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IB Newsletter A monthly newsletter from McGraw-Hill April 2011 Volume 2, Issue 4

Please note that hyperlinks are not static and may have changed since this newsletter was published. Top of Document

International Business Newsletter 1

Dear Professor,

It’s April. That means spring break either just finished or is about to happen. We hope you enjoy(ed) a well-deserved break, and any international travel plans!

When you look at the press or listen to a newscast, the world is a veritable living laboratory for

your IB classes: political upheavel in the Mid-East, natrual disasters in Japan and New Zealand, and sovereign debt, just to mention a few. The economic fallout of these gives you numerous examples to show your students how these impact global trade. Lloyd’s of London is having insurance payouts in the billions and losing profits. Japan’s supply chain to the automobile aftermarket around the world is slowing down. Tokyo Electric Power Company, TEPCO, may be nationalized, while Tokyo experiences blackouts. The Japanese fishing industry is in shambles, and Japanese nuclear power plants have been taken off-line. We are all experiencing the impact of unrest in the Mid-East at the gas pump, and food prices are at an all–time high around the world. These are some sad situations, but strong examples of the complexities and interrelationships IB managers deal with daily.

Our job with the IB Newslertter is to dig deeper and provide an array of items you may not find in

the news. Here’s a sampling of what’s in this month’s IB Newsletter:

12 Cool Gadgets that Could Have Changed the World Subway Tops McDonald’s as the World’s Largest Restaurant Chain Greener Supply Chains Become the Norm L’Oreal’s Manufacturing Makeover How They Advertise Viagra Abroad MNC Profile – IKEA We just “scratch the surface” on Doing Busines in China Culture Cue looks at The Ambiguity of the Word “No” and How to Deal With It

But, ALWAYS keep reminding your students to…

We hope you find the IB Newsletter a useful addition to your classes AND, any ideas, suggestions

or even concerns you might have will help us improve this resource for you. Please feel free to contact us directly at McGraw-Hill via Megan Richter. Thank you, enjoy and good luck,

G. Bernard Yevin, with special assistance from Lisa Stanley-Smith,

Forsyth Tech Community College, Winston-Salem, NC &

Megan Richter, McGraw-Hill/Irwin, [email protected]

Contents

Hot Topics

Video Suggestions

A Global Perspective

Teaching Tips

Chapter Key




Hot Topics in International Business Taken from the Trades

1) 12 Cool Gadgets that Could Have Changed the World Not every high tech innovation has a huge impact. Here are 12 incredibly cool high tech gadgets that fell flat in the market, but which could have (and probably should have) changed the world. Some of them were just a matter of the right product at the wrong time. Others are examples of bungled marketing. And some of the gadgets, while cool, were just a bit too weird for prime time.

http://www.bnet.com/photos/12-cool-gadgets-that-didnt-change-the-world/6195983?promo=808&tag=nl.e808 TEACHING TIP: Use this article to discuss “Why Products Fail?”

2) Subway tops McDonald's as world's largest restaurant chain The Wall Street Journal reports that Subway says it had 33,749 restaurants worldwide at the end of 2010, compared with McDonald's 32,737.

http://content.usatoday.com/communities/ondeadline/post/2011/03/subway-tops-mcdonalds-as-worlds-largest-restaurant-chain/1

TEACHING TIP: This article works well as an introduction to the topic of “Global Franchising.”

3) Greener Supply Chains Become the Norm For years, companies have tried to squeeze every dime out of their supply chains to improve the bottom line and deliver less-expensive products to their customers. Now, instead of focusing on purely financial improvements, there is great interest in making supply chains greener – especially since customers are demanding it. http://www.eweek.com/c/a/Features/Greener-Supply-Chains-Become-the-Norm/ 4) The Recent History of Governments vs. the Internet

http://www.cio.com/article/602891/The_Recent_History_of_Governments_vs._the_Internet

