Chapter 3
United States of America

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“The thing that I learned as a diplomat is that human relations ultimately make a huge difference. No matter what message you are about to deliver somewhere, whether it is holding out a hand of friendship, or making clear that you disapprove of something, is the fact that the person sitting across the table is a human being, so the goal is to always establish common ground.”

—Madeleine Korbel Albright, Former United States Secretary of State

Introduction

One of the things that is well known about the United States,1 even in other cultures, is how little U.S. Americans2 seem to know about the world. For example, during one of Sharon's business trips to China, she visited the Haidian District office of a long-standing female colleague. As they were finishing their discussion, her Chinese colleague asked, “Americans are still learning about world geography, yes?” In her polite, face-saving, indirect way, what she was really asking was why Westerners are sometimes ignorant of other cultures. This led to a fascinating discussion about the differences between Eastern and Western thought.

This need to understand the differences in Western thought and action is fundamental to establishing long-term relationships in Asia. As we explained in the Introduction, this book offers in-the-trenches information focused around eight questions. The culturally focused themes that these address are covered in each of the 10 Asian country chapters. It is important to review these themes as they relate to U.S. culture too, to gain awareness of aspects of culture U.S. Americans often don't think about until we are doing business in countries whose attitudes and behaviors are quite different from ours, and when we must be more culturally fluent.

There is a dual purpose to this chapter: To address the eight question framework as it relates to the U.S. American way of doing business, but also as a primer to doing business in the U.S. for Asian readers or indeed anyone visiting from another culture.

Quiz

How much do you know about the U.S.? Answer the following questions as True or False to test your knowledge (the Answer Key that follows the quiz includes page references where you can find more information.):

  1. _____1. The U.S. is one of only three countries still using the Imperial system of measurement instead of the international metric system.
  2. _____2. In the U.S., English is the official national language.
  3. _____3. There are three U.S. territories: American Samoa, Guam, and the U.S. Virgin Islands.
  4. _____4. There are two U.S. commonwealths: Puerto Rico and the Northern Mariana Islands.
  5. _____5. In U.S. business, ‘Mrs.’ is an inappropriate courtesy title.
  6. _____6. Executives commonly ask business visitors to use their first name.
  7. _____7. The U.S. has six time zones.
  8. _____8. In the U.S., wardrobe varies by industry and geography; business-casual and professional attire are both common.
  9. _____9. Business breakfasts, lunches and dinners are all common in the U.S.
  10. _____10. At restaurants, servers are paid less than minimum wage; tipping 15 to 20 percent of the pre-tax bill for good service is customary.

Answer Key: 1. T (p. 33); 2. F (p. 33); 3. T (p. 2930); 4. T (p. 30); 5. T (p. 38); 6. T (p. 38); 7. F (p. 34); 8. T (p. 36); 9. T (p. 39); 10. T (p. 40).

Country Basics

This section provides key knowledge in an easy-to-read format to help you quickly grasp some of the basics necessary to navigate this culture.

Historical Timeline

A critical way to show respect for another person's culture is to have knowledge of their country's history and current affairs. Table 3.1 on page 30 outlines a few key U.S. events along with concurrent world events.

Table 3.1 Key Historical Events

Period/Dates Description/Events World Events
1776 Declaration of Independence signed. The Wealth of Nations is published.
1783 U.S. independence recognized by Britain. Beethoven's first works are printed.
1788 The Constitution is ratified. Mozart releases the three “great” symphonies: E-flat, G minor, and “Jupiter.”
1861 Civil war breaks out after several southern states secede from the union. The Kingdom of Italy is founded.
1865 End of Civil War, slavery is abolished. Joseph Lister pioneers antiseptic surgery.
1964 Civil Rights Act is enacted. Olympics held in Tokyo, Japan.
1969 United States puts first man on the moon. U.S. and Japan agree on return of the Ryukyu Islands to Japan.
2001 Sept. 11 terrorist attacks on the World Trade Center in New York City and the Pentagon in Washington, D.C. People's Republic of China is admitted to the World Trade Organization.
2008 Barack Obama elected as first African-American president. Olympics held in Beijing, China.
2016 Presidential and legislative elections scheduled. Elections scheduled for Japan, Malaysia, the Philippines, and Taiwan.
2018 Legislative elections scheduled. Elections scheduled for China and Malaysia. PyeongChang, South Korea to host the XXIII Olympic Winter Games.

Full Country Name and Location

The United States of America is the world's third largest nation. It borders the Atlantic Ocean and the Pacific Ocean, between Canada and Mexico. Alaska and Hawaii are the only non-contiguous states. Hawaii is an island archipelago of 8 major islands, 137 in all.3 Alaska is located in the northwest corner of the North American continent, bordered by Canada, the Arctic Ocean and the Pacific Ocean. There are three U.S. territories: American Samoa, Guam, and the U.S. Virgin Islands; and two commonwealths: Puerto Rico and the Northern Mariana Islands.4

Government/Political Structure

The U.S. is a constitution-based federal republic with strong democratic traditions. A president, elected by a college of representatives from each state, serves as both the head of state and head of government. The president serves a four-year term, with eligibility for a second term. Most recent elections were held November, 2012. The bicameral legislature, or Congress, consists of the Senate and House of Representatives.

