Doing Business in Asia: What to Do & What Not to Do

Posted on June 6, 2011 by Thomas D'Innocenzi

When doing business in Asia (especially in China, Korea and Japan), it’s important to understand and respect the cultural differences. In general, there is a larger social aspect to making business deals, which includes going out to dinner, getting drinks and even some karaoke (so make sure you can at least sing a song or two if you really want to impress your potential business partners). Most importantly, don’t be so focused on closing the deal in a hurry. Instead focus on the relationship, being patient and humble, and not being too aggressive (as it will come across pushy).

  • When toasting, it’s respectful to toast your glass lower than others.
  • When exchanging business cards, use both hands to give or receive the card.
  • Guests are expected to give a wrapped present to their host. Gifts are not usually opened in front of the person giving the gift, so do not think it is rude if your host puts your gift aside. You also may receive gifts from your Chinese hosts.
  • Avoid shoulder touching, backslapping, or hugging- it may come across as aggressive or inappropriate.
  • Avoid gestures like the “come here” with curled-index-finger.
  • If invited for an evening out, accept! Don’t decline. Drinking is part of the business culture as it’s a way to bond and develop a relationship. Some believe that alcohol helps bring down inhibitions and may even reveal true “intentions”.
  • Arriving late, causing embarrassment, behaving confrontationally, insisting too hard on paying a bill or pointing out a mistake are all things to avoid. On the other hand, complimenting someone on their business acumen in front of their colleagues is an easy way to win points.
  • If a Chinese person has misunderstood you, or cannot (or does not want to) answer a question, they may laugh to cover their embarrassment. Try not to get agitated. They may come back to you with an answer later once they’ve had the chance to think it through or find out the answer. If they don’t, you’ll need to ask again—but it’s best not to do this in front of others so as not to cause a loss of face.
  • Don’t be unnerved by long silences—these are an important part of Chinese communication. But note that silence can also be used to unnerve a negotiating opponent.

Thomas D’Innocenzi

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Concept of Family in Asia

Posted on March 31, 2011 by Thomas D'Innocenzi

The Asian family of Monsoon Asia evolved as a result of the high population density of the region and the requirements of survival in an agriculturally-dependent society. The success of high agricultural yields allowed the growth and support of large population centers but required teamwork and cooperation at every level of the hierarchical society where the family functions. Core to this hierarchical structure and the family unit is the belief that the needs of the whole are greater than that of the individual. Hence, Asian society held an “emphasis on group effort and group welfare” and had a “mistrust of individualism” (Murphey, 2009, pg. 5). As a result, the Asian family unit evolved as a tightly-coupled unit managed by a strict hierarchical structure.

As Monsoon Asia developed, the Asian family unit worked together in a team spanning as much as three generations under one roof and governed by the eldest male, with a succession of the other males whose rank is determined by age and education. Parent, grandparents, and children worked together to produce the highest yield of crop on small plots of a village while supporting each other in tough times. “The family provides support and assistance for each individual member; in turn, individual members provide support and assistance for the entire family” (Philips, 1996).

The hierarchy of elder male management of the Asian family is based on the Asian tradition of “respect and deference to one’s elders and to all others of high status” (Murphey, 2009, pg. 5). The male elders manage not so much by direct authority, but by willing consultation of subordinate family members seeking their experience and counsel. Whatever answer is provided becomes the next step and is not challenged. However, the eldest male or “little emperor” must make decisions for the welfare of the family as a whole instead of his own individual needs.

The Asian family structure is supported at a religious level through several belief systems. As a way of life, the Confucian view well supports the structure by demanding the cooperation of the individual in their role of relationships. Each family member must know their status and adopt to it much like father-to-son or ruler-to-subordinate. Equally important is the family welfare and integrity. “The individual is obligated to save face so as to not bring shame onto the family. The incentive, therefore, is to keep problems within the family” (Philips, 1996).

The Confucian family honored the dead and erected shrines to their memory. Eldest sons performed “rituals on the death of his father, through successive generations, keeping the ancestral chain intact and thus ensuring family continuity” (Murphey, 2009, pg. 34). The need of males to manage the family and provide ancestral continuity has resulted in families requiring at least one male offspring. The unfortunate effect of this has been female infanticide in China and India where having male offspring is imperative to their beliefs. China especially engages the practice due to the current one-child policy of their government. Interestingly, in Southeast Asia, daughters are cherished and are “regarded as an economic asset” (Murphey, 2009, pg. 48). The ability to bear children, cultivate crops and provide for their family in other ways than hunting gave esteem to women and they could wield influence in the family structure. Their positive economic impact to the family could not be ignored.

