MT 3

The SILENT LANGUAGE

in Overseas Btisiness

By Edv7ard T. Hall

With few exceptions, Americans aro relative newcomers on the international business scene. Totlay, as in Mark Twain's time, we are all too often "innocents abroad," in an era when naivete antl blundering in foreign business dealings may have serious political repercussions.

\A'hen the /Vmerioan executive travels abroad to do business, he is frequently shocked to tlis- covor to what extent tho many variables of for- eign behavior and custom ctmiplicate his efforts. /Although the American bas recognized, certain- ly, that even tlio man next door has many minor traits which make him somewhat peculiar, for some reason ho has failod to appreciate how tlid'orent foreign busincssnion antl tlioir prac- tices will seem to him.

Ho should undorstand that the various peo- ples around tho world have vvorkod out and in- togratcd into their subconscious literally thou- sands of behavior patterns that they tako for grantod in each other.^ Then, whon the stranger

' For details, see my book. The Silent Language (New York, Douhlcday & Company, Ine., 1959).

ontcrs, and bohavos tlilVorontly from tlio local norm, ho often quite unintentionally insults, an- noys, or amusos the native with v\hom ho is attempting to do business. For example:

C In the United States, a corporation executive knows what is meant when a client lets a month go by before rephing to a business proposal. On the other band, he senses an eagerness to do busi- ness if he is immediately ushered into the client's office. In both instances, he is reacting to subtle cues in the timing of interaction, cties wbicb he depends on to chart his course of action.

Abroad, however, all this changes. The Ameri- can executive learns that the Latin Americans are casual about time and that if he waits an hotir in the outer oflice before seeing the Deputy Minister of Finance, it does not necessarily mean he is not getting anywhere. There people are so important that nobody can bear to tear himself away; because of the resultant interruptions and conversational detours, everybody is constantly getting behind. What the American does not know is the point at which the waiting becomes significant.

«I ln another instance, after traveling 7,000 miles an /Vmcrican walks into the office of a highly recommended Arab btisinessman on whom he will

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have to depend coinjiletefy. What he sees does not breed confidence. The office is reached by walk- ing thruut;Ii a suspicious-looking coffeehouse in an old, dilapidiitt'd building situated in a crow tied non- F,uropcaji section of town. Tlie elevator, rising from dark, smelly corridors, is rickety and equally foul. When he gets to the office itself, he is shocked to find it small, crowded, and confused. Papers are stacked all over the desk and table tops — even scattered on the Boor in irrcgtdar piles.

Tbe Arab merchant he has come to see had met him at the airport the night before and sent his driver to the hotel this morning to pick him up. But now, after the American's rush, the Arab is tied up with some- thing else. Even when they finally start talkingbusiness, there are constant interruptions. If the American is at alt sensitive to his environment, ever\- thing around him signals, "What am I getting into?"

Before leaving home he was told that things would be different, but bow different? The hotel is modern enough. The shops in the new port of town have many more American and European trade goods than he had an- ticipated. His first impression was tbat doing business in the Nlitldle East would not present any new problenis. Now he is beginning to have dotibts. One minute everything looks familiar and he is on firm ground: the next, familiar landmarks are gone. His greatest problem is that so much assails his senses all at once tliat he does not know where to start looking for soniething that will tell him where he stands. He needs a frame of reference — a way of sorting out what is signifi- cant and relevant.

That is why it is so important for American businessmen to have a real understantling of the various social, cultural, and economic tlif- ferences they will face when they attempt to do business in f;oreign countries. To help give some frame of roforenco, this article will map out a few areas of human activity that have largely been unstudied.

Tho topics I will discuss aro certainly not presented as the last word on the subject, but tliey have proved to bo highly reliable points at which to begin to gain an understantling of foreign cultures. While additional research will undoubtedly turn up other itoms just as rele- vant, at present I think tho businessman can do well to begin by appreciating cultural difTor- onoes in matters concernins the language of

time, of space, of material possessions, of friend- ship patterns, and of agroemonts.

