International Trade Blog

China is a major player in the global market and although it has not yet reached the development level of Western Europe countries and USA it still plays an important role in global market. Trading with Chinese can be a very profitable undertaking, but to succeed you must n\know at least a bit about their business traditions.

As most their business counterparts Chinese men prefer a conservative wardrobe with the appropriate colors. Women should stick to very conservative clothes as Chinese frown upon women who ‘’show too much’’. Jeans are allowed for both genders, but not for official business meeting. Avoid large hand gestures and if you must point to something use the palm of your hand. In general Chinese are not very keen on personal contact. Gifts are accepted, but you must be very careful what you present your partner with. One of the big no no’s is to gift a watch as it is connected with death and therefore should be avoided. Giving gifts to government officials is illegal and is viewed as attempted bribery. Chinese are very punctual so you should always arrive early for a business meeting. While it is very common in other countries do not discuss business affairs during a meal. Remember that Chinese prefer large quantity of small portions during a meal. Do not completely finish your meal or it may be translated that you did not receive enough food and are still hungry.

The general greeting is bowing, but there is a chance that you be offered a handshake. Always wait for your counterpart to offer it. Use formal introductions. Have several copies of all written documents. Chinese value rank and status very highly. The Chinese party will always be the first to leave the meeting. Although some Chinese speak English it would be wiser to use a translator as most Chinese people still do not understand English.

Granted it can be quite hard to successfully conduct business with the Chinese, but the reward can be very satisfying. Respect is a key part in every business deal.

What do you imagine when you think about Australians? A Paul Hogan look-alike cowboy type person with crocodile boots who only eats grilled food and calls everybody ‘’mate’’. I am sorry to disappoint, but you might be dead wrong.

I admit I had the same stereotype thinking when it came to Australians, but then I actually visited Australia and my preconceptions changed. The average Australian business person looks quite similar to their European and American counterparts. Men prefer conservative dark business suits, while women may wear a dress or a skirt and a blouse. Admitted Australians are somewhat more laid back and informal clothing is deemed appropriate at more informal business meetings. Despite their seemingly laid back attitude Australians value punctuality. Maintaining eye contact during business meetings is crucial. Gift giving is not appropriate in Australian business traditions as it may be confused with corruption. On the other hand if you have been invited to somebody’s home a small gift would be viewed as a token of appreciation.

As we all know Australia is an English speaking country so most business communication is done in English, but you must remember that Australia is a multi national country and a lot of people are of Asian origins. A handshake is the most commonly used method of greeting. Similar to Japan the exchange of business cards is quite widespread. In general Australians are very friendly and open people.

I do not know why, but sometimes we view Australians as simpletons and unimportant. We tend to forget that they have their own continent with a lot of natural resources and a huge industrial potential. The Australians in some ways have actually surpassed us, as they managed to out play the global economic crisis. Australia is currently one of the few countries where the impact of the crisis has been minimal. It means that they are quite efficient in business sphere and should be viewed as a major player in the global market. Use their strengths to your own advantage and maybe even become more like them.

So Asia intrigues you and you would like to visit some of its countries, but you are afraid that the cultural barrier will be to high and you might, how to say it right, ‘’get lost in translation.’’ Well I might offer a solution – Singapore
Singapore is city state based on 63 islands and it is the smallest country in Asia. We might compare Singapore with Vatican City and Monaco, but only territory wise because it has a population of approximately 4.9 million. Quite a large number for a city state! Its economy is based on exporting improved imported goods. Singapore is also one of the Four Asian Tigers and has become one of the world’s leading financial centers. They understood that as a small country they have to find a certain niche to successfully compete in the international market.. In general they have a very highly educated labor force. Global economic crisis has hit Singapore very hard because of the decreased export levels worldwide. The standard of living in Singapore comparing with other Asian countries is very high. Continue reading »

Well USA has always been viewed as the Promised Land, as the land of unlimited opportunities where one can achieve anything. In general it is still true and currently we consider USA to be the most powerful country in the world. USA has a huge industrial base, massive landmass and Hollywood dominates the entertainment sector of the world. So can someone actually shake USA down from its top place? Continue reading »

Today to successfully conduct business and make money we must deal with all sorts of people and their respective religion. Of course you can remain totally ignorant about your prospective partner’s traditions and way of life, but then the chances of failure are much higher. Today let’s review some basic traditions of Islam in the context of business etiquette.

Today Islam, by many, is viewed as a religion that supports terror in the name of the faith. Actually Islam is a peaceful religion and only a bunch of radical fundamentalists use it to justify terror. It is horrible no question about it, bet lets remember what some Christian countries did in the name of God to the natives of the both American continents. So let’s not judge the whole religion just by the acts of some of its followers. Continue reading »

What actually is international trade and what is the point of it? This is the first question for every new enterprise. In short – international true is the exchange of goods and services between two countries. Sounds simple, but let’s review it a little bit.

Trade is the most ancient form of communication. People from various places and with different languages met and they could not even understand each other, but were able to exchange something between another. Was it a fur for a tool or food for a weapon it does not matter because it was the principle of trade? As the world evolved people realized that they cannot produce everything. Northern countries realized that they will not be able to make wine and southern countries realized that they liked the fur from the north that was not available to them. So they started to trade between each other and thus international trade was born. Continue reading »

Roughly two centuries ago the Wild West (USA) was the land of infinite possibilities and it offered great opportunity for a smart businessman. Today China can be viewed as the Wild East, a new land of vast riches and potential profits.

China is the fourth largest country in the world, but the number one population wise (1,320,000,000) so by default the potential of labour force is enormous and in time with the right decisions China can become the leader in global market. Although China is ruled by a communist party and its market policy is Central Planned due to some smart decisions by party leaders in the last few years, the GDP of China is steadily increasing. Well in 2009 the increase has been slowed down by the global crisis, but the domestic market decreased the effect of the crisis. In 2009 the inflations is decreasing.

Continue reading »

By Neil Payne

Modern Japanese business practice has been very influenced by Europe and North America. However to a large extent but still retains some traditionally Japanese practices. Below we introduce you to some of the more pertinent concepts and what they mean.

“(O)jigi”, or bowing in English, is probably the feature of Japanese etiquette that is best-known through media and TV. Bowing is considered extremely important in Japan, so much so that, although children normally begin learning how to bow from a very young age, companies commonly provide training to their employees in how to execute bows correctly Basic bows are performed with the back straight and the hands at the sides (boys and men) or clasped in the lap (girls and women), and with the eyes down. Bows originate at the waist. Generally, the longer and deeper the bow, the stronger the emotion and the respect expressed. Bows can be generally divided into three main types: informal, formal, and very formal. Informal bows are made at about a fifteen degree angle and more formal bows at about thirty degrees. Very formal bows are deeper. Continue reading »