Chapter 4
Overview of Concepts and Terms

This chapter contains an alphabetical list of concepts and terms that will help you better understand how to build trust, inspire respect, and create long-lasting business relationships in Asia. Please note, however, that these are offered only as guidelines, and that not every concept will apply universally across all Asian cultures. Supplement what you find here by reviewing each of the following country chapters and develop the Asian contacts that can provide you with an even deeper cultural understanding.

Business Cards

Out of respect for your Asian counterparts, print your business cards in English on one side and in their language on the other. Always present and receive business cards with the right hand, or both hands (not the left), with the text facing toward the recipient. When receiving a card, review it carefully for a moment (to show respect for the person named) before placing it in a business card case, portfolio, or on the table in front of you.

Colloquialisms

The playwright George Bernard Shaw once described the relationship between England and the United States as “two countries divided by a common language.” If this linguistic chasm can be said to exist between the interpretations of English in two Western countries, imagine the divide between English and the languages of Asia. Avoid using slang words or colloquialisms, both from your own culture (because the listener will not know what you mean) and from the Asian culture (because you may not fully understand subtle nuances in meaning).

Communication

Breakdowns in communication often result from misunderstanding. During conversations with your Asian counterparts, listen with the desire to understand, rather than with impatience as you wait to talk next. Avoid trying to reinforce your existing beliefs. This is particularly important given the weight Asian cultures put on mutually beneficial relationships.

Eye Contact

Direct or prolonged eye contact may be considered aggressive, threatening, or impolite. Lowering your eyes is often a sign of respect for superiors or elders.

Foreign Corrupt Practices Act (FCPA)

Do not offer gifts to government officials in any country. The U.S. Foreign Corrupt Practices Act of 19771 imposes severe penalties on companies and persons who promise, offer, or give anything of value to foreign government officials for the purpose of seeking business.

Formal and Informal

Many Asian cultures observe hierarchies that govern behavior and expectations in business and in life. These standards of formality are deep-rooted, having been established long ago, and come in part from the belief that power should be centralized. Formality is traditionally the way in which people within the hierarchy have reached more central and influential positions.

Gender

Historically, given the importance of family in Asian cultures, a woman's role has been to manage the home and take care of her family.2 Women tended to work outside of the home within family businesses, or as assistants. You may find that these traditional beliefs are still held by people born before 1960, but younger people are much more receptive to equality and the role of women in the workplace. Given these diverse and changing attitudes, be sure to check the section on women in business (Question 8) within each country chapter.

Gestures

Gestures considered acceptable in your own culture may be misconstrued or viewed as obscene in Asia. Using the wrong gesture has been known to incite fights, riots—or even death.3 For example, beckoning someone by curling an index finger is considered rude in Asia, because it is more often associated with beckoning an animal. A more-acceptable gesture involves placing the hand out, palm down, and curling the fingers a few times in a scratching motion. Be sure to review the relevant sections on gestures and taboos in each country chapter and consider additional reading.4

Gifts

Gifts have always been an important aspect of business in Asia, where they are a way of showing respect for your host. Asians give gifts to people they want to have a good relationship with, whereas in the West people tend to give gifts to those with whom they already have a close relationship. Here are some tips about giving and receiving gifts in Asia:

  • Gifts should be opened at a later time, in private, to save face if the gift is less than perfect.
  • It is a common custom to use both hands to give and receive gifts (unless the recipient is Muslim and then the right hand only is used).
  • Clocks are bad luck (except in Korea).
  • Cutlery, scissors, knives, and any sharp objects represent the severing of ties in a relationship.
  • The recipient may decline three times before politely accepting a gift, so be sure to gently persevere with your offer three times.
  • If you prefer not to give one gift to each person present, you may offer a single group gift to the highest-ranking person.
  • Give gifts from our company to your company.

Greetings

The proper protocol for greetings depends on the country. Be sure to do your research and ask your host how best to greet people in their country.

Be observant; in Asia, men commonly wait for a woman to offer her hand before attempting to shake hands. Do not take offense if a woman does not offer.

Unless you know how to bow correctly, do not attempt something outside your comfort zone. A courteous nod may be a good substitute for bowing.

Guanxi

The concept of guanxi (gwan-SHEE), which originated in China, refers to networks of trust that have reciprocal obligations. It remains a crucial concept to be aware of when developing relationships in the Asian business world.

Head, Hands, and Feet

Head: In Asia, the top half of a person's body is generally held in higher esteem than the bottom half. The head is considered the most sacred part of the body. It is taboo to pat or touch someone's head in any way, especially the top of the head. Similarly, avoid passing objects or reaching over the head of anyone, especially a monk. (Females should never touch any part of a monk's robes or body.)