Language of Time

Everywhere in the world people use titno to communicate with each other. There are dif- ferent languages of time just as there are differ- ent spoken languages. Tho unspoken languages aro informal; yet the rules governing their inter- pretation are surprisingly ironbound.

In tho United States, a delay in answering a communication can result from a large volume of business causing the request to be postponed until the backlog is cleared away, from poor organization, or possibly from technical com- plexity requiring deep analysis. But if tho per- son awaiting the answer or decision rules out these reasons, then the tlelay means to him that the matter has low priority on the part of tho other porson — lack of interest. On the other hand, a similar delay in a foreign country may moan something altogether different. Thus:

€ In Ethiopia, the time required for a decision is direct!}' proportional to its importance. This is so much the case that low-level bureaucrats there have a way of trying to elevate the prestige of their work b)' taking a long time to make up their minds. (Americans in tbat part of the world are inno- cently prone to downgrade their ŵ ork in the local people's eyes hy trying to speed things up.)

« In the Arab East, time does not generally in- clude schedules as Americans know and use them. The time required to get something accomplished depends on the relationship. More important peo-

pie get fast service from less important people, and conversely. Close relatives take absolute priority; nonrelatives are kept waiting.

In tho United Statos, giving a porson a doad- line is a way of indicating the degree of urgency or relative importance of the work. But in tbo Middio East, the American runs into a cultural trap the minute he opens his mouth. "Mr. Aziz will have to make up his mind in a hurry bo- cause my board moots noxt week and T have to have an answer by then," is takon as indicating the American is o\erly demanding and is exert- ing unduo prcssuro. "I am going to Damascus tomorrow morning and will have to have my car tonight," is a suro way to get tho mochanio to stop work, becauso to givo another porson a tleadline in this part of the world is to bo rudo, pushy, and domanding.

An Arab's evasivonoss as to when something is going to happen does not mean he does not want to do business; it only moans ho is avoid- ing unploasantnoss and is sido-stepping possible oomniitnionts which he takes more seriously tban we do. For example:

The Arabs themselves at times lind it impos- sible to communicate even to eatli other that some processes cannot be hurried, and are contiollctl by built-in schedules. This is obvious enough to the Westerner but nut to tbe Arab. /\ highly placed jiiiblic oflicial in Baghdad precipitated a bitter fam- ily dispute because bis nephew, a biochemist, could not speed up the complete analysis of the uncle's blood, lie accused tbe nephew of" ]iutting other less important people before him and of not caring. Nothing coultl sway the uncle, who could not grasp the fact that there is such a thing as an in- herent schedule.

With us tho more important an event is, the further ahoad we schodulo it. which is why we fintl it insulting to be asked to a party at the last minute. In planning futuro ovents with Araljs, it pays to holtl the loatl time to a week or less because other factors may intervene or take precedence.

Again, time spent waiting in an American's outer office is a sure intlicator of what ono per- son thinks of another or how important ho foels the other's business to bo. This is so much the case that most Americans cannot help getting angry after waiting 50 minutes; one may even feel such a delay is an insult, and will walk out. In Latin America, on tho other hand, ono loarns that it docs not mean anything to wait in an

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outer office. An American businessman with years of experience in Mexico once toltl me, "You know, I have spent two hours cooling my heols in an executive's outer office. It took me a long time to learn to keep my blood pressure down. Even now, I fintl it hard to convince myself they are still interostotl whon they keep me waiting."

The Japanese handle time in ways which are almost inexplicable to the Western European and particularly the American. A tlelay of years with thetn docs not moan that they have lost interest. It onlj' moans that they arc building up to something. They have learned that Amor- icans are vulnerable to long waits. One of them expressed it, "You Americans have one terrible vvoakness. If we make you wait long enough, you will agree to anything."

Indians of South Asia have an elastic view of time as comparotl to our own. Delays do not, therefore, havo tho samo meaning to them. Nor doos indefinitenoss in pinpointing appointments moan that thoy are evasive. Two Americans meeting will say, "Wo should got togothor somo- timo." theroby sotting a lo\v priority on the meet- ing. The Intlian who says, "Come over antl see me. see me aiiytinie," moans just that.

