truth. This truth can be modified by the personal feelings one has about a situation or a problem. Thus, highly educated Egyptians may use facts and reason objectively. The male leader is the locus of decision in any negotiation and decision making, but he will make decisions through a consensus of his group or his collectivity. The individual is always subordinate to the family, group or community. There is no other possible life outside a network of kin relationships. Remember that: -The pace of business is much slower than in the West and decision taking will take longer. You are required to hire an Egyptian agent to do any business in Egypt. The Egyptian will not even want to speak with you until he knows and likes you. Business meetings always start with long inquiries on one’s health and journey. Don’t dare forcing the pace, unless you want to loose the deal!  These cultural features are present in quite all Arab countries. (Lewis 2004)B.        Doing Business in Kuwait Despite its ancient history, Kuwait has been recognized as a fully independent nation only since 1961, when British rule ended. In fact, this corner of the Middle East has been occupied for thousands of years. Morrison, Conaway and Borden 1994 argue that there are archeological evidences of life in Kuwait dating back to around 1000 B.C. Today’s massive oil reserves were not discovered until 1930s. Only those families who can trace their residency in Kuwait to before 1920 are allowed the full benefits of citizenship.This leaves almost a million of Kuwaiti nationals as second-class citizens in their own land. Furthermore, some 70,000 Bedouins have been denied Kuwaiti citizenship of any sort. They remain stateless persons, unwanted by any country. It is very important for all to bear in mind that nationality is a vital issue in Kuwait.Cultural OrientationAccording to Lewis (2004) and Morrison, Conaway & Borden (1994), in Kuwait people are closed to any information that doesn’t reflect or emanate from Islamic cultural values. Kuwaitis are taught since the youth to think associatively; they approach all problems subjectively according to the tenets of Islamic law. Truth is found in Islamic law; so faith in its ideologies permeates all discussions. Subjective feelings are the only way of knowing the truth of any situation. Thus, objective facts may have no or little use in negotiations. Like in Egypt, security is found in family loyalty and absolute submission to Islamic law. Tribal loyalty will influence hiring and employment even among foreign firms and companies. Within Islam all believers are equal and united in the Ulema. However, some tribes feel superior to others. Traditional respect to literacy and aversion to manual labor has created a need for a large number of foreign workers, with varying degrees of acceptance.  Men and women are considered to be qualitatively different in emotion and intellect. Public life is exclusively a male life.  Lewis 2004.Business PracticesMorrison, Conaway and Borden (1994) sustain that in Kuwait, an appointment is rarely private. The meeting will be interrupted by phone calls and visits from host’s friends and family members. Westerners find frequently these distractions infuriating. You must try to maintain your equanimity in such situations. Kuwaiti officials are prohibited to work more than six hours per day; morning hours are usually best indicated for appointments. Government employment is a kind of welfare system rather than a method of running an industrialized state. Thus, do not expect your Kuwaiti workers to be concerned by productivity or by the duty. During a negotiating meeting or a presentation, the person, who asks many questions, is usually the least important in the decision-making chain. The real decision maker is probably, elderly Kuwaiti who watches everything but never speaks to you directly. Bring plenty of copies of promotional materials, so that each person can have one. There is no hurry in Kuwait and negotiators are not afraid by long silences. So, do not feel obliged to talk during numerous and long periods of silence.It is possible that you will never meet the real decision maker, but don’t worry for that. 3.3        Business Practices in Israel  Although Israel is geographically located in the Middle East, it is not an Arab country! Morrison, Conaway & Borden 1994 claim that the two official languages of Israel are Jewish and Arabic. Other languages met here are French, English, Yiddish and Russian.The population of Israel comes from all over the world and only 