1. INTERNATIONAL BUSINESS
TOPICS
Basic International Business Terminology
Benefits of International Business
The Five P’s of International Business
Costs of International Business
Barriers to Conducting International Business
Importing and Exporting
Canada and International Trade Agreements
The Future of International Trade

2. International Business Defined
“All the business transactions (exchanges of money) necessary for creating, shipping, and selling goods and services across national borders. Also referred to international trade or foreign trade”
Wilson, Jack et al. The World of Business (5th ed) Canada, Nelson, 2007

3. International Business Terminology
Domestic Transaction
Selling of goods produced in the same country.
For example:
You visit a store in your community (local store) and purchase a bicycle that has been manufactured in Canada.

4. International Business Terminology
International Transaction
Selling goods produced in another country.
Involves creating, shipping, and selling goods and services across national borders.
Also referred to as international trade or foreign trade.
For example:
You go to Canadian Tire and purchase a tool that was manufactured in China.

5. International Business Terminology
Economy
The financial health of a place
Municipal – Ottawa’s economy
Provincial – Ontario’s economy
National – Canada’s economy
Continental – North American economy
Global – Global Economy
The health of an economy is generally determined/measured by looking at factors such as employment rates, interest rates, gross domestic product data, trade deficits vs. surplus…(Next Chapter)

6. International Business Terminology
Imports
A good or service brought into Canada from another country. (made in China)
Exports
A product or service produced in Canada and sold in another country. (made in Canada)
Trade Deficit
When Canada imports more goods than it exports, we have what is called a Trade Deficit.
Imports > Exports = Trade Deficit
Trade Surplus
When Canada exports more goods than it imports, we have a Trade Surplus.
Exports > Imports = Trade Surplus
Which do you think is better for the Canadian economy?

7. Benefits of International Business
TOPIC #2
Benefits of International Business

8. Benefits To Businesses Participating in International Business
1. Access to many more markets
2. Access to cheaper labour
3. Increased quality or quantity of goods
4. Access to resources that may not be available at home.

9. 1. Access To Markets Canada’s Population: Roughly 33,600,000
33 million six hundred thousand
World Population:
Roughly 6, 500,000,000
6 billion 500 million
Conclusion:
The Global market can reach roughly 200 times more consumers than simply just Canadian consumers.

10. Access To Markets
Access to the global market does not guarantee bigger sales. Why?
Companies must adapt their products and/or services to:
1. different needs, wants and preferences based on cultural differences and/or preferences
2. conform to different laws of various countries
Global Product
A standardized item that is offered in the same form in all countries in which it is sold. (i.e. pencils, soccer balls, cameras)

11. 2. Cheaper Labour
Businesses make profits when their sales are greater than their costs of running the business.
Thus profits can increase even more by maintaining their sales level and decreasing their costs of running the business.
The single largest expense of any business/organization is generally the labour (employees and management wages and salaries)
If a company can produce its goods and/or services in another country where the labour laws allow businesses to pay employees less than they would be paid in Canada, they can reduce their costs of doing business substantially.
In addition to helping increase profits, businesses can pass on those savings to consumers by reducing the price of the items.
The cheaper an item is, perhaps the more the business will also sell.

12. Discuss the ethical considerations of cheap labour?
Cheaper Labour
Discuss the ethical considerations of cheap labour?

13. 3. Increased Quality of Goods
THE BMW X5

14. Increased Quality of Goods
The BMW X5
Its engine is assembled in Munich, Germany;
Shipped to the production plan in South Caroline, U.S.;
Magna Corporation in ON, Canada, manufacturers the rear-view mirror;
Leather seats come from South Africa;
Michelin tires are manufactured in France
BMW wanted to create the best possible product for its consumers so it searched for the manufacturers that produced the best quality in its car components.

15. Increased Quality of Goods
Is this always the case?
Discuss.

16. 4. Increased Quantity Results: Hours of operation may increase
Access to international markets may lead to an increase in demand of products thus increased quantities of goods sold.
Results:
Hours of operation may increase
New production facilities may open and perhaps in other countries
Increase in job opportunities

17. 5. Access to Resources Natural Resource
Since Bamboo is a scarce resource in Canada a furniture company making bamboo furniture will import (bring into the country) bamboo from another country.
Human Resources
A Canadian company which opens up a factory in China to take advantage of its cheaper labour costs
Capital Resources
A company that purchases a specialized piece of machinery needed for their plant that is only made in Japan.