/\moricans make a place at tbo tablo which may or may not moan a place made in the heart. But when the Indian makes a place in his tinio, it is yours to fill in every sonse of the v\ ord if you realize that by so doing you have crossed

a boundary antl are now friends with him. The point of all this is that time comniunioatos just as surely as do words and that the vocabulary of time is different around the world. Tho prin-

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ciple to be remembered is that time has difler- cnt meanings in each country.

Language ot" Space

Like time, the language of space is different w horever one goes. The American businessman, familiar with the pattern of American corporate life, has no difficulty in appraising the relative importance of someone else, simply by noting the size of his office in relation to other offices around him:

«i Our pattern calls for the president or the chair- man of the board to have the biggest office. The executive vice president will have the next largest, and so on down the line until you end up in the "bull pen." More important offices are usually lo- cated at the corners of buildings and on the upper floors. Executive suites will be on the top floor. The relative rank of vice presidents will be refleet- ed in where they are placed along "Executive Row."

II The French, on the other hand, are much more likely to lay out space as a network of con- necting points of influence, activity, or interest. The French supervisor will ortlinarily be found in the middle of his subordinates where be can con- trol them.

Americans who aro crowded will often feel that their status in the organization is suffering. As one would expect in the Arab world, the location of an office and its size constitute a poor index of the importance of the man who occupies it. What we experience as crowded, the Arab will often regard as spacious. The same is true in Spanish cultures. A Latin Amer- ican official illustrated the Spanish view of this

point vvhilo showing me around a plant. Open- ing the door to an 18-by-2o-foot office in which seventeen clorks antl their desks were placed, ho said, "See, we have nico spacious offices. Lots of space for everyone."

The American will look at a Japanese room

antl remark how bare it is. Similarly, the Japa- nese look at our rooms antl comment, "How bare!" Furniture in the American home tends to be placed along the walls (around the edge). Japanese bavo their charcoal pit whore the fam- ily gathers in the nnddle of the room. Tho top floor of Japanese department stores is not re- served for the chief executive — it is the bar- gain roofi

In the Middle East and Latin America, the businessman is likely to feel left out in time and overcrowdetl in space. People get too close to him, lay their hands on him, and generally crowd his physical being. In Scandinavia and Germany, he feels more at home, but at the samo time the people are a little cold and dis- tant. It is space itself that convoys tbis foeling.

Iti the United States, because of our tondonoy to zone activities, noarness carries rights of fa- miliarity so that tho noigh])or can borrow mate- rial possessions and invade time. This is not true in England. Propinquity entitles you to nothing. American Air Force personnel sta- tioned there complain because they bave to make an appointment for their children to play with the neighbor's child noxt door.

Conversation distance between two people is learnetl early in life by copying elders. Its con- trolling patterns operate almost totally uncon- sciously. Tn tho United States, in contrast to many foreign countries, men avoid excessive touching. Regular business is conducted at dis- tances such as 5 feet to 8 feet; highly ^x^rsonal business, i 8 inehos to 3 foot — not 2 or 3 inchos.

In the Unitotl States, it is perfectly possible for an experienced executive to schetUile tho stops of nogotiation in time antl space so that most people foel comfortable about what is hap- pening. Business transactions progross in stages from across the desk to beside the desk, to the oofiee table, then on to the conference table, the luncheon table, or the golf course, or even into the home — all according to a complex set of hidden rules which we obey instinctively.

Even in the United Statos, however, an ex- ecutive may slip when he moves into new and unfamiliar realms, when dealing with a new group, doing business with a now company, or moving to a now placo in tho intlustrial hior- archy. In a new country tho dangor is magni- fied. For oxamplo, in India it is considered im- proper to tliscuss business in tho home on social occasions. Ono never invites a business ac- quaintance to the home for the purpose of fur-

thering business aims. That would be a violation of sacred hospitality rules.