The Taoist belief of “flowing through life like water” permeates in behavior of the Asia family members. Taoist traits are clearly evident within family interaction where “individual family members may seek to avoid conflict and confrontation with others. An individual may appear passive, indifferent, or indecisive. The person may fear that taking the initiative could lead to disagreement or conflict. The individual may be overtly compliant and agreeable when, in fact, he or she disagrees with the other person “(Philips, 1996).

A tightly-couple family unit was necessary to support their elderly in care as institutional care was not available in large societies. This care was provided strictly by the family, so someone could be born, live and die in the same house. The trait of caring for one’s parents is very strong today in the Asia family. Parents will often remain with the family of the eldest son and take precedence in family decisions, much to the dismay of the in-law wife but nonetheless tolerated. Sending the elderly to the nursing home is rare. Annual rituals of burning fake money and providing food to deceased elders at their gravesites remain a strong tradition. In Taiwan, males will travel to family gravesites to clear the brush while wives explode firecrackers to ward-off evil spirits. Afterwards, everyone gathers in the restaurant for a meal to celebrate the life of the elders. More than a few beer Gam Beis (bottoms-up) are drunk by the males to further the celebration.

Since the priority of all members remained with the welfare of the family, the “three-generation” concept of the Asian family structure remained intact. The sage-like wisdom of grandfather or father was ever present, as was the lack of privacy required to expand the family. There wasn’t much room for intimacy and individual expression, and so the Asian family interaction may seem to the outsider today.

Although the Asian family structure may seems onerous in its strict hierarchy, tightly coupled operation, and “collective responsibility “ attitude, it has remained the key basis of Asia society which has endured and grown over thousands of years and “looms as over half the human world” (Murphey 2009, pg. 8). Due to the strong culture of the Asian family unit, their integration into other modern societies have had little effect on the family values set in thousands of years of tradition. My wife’s family remains true to their Chinese heritage as they continue to grow in the United States. Although my wife is the first generation of American-born Chinese in the family, the traditions remain strong with emphasis on honoring the elderly, face for the family, and continuing education steeped in the Confucius tradition.

Thomas D’Innocenzi

REFERENCE

Murphey, R. (2009). A History of Asia. Upper Saddle River, NJ: Pearson Education, Inc.

Philips, W. (1996). Culturally Competent Practice, Understanding Asian Family Values. Journal of the National Resource Center for Special Needs Adoption, 10(1). Retrieved October 1, 2009, from http://www.casanet.org/library/culture/asian-values.htm.

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Economic Globalization

Posted on September 24, 2010 by Thomas D'Innocenzi

In globalization’s history, you will find imperialism, transcontinental business, militarism, and resource management. Although there is an academic tradition of treating economics, history and business separately, actually they are irrevocably intertwined. When a nation has to fight to survive by aggressively going after resources and reduced costs through globalization, the rights of the individual may suffer. Foreign investment has been a boon to places such as New Delhi, India. It is often hard and unsustainable for a superpower to stay on top of the heap.

When international attention became focused (by the Great Depression) on the hazards of living in a world that is interdependent, “new globalization” was born. This opened people’s eyes to the fact that, when the economic system is heavily reliant on a distant area, it will lead to instability that will cause the whole system to crumble like a house of cards. Additionally, as consumers lost the ability to purchase, they no longer demanded. This caused capitalists to end up with lots of extra product and no work, leading to a high volume of job losses. They understood that they need to extend into fresh areas to maintain their influence, create demand, and save on labor costs. This meant that the rules had to change and the entire world had to be brought into play in the game of economic globalization. The assets of other countries had to be stabilized. Democracy had to be spread in every corner of the world. A sustainable supply-and-demand structure had to be created so that everyone could participate in free trade.

After awhile we did rebound. The Great Depression was not the first crisis of its type, and not the last either, but its severity made it unique in the impression it caused in those who studied the economy everywhere in the world.

In all of recorded history, the acquisition of wealth and the protection of trade strategy have provided motivation for making war on others. It can be seen in cultures stretching from the Ottoman Empire to the Romans and beyond. During the Industrial Age, America moved forward due to the production of automobiles and the control and use of natural resources, energy, and raw materials. Because aggressive free market societies gain the most from economic globalization, its inception is often followed by military aggression. If strategy and assets are threatened by such forces as international terrorism and communism, war (such as those in the Persian Gulf and Iraq) is sure to ensue.

To some extent, there have been advances in terms of poverty rates decreasing and rates of literacy and life expectancy rising. GDP was following an increasing trend, and competition was holding prices to an equitable level. However, there have been a number of situations that have caused the public to understand that free-for-all economic globalization, along with Imperialistic trade strategy, are bad news for workers. This combination often causes human rights abuses and exploitation. We keep up with the discussion on globalization today, looking for an adequate balance.

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