Of Special Interest

This section of the newsletter covers six (6) topics for this edition: 1) 12 Cool Gadgets that Could Have Changed the Word 2) Subway tops McDonald’s as the world’s largest restaurant chain 3) Greener Supply Chains Become the Norm 4) The Recent History of Governments vs. the Internet 5) L’Oreal’s Manufacturing Makeover 6) 12 IT Jobs Headed Offshore

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5) L’Oreal’s Manufacturing Makeover Summary: L’Oréal implemented a manufacturing systems overhaul to streamline processes, create a new technology framework and enable disparate locations around the world to share information and best practices more effectively. Jacques Playe, CIO, Operations, at the Paris-based cosmetics corporation, explains how the restructuring significantly increased processing capacity, reduced costs and improved quality. This is challenging for a company with more than 67,000 employees in 130 countries supporting 23 global brands.

http://www.baselinemag.com/c/a/Infrastructure/LOrals-Manufacturing-Makeover-190972/?kc=BLBLBEMNL03072011STR2

6) 12 IT Jobs Headed Offshore (slideshow) The scale and scope of offshoring IT jobs are on the rise. While staffing help-desk positions somewhere in India is a given, advances in areas such as cloud computing and open-source software have encouraged U.S. companies to ship more jobs to overseas workers. Here are a dozen jobs – in no particular order – that top of the list of those most likely to be outsourced overseas in the not-too-distant future.

http://www.baselinemag.com/c/a/Business-Intelligence/12-IT-Jobs-Headed-Offshore-379565/?kc=BLBLBEMNL03072011STR3




Video Suggestions 1) How They Advertise Viagra Abroad Viagra’s manufacturer, Pfizer, always “pushes the envelope” in advertising Viagra in the US, so take a look at what Pfizer has done abroad. CAUTION: Viewer discretion is advised and a preview to determine if these global examples are suitable for the culture of your school wouldn’t hurt either. http://www.bnet.com/photos/how-they-advertise-viagra-abroad/499866?tag=drawer- container;load-gallery-river TEACHING TIP: If you show this example in class, this is a good starting point for discussions on the social mores of various cultures and how they impact on what is and is not socially acceptable content for advertising in specific cultures. 2) A Day Made in Glass At the link below, Dow Corning offers an interesting look into how we just might live in the not too distant future. http://www.youtube.com/watch_popup?v=6Cf7IL_eZ38&vq=medium TEACHING TIP: Use this video as a stating point for a discussion of R&D and its role in product development and innovation through technology. Have students research and identify which countries are the leaders in technology R&D and debate where these breakthroughs may actually occur. Include in your discussions the topic of Technology Transfer. 3) iGlobe Are you always working on keeping your International Business Class Up-to-Date? Allow us to make this process easier with breaking news videos from iGlobe! McGraw-Hill/Irwin and PBS have joined forces to bring you two new current video clips from the TV show, “The News Hour with Jim Lehrer” every Our two NEW videos for April are: Will Japan’s Crisis Disrupt Global Economic Recovery? Ireland’s New Leader Wrestles With Lingering Debt Problems, EU Bailout We now have an official iGlobe Video Tagging asset on the iGlobe website. This resource indexes each video as it relates to text chapters in all three International Business books as well as to specific topics. Also, it provides video run-times and small abstracts.

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If you are currently using a McGraw-Hill/Irwin International Business text, please visit the iGlobe website, www.mhhe.com/iglobe to access March videos, archived videos and the video tagging resource. After signing in, Video Tagging is listed as the first item under "Instructor Resources" on the left side of the page. You may then click on the file to download the video tag resource. iGlobe is a service exclusively available to instructors using a McGraw-Hill/Irwin International Business text. For more information and to find out how to get access, contact your McGraw-Hill sales rep. To view a preview of iGlobe visit: www.mhhe.com/iglobepreview.




A Global Perspective 1) GLOBAL REACH: MNC Profile – IKEA IKEA is a Swedish, privately held MNC and the world’s largest furniture and home products retailer. IKEA was founded in 1943 by Ingvar Kamprad at the age of 17. IKEA is an acronym derived from “Ingvar Kamprad Elmtaryd Agunnaryd,” the first letters of the first and last name of the founder, “IK” and the from the name of the family farm, “Elmtaryd,” and “Agunnaryd,” his home parish in South Sweden.