Language of Things

Americans are often contrastotl w4tli tho rest ot" the world in terms of material possessions. We are aocused of being materialistic, gadget- crazy. And, as a matter of fact, we have devel- oped material things for some very interesting reasons. Lacking a fixed class system and hav- ing an extremely mobile population, Americans have become highly sensitive to how others make tise of matorial possessions. Wo use everything from clotbos to houses as a highly ovolved atitl complex moans of ascertaining oach other's sta- tus. Ours is a rapitUy shifting system in which botb stylos and poople move up or down. For example:

C The Cadillac ad men feel that not only is it natural but (|uitc insightful of them to show a pic- ture of a Cadillac and a well-turned otit gentleman in bis early fifties opening the door. The caption underneath reads, "You already know a great deal about this man."

C Foflowing this same pattern, the head of a big union spends an excess of Si00,000 turnishing his office so that the president of United States Steel cannot look dovvji on him. Cood materials, large space, and the proper surrountlings signify that the jieoplc who occupy the premises are solid citizens, that they are dependable and successful.

Tho Fronch, the English, and tbe Cermans havo entirely tUfforent ways of using thoir ma- terial possossions. ^Vhat stantls for tho hoight of dependability and respectability with tho Eng- lish would bo old-fashionod antl backward to us. Tho Japanese tako prido in often incxponsive but tasteful arrangcmonts that are usoti to pro- duce the proper emotional sotting.

Middle East businessmen look for something olso — family, connections, friendship. Thoy tlo not uso the furnishings of thoir office as part of thoir status system; nor do they expect to im- press a client b\' those means or to fool a bankor into lontling moro money than be should. They like good things, too. but fool that they, as per- sons, shoulil he known and not judged solely by what tho public sees.

One of the most common criticisms of Amer- ican relations abroad, both commercial and gov- ornmontal, is that wo usually think in terms of material things. "Money talks," says tho Amori-

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can, who goes on talking tho language of money abroad, in the belief that money talks the same language all over tho world. A common prac- tice in the United States is to try to buy loyalty with high salaries. In foreign countries, this maneuver almost novor works, for money and material possossions stand for something differ- ent thoro than they do in America.

Language of Friendship

The American finds his friends next door and among those with whom he works. It has boon notod that wo tako pct)plo up quickly and drop them just as quickly. Occasionally a friendship formod tiuring schooldays vvfll persist, but this is rare. For us there aro few well-tlofined rules governing the obligations of iriondship. It is difficult to say at whioh point our friendship givos way to businoss opportunism or pressure from above. In tbis wo diffor from many otlier peoplo in the world. As a gonoral rule in for- oign countries friendships are not formed as c|uickly as in tbe United States but go much doopor. last longer, and involve roal obligations. For oxample:

It is important to stress that in the Middle East and Latin ;\mcrica your "friends" will not let you down. Tlie fact that they personally arc feeling the pinch is never an excuse for failing their friends. Tlicv' are stipposed to look out for }our interests.

Frionds antl family around tbo vvorltl ropre- sont a sort of social insurance that would be dif- ficult to find in the United Statos. We do not uso our frionds to help us out in disastor as much as wo do as a means of gotting ahead — or, at least, of getting tho job done. Tho United Statos systems work by moans of a series of closely tabulated favors and obligations carefully tlolcd otit \\hcro thoy will do tho most good. /\ntl the least that we expect in exchange for a favor is gratitude.

Tho opposite is the case in India. v\horc tho friend's role is to "sense" a person's need and do something about it. Tho idoa of reciprocity ns we know it is unheard of. An y\inorican in India will have difficulty if he attempts to follow American friendship patterns. Ho gains noth- ing by extending himsolf in behalf of others, least of all gratitude, because the Indian assumes that what ho doos for othors he does for tho good of his own psyche. Ho will find it impos- sible to make friends quickly and is unlikely to

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allow sufficient time for friendships to ripen. He will also note that as lie gots to know peo- ple bettor, they may bocomo moro critical of him, a fact that he finds hard to take. What he does not know is that one sign of friendship in India is speaking one's mind.

