General considerations A number of general considerations impact on international business dealings, including: ■ time differences and working hours ■ language differences ■ currency and exchange rates ■ cultural differences ■ political and economic climate ■ religious differences.

Time differences Lets all now go to page 114. Lets study fig 4.3. Now have a go at doing the Action Task

Currency and exchange rates When transacting international business, many deals are calculated on a particular country’s dollar value. For example, Australian dollars (AUD) may need to be converted to United States dollars (USD) or to euros (EUR). Depending on the strength of our dollar, the conversion may cost Australian businesses more Money than what appears on paper. A Currency converter is a useful tool for quickly calculating exchange rates.

Political and economic climate In the world economy, Australia has experienced the impact of poor economic decisions through its own governments but also as a result of a downturn in international markets, caused by events that, in the past, would have been considered far removed from our own shores. A good example of this was the global credit crunch—a tightening of monetary policies—which devastated many largecorporations during 2008 and beyond, impacting on the lives of many millions of workers What does this mean????

Language Differences While many of our foreign counterparts speak fluent English, most westerners who venture into the Middle East, East Asia, China and Europe with the hope of transacting business do not speak the local language. At the very least, you should be able to introduce yourself and participate in some social ‘small talk’ using the host nation’s language. WHY???

Language Differences To help overcome some of the problems caused by language barriers, it is recommended that businesses employ a translator or interpreter In class question?  What is the benefit of a translator when doing business in another country

Cultural differences To achieve intercultural effectiveness, which means working or living successfully in another culture, employees must demonstrate the ability to: ■ adapt to local conditions—no matter how challenging they may be ■ communicate effectively in order to gain trust ■ immerse themselves and be at ease in the host culture.

Religious differences When preparing for international business dealings, it is essential to research the country and its main religions, which can impact upon customs, diet, meeting times, choice of business gifts and dress, as well as help explain the significance of certain colours within that culture. As the host of a meeting—whether in Australia or the host country— consideration of these differences will be welcomed. Lack of research and ignorance will most likely result in offence. For example, the food ordered to cater for meetings must take into account The dietary requirements of the participants’ religions, such as kosher or Halal meals. Conversely, if you have daily meetings during Ramadan, Muslims will not wish to eat or drink. Out of respect, non-Muslims should also avoid eating or drinking during these meeting times.

Religious differences It can sometimes appear almost impossible not to make mistakes when dealing internationally. To achieve that success, businesses should: ■ avoid cultural stereotypes; instead, treat everyone as individuals ■ be culturally sensitive ■ have clear goals ■ avoid the use of gestures and signals that can cause miscommunication ■ be aware of their own prejudices and assumptions ■ listen carefully and patiently without interrupting ■ try to see things from another perspective ■ be respectful

Questions To finish chapter off Page Number 118 Q3 and 4