The IKEA business model is based on designing and selling household goods, appliances, and ready-to-assemble furniture at price points so low virtually everyone world-wide can afford to buy. IKEA’s retail business is in large, 316+ utilitarian box store settings in over 39 countries world-wide. In addition to store-front retail operations, IKEA has a large and continually growing catalog sales business. The following graphs show IKEA’s growth data:

The first IKEA store in Sweden opened in 1958 and expanded throughout the country, followed by stores in Norway in 1963 and Denmark in 1969. The 1970s brought expansion of stores to other parts of Europe, with the first store outside Scandinavia opening in Switzerland in 1973, followed by Germany in 1974. During the 1970s, IKEA’s global expansion brought stores to Japan in 1974, Australia and Hong Kong in 1975, Canada in 1976, and Singapore in1978. IKEA has expanded further in the 1980s, opening stores in such locations as France in 1981, the Canary Islands in 1981, Belgium, 1984, the United States, 1985, the United Kingdom, 1987, and Italy in 1989. IKEA has continued expansion into more countries in the 1990s and 2000s. IKEA’s largest global market is Germany with 44 stores. The second largest market is the

Of Special Interest

This section of the newsletter covers four (4) topics: 1) GLOBAL REACH: MNC Profile – IKEA 2) GLOBE TROTTING: Doing Business in… Shanghai, Beijing and throughout China Know Your World – Cloud Computing: Google Maps Imagery Charts Japanese Earthquake, Tsunami Devastation 3) CULTURE CUE: Negotiating the Cross-Cultural Quagmire - The Ambiguity of the Word “No” And How to Deal with It

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United States with 37 stores. At the end of FY 2009, IKEA group had 267 stores in 25 countries. In October 2010, the IKEA chain had 313 stores in 38 countries. Of these, the IKEA Group owns 276 stores in 25 countries. The remaining 37 stores are owned and managed by franchisees licensed by IKEA in 16 countries.

Many stores also offer restaurants featuring Swedish food such as Swedish Meatballs, boiled potatoes, cream sauce, lingonberry jam, and the traditional IKEA hotdog. In many countries, IKEA also offers favorite choices from the local cuisine to strengthen local brand loyalty. An IKEA innovation being added to stores is the Swedish Food Market selling Swedish-made, Swedish-style groceries, such as Swedish meatballs, packages of gravy and various Scandinavian cookies and crackers, as well as salmon and salmon roe. IKEA also sells a Swedish staple, lingonberry jam, in a wide array of sizes, including buckets. IKEA has extended its product line with the introduction of the private IKEA food label. The new label has various different foods including, chocolates, meatballs, jams, pancakes, salmon, and various drinks.

The World Wide Web not only complemented, but propelled IKEA growth and the IKEA website offers over 12,000 products, seen as the closest representation of the full IKEA product line offered world-wide. For the 12 month period of September 2007 to September 2008, IKEA reported over 470 million visitors to their website.

On February 17, 2011, IKEA announced its plans for a wind farm in Dalarna County, Sweden, furthering the furniture giant's goal of running on 100 percent renewable energy. To see the history of KEA on a graphic timeline follow this link: http://franchisor.ikea.com/showContent.asp?swfId=concept4

IKEA Becomes a Cult Classic

The brand loyalty of IKEA customers brings their commitment to the IKEA brand to the point of total loyalty and cult status. Here is insight into how IKEA developed and continues to build this world-wide loyalty through commitment and persistence to the brand image defined by IKEA’s global marketing strategy.