Language of Agreements

While it is important for American business- men abroad to understand the symbolic mean- ings of friendship rules, time, space, and mate- rial possessions, it is just as important for execu- tives to know tho rulos for negotiating agree- ments in various countries. Even if they can- not be expected to know the details of each na- tion's commercial legal practices, just the aware- ness of and tho expectation of the existence of differences will eliminate much complication.

Actually, no society can exist on a high com- morcial Iovol without a highly dovoloped work- ing base on which agreements can rest. This base may be one or a coinbination of three typos:

1. Rules that are spelled out technically as law or regulation.

2. Moral practices mutually agreed on and taught to the young as a set of principles.

3. Informal customs to which everyone con- forms without being able to state the exact rules.

Some societies favor one, some another. Ours, particularly in tho business world, lays hoavy emphasis on tho first variety. Few Americans will conduct any business nowadays without some written agreement or contract.

Varying from culture to culture will be tho circumstances under which such rules apply. Americans consider that negotiations have more or less ceased when the contract is signed. With the Greeks, on the other hand, the contract is soon as a sort of way station on the route to negotiation that will cease only whon the work is completed. Tbe contract is nothing more than a charter for serious negotiations. In tbo Arab world, once a man's wortl is given in a particular kind of way, it is just as binding, if not more so, than most of our written contracts. Tho written contract, thoreforo, violates the Moslem's sensi- tivities and reflocts on his honor. Unfortunate- ly, the situation is now so hopelessly confused that neither system oan bo counted on to prevail consistently.

Informal patterns and unstatetl agreements

often lead to untold difficulty in the cross-cul- tural situation. Take tho caso of tlie boforo- and-aftor patterns where thore is a wide discrep- ancy between tho American's expectations and those of the Arab:

II In the United States, when you engage a spe- cialist such as a lawyer or a doctor, require any standard service, or even take a taxi, you make sev- eral assumptions: (a) the charge will be fair; (b) it will be in proportion to the services rendered; and (c) it will bear a close relationship to the "going rate."

You wait until after the services are performetl before asking what the tab will be. If the charge is too high in the light of the above assumptions, you feel you have been cheated. You c:m complain, or can say nothing, pay up, and take your business elsewhere the next time.

« As one would expect in the Middle East, basic differences emerge which lead to difficulty if not understood. For instance, when taking a cab in Beirut it is well to know the going rate as a point around which to bargain and for settling the charge, which must be fixed before engaging the cab.

If vou have not fixed the rate in advance, there is a complete change and an entirely different set of rules will apply. According to tbese rules, the going rate plays no part whatsoever. The whole relaticmship is altered. The sky is the limit, and tbe customer has no kick coming. I have seen taxi drivers shouting at the top of their lungs, waving their arms, following a redfaced American with his head pulled down between his shoulders, de-

manding for a two-pound ride ten Lebanese pounds which the Ameriean eventually had to pay.

It is difficult for the American to accommo- date his frame of reforenco to the fact that what oonstitutcs one thing to him, namely, a taxi ride.

is to the Arab tvvo very different operations in- volving two diff'orent sets of relationships and two sets of rules. The crucial factor is whether the bargaining is done at the beginning or the end of tho ride! As a matter of fact, you cannot bargain at the end. What the driver asks for he is entitletl to!

One of the greatest difficulties Americans have abroad stems from the fact that we often think wo havo a commitment whon we do not. The second complication on this same topic is the other side of the coin, i.e., when others think we have agreed to things that we have not. Our own failure to recognize bintling ob- ligations, plus our custom of setting organiza- tional goals ahead of everything else, has put us in hot water far too often.

People sometimes do not keep agreements with us because we tlo not keep agreonicnts with them. As a general rule, the American treats the agreement as something he may eventually have to break. Hero aro two oxaniplcs:

€ Once while I was visiting an American post in Latin America, tbe Ambassador sent the Spanish version of a trade treaty down to his language offi- cer with instructions to write in some "weasel words." To his dismay, he was told, "There are no weasel words in Spanish."

