Successful entrepreneurs understand good business is about good relationships. By establishing partnerships with suppliers, competitors and new connections, you can build a healthier, stronger business. Never is this more important than when you’re considering international business. By expanding your scope overseas, you open up your company to new influences, customers and power.
Of course, it’s all easier said than done. Aside from logistics, you need to consider that you’ll encounter people from completely different cultures. It’s essential to recognize differences in business etiquette when working with international clients. By understanding the culture you’re engaging with, you can make connections, make others feel comfortable and welcome, and avoid embarrassment.
Researching local customs before doing business in a new country
When you travel to other countries to do business, research is key. What’s considered proper etiquette or good manners varies greatly from country to country.
When conducting business in the United States, eye contact during conversations, especially with superiors, signifies respect and confidence. In other countries, eye contact is considered rude.
Business meetings are all about business in the U.S. but, in many nations, it’s disrespectful not to inquire about one’s health and family before talking about professional matters.
The ability to behave and conduct business in a respectful and efficient manner can improve your chances of landing important business deals or finding a new company to work for if you are seeking a new career trajectory.
There’s a whole world of information out there about international business etiquette. Here, it has been travel-sized for your convenience.
Business etiquette: China
- Show up on time for business meetings. Punctuality is important to the Chinese and being late is offensive.
- Chinese professionals appreciate a conservative dress code, and you should avoid physical contact while conversing.
- Always be prepared for meetings. Conduct research on the company ahead of time and avoid scheduling a meeting during a Chinese holiday.
- Enter the room in hierarchical order. The person of the highest seniority will enter the room first and the rest will follow in order.
- Mandarin is the official language of China, but there are some other languages to be aware of, such as Cantonese and Shanghainese.
- Avoid firm negatives, such as a simple “no.” Try to find an alternative, such as “That’s something I will have to think about.”
Business etiquette: Japan
- It’s common for Japanese professionals to exhibit a calm, collected demeanor in business communications. “Americans, who tend to be more expressive, should be mindful of their nonverbal communication when interacting internationally,” said Yushiro Kato, CEO and co-founder of CADDi, a manufacturing platform based in Japan.
- Bowing is a typical way of greeting each other. Handshakes sometimes occur, but you should let the Japanese person initiate it.
- The senior member of the group often leads the business meeting while younger members, out of respect, speak less. People of similar positions in different groups should sit across from each other; junior employees should never sit across from senior employees.
- Giving gifts is common, but you should pay special attention to how you present your gift. Never hand out a gift that isn’t wrapped, and make sure you give it to the person with both hands.
- When exchanging business cards — a Japanese ritual known as “meishi” — make sure you’re using both hands, and do not write on them in front of the giver. Bowing during this exchange is viewed as a form of respect.
- Be patient in negotiations. “Don’t rush the process, as it’s important to demonstrate that you’re thinking long-term,” explained Kato. “Quick decisions are seen as impulsive, while patience is a sign of respect and seriousness.”
Business etiquette: Thailand
- Thailand prides itself on being a serene culture. It is expected that any professional differences will not erupt into public conflict or anger, shared Aaron Henry, managing director of Foundeast Asia Co., Ltd., an international marketing and PR agency.
- Rather than shaking hands, Thai locals will “wai,” or place their folded hands to their chest and bow their heads slightly. “This is a more hygienic way to greet people,” Henry said.
- Acknowledging local customs, like learning simple Thai phrases, can go a long way. “[You can say] ‘khob khun’ (thank you) and ‘sawasdee’ (hello) and end them with ‘ka’ if you’re female and ‘krub’ if you’re male,” explained Henry. “The end particles ‘ka’ and ‘krub’ depend on your gender, not the gender of the person with whom you’re speaking.”
- Business within Thailand is largely conducted in Thai. “If you want to do business with Thai companies, especially in a sector like manufacturing, you usually need local language support,” Henry said.
Business etiquette: India
- While you can show up to meetings on time, don’t be surprised if Indian business partners are late.
- Like in China, the word “no” can be considered rude in India. Try to use words and phrases like “we will see” or “possibly” instead of “no.”
- If your business partner offers you a meal, it is proper etiquette to accept the invitation. Declining the meal could jeopardize the possible business connection.
- Avoid eating meat at business meetings if everyone else is ordering vegetarian meals. Many people in India do not eat pork or beef for religious reasons.
- When conducting business in India, English is the typical language to use.
Business etiquette: Middle East and Africa
- Many Middle Eastern countries adhere to a strict protocol of hierarchy and seniority, so American businesspeople may need to temper their extroversion and sense of familiarity. “In the Middle East, it’s customary for the most senior person to initiate contact,” explained Benjamin Simon, regional vice president of International Franchise Operation and Development at Mathnasium.
- The firm handshake, customary in the U.S., will often be matched when doing business in Africa. However, a lighter handshake and a bow are often preferred in the Middle East. “The handshake may be accompanied by other gestures, such as placing a hand over the heart,” Simon said.
- Rapport building is crucial in business interactions. In Simon’s experience, professionals in West Africa will showcase their local nightlife in business relationships, while those in the Middle East often start conversations with personal topics before launching into business matters. “This isn’t stalling; it’s a way to establish comfort and rapport,” he added.
