Spring

When in Rome, Do as the Romans Do

By:

Eyad Almasri
Ahmad Nassif
Aeron Brown
Matthew Smith
Exsamir Arroyo

I n t e r n a t i o n a l B u s i n e s s

15

Those who seek to do business outside their domestic country need to consider
many variables. Often time research is representative of massive areas of the world as
in the case of Central Europe, Northern Europe, or the Middle East. Even though
neighboring countries dont always share the same customs. Aspects such as
terminology and body language could make a huge difference when making a business
deal. We believe that to sustain a successful business abroad, companies need to focus
on smaller regions to be successful. Instead of focusing on a region, they may need to
focus on individual countries or in the case of very large countries divide them into
various cities. Companies should also comply to the foreign culture unless it goes against
their moral principles. Were going to take you through some examples of these various
regions and discuss their culture etiquettes.
Central East Europe
Central Eastern Europe (CEE) was under Soviet rule until fairly recently, 1989.
Now that they are released from the Iron Curtain, they are moving away from
communism and most are adapting a form of socialism or capitalism. During this portion
of the paper, we will be discussing a few generalities of the CEE countries, but we will
mainly focus on Poland and Hungary. Westerners interested in doing business abroad
assume that one culture represents the other which can be a fatal mistake. Westerners
should also avoid stereotyping and ethnocentrism to manage the numerous cultural
differences and conduct effective, successful business. While seeking to represent the
majority of people from these countries, it should not be assumed that everyone falls
under these descriptions.


Below are the analyzed scores of Hungary, Poland, and United States using
Hofstedes cultural dimensions, which are a crucial measure to succeed at administering
business abroad.
Hungary Poland U.S.

Power Dist. 46

68

40

Individual

80

60

91

Masculinity 88

64

62

Uncertainty 82

93

46

Long Term

58

38

26

Indulgence 31

29

68

(Hofstede, 2010)

As represented by the data, often times Hungary or Poland have more in

common with the U.S. than they do with each other, who are around 100 miles away
from each other. Hungary and Poland both rank high on uncertainty avoidance. This
signifies there are very likely many laws to govern most scenarios and reject unproven
or orthodox ideas (Ferraro, 112, 2002). They both rank low on indulgence, meaning that
they will not easily give into temptation. This may be in part because the majority of
Central Europeans are Roman Catholics.

Although both countries may be more one way than the other on the next few

items, they are still very different numbering over twenty points on the scale apart from

each other. For power distance, Poland is high, unlike Hungary who ranks in the middle,
which demonstrates they are more likely to have status differences and power
concentrated with a few people, rather than with many (Ferraro, 105, 2002). Hungary is

higher in masculinity, meaning that it is likely to find certain jobs or responsibilities

reserved for men. Hungary ranks much higher on long term orientation indicating they
are likely to think in terms of a lifetime, or even more where Americans are often
concerned with the next few years or less.

After looking at the number, lets take a slightly deeper look into Hungary.

Although often passed over as a Slavic nation, 97% of Hungarians are actually Magyar.
The Hungarian language is a famously difficult language and apart from a few words of
politeness, Hungarians do not expect foreigners to speak it (Mole, 170, 2008). There
are a couple customs one traveling to Hungary should be aware of. Hungarians never
clink beer glasses when toasting. Instead of having a Ms. for married women, they are to
put the suffix ne on their husbands name. When greeting a woman, Americans are to
hold her hand and pretend to kiss it. If Americans actually kiss her hand it means they
intend to seduce her. Meetings are ran by the highest ranked person in society, and
subordinates are expected to give only information asked for and nothing more.
Business meeting often require socialization and only take place during the day.
Nighttime is reserved for pleasure and, pleasure overlaps business but business doesnt
overlap pleasure" (Mole, 171, 2008).