C A personnel officer of a large corporation in Iran made an agreement with local employees that American employees would not receive preferential treatment. Wben the first American employee ar- rived, it was learned quickly that in the United States he had been covered by a variety of benlth plans that were not available to Iranians. And this led to immediate protests from the Iranians which were never satisfied. The personnel officer never really grasped the fact that he had violated an iron- bound contract.

Certainly, this is the most important generali- zation to be drawn by American businossinon from this discussion of agreements: thore aro many times when wo aro vulnerable even when judged by our onm standards. Many instances of actual sharp ]:)ractices by American companies aro well known abroad and are giving American businoss a bad name. The cure for such ques- tionable behavior is simple. Tbe companies concerned usually havo it within their power to discharge offenders and to foster within their organization an atmosphere in which only hon- esty and fairness can thrive.

But tho cure for ignoranoe of tho social and

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legal rules which underlie businoss agreements is not so easy. This is because:

• The subjeet is complex.

• Little research has been conductctl to deter- mine the culturally different concepts of what is an agreement.

• The people of each country tbink that their own code is the only one, and that everything else is dishonest.

• Each code is different from our own; and the farther away one is traveling from Western Europe, the greater the difference is.

But the little that has already been learned about this subject indicates that as a problem it is not insoluble and will yield to research. Since it is probably one of the more relevant and im- mediately applicable areas of interest to motlern business, it would certainly bo advisablo for companies with largo foreign operations to spon- sor some serious research in this vital field.

A Case in Point

Thus far, I have been concerned with devel- oping the five check points around which a real understanding of foreign cultures can begin. But the problems that arise from a faulty untler- standing of the silent language of foreign cus- tom are human problems and perhaps can best be dramatized by an actual case.

A Latin American republic had decided to modernize ono of its communication networks to tho tune of several million dollars. Because of its reputation for quality and price, the in- side track was quickly taken by American com- pany "Y."

The company, having been sounded out in- fornially, considered the size of the order and decided to bypass its regular Latin Ameriean representative and send instead its sales man- ager. The following tlescribos what took place.

The sales manager arrived and checked in at the leading hotel. He immediately had some difficulty pinning down just who it was he had to see about his businoss. Aftor several days without results, ho called at the American Em- bassy whero he found that the oommorcial at- tache had the up-to-tho-minuto information he needed. The conimorcial attache listcnod to his story. Roalizing that the salos managor had al- ready made a number of mistakes, but figuring that the Latins wore used to American blundor-

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ing. the attache reasoned that all was not lost. Ho informed the sales tnanagor that the Minister of Communications was the key man antl that whoever got tho nod from him would get the contract. He also briefed the sales manager on methods of conducting business iu Latin Amer- ica and odorod somo pointors about dealing with tho minister.

The attache's advice ran somewhat as follows:

1. "You don't do business here the way you do in the States; it is necessary to spend much more time. Yott have to get to know )our man and vice versa.

2. "You must meet with him several times be- fore vou talk business. I will tell you at what point you can bring up the subject. Take your cues from me. [Our American sales manager at this point made a few observations to himself about "cookie pushers" and wondered how' many payrolls had been met by the commercial attache.]

3. "Take that price list and put it in your pock- et. Don't get it out until I tell you to. Down here price is only one of the many things taken into account before closing a deal. In the L'nited States, your past experienee will prompt you to aet ac- cording to a certain set of principles, but many of these principles will not work here. Every time you feel the urge to act or to say something, look at me. Suppress tbe urge and take your cues from me. This is very important.

4. "Down here people like to do business with men who are somebody. In order to be somehtxiy, it is well to have written a book, to have lectured at a university, or to have developed your intellect in some way. The man you are going to see is a poet. He has published several volumes of poetry. Like many T atin Americans, he prizes poetry high- ly. You will find that he will spend a good deal of business time quoting his poetry to you, and he will take great pleasure in this.