Population and Economic Centers

The 2014 CIA World Factbook estimates the U.S. population at 319 million people, with 82.4 percent living in urban areas.5 The country is divided into 50 states and one district (District of Columbia).

According to the CIA World Factbook, ethnicities among this population are: White (79.96 percent), Black (12.85 percent), Asian (4.43 percent), American Indian and Alaska native (0.97 percent), native Hawaiian and other Pacific islanders (0.18 percent), and two or more races (1.61 percent). Note: a separate listing for Hispanic is not included here because the U.S. Census Bureau considers the term Hispanic to refer to persons living in the U.S. of Spanish/Hispanic/Latino origin, including those of Mexican, Cuban, Puerto Rican, Dominican Republic, Spanish, and Central or South American origin, who may be of any race or ethnic group (White, Black, Asian, and so on); about 15.1 percent of the total U.S. population is Hispanic.6

The major business centers and populations (as of 2010) are shown in Table 3.2 on page 32.7

Table 3.2 Major Business Centers

Business Centers Population (millions)
Chicago, IL 2.7
Houston, TX 2.1
Los Angeles, CA 3.8
New York City, NY 8.2
Philadelphia, PA 1.5
San Francisco, CA 0.8
Washington, DC 0.6

Economy

The U.S. is ranked 7th out of 189 economies in terms of ease of doing business, according to the World Bank Group's Doing Business 2015 report.8 Its 2013 GDP was ranked number one by the World Bank,9 and the composition of its GDP by sector was services (79.4 percent), industry (19.5 percent), and agriculture (1.1 percent).10

Corruption Perceptions Index

The U.S. ranked 19th least corrupt out of 177 countries and territories with a score of 73 out of 100.11 This annual index, compiled by Transparency International, measures perceived levels of public sector corruption.

The Criminal Division of the Department of Justice and the Federal Bureau of Investigation are the anticorruption agencies that conduct investigations in the United States.

Human Development Index

The U.S. ranked fifth out of 187 countries and territories.12 The HDI, compiled by the United Nations Development Programme, is a composite index of life expectancy, education and income statistics.

Global Gender Gap Index

The U.S. ranked 20th out of 142 countries in terms of gender equality with a score of 0.7463.13 This annual index, compiled by the World Economic Forum, assesses gender gaps based on economic, political, educational, and health-based criteria.

System of Measurement

When shipping or transporting materials to and from the U.S., be aware that it is one of only three countries using the Imperial system of measurement instead of the international metric system. (The other two countries are Myanmar/Burma and Liberia.)

Climate

The U.S. has a varied climate: Tropical in Hawaii and Florida; arctic in Alaska; semi-arid in the Great Plains west of the Mississippi River; arid in the Great Basin of the southwest; and low winter temperatures in the northeast and northwest.

Languages

English is widely spoken in the U.S. (82.1 percent), along with Spanish (10.7 percent), other Indo-European (3.8 percent), Asian and Pacific Island (2.7 percent), and others (0.7 percent). The U.S. has no official national language, although English is official in 28 of the 50 states.14

Belief Systems, Philosophies, and Religions

The country breakdown is as follows: Christian Protestant (51.3 percent), Roman Catholic (23.9 percent), Mormon (1.7 percent), other Christian (1.6 percent), Jewish (1.7 percent), Buddhist (0.7 percent), Islam (0.6 percent), other or unspecified (2.5 percent), unaffiliated (12.1 percent), none (4 percent).15

For an overview of belief systems, philosophies, and religions, please refer to Chapter 4, pages 6465.

Time Zones/Daylight Savings

The U.S. has five time zones:

  • Hawaii Standard Time (HST) UTC/GMT –10
  • Pacific Standard Time (PST) UTC/GMT –8
  • Mountain Standard Time (MST) UTC/GMT –7
  • Central Standard Time (CST) UTC/GMT –6
  • Eastern Standard Time (EST) UTC/GMT –5

Note that the standard formula to calculate local time is to add or subtract a certain number of hours from the UTC (Coordinated Universal Time)/GMT (Greenwich Mean Time).

Daylight Savings Time in the U.S. begins at 2:00 a.m. local time on the second Sunday in March. It ends at 2:00 a.m. on the first Sunday in November when clocks turn back one hour. Arizona, Puerto Rico, Hawaii, the U.S. Virgin Islands, and American Samoa do not observe Daylight Savings Time.16

For more information, see www.timeanddate.com/worldclock.

Telephone Country Code and Internet Suffix

The U.S. telephone country code is 01 and the Internet suffix is .us.

Currency

The U.S. currency is the U.S. dollar (USD). One dollar is divided into 100 cents.

Business Culture, Etiquette, and Customs

This section covers business culture, etiquette and customs.

Fiscal Year

The U.S. fiscal year may vary by company or government type and industry. Dates are commonly written as month/day/year: for example, April 1, 2020 is 04/01/2020.

