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How to Do Business in 12 Asian Countries 20

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152 Kiss, Bow, or Shake Hands: Asia ● Meal times are usually 7:00 to 8:00 .. for breakfast, noon to 2:00 .. for lunch, and 7:00 to 10:00 .. for dinner. ● Be prepared for as much as two or three hours of talking and socializing before a meal. It is advisable to have a small snack before going. ● At a meal, communal dishes are placed in the center of the table and each person serves himself or herself. Do not let the serving utensils touch your plate, and never use your le hand. Usually, there will be no utensils, as people eat with their hands. Bread and rice balls are used to scoop up curries and vegetables. Watch your host. is technique takes a bit of practice. If your meal is served on a plantain leaf, do not eat it; that plantain leaf is your plate. ● Do not serve yourself large portions, but leave room to compli- ment your host and hostess by returning for two or three help- ings. When you are nished, politely refuse additional servings. ● Buddhists are vegetarians, Hindus do not eat beef, and Muslims do not eat pork. When eating out, the person who initiates the invitation is the one who will pay for the entire meal. ● Good topics of conversation include families, home, schools, and sights of Sri Lanka. Topics to avoid include the ethnic strife between the Tamils and Sinhalese, relations with India, religion, the caste system, sex, and the tragedies of the tsunami. ● If the topic of the tsunami is broached by your Sri Lankan associates, be very sensitive to their viewpoints about the disaster, but refrain from oering your opinions on rebuilding, international aid, etc. ● 3 PROTOCOL Greetings ● e traditional greeting is to place your hands together at chin level and bow slightly. ● Foreigners are not expected to initiate this gesture, but returning it will be appreciated. ● As a result of British inuence, the Western mode of greeting, shaking hands, is also appropriate for either sex. ● At a party, greet and shake hands with everyone in the room. Titles/Forms of Address ● Each of Sri Lanka’s many cultures has dierent naming patterns. Depending upon whether they are Sinhalese, Tamil, Moor (Arabic or Malay), Burgher, etc., they will have a variety of conventions. For general information on Chinese, Muslim, and Indian naming conventions, please see Appendix A. ● e Sinhalese will generally have two names, the rst one indicat- ing a house, tribe, profession, or other important family charac- teristic. is name sometimes has a GE written aer it. is is followed by a person’s given or rst name. ● Tamils also have two main names. e father’s comes rst, then the child’s. Many people (both Tamils and Sinhalese) use an initial for their rst names. ● It is best to ask someone how he or she prefers to be addressed. Gestures ● e le hand is taboo for most purposes, because it was historically used for hygienic purposes. erefore, do not use this hand when eating, passing food or objects, or touching another person. ● Nonverbal signals for agreement are reversed from those in West- ern countries. A nod of the head may mean “no,” and shaking your head from side to side can indicate “yes.” ● Pointing with your nger is considered rude. Beckon a person by waving your ngers with the hand extended, palm down. ● Smiling can be considered irtatious. ● e head is considered sacred, and the feet are dirty. erefore, do not touch another’s head and do not prop your feet up on desks or chairs. Gifts ● If you are invited to a home for a meal, a gi is not expected but will be appreciated. ● Good gis include fruit, imported chocolates, and cras from home. ● Before giving liquor, be certain that the recipient drinks alcohol; if so, then a bottle of imported whiskey would be a good choice. Sri Lanka 153 154 Kiss, Bow, or Shake Hands: Asia Dress ● Business dress is usually conservative, but lightweight, in consid- eration of the climate. Men should wear a light shirt and pants. Jackets and ties are rarely worn. Women should wear a modest, light blouse and skirt. Your Sri Lankan counterpart will probably dress conservatively. ● Nice, yet cool clothing is appropriate for casualwear. Shorts, low-cut, revealing, or sleeveless clothing and bathing suits are inappropriate for women except in resort areas or on the beach. Western dress is common among younger Sri Lankans. 155 Taiwan Republic of China Local short form: T’ai-wan Local long form: Chung-hua min-k’uo Former: Formosa Cultural Note The Taiwanese are justifiably sensitive about their relationship with mainland China (the People’s Republic of China). Even though their economies are intricately interconnected, the PRC continues to issue threatening statements regarding the inadvisability of the “secession of Taiwan.” Despite these declarations, the Taiwanese continue to hold onto their views on national identity. ● 3 WHAT’S YOUR CULTURAL IQ? 1. Studies show that Asians sleep fewer hours each night than North Americans and Europeans. In Taipei, many businesses stay open twenty-four hours a day. Which of the following rms cater to Taipei’s night owls? a. Florists b. Internet cafés c. Opticians d. Bookstores e. All of the above ANSWER: e. Residents of Taipei shop all night long. 2. In 1999, an earthquake measuring 7.6 on the Richter scale struck Taiwan. Over 2,000 people died, nearly 9,000 were injured, and approximately 10,000 were homeless. Which relief organization was most eective in immediately getting aid to the survivors? 