5. "You will also note that the people here are very proud of their past and of their Spanish blootl, but they are also exceedingly proud of tbeir libera- tion from Spain and their independence. The fact that the)' are a democracy, tbat they are free, and also that tliey are no longer a colony is very, very important to them. They are warm and friend- ly and entJiusiastic if they like you. If they don't, they are cold and vvithtlrawn.

6. "And anotlier thing, time down here means soniething different. It works in a different way. You know how it is back in the States when a certain type blurts out whatever is on his mind without waiting to see if the situatitm is right. He is considered an impatient bore and somewhat ego- centric. \\ ell, doAVii here, vou have to wait much.

much longer, and I really mean vntch, much long- er, before you ean begin to talk about tbe reason for your visit.

7. Tbere is another point 1 want to caution you about. At home, the man who sells takes tbe in- itiative. Here, they tell you when they are ready to do business. But, most of all, don't tliscuss price until you are asked and don't rush things."

The Pitch

Tho noxt day tho conimorcial attache intro- tlucod tho sales manager to tlie Minister of Com- munications. First, there \vas a long wait in the outer office while people kept coming in and out. Tho sales managor looked at his watch, fidgeted, and finally asked whether the minister was really oxpocting him. The reply ho received was scarcely reassuring, "Oh }os, ho is oxpocting you but several things have come up that require his attention. Bosides, one gets used to waiting tlovvn here." The sales manager irritably replied. "But doesn't he know^ I flew all the way tlown hero from tho Unitod Statos to seo him, antl I havo spent over a week alread}- of my valuable time trying to find him?" "Yes, I know," was tho answer, "but things just move much moro slo\v]y boro."

At the end of about 30 minutes, the minister emerged from the ofllice, greeted the commercial attache with a doblc abrazo, throwing his arms

around him and patting him on the back as though thoy were long-lost brothers. Now, turn- ing and smiling, the minister extended his hand to the sales manager, who, by this time, was feeling rathor miffed becauso he had been kept in the outer ofFice so long.

After what seemed to be an all too short chat, the minister rose, suggesting a well-known cafo whero they might meet for dinner tho next eve- ning. The sales manager expected, of eourse, that, considering tho nature of their business

and tho size of the ortlor. bo might be taken to tho minister's homo, not realizing that tho Latin homo is rcscrvctl for family antl very close frionds.

Until now, nothing at all had been said about the reason for the salos managor's visit, a fact which bothorctl him somewhat. The whole set- up soometl wrong; neithor ditl ho liko tbo idoa of wasting anotlior day in to\vn. He toltl tho home office before he loft that he \voultl bo gone for a week or ten tlays at most, antl matle a mental note that ho woultl cloan tbis ortler up in threo days antl enjoy a few days in /Vcapuico or Mexico City. Now the week had already gono antl ho would be lucky if ho made it home in ten days.

Voicing his misgivings to the commercial at- tache, be vvantetl to know if the minister really meant businoss, antl, if he did, why could thoy not get together antl talk about it? The com- mercial attache by now was beginning to sbow tho strain of constantly having to rcassuro tho salos tnanagcr. Nevortlioless, he trietl again:

"\Vhat you don't realize is that part of the time we were waiting, the minister was rearranging a very tight schedule so that he could spend tomor- row night with you. You see, down here they don't delegate responsibility the way we do in the States. They exercise much tighter cojitrol than we do. As a consequence, this man spends up to 15 hours a day at his desk. It may not look like it to you, but I asstue vou he really means business. He wants to give your coin|>any the order; if you play your cards right, you will get it."

The noxt evening providod moro of tho same. Much conversation about footl and music, about many poople the salos manager hail never heard of. They went to a night club, vvhoro tbo sales manager brightoneti up antl bognn to think that perhaps lie and the minister migjit havo some- thing in common aftor all. It bothered him, hovvovor, that the principal reason for his visit was not oven alhulotl to tangontially. But overy time ho started to talk about electronics, tlie commercial attache would nudge him and pro- ceed to change the subject.