SOURCE: http://www.businessweek.com/magazine/content/05_46/b3959007.htm

Accessed 3/10/11 @ 3:34 PM

Ikea: How the Swedish Retailer became a global cult brand

http://www.businessweek.com/magazine/content/05_46/b3959001.htm

To learn more about IKEA: http://www.ikea.com/

2) GLOBE TROTTING: Doing Business in…..Shanghai, Beijing, and throughout China (Part 1)

NOTE: Stress to your students that China is not a homogenous country. Doing business in one city is very different than any of the others. This is only one of the complexities IB professionals face in China. However, what is presented in this 2 Part series are a number of factors that are common about doing business in China, but they will vary in degree from city to city, region to region. But it is a start we hope you will find useful.

China’s official name is The People’s Republic of China. Doing business in China is a challenge, an enigma, a frustration, a challenge, rewarding to some and a brick wall to others. Even though China is now the World’s second largest economy and appears to embrace capitalism on a mass scale, to give any level of insight into doing business there is truly only “scratching the surface.” But some level of understanding is better than no level of understanding.

China is quite possibly the oldest civilization in the world with over 4,000 years of verifiable history. The governmental capital is Beijing but commercial capitals are also found in Shanghai and Hong Kong. Shanghai has become a major trading port, China’s largest industrial city, and largest Financial Center in the Far East, and has




become one of the most important economic centers of the country. Though most business people speak English, China’s official language is standard Chinese, which is derived from the Mandarin dialect. There are numerous dialects spoken throughout China, but there is only one written language.

China is the most densely populated country in the world and in 2011, reported a population of approximately 1.36 billion people. Almost 100 percent of the population is ethnic or Han Chinese and Mandarin is the most widely spoken language in the World. To control rampant population growth, the Chinese Government enacted strict laws regarding childbirth and each couple is limited to only one child, preferably a male.

China has a highly bureaucratic Communist government with extremely strict laws and penalties for breaking them. The Chinese constitution guarantees freedom of religion but the government promotes atheism. The Chinese practice a variety of religions but Confucianism is practiced widely throughout the country.

In 1987 China initiated market reforms and has been among the world's fastest growing economies. This has led to dramatic developments in America's commercial relationship with China. In 1986, total trade between the United States and China was $7.9 billion. By 2009, this total grew to $409 billion, making China the United States' second largest trading partner. Despite a significant trade deficit, U.S. exports to China grew by 10 percent over the past three years as compared to a 9 percent decline for the rest of the world. Improved international relations, government reforms, an expanding economy and increased foreign investment offer lucrative opportunities for doing business in China. As China’s economy grows, there are significant opportunities for not only U.S. businesses in China, but from other nations as well.

Doing business in China means that business people will come into frequent contact with Chinese business people and government officials. As in every country, it is critical that an expat or a visitor understand China’s business culture, business etiquette, meeting protocol, and negotiation techniques in order to enhance one’s potential for success. Here is an introduction to some important areas one may encounter and need to be prepared for when attempting to do business in China.

Confucianism – The Basis of Chinese Culture

Harmonious relationships are the essence of Confucianism. Society as a whole will function smoothly if proper behavior through duty, respect, and loyalty are shown in the relationships between a ruler-subject, husband-wife, father-son, brother-brother, and friend-friend. When doing business in China it is easy to see how Confucianism affects business practices. Confucianism provokes the Chinese to be averse to conflict, maintain proper demeanor at all times and in every setting, and place high value on preserving “face,” as is common throughout the Pacific Rim. “Face” encompasses a “good reputation,” “honor,” and “respect.” There are subtleties to “Face” one must understand because it does impact successfully doing business in China. In China, there are four categories of “face:”




1) When one's “face” is diminished through unacceptable action or deed and then being exposed. The loss of “face” is not the result of the action, but because it has become public knowledge.

2) When “face” is given to others through compliments and respect because of good actions or deeds. 3) Age and experience builds “face.” When one shows wisdom by avoiding mistakes their “face” is

increased. 4) “Face” is increased when others give compliments about you to a third party.

Always keep in mind that it is critical that one gives “face,” saves “face,” and shows “face” when doing business in China. “Face” is critical to success on any level in China.

