Posted by The principle of international business is the respect and adaptation that one culture has in relation to another. In nations where the government has more control over the population, culture has an even greater weight in international negotiations.
One of the biggest obstacles in the internationalization of companies is the cultural barrier. Customs, traditions, religion and politics can decide an international negotiation and even change a supply chain.
Search for suppliers, buyers and intermediaries
The search for suppliers that offer products with safety and quality is a challenge in foreign trade, even with all the technology we have today, many companies value knowing their partnerships personally, which can help a lot in the negotiation, but it can also generate a cultural shock very large.
Brazil is considered a receptive country for business tourism, but other countries have very strong traditions, and are not receptive to people who come from abroad to negotiate, so it is important to be prepared for different cultures.
How lengths can change in different countries:
- In Chinese culture, the length must come from the host and not the other way around.
- In Saudi culture, the left hand is considered dirty and should not be used for lengths.
- In Australia, a handshake is signed at the beginning and at the end of the meeting, what changes is that it must always come from the woman, if not the woman, it may be unnecessary.
- In Brazil, the length can be a handshake, and then it is nice to have a “small talk”, a small conversation outside the main theme of the meeting.
- In Austria, people are direct and veto any type of ” small talk”, but it is very important to recognize the person’s position and position, that is, whenever referring to the person, use nomenclatures: Dr, prof, director, master, etc. Always emphasizing your training.
- In Japanese culture, there is no physical contact, the face is lowered indicating respect.
- In addition, countries have different objectives when carrying out a negotiation, such as: Competence, competitive prices, lasting relationships, integration with culture. Therefore, it is necessary to understand the thinking of the country whose negotiation will be carried out.
Logistics
Culture is capable of transforming an entire logistical operation, a great example of which are some slaughterhouses from Paraná that export to Arab countries. To complete the negotiation, importers demand that the chickens be slaughtered painlessly in a place facing Mecca and with religious phrases on plates at the place of slaughter. In this case, religion interferes with the structure of the exporter.
The modes of transport can also be influenced, some countries prefer rail transport, while others do not have a rail network due to economic problems .
British and Japanese car brands, even though they have the right-hand drive as standard, manufacture cars for export with left-hand drive, in order to reach markets where the standard is different. In this case, it is a historical factor , as until the end of the 18th century gentlemen walked on the left side to hold the sword in their right hand.
Some cultures, such as German and English, are strict with deadlines and schedules. In other traditions, delays are considered normal, generating a longer delay in cargo shipments and in issuing documents. In this case, it is a factor of customs or even the country’s infrastructure can influence it.
Payments
Different cultures have different forms of payment, some cultures tend to bargain for the best price, others prefer the quality of the product and don’t care so much about the price.
Another factor that culture influences is international freight, some international agents negotiate freight payment after shipment (COLLECT), but others only accept payment before shipment (PREPAID) as a way to guarantee payment.
Bureaucracy
Some countries have difficulties in understanding and cooperating with external bureaucracies, special documents are often needed in international shipments and there is enormous difficulty in correctly issuing these documents.
In international trade, this can generate a ripple effect, complicating the entire logistical operation and generating even more bureaucracy. The most common cases of documentation arriving in Brazil incorrectly are: invoice, bill of lading, certificate of origin and unsigned documents.
Samples: Some exporters in certain countries are not aware that it is prohibited to send samples without a declaration, and send samples of their product together with the vessel, generating a serious problem in Brazil with differences in weight and values between cargo and documentation. Discounts: As in the case of samples, some countries want to please the buyer and declare a lower value than the correct value of the goods, as a way of offering a discount, but this practice is considered fraud and the importer in Brazil
it can pay a fine of 100% of the calculated difference, in addition to having its activities in foreign trade suspended.
Bill of lading with incorrect information: The exporter is responsible for issuing the documentation, but often, the documentation lacks information or contains wrong information.
Certificate of origin: Importers may lose benefits if there is no certificate attesting to the origin of the cargo.
Unsigned Documents: Often original documents are received unsigned in Brazil.
It is concluded that adaptation and respect for cultural barriers are an essential factor for the entire logistics chain to flow correctly, as it can influence various sectors of international trade.
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