60% of Israeli Jews are native-born. So, many different cultural traditions are represented. As a result, business practices may be North-American, Russian, European, Arabic, or anything in between! Thus, doing business in Israel requires real multicultural skills.Israel’s need to survive as a state permeates all value systems. The following issues identify the value systems in the predominant culture-their methods of dividing right from wrong, good from evil, and so forth. Although there are still some collectives, there is a clear emphasis on individual initiative and achievement and a strong belief in individual decision-making without any social and business groups pressure. A strong nuclear family does still exist; it is the basis for socialization and gives its members a sense of social identity. Israel is a democratic and egalitarian culture built on open competition. Military education and service influences make the society feel equal. Though there are inequalities in roles, equal rights are guaranteed to all. Strong biases do exist against the Palestinians and other Arabs, as do some biases against Jews from different countries. What Every Foreign Businessman Should Know        Morrison, Conaway and Borden (1994) note that even in Israel, punctuality is not the best traditional value. We are still in a Middle-easterner country! If, for example, your clients are Sephardim or Palestinians, they may be late for appointment or not show up at all. However, they may have adopted and developed more Western attitudes toward punctuality. Most of, but not all- Ashkenazim tend to be more prompt in business. It is standard Middle-East to keep foreign business people waiting. Until you get to know your clients, it is unwise to schedule more than two appointments per day. Westerners are surprised when they find such practices in Israel. It is important to be aware that Israel belongs to the Middle Eastern Culture!Like in any other Arabic country, an appointment is rarely private among traditional Israeli Arab business people. Visits and telephone calls will go on uninterrupted during your meeting with your counterparts. So, don’t get infuriated by such practices.The Jewish holy day is the Sabbath that begins at sunset on Friday and ends at sunset on Saturday. Morrison, Conaway and Borden 1994 advise Westerners that no business is conducted on the Sabbath. Business days are from Sunday to Thursday, as Friday is a holy day for Muslims. But, even on the days businesses are conducted, work hours vary widely. Open hours depend on the religion of the owner of the business. Most Jewish businesses are closed on Fridays afternoon and on Saturdays. Islamic-owned establishments are closed all day on Fridays and Christians work and run their businesses the whole week, but Sundays. Remember Palestinians may be either Muslim or Christian. Remember Judaic and Christian months are different in duration: Our month has 30/31 days but Judaic month has 28 days only.     Dealing with IraniansIsrael and Iran are not Arabic countries, though they are found in Middle-East. We have explored cultural values and related problems encountered in Israel; so, let us look into the Iranian case. Iran is the land of Indo-Europeans and its culture goes back more than 3000 years, according to Lewis 2004. Economically, Iran is a very interesting country.3.4.1 Doing Business with Iran and Dealing with IraniansLewis 2004 sustains that Iranians, or Persian, culture comes from a strong tradition and a sense of leadership and power south of the Caspian. While Muslim, they identify little with the numerous Arab states in the Gulf. Their cultural classification is multi-active and dialogue oriented, although they are much less loquacious than Arabs.Cultural Values        Iranian values, as itemized by them, are chiefly:Islamic faith and values as opposed to Western, neighborliness, kindness and gentleness, caution in decision making, respect for wisdom of the old, politeness, seriousness & dignity, traditional music & literature, new technology, research & invention, hospitality, family, spirituality, clemency, academic achievement, respect for the Islamic role of women, their cultural achievements, design and patternIn modern Iran, spiritual leadership is dominant. Example: the spiritual leader Ayatollah Khomeini forced the then very powerful and tough Shah of the Pahlavi monarchy to go in 1979 and, since then, Mullah Rule has continued up to now. In economic terms, it is important to understand that currently the Iranians are very cautious