Protocols for Business Dress in China

Conservative suits for men with subtle colors are the norm. Subtle, neutral colors should be worn by both men and women. Casual dress should be conservative as well. Men and women can wear jeans. However, jeans are not acceptable for business meetings. Revealing clothing for women is considered offensive to Chinese businessmen and frown on women who wear revealing clothing. Women should avoid high heels and short sleeved blouses.

Protocols for Meeting & Greeting in China

Body language and movement are areas you should be conscious of when doing business in China. You should always be calm, collected, and controlled. Body posture should always be formal and attentive as this shows you have self-control and are worthy of respect. Doing business always involves meeting and greeting people. In China, meetings start with the shaking of hands and a slight nod of the head. Be sure not to be overly vigorous when shaking hands as the Chinese will interpret this as aggressive. Do not use large hand movements. The Chinese do not speak with their hands. Your movements may be distracting to your host. Personal contact must be avoided at all cost because the Chinese do not care for physical contact, especially when doing business. Never slap, pat, or put your arm around someone's shoulders. It is highly inappropriate for a man to touch a woman in public. Do not point when speaking. If you need to point, do not use your index finger, use an open palm. It is considered improper to put your hand in your mouth. Avoid acts that involve the mouth.

Business cards are extremely important in China and have their own protocol. Business cards are exchanged on an initial meeting. Make sure one side of the card has been translated and try and print the Chinese letters using gold ink, because this is an auspicious color. Mention your company, rank, and any qualifications you hold. When receiving a card place it in a case rather than in a wallet or pocket. Never write on the business card.

Bowing or nodding is the common greeting but you may also be offered a handshake. Wait for the Chinese to offer their hand first. Applause is common when greeting a crowd; the same is expected in return. Introductions are formal so be prepared to use formal titles. Often times Chinese will use a nickname to assist Westerners. The most important member of your company or group should lead important meetings because Chinese value rank and status. Always allow the Chinese to leave a meeting first.

Being on time is vital in China. Appointments are required and contacts should be made prior to your trip to arrange meetings and appointments. Bring multiple copies of all written documents and brochures for your meetings.




The decision making process in China is slow. You should never expect to conclude your business quickly. Many Chinese will want to consult with the stars or wait for a lucky day before they make a decision.

Protocol for Building Relationships in China

Relationships in China are very formal. Remember, when doing business you are representing your company so always keep dealings at a professional level. Never become too informal and avoid humor as jokes may be lost in translation and end up being meaningless or possibly insulting.

When doing business in China, establishing a contact to act as an intermediary is important. This brings with it multiple benefits. They can act as a reference, be your interpreter, and navigate you through the bureaucracy, legal system, and local business networks.

Protocols for Giving Gifts in China

Gift giving is a very delicate issue in China, but giving of gifts does not carry any negative connotations when doing business in China, either. Gifts should always be exchanged for celebrations, as thanks for assistance, and even as a “sweetener” for future favors. However, it is important not to give gifts in the absence of a good reason or in front of a witness. This may be construed as a bribe and should be avoided.

When the Chinese want to buy gifts it is not uncommon for them to ask what you would like. Do not be reluctant to name something you desire, but do not be extreme in your request as the Chinese will feel obligated to give it to you regardless of its value. It would be favored to show appreciation of Chinese culture by asking for items such as ink paintings or tea.

Business gifts are always reciprocated and seen as debts that must be repaid. Never give cash as this is seen as a bribe. Gifts need to be items of worth or beauty. Do not be too frugal with your choice of a gift otherwise you will be seen as an “iron rooster,” which means “getting a good gift out of you is like getting a feather out of an iron rooster,” and frowned upon by the Chinese. A good gift deserves a good gift. It is more acceptable to give gifts either in private or to a group as a whole to avoid embarrassment by giving a gift to one individual. Remember, you are dealing with group-based culture. The most acceptable gift is a banquet. Quality writing pens are much desired gifts. The following gifts and colors are associated with death and should never be given:

Clocks Straw sandals A stork or crane Handkerchiefs Anything white, blue, or black

Remember, it is illegal to give gifts to Chinese government officials.