Working Week

The structure of the typical U.S. working week is outlined in Table 3.3.

Table 3.3 The U.S. Working Schedule

Industry Business Hours Days of the Week
Businesses 08:00–17:00 Monday–Friday
Banks 09:00–17:00 Monday–Friday
09:00–14:00 Saturday
Retail shops 10:00–21:00 Monday–Saturday
12:00–18:00 Sunday

Holidays and Festivals

Common U.S. holidays and festivals appear in Table 3.4.

Table 3.4 U.S. Holidays and Festivals

Date Name
January 1 New Year's Day
Third Monday of January Martin Luther King Day
Third Monday of February Presidents Day
March/April Easter
May 5 Cinco de Mayo
Last Monday in May Memorial Day
July 4 Independence Day
First Monday in September Labor Day
November 11 Veteran's Day
Fourth Thursday in November Thanksgiving Day
December 25 Christmas Day

Business Dress/Appearance

Wardrobe varies by industry and geography; business-casual and professional attire are both common. Professional dress for men is a suit (matching slacks and coat) with a white or light-colored shirt, a quality silk tie, polished shoes that match the belt, and socks.

Professional attire for women includes a suit (matching skirt and jacket) or a conservative dress, minimal jewelry and closed-toed shoes with a two- to three-inch heel. In certain industries, bare legs are acceptable for a professional woman in summer months.

Men's business-casual attire includes collared shirts, pressed trousers, or jeans. For women, short sleeved (not sleeveless) dresses, pants (not leggings), sweaters, and open toed shoes (not sandals) are appropriate.

In professional circles, both men and women wear high-quality watches and carry leather portfolios or briefcases. Tailor suits to fit; suggested suit colors are navy, black, dark gray, or brown. Men are clean-shaven or have neatly trimmed facial hair. Women wear neutral makeup. Both men and women cover tattoos, remove piercings, and keep their fingernails trimmed and clean; they avoid black and patterned nail polish.

News Sources

Common news sources in the U.S. include the following:

Business Cards

Exchanging business cards occurs in professional or international trade circles. Carrying 50 or more cards in a neutral colored, quality card case is common. With cards printed in another language, present the English side to your U.S. counterpart when meeting.

Technology

According to Akamai Technology's State of the Internet Report, the U.S. has the 10th-fastest average Internet connection speed in the world.17 Latest figures rank the U.S. second in the world for the number of Internet users18 and first globally for the number of Internet hosts.19

Gifts

Appropriate corporate gifts tailored to the recipient include coffee table books, office or desk accessories (pen sets, paperweights, etc.). Cash or personal clothing is inappropriate. When considering boxed candy or liquor, research health, religious, or personal habits.

Corporate gifts are given for holidays, retirements, birthdays, births, marriage, or promotion. Buy moderately priced gifts. Send a thank-you note within 48 hours. Never give gifts or cash to a government official.

Introductions, Greetings, Personal Space, and Eye Contact

Introduce yourself using both first and last name. Greet with “Hello,” “Good morning,” or “Good afternoon.” Avoid “Hey there,” and “How ya doin?”

Personal space is ‘an arm's length.’ A handshake is the appropriate touch in the U.S. workplace. However, after a relationship is established, people in the southern, western, and southwestern U.S., who commonly are more demonstrative with greetings, may offer a light hug or an air-kiss.

Useful Phrases

Phrases useful for travelers to the U.S. include the following:

  • Good morning/afternoon
  • Nice/pleasure to meet you
  • Please and thank you
  • Hello/Goodbye
  • I look forward to seeing you soon

Names

Executives commonly ask business visitors for permission to use their first names. Avoid shortening a name, such as Michael to Mike, unless invited to do so. It's best to use a courtesy title, such as Mr., or Ms. However, Mrs. is not used in U.S. business.

Meetings and Negotiations

In U.S. American business terms, time is money, so punctuality is highly valued. Scheduled meetings begin promptly, often despite the absence of latecomers. Traditionally, leaders send draft agendas for meetings in advance, and run them from the head of the conference table. The goal for these meetings commonly is to set a plan of action.

Negotiations are structured and results-oriented, and they can be direct, forceful, and explicit. Confrontations should be avoided.

Presentation Styles, Conversational Topics, and Humor

Appropriate conversation topics include sports, weather, restaurants, films, music, pets, vacations, and hobbies. Inappropriate topics include sex, religion, politics, gossip, and health concerns. Humor is often used to defuse tense situations.20

Successful presentations deliver facts, statistics, and data in engaging, humorous, and entertaining ways, often using interactive tools such as SlideShare, PowerPoint, photos, and handouts.

Gestures

Common gestures in the U.S. include the following:

  • Touching your index finger to your thumb with your three remaining fingers flexed out is a sign of approval (the okay sign).
  • Making a fist with your thumb pointing up is also a sign of approval.
  • Raising your index and middle fingers in a V shape, palm outward, can be a sign for victory or Peace.
  • Waving hello or goodbye by raising your arm and moving it, palm outward, from side to side.
  • Curling your index finger in and out, palm facing upward, means “Come here.”