18. The Five P’s of International Business
TOPIC #3
The Five P’s of International Business

19. The Five P’s of International Business
Product
Price
Proximity
Preference
Promotion

20. P1: Product
A country’s resources determine what goods and services it can produce.
Examples:
Canada buys citrus fruits from countries with warmer climates
Canada’s large forests and wheat fields provide lumber and grain for countries that don’t have an abundance of these resources

21. P2: Price
Cost of producing goods and services varies from one country to another
Costs usually include: wages, taxes and raw materials
If a company can reduce its costs, then it can offer products and services at| lower prices and increase their profits.

22. P3: Proximity
Proximity to a fellow neighbouring country allows for a company and/or country to benefit from doing business across the border
80% of Canadian population lives with 170km of the American border.
Example:
Windsor, ON has a population of about
Across the bridge from Windsor is Detroit, Michigan which has a population of several million.
Many people and businesses provide Detroit’s car manufacturing plants with parts and labour.

23. P4: Preference
Some countries specialize in certain goods or services that
have a reputation for quality all over the world
Examples:
Belgian chocolates, Swiss watches, German cars, Canadian wheat.

24. P5 - Promotion
The internet and satellite broadcasting have made it easier to inform people around the world about goods and services available.
Ease of electronic promotion and other communications technology provides incentive for businesses to reach beyond their domestic market.

25. Benefits and Costs of International Business
TOPIC #4
Benefits and Costs of International Business

26. Benefits and Costs of International Trade
Benefits to Society and Consumers:
Availability of products and services unavailable in your own country
Broader range of prices offered (cheaper to purchase various goods)
Job creation
Political Benefits – “countries that trade with one another seldom go to war with each other.”
Opens up communication lines with people, improves mutual understanding, and increases the level of respect people from different countries have for one another.

27. Costs of International Trade
The hidden or social costs of international business engaging in offshore outsourcing:
Human rights and labour abuses
Environmental degradation

28. Offshore Outsourcing Also known as “contracting out.”
The practice of hiring individuals from countries where labour costs are lower to complete some or all of the steps in the production process.
Example:
Many companies use call centres in India, China and Costa Rica for customer service and IT customer service.

29. Offshore Outsourcing Advantages
Lower costs to company which can focus on tasks it does better
Be closer to natural resources needed
Proximity to more efficient technologies
Increase profits from lower labour costs, another country’s innovations, and different tax structure

30. Human Rights Issues and Labour Abuses
Typical abuses in poor countries include:
Physical abuse
Sexual abuse
Forced confinement
Non-payment of wages
Denial of food and health care
Excessive working hours with no rest
Child labour

31. Human Rights Issues and Labour Abuses
Child Labour defined:
Regular employment for boys and girls under the age of 16
Many countries ignore abuses that target children and women.

32. What can be done to stop Child Labour and Human Rights Abuses?
International Labour Organization (ILO)
United Nations (UN) specialized agency that seeks the promotion of social justice and human and labour rights that are accepted by all countries.
Other?

33. Environmental Degradation
Occurs when nature’s own resources such as trees, habitat, earth, water, and air are being used up (consumed) faster than nature can replenish them.

34. Sustainable Development
The process of developing land, cities, businesses, and communities that meet the needs of the present without compromising the ability of future generations to meet their own needs.
Businesses need to be looking to provide sustainable business practices.

35. Examples of Sustainable Business Practices

36. Barriers To International Trade
TOPIC #5
Barriers To International Trade

37. Barriers to International Business
Purpose of Barriers
To help protect domestic businesses and consumers
May be used to:
1. help assist a new business getting started
2. protect an existing industry struggling in a competitive global environment.
3. protect consumers from imports with problems or that do not conform to Canadian safety standards.

38. Barriers to International Business
Barriers include:
Tariffs or Custom duties
Non-Tariff barriers
Increased costs of importing and Exporting
Excise taxes
Currency Fluctuations

39. 1. Tariffs Also called custom duties
One of the most important tools for any government in managing trade with other countries.
A form of tax on certain types of imports (goods coming into Canada from other countries)
Companies bringing in the goods from another country to sell in Canada must pay the tariffs.
Tariffs are based on a percentage of the retail value, (i.e. 5% of retail selling price.) or;
On another basis (i.e. $6 per kilogram)
Money collected goes to the government.

40. Tariffs Whose job is it to: 1. monitor Canadian tariff policies?
2. monitor tariff policies of other countries?
3. change Canadian tariff policies to best serve the Canadian economy?
Answer:
Finance Canada

41. Tariffs Provide an example of when it may be:
beneficial for Canada to reduce tariffs on certain goods imported from outside countries?
beneficial to increase or create tariffs on certain goods being imported from outside countries?