Protocols for Meetings and Negotiations in China

Meetings must be made in advance. Preferably some literature regarding your company should be forwarded to introduce the company. Try and book meetings between April - June and September - October. Avoid all national holidays especially Chinese New Year.




Punctuality is vital when doing business in China. Ensure you are early as late arrivals are seen as an insult. Meetings should begin with some brief small talk. If this is your first meeting, talk about your experiences in China. Keep it positive and avoid anything political.

Prior to any meeting always send an agenda. This will allow you to have some control of the flow of the meeting. The Chinese approach meetings differently, so rather than beginning with minor or side issues and working your way up to the core issue, use the reverse when dealing with the Chinese.

The Chinese are renowned for being tough negotiators. Their primary aim in negotiations is to obtain concessions. Always bear this in mind when formulating your own strategy. You must be willing to show compromise and ensure their negotiators feel they have gained major concessions.

Make sure you have done your homework before doing business in China. The Chinese plan meticulously and they will know your business and possibly even you inside and out before you ever meet.

One known strategy for Chinese negotiators is to begin negotiations showing humility and deference. This is designed to present themselves as vulnerable and weak. You, the stronger, will be expected to help them through concessions.

Above all, be patient and never show anger or frustration. Practice your best “poker face” before negotiating with the Chinese. Once they see you are uncomfortable they will exploit the weakness. Decisions will take a long time either because there is a lack of urgency, simultaneous negotiations are taking place with competitors, or because the decision makers are not confident enough.

Protocols for Business Dining in China

Always arrive on time or early if you are the guest. Do not discuss business at meals. Do not start to eat or drink before your host does. As a cultural courtesy, you should taste all the dishes you are offered. Learn to eat with chopsticks. Never place your chopsticks straight up in your bowl. By placing your sticks upright in your bowl your will remind your host of joss sticks which connotes death. Do not drop the chopsticks. It is considered bad luck.

Sample your food instead of eating everything on the plate because there may be several courses. Do not eat all of your meal. If you eat all of your meal, the Chinese will assume you did not receive enough food and are still hungry, and feel the need to offer more food. You also run the risk of insulting your Chinese host because he will feel he did not offer you enough food. Women do not usually drink at meals. Tipping is considered insulting, however the practice is becoming more common.

For more information on Doing Business in China:

http://audiovideo.economist.com/?fr_chl=8a2059e9ac993b05e749291542c9e65bda3af5bf&rf=bm http://www.economist.com/blogs/gulliver/2011/03/doing_business_beijing?fsrc=nlw|gul|03-29-11|gulliver




A summary of legal barriers to overcome when you want to start, register, and open a new firm in China showing time and costs estimates to accomplish each step. http://www.doingbusiness.org/data/exploreeconomies/china/sub/shanghai/topic/starting-a-business

Part 2 of Doing Business in Shanghai, Beijing and throughout Chine will continue next month.

Know Your World – Cloud Computing: Google Maps Imagery Charts Japanese Earthquake, Tsunami Devastation On March 11, a 8.9 magnitude earthquake rocked northern Japan and triggered tsunamis that rippled across the Pacific Ocean, causing devastation to cities, people, manufacturing, supply chains, and nuclear power plants. This link shows the devastation as it happened in a sequential series of satellite pictures. http://www.eweek.com/c/a/Cloud-Computing/Google-Maps-Imagery-Charts-Japanese-Earthquake-Tsunami-Devastation-103142/?kc=EWWHNEMNL03172011STR1 And, a Japanese video from Sky News showing the disaster. http://freevideocoding.com/flvplayer.swf?file=http://flash.vx.roo.com/streamingVX/63056/1458/20110311_japan_wave_successions_sky_1000k.mp4&autostart=true

TEACHING TIP: Have your students discuss their views on the relationship of natural disasters to regional and global economic conditions.