Notable Foods and Dishes

The U.S. is a melting pot influenced by numerous cultures. Accordingly, Chinese, Czech, Indian, Korean, Japanese, Thai, Brazilian, Mexican, and Vietnamese food is available nationwide. Health-conscious consumers often request gluten-free menus. Organic-food stores, restaurants, and juice bars are popular.

Specialty Dishes

Favorite dishes in U.S. cuisine include the following:

  • Steak: Different cuts of beef, seared or grilled
  • Roasted chicken: Chicken with spices
  • Fish: Blackened, grilled, or broiled with spices
  • Cobb salad: Lettuce, tomato, ham, turkey, blue cheese, eggs, dressing
  • Mashed potatoes: Potatoes, mashed, mixed with butter and cream
  • Hamburgers: Grilled beef placed in a round bun
  • Hot dogs: Frankfurters in a long bread bun
  • Macaroni and cheese: Cooked pasta, melted cheese, and cream
  • Ice cream: Sweetened milk or cream-based frozen dessert

Dining Etiquette

When invited to business-related breakfast, lunch, or dinner at a residence or restaurant, RSVP within 48 hours. In the U.S. style, you hold the fork in the left hand and the knife in the right. Secure the food item with your fork, and cut it with the knife, then place the knife down at the top of the plate and switch the fork to your right hand to eat. Pass dishes counter-clockwise. Watch the host for cues; do not begin eating until all diners have been served. Dinner typically ends after dessert and coffee. The host or person extending the invitation pays the bill discretely.

Drinking and Toasting

Hosts often make brief toasts for the guest of honor at an event. Raise your glass and join in, or, if honored yourself, respond with a thank-you toast. Toasts include “To your health,” “Cheers,” and “To a long life.” “Clinking” glasses is not required. Follow the host's lead in ordering alcohol or wine. Moderation is key.

Tipping and Bill-Paying

Tipping is customary and expected. At restaurants, servers are paid less than minimum wage because tips are expected to make up the difference; tip 15 to 20 percent of the pre-tax bill for good service. In parties of six or more, an 18- to 20-percent tip is often added to the bill automatically. Save one-, two-, and five-dollar notes for tipping. To reserve a specific table; tip the maître d' prior to guest arrival. Tip guidelines:

  • Hotel bellmen: $1–$2 per bag
  • Airport skycaps: $1–$2 per bag
  • Taxi drivers: 15%–20%
  • Valets: $2–$5
  • Cloakroom attendants: $2–$5
  • Maids: $2–5 day

Smoking

Government bodies have voted to restrict smoking in public places, including restaurants and bars, and to limit smoking within certain distances of a building or doorway. Because smoking laws are governed by county and city municipalities, each city is different. Ask before lighting up.

Taboos

Cultural taboos in the U.S. include

  • Using ethnic slurs
  • Drunkenness
  • Displaying a clenched hand, with the middle finger extended
  • Bending the right arm at elbow, slapping the left hand over the bicep, and then raising the right arm
  • Slapping someone on the back
  • Pointing or shaking a finger at someone, in particular, in someone's face
  • Failing to tip for service provided
  • Failing to make eye contact in a conversation
  • Asking about age, income, pregnancy, weight
  • Arriving late or too early
  • Talking with your mouth full of food
  • Failing to cover your mouth when sneezing or coughing
  • Smoking without asking permission
  • Interrupting a conversation

Heroes and Sports

Knowing about another country's heroes and sports offers opportunities to incorporate culture-specific references into your conversations and presentations.

Heroes

According to an article by Thaddeus Wawro in Entrepreneur magazine,21 U.S. American heroes are typically “visionaries and dreamers, innovators and inventors, mavericks and rebels, trailblazers and pioneers…(who) knew how to use their talent, drive, ingenuity, and desire to make dreams come true…and influence the course of history.”22 Some examples of U.S. heroes include the following:

  1. George Washington (1732–1799): “Founding Father” and first U.S. president (1789–97). Commander-in-chief of the Continental Army during the Revolutionary War, and led U.S. Americans to independence. As head of the Constitutional Convention and first president of the U.S., he played a critical role in setting the foundation for the country.
  2. Martin Luther King, Jr. (1929–1968): Civil rights activist. Leader in the African-American civil rights movement. His nonviolent activism inspired the Civil Rights Act of 1964, which outlawed discrimination based on race, color, religion, sex, or national origin. Recipient of the Nobel Peace Prize in 1964.
  3. Oprah Winfrey (1954-present): Self-made billionaire and award-winning talk show host. Self-made billionaire, actress, producer, author, and influential role model and activist, whose philanthropy has raised millions of dollars for charitable funds. In 2013, she received the nation's highest civilian award, the Presidential Medal of Freedom. Former host of multi-award-winning The Oprah Winfrey Show (1986–2011), and CEO of the Oprah Winfrey Network since 2011.
  4. Steve Jobs (1955–2011): Entrepreneur and inventor. Cofounder and former CEO of Apple, Inc.; played a part in revolutionizing modern technology with products such as the Macintosh computer and iPhone. Often described as an innovator, a pioneer, and a visionary for his contributions to the field of consumer electronics.