Poland has a lot of customs that are all their own. Socialization is not required to

do business in Poland, although it is not looked down upon. They often draft lengthy
contracts and stick to them. First meeting are likely to be very formal. Among Poles it is
customary to use a language mode even more formal than the French vous or the
German Sie (Mole, 173, 2008). Especially in older generations, face-to-face

communication is highly regarded, as telephones and other electronic communications

are mistrusted, largely due to eavesdropping. In Poland, it is considered unlucky to
shake hands in a doorway (World Trade Press 2010). It is also taboo to give an even
number of flowers because it is considered a sign of death, whereas an odd number is a
sign of good luck (Passport to Trade 2.0, 2014).

With so many differences in countries so close, we tend to gravitate to the idea

that they must be the same. This is far from the truth. So it is our take that when you
are intending on doing business is a particular country or area you should do research
on individual countries. If the country is big enough you might even have to do research
on the cities in the country. After all if you went to New Jersey, you could expect a
culture quite different than Texas or California.
Ethical Dilemma for CEE

While income tax for 98 percent of the population is 19 percent, the social

security tax (ZUS) deducts another 20 percent from gross salary. This is one reason for a
vibrant shadow economy, estimated at around 20 percent of the official economy
(Mole, 173, 2008). With these figures, it seems like just about everyone is running a little
something under the table. While it is proper epically as guest to do as the locals, this
type of behavior is considerably less defensible. But it is likely if Americans do business
in Poland that they will come across a business partner or two that will not be happy
with an over the table approach. My suggestion would be if Poland society is unwilling
to do business in a strictly legal manner, perhaps American business is better done with
someone else. The characteristics and culture etiquettes of Central East Europe may not

be similar to Northern Europe, but the same method of consciousness should be

executed.
Northern Europe
The cultural backgrounds in Northern European countries are founded on
individualism and do heavily rely on the social values. The UK engages more in personal
relationships. The article Northern European Business Cultures states, The UK works
more through personal networks. If two people came with the same article, one slightly
better than the other, we would buy it from a friend - even if it were slightly inferior.
Maybe its not the right thing to do, but its the way business is done in the UK. Personal
networks are about spending time together, that is the reason we can do business.
When conducting business in the UK, you always have to remember that it is the
individual; the individual salesman you are dealing with.

Northern Europeans are seemingly laid back and focused on the personal

relationships with business partners. If you are meeting a European manager, and plan
to be late, make sure to call by phone. The U.S businessperson should be prepared to
wait 45 minutes, especially the first few visits. Lunch hours for executives are generally
two hours long; therefore, afternoon appointments should be scheduled for 2:30 pm.
With a few exceptions, the handshake is a standard of greeting but should be done
lightly with only a single shake. The U.S firmness of a shake is sometimes viewed as
impolite, make sure to let the senior executive reach out first to shake hands; however,
women are supposed to offer their hand first no matter the situation. The handshake is
also used as a farewell; avoid the use of excessive non-verbal gestures (Cultural

Background and Economic Development Indicators: European South Vs. European

North).

Northern Europe as defined by the United Nations consists of the following

countries. Denmark, Finland, Iceland, Sweden, and Norway make up the Scandinavian
sector of Northern Europe. Finland isnt a Scandinavian country. Although due to its
location and similarities to legitimate, Scandinavian countries is often grouped with
them. The United Kingdom and Ireland make up the western sector of northern Europe
while Estonia, Latvia and Lithuania make up the eastern sector of northern Europe.
Although these countries are grouped, do not make the mistake of assuming that they
have the same identities within their respective sectors. Each country listed is particular
about their national pride and heritage.
Business etiquette in NE should be described as etiquette in general. There are
some specifics when it comes to business negotiations. However when interacting in
these countries, all actions are perceived regardless of location.