about signing any big contracts with foreign firms. There are big different attitudes between the private and the public sectors: whereas trade with the private sector can be fast, mobile and present oriented, the state has put on the brakes and is more long term and future oriented in the type of business it will consider. Priorities for acceptance of projects are a willingness on the part of the Western company to invest now, with little financial help from Iran, and reap the rewards later; to create employment for Iranians; and to produce products in Iran, which can also be exported to other countries in the region. (Lewis 2004 pages: 329-330)Concluding RemarksYasin et al (2002) insist that Iranian business sector has rich traditions, which characterize a strong entrepreneur spirit. However, the business sector in Iran found itself in an unfamiliar territory due to the economic restrictions imposed by the Islamic revolution. Today, the Persian business sector is a giant ready to be awakened and worthy of global partnership. Patience will pay back those of western investors, who are interested in the new Iranian policy of cautious openness to international market. It is important to invest time and the resources to understand the realities.Recommendations: Be prepared for differences in approach from managers who have been educated in the West and managers whose education has been in Iran. It may be easier to strike a cord with the former. Remember that meetings can be broken by long prayer-sessions, and that Ramadan is not a period of deals.Turkey is both in Europe and in AsiaLewis (2004) writes that Turkey’s territory lies both in Europe and in Asia, and its value systems have always been an amalgam of East and West. Therefore, exploring cultural values of Asia and the Middle-East without talking about turkey would be like doing an incomplete study. Indeed, in Turkey, for example, the male leader is the decision maker, but he always considers the family or group upon which the decision is binding. In Turkey, private life is overwhelmed by family, friends, and organizations, and these determine one’s opinion. We have seen that such practice is common in all Asian and Middle-eastern countries. In Turkey, identity is based on the social system, and education is the primary vehicle for moving up the social ladder. Status of men and women is a modern one in Turkey:Islamic religion is not a state religion anymore. However, there is still a definite social hierarchy, with some bias against classes, ethnic groups (Kurds, especially) and religions. The privileged elite control the country, with conspicuous consumption and education being the status symbols. Men and women are becoming equal slowly as a law has abolished major differences and separation clauses. The republic of Turkey is a multiparty one. Turkish is the official language. The country has no official religion; 90% of the population is Sunni Muslim and the remaining 10% is shared by other Muslim Sects, plus some Christians and Jews. Turkey is a modern country. Business Practices:According to Morrison, Conaway and Borden (1994), historically Turks are generally closed to outside information. This has been ameliorated by the fact that turkey is a bridge between East and West. Turks are trained to process information associatively and subjectively. Among Turks, the truth seldom comes from a combination of objective facts. Turkish business people, who deal internationally, are able to communicate in either of foreign main languages: French, English or German. Usually, English is commonly understood mostly in cities. There is always a seemingly interminable small talk before any business is open. That small talk allows your counterpart to know you.Business and banking hours are 09h00 A.M. to 12h00 (noon) to from 2h00 P.M to 05h00 P.M. The following Muslim holidays will fall on different days, each year:Ramazan or Ramadam, the holy month; Sheker Bayram, three days after Ramadan; and Kurban Bayram, the feast of the sacrifice.What Foreigners should knowThe pace of business negotiation or concluding is much slower than in the US. Never loose your temper or shout at an elder or at a boss. Elders are always deferred to. During conversations, avoid taking sides in any Turkish political question or position. Tobacco is everywhere in Turkey. No-smoking zones don’t exist in Turkey. If you are allergic to tobacco smoke, then definitely you will have hard time in Turkey. Service in restaurants is very quick, tea, rather than coffee, is the national hot drink.  