Sports

Some examples of popular U.S. sports include the following:

Sports

  1. Baseball: “America's pastime” has grown into a major professional sport, with games broadcast on television and radio. The U.S. has two prominent baseball organizations: Major League Baseball, which is the professional league, and the minor leagues, whose teams are based in smaller cities.
  2. Football: Originally only a college sport, U.S. American football now enjoys national popularity via the National Football League (NFL), which is divided into two conferences, the National Football Conference (NFC) and the American Football Conference (AFC). At season's end, the winning teams from each conference play for the title in the Super Bowl.
  3. Basketball: Invented in 1891 in the U.S, basketball is now a popular college and international sport. The national professional league is the National Basketball Association (NBA).

Sports Figures

  1. George Herman “Babe” Ruth, Jr. (1895–1948): Professional baseball player, one of the inaugural inductees into the National Baseball Hall of Fame in 1936. He broke many of baseball's most important slugging records, including career home runs (714) and two others still standing today.
  2. Michael Jordan (1963–present): Former professional basketball player, acclaimed as the greatest basketball player of all time.23 With five Most Valuable Player awards, six NBA champion titles, six NBA finals MVP awards, and two Olympic gold medals, among numerous others, his record is unparalleled.
  3. Serena Williams (1981–present): Professional tennis player, ranked No. 1 in women's singles tennis. With 63 singles titles, 22 doubles titles, 4 Olympic gold medals, and 18 Grand Slam titles, she holds the record for most titles among active players.

Eight-Question Framework

Chapter 2 introduced you to some of the differences in the way that Westerners and Asians see the world and operate within it in the larger cultural context. The following approach to the eight-question framework for the U.S. mirrors what you will find in each of the following 10 Asian country chapters. As such, each of the eight questions addresses one or more business topics to help you attract and build the relationships with your Asian counterparts, upon which today's successful businesses depend.

1. How Do U.S. Americans Prefer to Act: Individually or as a Group?

“And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.”

John F. Kennedy, Inaugural address, January 20th, 1961

“What's on Americans' Minds? Increasingly, ‘Me,’”24 was the heading of an article reporting how, since 1960, incidences of the use of ‘I’ had substantially increased in more than 750,000 U.S. books. In the article, author and psychologist Jean Twenge said this trend suggested that U.S. Americans were far more than just independent-minded; it indicated that a specific type of individualistic thinking—“I come first,” and “I'm the best”—had increased over the years.

Beliefs likes these inhibit our ability to bridge the cultural divide between ourselves and people from other countries. Broadening our own awareness is the first step in the journey. Few understand this better than those tasked with preparing current and future generations for life in the global arena. University provosts and academics are expanding international and cultural awareness programs because, as Dr. Steven W. Leslie, former provost and executive vice president at The University of Texas at Austin, said, “We are now in a situation where we can't just insulate ourselves and say, ‘We are the United States. We're the place the world comes for leadership, innovation, and education.’”

Dr. William I. Brustein, the vice provost for global strategies and international affairs at The Ohio State University agrees: “There's that perception around the world of the United States, and of Western culture, as coming in only thinking of its own self-interest, not thinking of things that may be mutually beneficial.”

This kind of posturing will not achieve the business outcomes desired in Asia. What will achieve them is collaborating in a way that is respectful and with an eye to building long-lasting relationships.

2. How Are Power and Authority Viewed in the U.S.?

“It is often difficult for those from highly centralized nations to understand, but the fact is that final power really does lie in the hands of the people in the United States. This is true whether one speaks of political, economic, or social power.”

Jef C. Davis and Alison R. Lanier, Living in the U.S.A.

In their book Riding The Waves of Culture: Understanding Diversity in Global Business, world-renowned international management experts Fons Trompenaars and Charles Hampden-Turner relate the story of a Western general manager (GM) who failed to understand that the concept of status has a different meaning in the East than it does in the West. The new GM's arrival in Thailand prompted the company's finance manager to ask him which Mercedes model the GM would like to order. The GM said he preferred to drive a car that was relatively small and easy to handle in Bangkok traffic; he suggested they order him a Suzuki or Mini Cooper.

The new car seemed to be taking a while to arrive. When the GM questioned the finance manager, he had the distinct impression that it would be quicker if he just went with the Mercedes rather than a less expensive car.

After another month of no news, the GM raised the question of his car at a management meeting. Other members of the management team “somewhat shyly…explained that they could hardly come to work on bicycles.” The message became crystal clear: After the GM was seen driving an inexpensive compact car, his subordinates would be reduced to riding two-wheelers.

There is an interdependence of status in Asian countries that is foreign to the way we think and act in the U.S. This kind of deference to authority is contrary to what many of us were taught at an early age: Challenge people in supposed positions of power.