- Negotiations in the Middle East and North Africa can take longer than in the U.S., as a certain level of back-and-forth is expected to build comfort. “In regions like the Maghreb and Turkey, it’s not uncommon for negotiations to continue even after a handshake or a letter of intent,” said Simon.
Business etiquette: France
- It is vital to make appointments for both business and social occasions. It is not acceptable in France to drop in on someone unannounced.
- Punctuality is valued but sometimes treated casually in France, so do not be surprised if your French colleague arrives late. Staying late at the office is common, too, especially for individuals in senior positions.
- As you would expect, the nation that created haute couture puts a premium on style. Fashion and appearance are more important in France than in many other countries in the world. Even low-paid, entry-level executives buy the best clothes they can afford. Dress tends to be on the formal side for both men and women, whether in business or social situations.
- Giving presents is fine here but use discretion. Business gifts are usually not exchanged at the first meeting.
Business etiquette: Italy
- Italians do not prioritize punctuality, so be patient and prepare for any delays that may arise. Do not take a small delay as a sign of disrespect. When a deadline must be firmly met, make it very clear to your Italian partner.
- In Italian business culture, it’s not common to give gifts, especially expensive ones. Only after you’ve established a trusting relationship with someone may you give a small and not obviously expensive gift as a sign of friendship.
- Italy is a major center of European fashion. Even casual clothes are smart and chic. Formal attire is generally expected for business meetings. For the most part, men wear dark colors. Women tend to wear elegant and modest pant suits or skirt suits, accessorized with simple jewelry and makeup.
Business etiquette: Germany
- Business events are well-structured and straight to the point. You don’t want to be joking during business meetings.
- Be punctual. Germans are hardworking, so you want to demonstrate that their time is valuable.
- A typical greeting involves a firm and brief handshake with everyone as you enter and exit the meeting.
- When entering business meetings, allow the oldest person to enter the room first.
- Address people by their title and surname to show respect.
Business etiquette: Brazil
- Business meetings often last longer than planned but do not leave before the meeting has officially ended. Leaving early is considered rude.
- In Brazil, physical contact during conversation is natural and highlights the trust between business partners.
- You should avoid eating with your hands in Brazil. Even if you’re eating a sandwich, you’ll want to use a napkin or utensil.
- Portuguese is the official language of Brazil, but some Brazilians also speak Spanish. Some parts of the country also speak German.
Business etiquette: The United Kingdom
- Punctuality and preparation are valuable, so arrive on time. If you’re running late, call or message someone to inform them.
- When conversing with the British, try saying “please,” “thank you” and “sorry” frequently, as this is considered polite.
- A polite greeting typically involves maintaining eye contact and offering a handshake.
- Unlike Brazilians, Brits like to have personal space, so don’t stand too close.
Business etiquette: Canada
- Canadian business relationships can take longer to establish than American ones, which tend to be more goal-oriented and focused on short-term gains. “Canadians value forming deep, meaningful partnerships, and there may be more patience in developing professional relationships,” explained Emily Hosie, founder and CEO of Rebelstork, the largest recommerce platform for baby gear returns in North America.
- Canadians tend to prefer an empathetic, patient communication style. According to Hosie, Rebelstork’s team has found success in listening first, then offering solutions in a thoughtful and timely manner.
- Despite being geographic neighbors, the U.S. and Canada have different labor laws and industry regulations. It is important that all employees understand each country’s rules. “Canadian regulations for baby gear quality checks can differ from those standards in the U.S. on the same products,” Hosie said. “We train our quality control staff to meet the specific requirements of each country to ensure compliance and maintain trust with customers.”
Research the country where you’re doing business to learn about workplace culture ahead of time to show respect and build strong professional relationships.
Preparing to go global
With business borders expanding, following a country’s business etiquette is not good manners alone — it’s good business. “As Americans, we exhibit levels of confidence that can be useful and beneficial, but we shouldn’t behave with hubris,” said Henry.
As you’re preparing to expand globally, research the country and its culture. As Hosie noted, laws, practices, preferences and needs will vary by region. Doing your due diligence not only helps you understand how to build business relationships respectfully, but it may also keep you from unknowingly breaking laws or disrespecting people’s religions or cultures. It may also be beneficial to learn the country’s language if they conduct business in a language other than your own. [Read about the business legal terms you need to know]
“Immerse yourself in the local culture, listen deeply to your potential partners and adapt your business approach to the local environment,” advised Kato. “Flexibility and empathy go a long way in building meaningful international relationships.”
Differences in local culture may also affect how consumers engage with your business, so be prepared to make adjustments as needed. “[For example], in the Middle East, the coffee shop is the de facto bar, as they don’t have alcohol — so more customers come at night than in the morning,” explained Bob Kaufman, president of International at Xponential Fitness. “ You need to rethink the concept to accommodate the customer.”
Before globally expanding your business, establish a strong and consistent brand and develop a strategy for marketing, handling payments and developing partnerships. The more partnerships you cultivate, the easier it may be to expand your business into different countries and enter global markets. [Learn about important considerations for an international digital marketing strategy.]
Global expansion is not easy and requires high adaptability to succeed. You will likely make mistakes along the way, but it’s important to learn from them and address any issues moving forward.
Overall, global expansion can be a great way to grow your brand and customer base overseas, increase revenue, become a more diverse business and enter into new markets. [Read about expanding internationally by leveraging local PEO services.]
Sean Peek and Matt D’Angelo contributed to this article.