Shake hands firmly when introduced to a Turkish man or when greeting. Since the majority of Turkish is Muslim, expect that most of your contacts will be only male. You will feel you are in Middle East.4.        Important Observations and Conclusions:Many scholars and specialists in international management and multicultural issues agree on the importance of being cautious when you plan or start a business across borders. Elashmawi 2001 and Francesco& Gold (2005) find that when expanding regions in new cross-cultural markets, managers should be patient and flexible. They must avoid any fast actions that may lead to clashes between the local cultural values and the foreign beliefs and practices. For example, Americans are accused of not other nations' way of doing business and as Elashmawi (2001) give several examples, conflicts and clashes that affected business deals. Before concluding, let us conclude this assignment by highlighting some important observations and findings:A.         A Cross-Cultural Comparison between Japan and the Arab WorldUsing some evidence from universities, Dedoussis 2004 argues that there are many cultural similarities between Japanese and Arab Countries. 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 CaseRedferm 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 SafelyAvitabile & 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. List of References:1.        Avitabile, L. and Kleiner, B.H, 2002, Training Employees to Work in the Mid East Safely, “Cross Cultural Management”; 9, 1: ABI/INFORM Global2.        Czinkota et al, 2002, “International Business”, The Dryden PressDavis, P., 1995, Enhancing Multicultural Harmony, Nursing Management, Vol. 16, 1 pp. 79-85Dedoussis, E., 2004, A Cross-Cultural Comparison of Organizational Culture: Evidence from Universities in the Arab World and Japan, “Cross-Cultural Management”, 11, 1, ABI/INFORM Global pg. 15-34Dresser, N., 1996, “Multicultural Manners”, John Wiley & Sons, Inc, Canada6.        Elashmawi, F., 2001, “Competing Globally: Mastering Multicultural Management and Negotiations”, Butterworth Heinemann, Boston, MA7.         Francesco, A. and Gold, 2005, “International Organizational Behavior”, 8.        Gopalan, S. and Thompson, N., 2003, “National Cultures, Information Search and Attribution Process” Teaching Business Ethics, August 7, 3; ABI/INFORM Global, pages:  313-3289.        Hofstede, G. 1984, “Cultures’ Consequences: International Differences in Work-related Values,” Beverly-Hills, CA, Sage 10.        Hofstede, G, 1991, “Cultures and Organizations: Software of the Mind”, Maiden –head; McGraw-Hill11.         Horn, P (Prof), 2005, “Multicultural Management”, Introduction to the course No # ISM- 924 DBA/PhD course online, www.ism_elearning.com12.        Lewis, R., 2004, “When Cultures Collide: Managing Across Cultures”, Nicholas Brealey, London, UK13.         Mead, R., 1998, “International Management with Cross-cultural Dimensions”, Blackwell, 2nd Ed., UK and US14.        Morrison, T., Conaway, W. A., & Borden, G, A., 1994, “How to do Business in Sixty Countries: Kiss, Bow or Shake Hands” Adams Media Communications, MA, US15.        Muna, D.A., 1995, The Role of Behavioral Formality and Informality in the Enactment of Bureaucratic versus Organic Organizations, “Academy of Management Review”, Vol. 20, pp. 831-87216.        Redfern, K., and Crawford, J., 2004, An Empirical Investigation of the Influence of Modernization on the Moral Judgments of Managers in the People’s Republic of China, “Cross-Cultural Management”, 11, 1; ABI/INFORM Global pg. 4817.         Yasin, M. M., Alavi, J., & Zimmerer, T., 2002, An Examination of the Impact of Economics Variables and Cultural Values on Iranian Business Organization, “Cross Cultural Management” 9, 1; ABI/INFORM Global, pg 318.        Yvas, B. F., and Rezayat, F., 2003, The Impact of Culture on Managerial Perceptions of Quality, “international Journal of Cross Cultural Management; CCM”; August, 3, 2, ABI/INFORM global, pg 213-23419.        External link to ISM-924, Common Cross-Cultural Communication Challenges, www.wwcd.org/     _____________________END OF DOCUMENT#2_______________                  [1] Elashmawi, F., 2001 “Competing Globally: Mastering Multicultural Management and Negotiation” [2] Morrison, T., Conaway, W. A., & Borden, G. A. 1994, “Kiss, Bow, or Shake Hands: how to Do Business in Sixty Countries”, Adams Media Corporation, Avon, Massachusetts.   [3] Lewis, R., 2004, “When Cultures Collide”,  revised edition, Nicholas Brealey, London, UK