1. The Impact of Culture, Customs and Beliefs on International Trade

2. Impact of Cultural Differences
Culture
the sum of a country’s way of life, beliefs, customs
Influences how things are purchased, sold,
Sets boundaries on what can or can not be done
Impacts preferences, style, values, and norms

3. Cultural Differences
In order to do business with differing cultures, much market research is needed to help companies understand various similarities and differences even when dealing with everyday cultural norms dealing with people such as:
Punctuality
Greetings
Nonverbal communication signals
Good Manners
Decision making

4. Punctuality Punctuality Norms in North America?
People are expected to be
on time
Rely on books, calendars and
even pay a fee sometimes
for missed appointments
Punctuality Norms in Other Countries
Time is considered flowing, flexible, beyond’s people control

5. Greetings Eye contact made in some countries, not in others
Shaking hands – differs from one country to the next
Eye contact made in some countries, not in others
Bowing before an elder acquaintance versus not bowing at all

6. Nonverbal Communications Signals
Considered rude in Asian cultures to refuse someone’s request, so an Asian business person may not give a direct “no” answer to a sales request
A “nod” means “yes” to North Americans but “no” to a Bulgarian.
Shaking the head “side to side” means “no” to North Americans but “yes” to Bulgarians.
The sign okay with ones hand is a symbol for money in Japan and is an offensive gesture in Brazil.
Personal space interpretations also differs from place to place.

7. Good Manners
In North America, getting down to business is the norm when to business people meet.
In other Asian and Latin American countries it would be considered rude not to discuss family, friends, and favours first to establish a personal relationship before business.

8. Decision Making
In some cultures, decisions are made from the top down approach, in others, from the bottom up approach.

9. Other Differences North Americans read from right to left.
Israel and Egyptians read left to right.
This difference may impact the order in which a sequential advertisement is laid out from one country to another.

10. Are you planning to engage in International trade?