The western sector (UK and Ireland) has the most similarities to the United
States in regards to Geert Hofstedes six dimensional analyses. The only dimension that
showed a material difference was Long Term Orientation. The UK has a score of fifty-
one which is too ambiguous for a dominant score to be determined. The USA had a
definite normative approach to LTO.
Actions that would be considered acceptable or unacceptable in the USA are
typically concurrent with the UK and Ireland. Examples include: Summoning shop
workers or servers with gestures, or particularly with snapping of fingers, are considered
rude. When out with friends, colleagues or relatives, it is customary for people to take
turns buying rounds of drinks. It is generally considered polite to hold a door open (or
give it an extra push open) rather than let it slams in the face of someone following you.
If someone opens or holds a door open for you, you must always thank them.
Since there are multiple similarities between the USA and the western sector of
Northern Europe, it is most pertinent to know the faux pas differences that could affect
business operations, negotiations, or anything that would possibly hinder the
effectiveness of the intended goals. The following are some of the aforementioned
differences. Regardless of tone, it is important to always say, please to maintain
politeness. In England there is high importance placed on how one speaks. Do not be
abrupt or too direct, as this is considered rude. Do not interrupt somebody who is
speaking. Do not speak too fast as this will be interpreted as nervousness and you will
make other people feel uncomfortable and intimidated. Do not speak in monotone, as

this will be interpreted as boredom or depression. Try to use facial expression when
describing emotion to show you are interested in what you are saying.
Geography is extremely important and one must know that England is a nation
within the United Kingdom. Ignoring the subdivisions of the United Kingdom and
referring to the whole, as "England" is insulting to the inhabitants of Wales, Scotland,
and Northern Ireland. Sensitivity is appreciated regarding national identity (some prefer
to be "English", some "British", some "Scottish", etc.). Respect different languages when
one is in Wales; as well as not to using "Welsh" improperly as it can be offensive. In
Northern Ireland, be particularly aware that some people identify as "Irish" while others
identify, as "British" and a faux pas made in this area will rarely pass without comment.
The term "Northern Irish" is perhaps least likely to offend. Asking people whether they
are Catholic or Protestant is insensitive.
In Ireland, it is confusing to Irish people to say that you are 'Irish' just because
you have Irish blood. To Irish people, you are only Irish if you grew-up or were born in
Ireland, and claims of Irishness (as opposed to claims of Irish ancestry) are viewed as
trivial and may be greeted with amusement or even ridicule. In Ireland, it is customary
to engage in conversation with any person not already conversing with a group or
person. This act of including strangers upholds Irish pub's reputation of having a friendly
atmosphere. This is completely opposite of the norm in the UK and USA. The corruption
index scores for the UK, Ireland and USA are roughly the same with the UK scoring a
seventy-eight and Ireland and the USA tied at seventy-four. Corruption, bribes and other
illegal actions are looked down upon.


The Danish culture is very straightforward. Malene Djursaa, Associate Professor
at Copenhagen Business School noted, A number of my Danish respondents reported
examples from their personal experience when they had believed in an order from
England and felt rather unethically treated when it turned out there would be no deal.
One Dane tackled it like this: If you dont want to do business, just say so - Ive got lots
of other things to do. Danish business associates rely on partners to be honest and task
oriented. Mentioned in the article, Northern European Business Cultures, a surveyor
states, In Denmark we are more inclined to get straight to the point and forget all that
rubbish (North European Business Cultures). Denmark and the other Scandinavian
countries have some of the best ratings on the corruption index. Physical contact with
strangers should be avoided, and apologized for if accidental. If hosting a meeting or
receiving guests, coffee is expected. In the Nordic countries, titles such as Mr., Mrs.,
Professor, Doctor, etc. are very rarely used. Younger people usually call each others by
first name regardless of relationship, and the T-V distinction is seldom used even though
it exists. In formal written communication, a person should be addressed by first and
surname. It is important to be on time for appointments or meetings. In Iceland, most
people do not have surnames but patronymics. A person's last name is his/her father's