The achievement-oriented culture of the U.S., where accomplishments are college degrees, awards, and beyond, reinforces the belief that anyone with the desire and drive can become anything they wish.

Pulitzer Prize winner Nelle Harper Lee discovered something similar. In 1960, Ms. Lee published her novel, To Kill a Mockingbird, a book so successful that former first lady Laura Bush described it decades later as having “changed how people think.” However, this did not stop the media from continually asking when Ms. Lee would write another book. One mark of an achievement-oriented culture is the expectation that the next achievement will quickly follow the previous ones.

3. How Do We Compare Rules and Relationships in the U.S.?

“I once asked a Chinese philosopher why he thought the East and the West had developed such different habits of thought. ‘Because you had Aristotle and we had Confucius,’ he replied.”

—Richard E. Nisbett, The Geography of Thought25

Imagine you had participated in intense negotiations with a Chinese supplier and just finalized the price of a commodity over a three-year contract. Then the bottom dropped out of the market, and the Chinese asked you to renegotiate the price. They argued that conditions had changed and that the existing contract was nothing more than a guideline. Your response may well be to refuse—because a binding agreement is a binding agreement, right? That the price would drop so dramatically is not your problem.

Again, this goes back to our U.S. way of thinking, which is consistent with the ancient Greek philosopher Aristotle's considerable influence on Western thought. He explained the world in terms of logical rules that allow us to better control our environment. As Sharon Jackson Wendell, an attorney at Vorys, pointed out, “Americans have the sense that we control our environment and therefore need to address all possible eventualities before they arise, along with resolutions in the event something goes awry.” To maintain control, we regard written rules to be sacrosanct and for most U.S. businesspeople, the contract is the relationship. But the Chinese, influenced by the Confucian desire to seek consensus, would be surprised by your refusal to renegotiate the commodity contract. In China, an executed contract may be modified later because it is only a set of specifications. They see the world holistically and comprised of interdependent relationships, whereas Westerners view the world as populated by independent individuals responding to logical rules. Yes, U.S. Americans are crazy for rules and love to make laws in the U.S.26

4. How Do We View Time in the U.S.?

“As Americans are trained to see things, the future will not be better than the past or the present unless people use their time for constructive, future-oriented activities. Thus, Americans admire a “well organized” person…”

Gary Althen, American Ways: A Cultural Guide to the United States

When Sharon owned her first small business, she worked with a CFO named Tim, the type of man who packed his day with obligations and who had little time to spare. Like many U.S. Americans, Tim viewed time as a commodity: “Time is money.” Inevitably, Tim would call at the eleventh hour with a project on a short runway. His time was precious and Sharon would joke, “Should I remain standing, or do you have enough time for me to sit down today?” When appropriate, she'd even drive Tim to the airport to facilitate a longer conversation because she respected Tim's concept of time.

Consider the following:

  • FedEx's original branding campaign included the line When it absolutely, positively has to be there overnight.27
  • An AT&T television ad claimed “Faster is better.”
  • A Booz & Company strategy/business magazine article, titled ‘What You Should Accomplish in Your First 10 Days,’ argued that leaders can no longer afford the luxury of being in situ for 100 days before achieving results.28
  • The concept of time management as a business imperative is attributed to naturalized U.S. citizen Peter F. Drucker.29

No doubt about it, Western perspectives of time have been hugely influential for branding, management processes, and leadership thinking. In some parts of the world, time relates to natural cycles and “flows” like a river. In the U.S. and some other Western cultures, however, time has been commoditized and mechanized.

Adjusting Your Sense of Time

In the same way you adjust your watch to a different time zone when traveling internationally, you must adjust your attitude about time in Asia. As social psychologist Robert V. Levine of California State University, Fresno, points out, time is “a wonderful window on culture. You get answers to what cultures value and believe in.”30

On the same topic, Professor Antonio R. Damasio of the University of Southern California writes: “We wake up to time, courtesy of an alarm clock, and go through the day run by time—the meeting, the visitors, the conference call, the luncheon are all set to begin at a particular hour.”31 This may be true in the West, but it is not necessarily the way business life is viewed elsewhere.

Generally speaking, compared with our Asian colleagues, Westerners place a premium on such things as punctuality; accomplishing projects quickly; being more short term–oriented; using apps, organizers, and planners to keep track of professional and personal lives; and adhering to maxims like “Time is of the essence.”

Much of this has been attributed to Aristotle's influence, who is credited with promoting the Western view that humans can and should master their external environment, hence the obsession with managing time. This is why participants from different cultural backgrounds attending meetings in the U.S. may need to be reminded that U.S. time is “fixed” as opposed to fluid. In the global arena, meeting times may be posted as 9:00 a.m. U.S. time, indicating a prompt start time, or 9:00 a.m. Malaysian time, indicating a flexible start time.

Westerners shortcutting the trust-building process is not uncommon. But from the Asian perspective, a Westerner visiting an Asian partner only once a year is not enough: It means the relationship is superficial because you are not prepared to invest sufficient time. Remember, our way is not the only way of viewing the world.

