The Effect of Culture on Business Relationships With the tremendous increase in global trade, learning more about doing international business has become especially significant. It is vital to learn about the different cultures around the world before doing business in other countries, in order to reduce the risk of failure. Becoming knowledgeable about different countries’ communication styles, body language, meeting and negotiation tactics, dress, greetings, and social events are all keys to having good business relationships with individuals in other countries. China and the United States are nations that do business with each other regularly. While they do share similarities, there are many differences between these cultures In these two countries, business culture in China is the most reserved, and is perhaps most unlike that of the United States. First and foremost, a contact should always be established before representatives of a business are sent to China. The business person should not touch people because touching makes the Chinese uncomfortable, especially if it is the first meeting. Inappropriate touching would include patting on the back or squeezing the arm (Morrison et al., 1994). In China a light handshake is accepted, but the Chinese business associate should initiate the action. Bowing is common and is done with the palms together while facing each other (Gesteland, 1999). Holding eye contact is a sign of disrespect and should be done cautiously, especially in a social setting.
When entering a room full of potential business partners, greeting the most senior person first is important, as is using appropriate titles. Sometimes the last name is said first in Chinese culture, and individuals will expect to be addressed formally until they say otherwise. Also, if greeted with applause, return the gesture (Kenna and Lacy, 1994a).
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