156 Kiss, Bow, or Shake Hands: Asia a. e Red Cross b. e Tzu-Chi Foundation c. e World Health Organization ANSWER: b. Tzu-Chi is led by a Buddhist nun, Dharma Master Cheng Yen. She mobilized hundreds of Tzu Chi volunteers immediately after the quake, long before other relief efforts arrived—because Tzu Chi volunteers were part of each neighborhood. 3. Taiwan’s citizens are keenly competitive, and they look worldwide for new clients. e most common type of company in Taiwan is: a. A massive corporation with global reach b. A small family-run company c. A venture capital rm ANSWER: b. While there are immense multinationals in Taiwan (which have done immense damage to the environment), the archetype company is the flexible, entrepreneurial enterprise. ● 3 TIPS ON DOING BUSINESS IN TAIWAN ● e Taiwanese are a fairly small and slender people. e large size of average Westerners can be intimidating. If you can nd a way to compensate for this dierence (such as sitting down, or stand- ing on a lower level, so you and your Taiwanese counterpart are at comparable heights), do so. Also, large Westerners should realize that everything from furniture to clothing is made to a smaller scale in Taiwan. ● Western men who wear beards can be at a disadvantage. Taiwanese men are usually clean-shaven except aer the death of their father or brother (they stay unshaven during the traditional seven-week mourning period). In fact, one of the Taiwanese terms for for- eigners is ang mo, meaning red beard. e term can be used for bearded or clean-shaven foreigners of any hair color, and is not complimentary. It plays into the stereotype of Westerners as hairy, unkempt barbarians. Westerners can ght this characterization by being beardless and well groomed. ● Executives in the health care and medical supply industries must face the Taiwanese reluctance to discuss illness. People in Taiwan do not even like to give health warnings, nor do they comment on illness to a sick person. e insurance industry has gotten around this reluctance by speaking of insurance as if it were a bet (many Taiwanese love gambling). A life insurance salesperson will explain a policy by saying, “We will bet that you will live to age sixty, and if we lose, we will pay your beneciaries.” ● While nepotism is a fact of life in Taiwan, foreign companies might not want to hire multiple members of the same family. Since loyalty to the family is one of the basic tenets of Taiwanese life, when you have several family members working in one oce they may begin to work for their family’s interest rather than the company’s. ● Although Taiwan does not have any ocial cultural and com- mercial relations with various countries, (including the United States of America), they may have specic oces that maintain unocial diplomatic representation. In the United States, the Tai- pei Economic and Cultural Representative Oce (www.tecro.org) has oces in Washington, DC, and other cities. Concomitantly, many countries maintain unocial relations through their oces in Taiwan, like the American Institute in Taiwan (AIT) and the American Trade Center—both in Taipei. Further Taiwanese gov- ernmental information is available at www.roc-taiwan.org. ● 3 COUNTRY BACKGROUND Demographics Taiwan’s population of 23 million (2006 estimate) is primarily Taiwanese and mainland Chinese. Only 2 percent of the population consists of the aboriginal inhabitants of Taiwan. Although they live together amicably, there is some tension between the groups. History Migration to Taiwan from mainland China began in .. 500. Dutch traders claimed the island as a base for their trade in 1624 and administered it until 1661. In 1664, loyalists from the Ming dynasty ed to Taiwan to escape the Manchu invasion, and in 1683 Taiwan 157 158 Kiss, Bow, or Shake Hands: Asia it came under Manchurian control. When Taiwan became a Chinese province three years later, migration increased to the point where the Chinese dominated the aboriginal population. In 1895, follow- ing the rst Sino-Japanese war, Taiwan was annexed to Japan. During the next y years, Taiwan underwent agricultural development and the construction of a modern transportation network. At the end of World War II, Taiwan again became governed by China. A revolution founded the Republic of China (ROC) under Sun Yat-sen’s Kuomintang (KMT) Party. However, a civil war was waged in China between the KMT forces (led by Chiang Kai-shek aer the death of Sun in 1925) and the Communist forces of Mao Tse-tung. e KMT was defeated, and the refugees ed to Taiwan. e provi- sional government they established claimed to be the only legitimate government over both the mainland and Taiwan. Many countries supported Taiwan as the legitimate government until 1971, when the People’s Republic of China was admitted to the United Nations in place of the Republic of China. e United States of America opened relations with the mainland government in 1979. A peaceful solution to the Chinese situation is still being sought. Debate continues over Taiwan becoming a separate, independent country. More recently, hope has arisen that the PRC will democra- tize to the extent that reunication may occur. Aer his death in 1975, Chiang Kai-shek was succeeded by his son Chiang Ching-kuo. Extensive