Tho next mooting was for morning coffoe at a caft\ By now tbo sales manager was ba\'ing difficulty hiding his impatience. To make mat- ters worse, the minister had a mannerism which he did not like. Whon they talked, ho was liko- ly to put his hantl on him; ho would take hold of his arm and got so close that ho almost "spat"

Overseas Business 95

in his face. As a consoquonco, the sales man- ager was kept busy trying to dotlge and back tip.

Following coflV'o, thore was a walk in a noar- by park. The minister oxpounded on the slirubs, tho birds, and the boautios of nature, and at ono spot ho stopped to point at a statuo and said: "Thoro is a statuo of the \vorld's greatest hero, the liberator of mankind!" At this point, the worst happened, lor the sales manager askod wbo the statue vv as of antl, being given the name of a famous Latin American patriot, said, "1 never hoard of bim," and \valkod on.

The Failure It is quite clear from this that the sales man-

agor tlitl not got the order, which went to a Swedish concern. Tho Amorican, moroovor, was never ablo to see the minister again. Why did tho nihiister leol tbe way he ditl? His rea- soning went somewhat as follows:

"I like the American's equipment and it makes sense to deal with North Americans who are near us and whose price is right. But I could never be friends with this man. He is not my kind of human being and we have nothing in common. He is not simpatico. If I can't be frionds and be is not sim- patlco, I ean't depend on him to treat me rigbt. I tried everything, every conceivable situation, and only once tlid we seem to understand each other. If we coultl be friends, he would feel obligated to me and this obligation would give me some con- trol. Without control, how do I know he will tie- liver what he savs he will at the price he tjuotes?"

Of course, what the minister did not know was that the price was quite firm, and that qual- ity control was a matter of company policy. He did not realize that the sales manager was a member of an organization, and tJiat tho man is al\\ays subordinate to the organization in the Unitod States. Next yoar mayl)e tho salos man- ager would not c\on be representing tbe com- pany, but would be replaced. Further, if he wanted somcono to tlopontl on, bis l:)est bot would bo to hire a good American lawyer to represent him and write a binding contract.

In this instance, both sides stiflVrod. The Amorican felt he was being slighted and put oit", antl tlid not soe how thcro could possibly be any connection botweon poetry and doing business or why it shoultl all tako so long. He interpreted tbo dolay as a form of polito brush- off. Evon if things had gone difforontly and there had boon a contract, it is tloubtful that the minister woultl havo trusted the contract as

96 Harvard Business Review

much as ho would a man whom he considorod his friond. Throughout Latin America, the law is made livable and contracts workable by hav- ing frionds and relatives operating from the in- side. Lacking a friend, somcono who woultl look out for his interests, tho minister did not want to tako a chanco. Ho stated this simply and directlv.

Conclusion

The caso just described lias of noccssitv' been ovorsimplifit'd. The danger is that tbe reader will say, "Oh, I seo. All you really havo to do is be fricntls." At which point tho oxport will step in and reply:

"Yes. of course, btit what yoti don't reali/e is that in Latin America being a friend involves much more than it does in the United States and is an entirely different proposition. A friendship implies obligations. You go about it differently. It involves much more than being nice, \isiting, and playing golf. You would not want to enter into friend- ship lightly."

The point is simply this. It takes years and years to dovolop a sound foundation for doing businoss in a given country. Much that is done seoms silly or strange to the home office. Indeed, the most common error made by homo offices, once they have found representatives who can get results, is failure to tako thoir advice and al- low sufficiont timo for representatives to devel- op the proper contacts.

The second most common error, if that is what it can bo called, is ignorance of tho secret and hidden language of foreign cultures. In this article I have tried to show how five key topics ^ timo, spaco, material possessions, friendship patterns, antl business agrooments — offer a starting point from which companies can begin to acquire the understanding necessary to do business in foreign countries.

Our presont knowledge is meager, and tiiuoli more rosoarch is needed before the businessman of the future can go abroad fully oquippod for his work. Not only will he need to be well vorsed in the economics, law, and politics of the area, but ho will have to understand, if not speak, the silent languages of other cultures.