US standards, is not small to the Japanese. In US
department stores, executive suites are on the top
floor and the budget store is in the basement. In
Japan, top executives have offices on the ground
floor, and the top floor is reserved for bargain-
priced merchandise.
Language of agreement
The USA is a very legalistic society. Americans are
both specific and explicit in terms of agreement,
making legal contracts common and indispensable.
Not surprisingly, lawyers become partners in virtu-
ally all business deals.When Japan wanted clarifica-
tion concerning AT&T’s products, the company
reacted in a typically American fashion by sending a
lawyer instead of a manager. Per capita, the USA has
more lawyers than any other country in the world.
American lawyers earn a good income and are
accorded social status not found elsewhere.
According to an old saying in Thailand, “it is
better to eat a dog’s feces than to engage in a
lawsuit.” Such thinking explains why the Chinese
abhor litigation and why they prefer to withdraw
from a deal rather than be involved in potential legal
disputes. In many cultures, written contracts are
not as binding as one’s word. According to people
in these societies, if a person cannot be trusted as a
friend, then it is futile to expect that person to live
up to obligations – written or otherwise.
Even when an agreement is reached, that agree-
ment may not necessarily be ironclad since it can be
modified by changing circumstances. In South
Korea, a businessperson considers a contract to be
a loosely structured consensus statement that allows
flexibility and adjustment. In some societies, agree-
ments merely signify intention and have little rela-
tion to capacity to perform.
Culture dictates how a disagreement is expressed
and resolved. North Americans generally prefer a
straightforward approach. Elsewhere, one must be
careful in a disagreement never to cause someone
else to lose face. Asians, in particular, are sensitive
to affronts and can become violent when “loss of
face” results. Public humiliation or criticism must
thus be avoided in Asia, where politeness is valued
over blunt truth.
In Mexico,direct statements of criticism are con-
sidered rude, and thus Mexicans practice circumlo-
cution, making it difficult to determine the true
meaning. In Latin America, disagreements may be
viewed as personal attacks against the individual.
Subordinates are expected either to support their
managers openly or to keep silent. Similarly, in
Japan,silence is perceived as a positive concurrence,
and open exchanges and debates are considered
inappropriate. Only the top decision maker may
comment freely. Japanese stockholders are not
allowed to question management critically; com-
panies may hire “guards” to dissuade those who are
too curious from asking more questions.
US firms prefer to base decisions on objective
criteria, or at least they make that claim.The system
makes allowances for those who strongly criticize
decisions, but such a process would be unacceptable
in countries where it is inappropriate to question an
executive’s personal judgment. Managers often find
themselves in a dilemma,as one cannot consult with
others on matters about which one is presumed to
be the expert.
As might be expected, the different forms of
disagreement may confuse American managers.
When potential customers keep quiet, nod their
heads, or state that they will think about it,
American managers may believe that a deal is devel-
oping. But foreign buyers may stay quiet even when
the product in question is clearly unsuitable for their
needs, because they do not want to offend the
American by saying something critical.
Language of friendship
Americans have the unique characteristic of being
friendly, even at first meeting. Americans seem to
have no difficulty in developing friendship in a very
short time, and this trait is carried over into busi-
ness relationships. American businesspeople are
impatient to develop the deep personal ties that are
crucial overseas.In many countries, friendship is not
taken lightly – it involves real obligations such as
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CULTURE