modernization eorts created a growing and prosperous economy in Taiwan. Martial law was lied in 1987, and political opposition was legalized in 1989, opening the way for multiparty democratic elections. Relations with Japan, the USA, and other countries are good, and extensive trading continues. Cultural Note Modernization has come swiftly to Taiwan, making it one of the wealthiest countries in East Asia. Fast-food restaurants, the latest high-tech gadgets, and luxury items are evident. This is attributed in part to the long-term stability of the government and strong feelings of solidarity and nationalism. The Taiwanese are generally quiet and reserved, yet friendly and courteous to strangers. Type of Government e nation’s ocial name is Republic of China. It is oen known as Nationalist China. Aer years as a one-party presidential regime, Taiwan is now a multiparty republic. Political opposition parties were legalized in 1989. Taiwan’s constitutional system divides the government into ve branches, or Yuans. ey are: the Executive Yuan, the Legislative, the Judicial, a Control Yuan that monitors public service and corruption, and the Examination Yuan that serves as a civil service commission. At the top of this structure is the chief of state, the president, who is chosen by the National Assembly. e head of government is the Premier, who is appointed by the president. Taiwan held its rst popular election for president in March of 1996. Since the People’s Republic of China remains a one-party state, the Taiwanese election of 1996 was the rst time in 4,000 years of recorded history that a Chinese nation held a free and fair election. e KMT, which brought its political power and 2 million people over from Mainland China in 1949, was historically associated with the Mainlanders (i.e., people who ed to Taiwan with the KMT and their descendants). For the rst time, a member of the main opposition party, the Democratic Progressive Party (DPP), was elected in 2004. President Chen Shui-bian succeeded the KMT’s Mr. Lee Teng-hui. e DP Party’s most salient policy dierence with the KMT has been the controversial issue of Taiwan’s independence. e DPP modied its demand for immediate Taiwan independence and now calls for the people to decide Taiwan’s future through a plebiscite. e DPP has also staked out generally populist positions of concern for the envi- ronment and for working people. e third-largest opposition party is the Chinese New Party, which consists mainly of second-generation “mainlanders” who have grown up in Taiwan. e New Party supports the eventual reintegra- tion of Taiwan into the People’s Republic of China. e dening characteristic of Taiwan’s international presence is its lack of diplomatic ties with most nations of the world. e rul- ing authorities in Taiwan call their administration the “Republic of Taiwan 159 160 Kiss, Bow, or Shake Hands: Asia China,” and for many years claimed to be the legitimate government of all China. Foreign nations wishing to establish diplomatic rela- tions with a government of China had two choices: to recognize the “Republic of China” or to recognize the People’s Republic of China (PRC). Most chose to recognize the PRC. e PRC was admitted to—and Taiwan le—the United Nations and most related organiza- tions in the early seventies. e United States of America switched diplomatic recognition to the PRC in 1979. Taiwan’s authorities backed away from their stance of insisting that they are the legitimate rulers of all of China years ago. While still admitting that Taiwan is part of China, they now seek recognition as one of two “legitimate political entities” in China, the other being the PRC. Under this pol- icy, Taiwan seeks to join various international organizations, includ- ing the United Nations. Taiwan has been able to join the Asia-Pacic Cooperation (APEC) dialogue as an “economy” and other entities as a “customs territory.” Current government data can be found at the Embassy of Taiwan at www.roc-taiwan.org. Cultural Note Although Taiwan initially used only the old forms of written Chinese, they eventually adopted some (but not all) of the improved, simplified Chinese characters developed by the Communists. Visiting executives should make sure the Taiwanese variant is used for translations of their materials in Taiwan. Westerners who wish to speak Chinese should be thankful that Mandarin was chosen as Taiwan’s official language. Mandarin, with four different tones, is difficult enough to learn. The native Taiwanese language (imported from southern Fukien province) has six tones, which change depending upon the position of a word in the sentence! Language e ocial language of Taiwan is traditional Mandarin Chinese, although Taiwanese (called “Min,” a southern Fukien dialect), and Hakka dialects are spoken. English is a popular language to study in school, and many businesspeople can speak, understand, and corre- spond in English. In general, Taiwan uses the Wade-Giles system for romanization, but the special municipality of Taipei adopted standard . became a Chinese province three years later, migration increased to the point where the Chinese dominated the aboriginal population. In 1895, follow- ing the. oering your opinions on rebuilding, international aid, etc. ● 3 PROTOCOL Greetings ● e traditional greeting is to place your hands together at chin level

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