5. How Do We Typically Communicate in the U.S.?

“When an American says, ‘Pass that file!” it's just her way of saying, ‘Could I trouble you to just pass me that file, please?’ They're not being discourteous: Dutch, Scandinavians and Spanish people tend to have the same speech patterns.”

Barry Tomalin & Mike Nicks, World Business Cultures: A Handbook

Ice is ice and snow is snow—except to the Inuit and the Yupik peoples living in the Arctic Circle. The Inuit and Yupik have many different words for ice and snow—ice that never melts, ice with holes like Swiss cheese, wet snow, soft powdered snow, and so on—because for them, these distinctions could mean life or death. Anthropologists have discovered that the Eskimos have more than 50 words for snow and 70 words for ice. The Sami tribe, living in northern Scandinavia and Russia, has more than 1,000 words for reindeer!

On the other end of the spectrum, consider the absence of the word no in many Asian cultures. For example, Sharon is frequently asked by clients and executives why people in Asia have difficulty being straightforward. What they really mean is: why do they have such trouble saying no? The short answer is that this is about face. Look at it from the reverse viewpoint. When we Westerners communicate in upfront and direct ways, we are, to the Asian worldview, causing the rejected party to lose face.

In corporate America, speaking your mind is generally encouraged, because in our culture we prefer people to get to the point. U.S. Americans use direct communication and launch into speech with business or selling in mind.32 This goes back to the concept that time is money. Offering a customer a straightforward rejection, such as, “No. I apologize, but that's not possible,” is not unusual. However, assuming that this kind of direct communication is universal is a big mistake—especially when doing business in Asia. As Richard Nisbett points out in The Geography of Thought:

“Westerners—and especially Americans—are apt to find Asians hard to read because Asians are likely to assume that their point has been made indirectly and with finesse. Meanwhile, the Westerner is very much in the dark. Asians, in turn, are apt to find Westerners—perhaps especially Americans—direct to the point of condescension or even rudeness.”33

Also, bear in mind that using sports analogies in phrases such as “He doesn't pull any punches” or “Shoot straight!” is likely to confuse Asians.

6. How Formal or Informal Are We in the U.S.?

“(American) culture is generally informal, with first names almost always used except by children addressing adults.”

Milena Boc03-math-0001ánková a kolektiv, Intercultural Communication

A story in David A. Ricks's book Blunders in International Business34 concerns a U.S. manager who was sent to Malaysia to close a major deal. Unfortunately, he had neglected to do his homework on Malaysian forms of introduction and name pronunciations. After hearing what he believed was the name Roger when being introduced to a potential business client, the U.S. manager, in his friendly, informal way, proceeded to call the man Rog.

The U.S. manager here made two missteps. First, he slipped into the informal practice of using a first name, which is not common in Asian countries. Second, he misheard the client's name, which was actually rajah, a title of nobility. With this overly familiar and culturally insensitive approach, the U.S. manager's faux pas irrevocably damaged that relationship. To the Malaysians, his level of informality was disrespectful.

Before a trip to China, Sharon researched professional titles to show respect. Even when Chinese people have known each other professionally for years, they may continue to use titles such as Boss Lady or Madame in the presence of others. In China, as in other Asian cultures, this honors professional status. Follow the lead of those more experienced. Avoid thinking informality is acceptable worldwide.

In certain U.S. industries, informal greetings such as “Hi” and “Hey” have become increasingly common. However, in professional and international trade circles, formal greetings such as “Good morning” and “Good afternoon,” are still the standards. U.S. informality like this often comes across to our Asian counterparts as rude. Also many U.S. executives do not greet international business counterparts at the airport or provide small welcome gifts (see Chapter 4 page 57 for gift-giving in Asia). One U.S. businessman even said he considered these activities to be unnecessary and unimportant. However, this is not a universally accepted view. U.S. Americans often extended what sounded like verbal invitations to lunch, dinner, or a drink, but failed to follow up.

Sharon's U.S. clients often ask her whether it's appropriate to end a business conversation with “Let's get together for lunch or coffee.” Her advice is to avoid phrases like this unless it is sincere and you intend to follow up. A better conversation closer is to say, “Thank you for your time. I've enjoyed visiting with you,” or “I look forward to seeing you at the next meeting.”

Nevertheless, inviting your Asian colleagues for lunch or dinner can be a good idea. Specifically, inviting business colleagues to dinner in your home is an exceptional method for building trust. It provides overseas colleagues with insight into local customs, and satisfies their innate curiosity in ways that no restaurant visit can possibly match because, in Asia, being invited to someone's home is the ultimate honor.

7. How Aligned Are Our Social and Business Lives in the U.S.?

“Most companies have a “no drinking” of alcoholic beverages policy during regular business hours.”

Mary Murray Bosrock, Put Your Best Foot Forward: U.S.A. A Fearless Guide to Understanding the United States of America (1999)

Considerable regional and corporate cultural variations exist even within the U.S., ranging from the relaxed atmosphere of Silicon Valley to the intense, incessant focus of New York's Wall Street. Generally speaking, however U.S. employers do not expect their employees to fraternize during work hours, let alone spend time with coworkers outside the office. Depending on the corporate culture, upper management is actively discouraged from befriending subordinates to avoid claims of inappropriate behavior.