Hands: Depending on the country and culture, use both hands simultaneously, or the right hand only, to receive and accept gifts, and to dine and pass or receive food and beverages. However, be aware that in some cultures, the left hand is used for personal hygiene and is viewed as unclean. (Left-handed children may be trained to use their right hands when dining and passing food). Due to these cultural differences, when dining, with or without silverware or chopsticks, use both hands, or your right hand only.

Feet: The bottom half of the body is considered inferior because feet touch the street and are therefore unclean from their proximity to dirt and vermin. Never show the soles of your feet or shoes, and don't place them on an office desk or table. Remove shoes when entering a temple or shrine. Avoid gesturing or pointing at a person or spiritual object with your shoes or feet, because this is considered highly disrespectful.

High Context or Low Context

For a fuller explanation of the concepts, please refer to Chapter 2, page 18.

Humor and Jokes

Humor is culture-specific, meaning that most jokes tend to be funny only among people who share experiences in that culture. For instance, an Eskimo may not understand a joke about the desert. Jokes referencing Western culture, stereotypes, and slang may be misunderstood by or lost on audiences in Asia. Many interpreters do not bother to interpret jokes, instead telling audiences to “please laugh, the speaker just told a culture-specific joke that we don't understand.”

International Standard for Date and Time Notation

When communicating internationally, be aware of the following International Standard (ISO 8601:2004) for the numeric format of dates and times:5

  1. International standard date notation: YYYY-MM-DD
  2. International standard time notation: hh:mm:ss

Interpreters

Pace is crucial when giving a presentation or negotiating in Asia. Your interpreter will smoothly interpret approximately two short sentences at a time, so keep your ideas and concepts succinct. Stop after two short sentences to allow your translator time to relay the idea to your audience. Relay concepts in two-sentence spurts and your audience will appreciate your concise communication. Avoid elaborate or highly personal presentations; a simple presentation in which numbers and facts are accompanied by black-and-white graphics will be appreciated.

Introductions

Each country has specific rules for formal introductions. Review the relevant country chapter.

Laws and Regulations

Throughout Asia, honor is a virtue, and integrity is considered important. Dishonorable deeds in business may be severely punished. In some countries, although the view of Westerners is generally positive, nationals may be wary and suspicious of your motivations. To prove you are trustworthy, adhere to local laws and regulations.

Names

In U.S. names, the surname, or family name, generally appears after an individual's given name. In Asia, however, this order varies, and no set rule exists. Some Asians have adopted Westernized names. Because naming conventions vary, review the relevant chapter for the country you are visiting. Never address someone by their first name before you've been invited to do so. Also, research a country's courtesy titles and culture-specific honorifics and use them when appropriate.

Organization for Economic Co-Operation and Development (OECD)

Countries belonging to the OECD6 developed an anti-bribery measure similar to the FCPA in 1977. Japan and Korea are current members See FCPA on page 56.

Other-Dependent and Other-Independent

In Asia, individuals are other-dependent—they consider themselves to be a part of a bigger collective in which each person contributes to their family, business, and country. Individuals in the U.S. and many other Western nations, on the other hand, are other-independent, meaning that they consider themselves responsible for being independent and self-sufficient.

Personal Appearance and Wardrobe

In the West, individuality is encouraged, and people often express it through hair design, clothing, and jewelry. In Asia, on the other hand, priorities are more group-related: self-sacrifice; focusing on the we, not the I; and joining the in-group. Looking different and standing out with bright colors or ostentatious jewelry is inconsistent with group conformity. When visiting Asia, observe the country dress code expectations to demonstrate appreciation for each culture's values.

Women visiting Muslim or Hindu cultures should dress especially modestly. Read the country chapters and research prior to travel; do not wait until arrival.

Relationships

Without the firm foundation of respect and trust, business transactions are like houses built on sand. In Asia, establishing solid relationships is the building block of business, and this includes the giving of gifts, understanding the concept of face, and a considerable amount of socializing. Asian cultures are relationship-oriented, rather than strictly bound by rules. Although Westerners typically think of relationships as transactional, especially in terms of nurturing ongoing collaborations after a deal has been struck, the opposite is true in much of Asia.

Silence

Peace and serenity are highly valued in Asia, where as much emphasis is placed on the spaces between the words as on the words themselves. Never interrupt your Asian counterpart's silence with talk, because he or she may be cogitating or communicating non-verbally. Be patient; allow your host to break the silence first.

Smiling

Bear in mind that a smile can mean or mask many things besides joy in Asia: embarrassment, irritation, commiseration, anxiety, happiness, or even unhappiness.

Specially Designated Nationals (SDN) List

Learn how to navigate and use the SDN list of the Office of Foreign Assets Control of the U.S. Department of Treasury.7 This list, also known as the ‘Blocked Persons’ list, contains the names of people or entities with whom U.S. companies and individuals are prohibited from doing business.