3) CULTURE CUE: Negotiating the Cross-Cultural Quagmire - The Ambiguity of the Word “No” And

How to Deal with It When different cultures collide in the workplace, how an individual was brought up and taught what is socially acceptable can cause problems. This friction can start in personal relationships but can also interfere with productivity and customer relationships. The word “No” is a word everyone hears quite often. If fact, it quite possibly just might be the one word we hear most often when we ask a question that is answered with either a “Yes or No. “ Most people within a culture understand clearly what “No” means in that culture. But problems can quickly arise when dealing across cultures where the literal work “No” may not always mean “No.” In some cultures, “No” does mean “No” but in others it may mean “Yes” and in others it may mean “Maybe.” And, to complicate matters, in other cultures there is no literal word in the local language that means “No.” To assist in understanding the ambiguity, here is a primer on why people from other cultures can’t or don’t say what they really mean and insights from a variety of countries showing how people say “No” or what the word “No” means when they say it. You will also find information on ways people show rejection of ideas through gestures rather than using the word “No.” Sometimes, understanding what the word “Yes” means is critical to understanding how “No” or the rejection of ideas is conveyed across cultures. The concept of “losing face” is common to the




people of India, Mexico, Bolivia, China, and other parts of Asia where harmony is a key cultural value more so than in North America and in Europe. In these countries, to refuse to say “no” even when it is impossible to accommodate the request can cause serious misunderstandings and impede business. Jobs could be affected, or an employee dealing with customer complaints could agree to every demand only to find the customer even angrier when demands are not met. “No” can be a gesture as well as a spoken word. To help you understand “No,” here are a number of examples from various countries throughout the world. Brazil – Wiping hands together means "it doesn’t matter." Clicking the tongue and shaking the head indicates disagreement or disapproval. Russia – For decades there were no incentives for bureaucrats to perform well or to even be pleasant toward clients under Communism. This meant that the usual answer to any question was "No." Though this practice is still found in Russian society today, the word "No" is typically just the starting point as one needs to bargain and be persistent to get what he or she wants. The Netherlands – The Dutch tend to be direct, giving straight-forward "Yes" and "No" answers. Turkey – The Turks indicate "Yes" with a slight downward nod of the head. "No" is a slight upward nod of the head while making a quick, sucking sound through your two front teeth, which sounds like "tsk." Indonesia – Indonesians want very much to please. An untruthful answer may be given so no one is disappointed. Thailand – A smile is often used for many different emotions. It may be an apology, a thank-you, a greeting, or to show embarrassment. Be aware: A Thai's smiling assurance does not mean you will in fact get what you want, when you want it. It simply reflects the Thai appreciation of harmony and their "never mind" attitude. Greece – Greeks are highly animated people. Nodding your head "Yes" is not polite, so say "Yes" instead. "Yes" is signified by a slight downward nod of the head. A “No" is a slight upward nod of the head. Denmark – Though Danes tend to be informal, there is a seriousness underlying the informality. Danes are very forthright people. A “No” clearly means “No” and there is rarely recourse to the decision. Philippines – Filipinos find it difficult to say "No," disagree, reject or be confrontational, especially when a superior is involved. Ambiguous or indirect answers are given to please and avoid confrontation, but never to deceive. "Yes" is signified by a jerk of the head upward. "No" is signified by a jerk of the head down. Since the Filipinos rarely say “No,” the non-verbal sign for "No" is often accompanied by a verbal “Yes,” which would still indicate "No." India – When an Indian smiles and jerks his/her head backward, a gesture that looks similar to a Western "No," or moves his head in a figure 8, this means "Yes." The Western side-to-side hand wave for "hello" is frequently interpreted by Indians as "No" or "go away." When an Indian answers, "I will try," he or she generally means "No." This is considered a polite "No." Japan – Saving face is crucial in Japanese society. The Japanese believe that turning down someone's request causes embarrassment and loss of face to the other person. If the request cannot be agreed to, they will say, “it is inconvenient” or “it is under consideration” but never say the word “No.” The Japanese may phrase a "No" response in a way that may be interpreted as indecisive or unassertive in the United States and Europe. This