first name in genitive with -son or -dttir added according to the person's sex. Icelanders
do not change their name upon marriage (this being illegal) so asking a spouse's last
name is not impolite. Icelanders never refer to each other by last name only. In formal
situations, the whole name is used. The characteristics and culture etiquettes of
Northern Europe may not be similar to Middle East Europe, but the same method of
consciousness should be executed.
Middle East
With the western economies and corporations being the most successful in the
world after WW2, many parts of the world wanted to embrace the western
methodology and ways of doing business. In addition, many of the western corporations
found a big market in those countries and wanted extend their market influence into
those regions. As a result of this mutual interest, the era of globalization started
developing. One of these regions was the Middle East and in particular Saudi Arabia.
Saudi Arabia was one of the most attractive places for western companies and
corporations to open due to the friendly political environment, cheap resources and raw
materials (oil, gas, electricityetc.), and the geo-strategic location of the country. All of
these attractive reasons were also faced with some challenges like the rule of Sharia
Law, the extreme cultural difference, and low education standards.
Taking Hofstedes five dimensions into account, Saudi Arabia has a very high
score, 95, in power distance which is an expected score since the ruling family, Al Saud,
holds all the power in the country; hence, western workers find the mentality and
culture of power in Saudi Arabia very hard to understand and comprehend compared to

western democracies. The second factor in Hofstedes five dimensions is collectivism

where Saudi Arabia scores a low score making it a more individualistic society. In this
regard, both Saudi Arabians and westerners share a close score; therefore, goals can be
achieved more easily. The third of the five dimensions is masculinity. Saudi Arabia has a
high score in masculinity due to the huge restrictions on women rights and feminism.
This factor is a huge concern to westerners, the creators of feminist movements, since it
contradicts one of the most important rights to them. It is also known in Saudi Arabia
that a female worker cannot meet with a male client or worker alone without another
person from the females company. The fourth dimension is uncertainty avoidance.
Saudi Arabia has a high score in uncertainty avoidance, which means that the Saudi
society has a preference for avoiding uncertainty. This creates a commonality between
Saudis and westerners and makes work easier to conduct. The last dimension is the
long-term versus short-term orientation. Saudi Arabia has a low score in that dimension
making it more of a normative society that has a hard time facing the absolute truth,
and has great respect for traditions. In addition, most of the Saudi society expects quick
results from their work and lack the long-term planning. This causes huge barrier for
westerners to conduct business with Saudis since it creates a contradiction in the scope
and vision of the business.

In order to achieve successful business in Saudi Arabia, there should be an

understanding of Saudi culture that will help counter any preconceived misconceptions
or stereotypes. For instance, an investor planning to invest in Saudi Arabia must employ
a certain quota of Saudis to comply with the countrys policy. In recent years, Saudi

businessmen have been more approachable by westerners because of the strong

economic ties between Saudi Arabia and the United States in particular. Nevertheless,
an investor needs to understand that Saudi Arabia is a country shaped by Islam and
tribal identities.
Ultimately, it is apparent that Americans should assimilate into the culture and
try to follow the protocols that are ingrained in their society. Although if arrangement
calls for illegal affairs, it is better to do business elsewhere. Once a type of company is
decided, the next focus should be on location. Because a region of the world can be
massive with diverse cultures, a company should concentrate on the cultures and
traditions of a specific country. Geert Hofstedes 6 dimensional analyses should be used
when researching a country. Geert Hofstedes 6 dimensional analyses convey
characteristics that could be beneficial to know when negotiating or doing business.
Also, a company can reap the benefits of doing business abroad because of cheap
resources and raw materials. But if they cant culturally mash, they might lose out on
the benefits from doing business in that country. These are some things to take into
consideration for those who are ready to establish their business internationally.

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North European Business Cultures: Britain vs. Denmark and Germany MALENE DJURSAA,
Associate Professor, Copenhagen Business School. European management
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School
Cultural Background and Economic Development Indicators: European South Vs
European North P. E. Petrakis Department of Economic Studies, National and
Kapodistrian University of Athens, Athens, Greece E-mail:
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