42. 2. Non-tariff Barriers
Legal and policy standards for the quality of imported goods are set so high that foreign competitors can not enter the market.
Examples:
A Canadian law forces an international company to apply for a license to do business in Canada (it may be very time consuming
and expensive)
Government will allow some goods into the country only after being inspected and having met certain health and safety standards set out by the Canadian Food and Inspection Agency.

43. Imported Goods That Require Permits, Inspection, or Special Packaging
Imported Goods Government Department__________
1. Endangered animals and Environment Canada
plants and products made
from them
2. Agricultural and food Agriculture and Agri-food Canada
products
3. Non-food products and clothing Industry Canada
precious metals, and
radio communications equip.
4. Fish and fish products Fisheries and Oceans Canada
5. Food, drugs, medicines, Health Canada
pharmaceuticals, medical
and radiation-emitting
devices
6. Hazardous waste, goods that Environment Canada
may contain chlorofluorocarbons
or lead gas
7. Motor vehicles Transport Canada

44. 3. Costs of Importing and Exporting
Landed Cost
The actual cost for an imported purchased item.
It is composed of the vendor cost, transportation charges, duties, taxes, broker fees, and any other charges associated with getting the product ready to sell in a foreign market. (another country)
Question
If you owned Canadian Tire and had to choose between selling a tool from a Canadian manufacturer or a foreign manufacturer, which one would you select if the quality of both products was equal?
a. the foreign tool whose landed cost was greater than the domestic purchase cost or;
b. the domestic tool whose cost was cheaper than the landed cost.

45. Costs of Importing and Exporting
Price of a good sold is based on the following costs among others:
Manufacturing (includes wages);
storage;
Marketing;
Shipping;
Advertising
Overhead (Equipment, Heating etc, Salaries)
% of profit the company wants to make on the sale
Depending on the laws of another country and cultural differences, additional costs may be incurred.

46. 4. Excise Taxes Excise Tax
A tax on the manufacture, sale, or consumption of a particular product produced in your country
Governments use excise taxes to:
1. Raise money (i.e tobacco related health care costs)
2. Discourage people from engaging in certain activities
3. Increase the costs of imported goods to encourage consumers to buy Canadian products.
Examples of excise taxes:
10 cents per litre on gasoline for the federal government
14.5 cents per litre on gasoline for the provincial government
Excise tax on tobacco products varies from province to province

47. 5. Currency Fluctuations
Converting the value of $1 Canadian dollar to US currency and other national currencies.
Examples
Nov $100 US  $157 Canadian
Nov $100 US  $98 Canadian
Website to research a history of exchange rates

48. Factors Affecting Exchange Rates
1. The financial health of Canada’s economy versus the US economy
2. Interest Rates
Example:
If the Canadian economy is performing better than the US, the value of the Canadian dollar will increase. The demand for the Canadian dollar rises. Demand > Supply, the value rises.
If interest rates are higher than those of other countries while inflation remains fairly stable, the value of the Canadian dollar will increase. Foreigners will be attracted to invest in Canadian funds where banks are providing higher interest rates. Demand > Supply, the value rises.
Information on factors affecting exchange rates:

49. Impacts of Exchange Rates
Canadian economy is largely dependent on the value of imports and exports which can be greatly impacted by the value of the Canadian dollar.
The US is Canada’s biggest trading partner.
When Canadian Exports to US > US Imports = Trade Surplus
When Canadian Exports to US < US Imports = Trade Deficit
Exports decrease when:
the Canadian dollar increases in value to the US dollar, it makes exports more expensive.
the US economy is weak and the CD dollar is increasing, the US will be purchasing less from Canadian businesses
Note: Canadian consumers also tend to purchase more products from the US because the value of the dollar is higher, and goods are often cheaper in the US, thus making imports higher.
Result:
Less sales revenue for Canadian businesses which in the long run, can end up hurting the Canadian economy. For example, when businesses are earning less revenue, profits decrease and if significant decreases occur, businesses may start laying off employees.

50. Importing and Exporting Goods and Services
TOPIC #6
Importing and Exporting Goods and Services

51. Flow of Goods And Services
Imports
Goods and services flowing/coming into Canada
Exports
Goods and services flowing/going out of Canada
Imports may include:
Raw materials
Processed materials
Simi-finished goods,
Manufactured goods ready for sale.
The less finished the imported goods, the more jobs they create for Canadians.