Spitting

In Asia, spitting has historically been viewed as a means of ridding the body of excess bodily fluid and is an acceptable act of hygiene. Spitting is most common in India, China, and South Korea.8

Superstition

In some Asian cultures, meetings may be postponed or cancelled and contracts delayed because the time, day, or month is not fortuitous. In some cases, your Asian counterpart may consult an astrologer to check whether a particular day or month is good for negotiating transactions. Also, certain numbers may be associated with good or bad luck.

Time

The concept of time varies from culture to culture, but punctuality on your part is expected. Allow extra time for delays, traffic, or detours. Double-check addresses and locations prior to departure in the event Wi-Fi or Internet unavailability prevents access while en route. If a delay occurs, contact your counterpart so they know that you are en route.

One practice to consider is to meet with prospective business associates in your hotel lobby or cafe. This provides a comfortable, air-conditioned environment while avoiding city traffic and allows you to continue working if your counterpart is delayed.

For details about monochronic time and polychronic time, refer to Chapter 2, page 17.

Tipping

Tipping expectations vary among Asian cultures. Review the material on tipping in the specific country chapters.

Touching

Public displays of affection are taboo. Hugging, kissing, or touching a member of the opposite sex in public is inappropriate, and may even be illegal in certain countries.

Voice

In Asia, senior members of the business and social cultural hierarchy do not raise their voices or shout. Speaking with a soft voice is a signifier of higher rank, so practice using a restrained and moderate tone as a more effective way of communicating. Avoid shouting or raising your voice to members of staff. In Asia, raised, loud, or angry voices lead to a loss of face.

Belief Systems

Table 4.1 offers a brief overview of the main belief systems, philosophies, and religions in Asia, together with the specific countries to which they apply.9

Table 4.1 Belief Systems, Philosophies, and Religions10

Belief System/Philosophy/Religion Definition Countries
Buddhism Belief system that originated in northern India from the teachings of Buddha, or the Enlightened One (Siddhartha Gautama; sixth-century BCE). Buddha's Four Noble Truths focus on ending suffering and achieving enlightenment. Devotional practices include meditation, chanting, and adhering to the Noble Eightfold Path. China, Hong Kong, India, Japan, South Korea, Malaysia, Myanmar, Singapore, South Korea, Taiwan, Thailand
Christianity Religion based on the Bible and the New Testament teachings of Jesus Christ. Focuses on the existence of God and his son, Jesus, who died for the forgiveness of humanity's sins. Devotional practices include prayer, fasting, and congregational worship. China, Hong Kong, India, Japan, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan
Confucianism Belief system based on the philosophical and ethical teachings of Confucius or Kong Qui (551–479 BCE). Described variously as a ‘worldview, social ethic, political ideology, scholarly tradition, and way of life.’11 China, Hong Kong, South Korea
Hinduism Cultural approach or way of life (dharma) that embraces many ancient traditions. Has no founder or single spiritual text. Despite embracing many deities, it is not considered polytheistic. 12 The Vedas are the sacred texts. Ceremonial practices for worship vary. India, Hong Kong, Malaysia, Myanmar, Singapore
Islam The most sacred text is the Qur'an, the word of God as revealed to Muhammad. Islamic theology and practice also embraces the Hadith, or recorded sayings of Muhammad. China, Hong Kong, India, Malaysia, Myanmar, Philippines, Singapore, Thailand
Jainism Indian religion, also known as Jaina dharma, which began between the seventh and fifth centuries BCE. Teaches that spiritual purity and enlightenment is achieved through disciplined nonviolence (the Sanskrit word ji, from which the term Jaina derives, means to conquer). India
Judaism A religion developed among ancient Hebrews focusing on a single, all-powerful God and the coming of the Messiah. Jewish scriptures are found in the Torah (to teach), which includes the Five Books of Moses and the Ten Commandments. Founded over 3,500 years ago by Moses, Judaism is one of the ‘three Abrahamic religions’ 13 (along with Christianity and Islam). China, Hong Kong, Singapore
Shinto Sometimes referred to as Shintoism, (or way of the spirits), this Japanese devotional practice enables humans to communicate with invisible spirits called kami, as a means of achieving needs like good health and business success. Japan
Sikhism Founded in India by Guru Nanak in the fifteenth century. Sikh is a Punjabi word meaning disciple. Male adherents of Sikhism wear turbans (females wear headscarves) to protect the hair (kes), which is never cut. The religion's historical center is the Golden Temple at Amritsar. India, Malaysia, Singapore, Thailand, Hong Kong
Taoism (Daoism) Philosophical and ethical belief based on the Tao Te Ching, written by Lao Tzu, thought to be a contemporary of Confucius. From Taoism we get the concepts of yin and yang, or opposite and complementary forces. The word Tao means the way. Focus is on the Three Treasures: compassion, moderation, and humility. China, Hong Kong, Singapore, Taiwan
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