Differences in culture complicate business negotiations and relationships in many ways.

First, they can cause communication problems. If the Japanese supplier, for example, responds to one of the proposals with “That is difficult”, one may wrongly assume that the door for further discussion is still open. In fact, the supplier, who comes from a culture that avoids confrontations, has given an indirect “no”.

Second, cultural differences make it also difficult to understand each other’s behaviour. Americans, for example, see hiring relatives in the business as a dubious favour, but for Lebanese colleagues, hiring relatives is a natural way to attract trustworthy and loyal employees.

Third, culture influences the shape and content of the business. For example, when McDonalds first franchised in Thailand, it insisted on strict adherence to its traditional American menu. Later, under pressure from its Thai franchise, it allowed the sale of a traditional noodle dish. As a result, sales increased. Since differences in culture always require adaptation of products, management systems and personnel practices abroad, it is necessary to be open for proposals for changes in negotiations. 

After all, culture can influence people’s behaviour and interaction at the negotiating table. In some countries, like Spain, the main goal of negotiators is to get a signed contract, while in other cultures, including India, negotiators may concentrate on building an effective long-term relationship, as I found in a survey. 

Before heading to the next international negotiation, here are some simple rules for dealing with cultural differences in international negotiations and transactions: 

1. Homework: Get information about the culture! By reading and talking to people from the country you can learn a lot. But also negotiating partners can be a source of information about their culture and this interest is mostly welcomed!
2. Respect cultural differences! Inexperienced negotiators tend to belittle unfamiliar cultural practices. It is better, however, to understand the value system at work and to have a problem-solving conversation about any difficulties that unfamiliar customs may bring. 
3. Be aware of how others perceive your “foreign” culture! You should try to be aware of how your own behaviour, attitudes, norms and values appear to the foreign negotiating partner. 
4. Find ways to close the culture gap! Cultural differences create a gap between negotiating partners. Therefore, ways to close this gap should be sought constantly. A first step in bridge building requires defining common ground, e.g. a shared experience, interest or goal. 

Etiquette tips for business travellers: How to avoid blunders in other countries

Different countries, different customs – this saying is especially important for business travellers abroad. If you know the customs of a country, you can protect yourself from misunderstandings and putting your foot in your mouth. Here are a few examples: 

Asia: “Do not blow your nose at the table and look your counterpart in the eyes as little as possible. Both are considered absolutely rude.” 

China: “In China, the present for the host plays a big role. The packaging is particularly important here, and the gift is unwrapped later. Furthermore, the rule here is: Avoid sensitive topics such as the country’s politics.”

South America: “There is a different understanding of time, especially when inviting people home. If you are invited for dinner at 8 p.m., it would be very impolite to show up before 9 p.m.”

Russia: “Status counts a lot here, for example, an expensive watch or a lot of make-up for women. In Russia, more is more.”

England: “Exactly the opposite is true in England. Here it is all about understatement, meetings are very conservative and less is more.”

United Arab Emirates: “There are always middlemen in business negotiations, because it is about both parties saving face in negotiations. In Dubai, by the way, a coffee is always the sign that a meeting is over.”

USA: “In the states it is very important to hold back on private statements. A simple: “Your assistant is very nice” can already be misunderstood.”

Russia: “If you invite Russian guests to your home, you should not be afraid to buy in bulk. The rule here is: The larger part of the food must be left over, it would be unthinkable that the food is just enough.”

7 etiquette tips for Austria:

1. Address every Austrian by their full title – even if it is very, very long.
2. In German, use the polite form of address to your business partners (Sie). 
3. Make your appreciation clear.
4. Score points with German punctuality, but leave the control mania at home. 
5. Loosen up and be open to intermediate solutions.
6. A meeting in a café is still a meeting.
7. Go networking on the golf course, in the forest – or on the dance floor.