aspect of their culture helps to keep harmony within the society and should not be viewed as a weakness. It is appropriate to politely accept this kind of response as a "No". The Japanese rely on facial expression, tone of voice, and posture to determine what someone feels. Japanese often trust non-verbal messages more than the spoken word as words can have several meanings. The context in which something is said affects the meaning of the words. Therefore, it is imperative to understand the situation to fully appreciate the response. Frowning while someone is speaking is interpreted as a sign of disagreement. Expressions to be aware of include inhaling through clenched teeth, tilting the head, scratching the back of the head, and scratching the eyebrow. These indicate doubt, question of concern, but you will never hear the worD “No” in the context of disagreement in Japan. To help you understand more about “No” in Japanese culture: http://www.youtube.com/watch?v=Lge9yQj7kLI China – Chinese find "No" difficult to say and often say "maybe" or "we'll see" in order to save face. The words "Yes" and "No" can often cause confusion between American and Chinese businesspeople. The Chinese languages, specifically Mandarin, has no word equivalent for "Yes," and Chinese people often use that word when they really mean "good" or "correct." A Chinese person may simply say "Yes" to acknowledge to someone that he or she has been heard, not that he has agreed to something. Chinese people also try to avoid saying "No." Therefore, if a Chinese person says he does not think something will be possible, he often means that it is impossible. “Mei wenti” is a common Chinese phrase that literally translates to "no problem," but should be interpreted to mean that there is an underlying problem the businessperson does not wish to discuss. Forcing the Chinese to say "No" will quickly end a relationship. Hong Kong – "Yes" may not mean agreement but it often means "I hear you." "No" is generally not said. Instead, you may hear "This may be very difficult" or "It will have to wait." Switzerland – The Swiss are fair bargainers but not hagglers. Discussions are detailed, cautious, and often pessimistic. The Swiss make decisions methodically. A “Yes” is a “Yes” and “No” means just that. United States – Americans prefer directness in communication. When Americans say "Yes" or "No," they mean precisely that. "Maybe" really does mean "it might happen" but it does not mean "No." Resources to better understand “No” throughout the world: If you ever wanted to know how to say the work “No” in 520 languages: http://users.elite.net/runner/jennifers/no.htm Why can it seem that people from other cultures don't say what they mean? http://www.videojug.com/expertanswer/manners-and-verbal-expressions-across-cultures/why-can-it-seem-that-people-from-other-cultures-dont-say-what-they-mean




Teaching Tips 1) Vote for the Philips Livable Cities Award Global electronics giant Philips presents the best 8 ideas for Livable Cities. View the videos at the link and have your students review each of the 8 ideas. Then, select and discuss or write a report on these factors that make a city livable based on the 8 examples presented on the link below. Though voting is closed, have your students’ follow-up and see how their choice fared with the winners. From more than 450 ideas received from 29 countries across the world, a shortlist of eight innovative ideas has been selected for the Philips Livable Cities Award - and now you can help decide the winning entry. Learn about each shortlisted entry and vote for your favorite for a chance to win a place at the Award ceremony in Amsterdam. The winners will be announced on 27 April 2011, at 23.00hrs CET. The Philips Livable Cities Award ceremony will be held on the evening of 27 April 2011, at a black-tie gala event in the world famous Rijksmuseum in Amsterdam, The Netherlands.

2) Adopting a Global Records Retention and Disposition Program Have your students download the free whitepaper and use it to discuss trends in legal requirements for disclosures and record keeping of corporate data. How is this complicated if a company is operating in a number of foreign countries?

Digital information continues to grow aggressively. At the end of 2010, IDC sized the digital universe at around 1.2 zettabytes, or around 1.2 billion terabytes. Much of this is information that is valuable to businesses. This IDC paper highlights the growth in data volumes and how organizations can handle the cost and compliance issues. Learn how to adopt a global records retention and disposition program to address these issues. http://www.idgconnect.com/idgconnect/download/5733/concib-idgc3/business-management/knowledge-and-content-management/records-management/idc-global-records-compliance-what-you-need-know

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