Waldemar Pfoertsch - Going Abroad 2014

How to understand foreign markets and do business around the globe

Waldemar Pförtsch (Ed.)

With 10 Figures and 4 Tables

Editor

Waldemar Pfoertsch

Professor International Business

Pforzheim University

Tiefenbronnerstrasse 65

75175 Pforzheim Germany

Waldemar.pfoertsch@hs-pforzheim.de

Copy Editors

Carla Melo

Karin Herrlin

Michaela Mendes

Chief Editor

Yvonne Krepper

Marion Park

Graphic design and layout

Juliane Rafaela Zierbus

ISBN 978-3-7375-2877-1

Catalog-in-Publication Data

This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other media. Duplications of the publication or parts thereof is permitted only under the provision of the German copyright law from September 1063, in its current version, and permission for use must always be obtained from the editor. Violations are liable for prosecution under the German Copyright Law.

© Waldemar Pfoertsch www.pfoertsch.com

The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.

Cover design: Anna Pfoertsch, Wellesley, MA, USA.

Understanding foreign culture is essential for all business people around globe. With this publication, managers and students who potentially want or need to do business in foreign countries are provided with a “how to do manual”. This book actually encourages new managers to prepare for this step and make them more sensible about potential pitfalls and lost opportunities.

The reader will learn about:

How to understand your own culture and how to behave when dealing with others

How to make things happen abroad

How to sell to foreigners

How to win a bargain

How to understand each other in international teams

How to get along with the bosses at home

How to get the best performance out of your employees

How to teach in a foreign Country

What it takes to be a winner

Here the reader can get guidelines for Business and Social Etiquette. He can learn a lot about international ways of doing business, and understand Business and Social Etiquette in various countries.

This publication gives also valuable advice, how deal with the company headquarters, when you are abroad and how to balance your social life in the foreign environment. It is written from a global perspective and answers questions, which many have learned the hard way. After reading this small booklet the reader will have a much easier way to participate on the rapid growth of international business.

Waldemar Pförtsch Stuttgart/Shanghai 2014

Preface Preface Understanding foreign culture is essential for all business people around globe. With this publication, managers and students who potentially want or need to do business in foreign countries are provided with a “how to do manual”. This book actually encourages new managers to prepare for this step and make them more sensible about potential pitfalls and lost opportunities. The reader will learn about: How to understand your own culture and how to behave when dealing with others How to make things happen abroad How to sell to foreigners How to win a bargain How to understand each other in international teams How to get along with the bosses at home How to get the best performance out of your employees How to teach in a foreign Country What it takes to be a winner Here the reader can get guidelines for Business and Social Etiquette. He can learn a lot about international ways of doing business, and understand Business and Social Etiquette in various countries. This publication gives also valuable advice, how deal with the company headquarters, when you are abroad and how to balance your social life in the foreign environment. It is written from a global perspective and answers questions, which many have learned the hard way. After reading this small booklet the reader will have a much easier way to participate on the rapid growth of international business. Waldemar Pförtsch Stuttgart/Shanghai 2014

Introduction

International Ways of Doing Business

How to understand your own culture and how to behave when dealing with others

Getting Started

How to make things happen abroad?

Marketing

How to sell to foreigners?

Negotiation

How to win a bargain?

Communication across cultural and language barriers

How to understand each other? Melanie Reithmeier, Nina Schaffarczyk, Susanne Brückner

Managing People Abroad

How do I get the best performance out of my employees?

Going International, Transferring Skills and Training

How to teach in a foreign country?

Business and Social Etiquette

Guidelines to business and social etiquette

Getting things done

Making the machinery work

Dealing with the Headquarters

How to get along with the bosses at home

Managing your personal and family life

Guidelines to work life balance

The Road to Success

What does it take to be a winner?

About authors and the editor

The editor

Waldemar Pförtsch

One of the most significant trends in the economic world in the past decades has been the rapid growth of international business. Markets have become the battle ground for companies from all over the world, and we talk today about the globally interconnected world. Markets have become truly global for consumer and business-to-business goods, many services and financial instruments of all types. This has not only created opportunities, but also expanded the risk and vulnerability of local markets. The importance of understanding the international business environment and the difference that might exist in the business environment in the domestic and international contexts becomes an important asset for small and large companies in all places of the world.

As everybody knows, we live in economic difficult times and may enter into an entirely new era, an age of increasingly frequent and intense periods of turbulence in the global economy. The complete set-up of international relationships is changing on a country and company level. The economic development of the 80s, which led to the establishment of the “Triade”, consisting of the developed nations of the USA, Europe, and Japan have metamorphosed to a kind of “constellation”, including BRIC countries (Brazil, Russia, India, China) and the Next Eleven (N-11) a group of developing countries with great prospects for the future. They consist of Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam.

This “constellation of markets” became the target markets for product and service offerings for companies from around the world. The companies which understand the various market conditions and players will be the ones which will prosper.

Economic globalization began 30 years ago, but it was not widely recognized until recently in the past 15 years. The Organization of Economic Cooperation and Development (OECD) defined economic globalization as an ongoing process. In this process, economic activities, markets, technology and forms of communication are with increasing global characteristics, while the national ones are in decrease.