From that perspective, it is hard for many Westerners to see an advantage to socializing with colleagues during the working day.

8. How Is the Concept of Women in Business Handled in the U.S.?

“Historically, American women have been independent from the time the first colonists came to the United States.”

Diane Asitimbay, What's Up America?

Global consulting firm Booz & Company issued a report titled Empowering the Third Billion: Women and the World of Work in 2012.35 The ‘Third Billion’ refers to women being as significant to the global economy over the next decade as the populations of India and China. The purpose of the report was to highlight the need for “smarter policies that can remove social, cultural, and professional constraints on women and foster greater economic opportunities.”

Sheryl Sandberg's bestseller, Lean In: Women, Work, and the Will to Lead, speaks to the way women may have held themselves back in U.S. business. U.S. girls are often taught that passivity makes them more appealing and feminine. As The Third Billion report shows, women have made great strides by positioning themselves in greater numbers in lower and middle-management positions, but they have done less well in achieving senior positions. For example, as the Booz report points out, “In 2011, women held 16.1 percent of board seats at Fortune 500 companies and 14.1 percent of executive officer positions.” In entrepreneurial life, “Just 1.8 percent of women-owned firms have more than $1 million in revenues, compared with 6.3 percent of men-owned firms.”

How do U.S. American businesswomen approach and adapt to culturally diverse international environments? As Andy Molinsky stresses in Global Dexterity, there comes a point at which you have to decide how much cultural adaptation you are prepared to do without violating your deepest values.

CEO Melanie Barnes asks herself whether the right thing for her to do as a female leader is to delegate authority to a male executive so that the business can get done. This is a consideration she makes constantly as her business establishes and maintains strong relationships in Japan:

“Let's say I already have someone in Japan who is interested in a deal that I'm working on and they have approached our company. Would it be a deal killer if there is a woman CEO on this side? Would it make them more likely to dismiss this opportunity even if it's something they would normally want to do? Would the right thing for the company be for me to get out of the way and put a man in my place so that the deal could be made? Should I even be the lead negotiator? Or is that automatically giving an advantage to a team that has a male negotiator?”

Even in the U.S., adds Ms. Barnes, “There is a really fine line to walk for women when it comes to being confident and not coming across as cocky or strident. I think women in the U.S. aren't given very much tolerance when it comes to having a variety of styles. You can be dismissed as passive, silly, angry, or a lot of things just because the culture doesn't allow us the wide range of behaviors without getting stereotyped. I think being aware of that is a good thing.”

Cultural Summary

Here are some key points to remember:

  • Individualism impacts business relationships, decision making, and negotiating.
  • Be aware of the vast differences in U.S. corporate culture based on industry as well as geography.
  • Time is money in the U.S., and plays a part in relationship-building and maintaining networks professionally as well as personally.

Self-Awareness Profile

Be sure to use this Self-Awareness Profile to help you become more aware of what you may need to focus on to relate more comfortably with business connections in the United States.

This simple exercise prompts you to self-assess where you currently stand on topics related to the eight-question framework and compare this with the country culture. This visual will help you discover the extent to which you may need to adapt your current mindset and behavior to develop more robust business relationships. For details on how to complete this graphic, see the instructions given in the Introduction on pages xviiixix.

Consider copying the 8-question Profile or using a pencil so that you can see, over time, how you have adjusted your cultural mindset. You might also wish to create unique graphics related to each of the businesses you work with, as these cultural positions vary depending upon geographic location, industry, generational factors, and corporate profile.

Q1: What is your preferred way of doing business?

As an individual making autonomous decisions As a team member who seeks group consensus
1           2           3           4           5           6          

Q2: How comfortable are you in hierarchies in which power is distributed unequally?

Very uncomfortable Very comfortable
1           2           3           4           5           6          

Q3: How closely do you follow rules and obey the law?

Almost always It depends
1           2           3           4           5           6          

Q4: What is your general attitude toward time?

I prefer agendas, schedules, planning I prefer flexibility, fluidity without scheduling
1           2           3           4           5           6          

Q5: What is your preferred way to communicate?

Very diplomatically Very candidly
1           2           3           4           5           6          

Q6: What is your interpersonal style or level of formality in business interactions?

Very formal Very informal
1           2           3           4           5           6          

Q7: What is your view on socializing within business?

A waste of time Essential
1           2           3           4           5           6          

Q8: Should a woman defer to a man as the lead, if winning business in a certain culture depended on it?

Never Yes, absolutely
1           2           3           4           5           6          

The Journey Continues…

Now that you have been introduced to the eight-question framework as it relates to U.S. culture, you should feel more confident as you explore each of the ten Asian countries that follow. This involves more than passive reading, however. Please take the opportunity to test your knowledge at the beginning of each country-specific chapter with the quiz and finish each chapter with your personal self-awareness profile.

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