52. Canadian Imports 2008 Data Source:
“Imports of goods on a balance-of-payments basis, by product” Statistics Canada, September 10, 2009, [Online]. Available:

53. Canadian Exports 2008 Data Source:
“Export of Goods on a Balance-of-Payment Basis” Statistics Canada. September 10, [Online] Available:

54. Balance of Trade Balance of Trade
Relationship between a country’s total imports and total exports.
Trade Surplus = E > I
Export$ are greater than Import$.
Canadians are selling more products to other countries than they are importing.
If surplus is made up of primarily manufactured goods, then more jobs are created for Canadians.
Trade Deficit = E < I
Canadians are spending more money on importing goods from other countries than selling/exporting goods to other countries.
Usually means that fewer Canadian jobs are being provided

55. Increasing Your Chances of Success When Importing Goods for Resale
Before placing your international order, conduct your research to determine an approximate interest and demand for your imported goods, otherwise, you may have a full warehouse, and big bill to pay with insufficient revenues coming in to pay off your bill.
Select your foreign supplier(s) with care. You want the one who can supply the right product(s) for the right price at the right time. Foreign Affairs and International Trade Canada can help you find the best foreign suppliers.
Make an effort to learn about the culture you will be dealing with. Cultural knowledge and sensitivity can help you establish positive working relationships with your suppliers.
Take time to go through a purchase agreement and ensure it covers all important and necesssary areas such as: Who pays the shipping costs? When do the goods have to be paid for? What happens if goods are damaged during shipping.
When the goods arrive, make sure everything you ordered is there and in good condition. Expect to pay import or custom duties based on either the value of goods, quantity or weight.

56. Export Business Two ways a business may export goods:
1. Through direct exporting
2. Through indirect exporting

57. Exporting Business Direct Exporting
The exporting company deals directly with the company that will wishes to import the goods into his/her country.
Conducted usually by established companies who have the experience and resources to set up offices and sales staff in foreign countries.
More risky as the exporting company assumes all risk.
Canadian Company
China Company

58. Intermediary Business or Individual
Exporting Business
Indirect Exporting
Goods move from the exporter to an intermediary, who is often from the foreign country, and then on to the importing business.
Intermediary
Someone or another company who helps the exporter find a company who wants to purchase and import your goods)
Canadian Company
Intermediary Business or Individual
China Company

59. Exporting Business Indirect Exporting
Usually conducted by new businesses which don’t have the resources, or global reputation
Business share financial risks with the intermediary
Some countries prohibit direct exporting, likely to create jobs for local intermediaries. (i.e. in the Middle East, Central America and Asia)

60. Increasing Your Chances of Success When Exporting Goods and Services
Conduct your research to determine if there are potential consumers in foreign markets and to familiarize yourself with foreign cultures, customs and laws.
Research Resources may include:
Foreign Affairs and International Trade Canada
Contact foreign agencies through the internet, such as the Asia Pacific Foundation of Canada, Canadian Manufacturers and Exporters, and the Canadian Association of Importers and Exporters.
Canadian embassies in foreign countries

61. Questions Asked By Potential Export Buyers
What is unique or special about your company, product, or service.
How do you market or sell your product?
Who uses your product or service? To whom do you sell in Canada and abroad?
Which countries or regional markets are you targeting, and why? What do you know about these markets?
How do you plan to enter the market? Will you sell the products directly? License people to sell your products? Set up a joint venture with another business? Invest in a venture that already serves the market?
How would you describe the typical buyer, distributor, agent, or partner you want to work with in this market?
When do you plan to visit the market? How will you adapt your product-related literature to suit the needs of this market?

62. Canada’s Major Trading Partners Canada’s Top 10 Export Markets
Country
2004
2005
2006
2007
2008
U.S
84.4%
83.8%
81.5%
78.9%
77.64%
U.K
1.88%
1.89%
2.3%
2.84%
2.7%
Japan
2.08%
2.10%
2.14%
2.05%
2.29%
China
1.64%
1.65%
1.77%
2.11%
2.17%
Mexico
0.75%
0.77%
0.99%
1.10%
1.21%
Germany
0.65%
.074%
0.90%
0.86%
0.93%
South Korea
0.55%
0.67%
0.79%
Netherlands
0.47%
0.50%
0.70%
Belgium
0.52%
0.66%
France
0.58%
0.69%
Source: Statistics Canada:

63. Canada’s Major Trading Partners Canada’s Top 10 Import Markets
Country
2004
2005
2006
2007
2008
U.S.
58.7%
56.5%
54.8%
54.2%
52.4%
China
6.77%
7.75%
8.70%
9.41%
9.83%
Mexico
3.78%
3.83%
4.04%
4.22%
4.13%
Japan
3.80%
3.89%
3.86%
3.53%
Germany
2.65%
2.70%
2.82%
2.83%
2.93%
U.K.
2.71%
2.74%
2.91%
Algeria
0.87%
1.10%
1.25%
1.78%
Norway
1.39%
1.59%
1.38%
1.32%
1.43%
South Korea
1.64%
1.41%
1.45%
France
1.50%
1.31%
1.37%
Source: Statistics Canada:

64. Canada and US Trade Relationship
Why does it make sense to establish a solid trading relationship with the US?
1. Shipping costs are cheaper (proximity factor)
2. Similar culture and interests so same types of products and services will appeal to citizens
3. Speak the same language, watch same TV programs, movies, sports and similar fashion styles
4. Population of the states is 10x that of Canada’s

65. TOPIC #7
Canada and International Trade Agreements

66. International Trade Agreements
Legal contract between or amongst nations who voluntarily agree to conduct business affairs in each other’s country based on the terms set out in the agreement.
Common terms outlined in the agreements include:
Reducing tariffs and custom duties on various products to reduce trade barriers;
When and why people will be able to work across international borders;
What qualifications one will need to work in another country;
How business trade secrets will be protected (intellectual property);
Process for resolving trade disputes amongst the participating countries in the agreement.

67. Advantages of Reducing Trade Barriers
Two main advantages:
Canadian businesses or other domestic businesses are able to sell their products and services to international markets at lower prices because additional tariffs on exported products are reduced or eliminated.
Increased competition motivates companies to improve their quality or reduce their prices in order to compete with imported goods. (Great for the consumer)

68. History of the WTO
WTO developed out of an international trade agreement called the General Agreement on Tariffs and Trade (GATT).
GATT came into effect in 1948
GATT was signed by Canada and 22 other nations who were allies during World War II.
An international organization was set up to help GATT nations negotiate trade deals, resolve problems and collect data about world trade.
In 1995, the WTO replaced the initial GATT organization.
The WTO currently has 139 member countries.

69. World Trade Organization
WTO Today
Main international organization that deals with the rules of trade between nations.
The WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all;
Contributes to global economic growth and development.
The WTO also provides a legal and institutional framework for the implementation and monitoring of these agreements, as well as for settling disputes arising from their interpretation and application.
The current body of trade agreements comprising the WTO consists of 16 different multilateral agreements (to which all WTO members are parties) and two different plurilateral agreements (to which only some WTO members are parties).
Governs approximately 97% of all world trade
Source: World Trade Organization

70. International Trade Agreements
General Agreement on Trade in Services
GATS came into effect in 1995
Sets guidelines for the trade of services such as banking across international borders.

71. International Trade Agreements
The Canada-US Free Trade Agreement
Commonly known as FTA came into effect in January 1989.
Intended to gradually phase out (get rid of) a number of tariff barriers between the two countries
Issues dealt with under the agreement
Canada’s wishes:
wanted stable access to U.S. Markets
Wanted to bid on US government contracts
wanted to create a dispute settlement tribunal
To increase exports to the US
Exemptions included dairy and poultry
US Wishes:
Wanted to increase their exports to Canada
Wanted clarification regarding rules of intellectual property
To reduce restrictions on US investment in Canadian industries
Exemptions: sugar, diary, peanuts, and cotton
All products other than exemptions are duty-free if produced within the free-trade zone.

72. International Trade Agreements
North American Free Trade Agreement
Commonly known as NAFTA
Came into effect in 1994
Trade between Canada, US and Mexico is tariff free for all products produced in the free-trade zone except for exemptions mentioned.
Each day NAFTA countries conduct $1.7 billion in trilateral trade.

73. NAFTA Canada US Mexico Economic Growth (E.G.) (1994-2003)
E.G. is up 30.9% since
Export sales have increased by 104%
Export sales to US have increased by 250%
E.G is up 38% since 1994
E.G. is up 30%
Concerns Expressed
Depletion of Canada’s natural resources as US and Mexico have to much access
Canada’s cultural industries (book, magazine, and TV) are becoming Americanized.
Canada and Mexico are perceived to be taking away jobs from Americans
Wealthier northern countries are perceived as exploiting Mexico for its low wages.
Trade agreements give businesses power over elected governments, and in time, these agreements will erode democracy.

74. Canada and Other Free Trade Agreements
Regional Trade Agreements
Trade agreements involving groups of countries
Bilateral Trade Agreements
Trade agreements involving Canada and one other country or group
Trading Bloc
Group of countries that share the same trading interests

75. Other International Organizations

76. G8
Group of Eight (G8)
Eight of the world’s largest and most powerful industrialized democracies meet annually and work together to deal with major economic and political issues facing their individual and collective countries.
Topics dealt with at major G8 summits include:
Energy • Employment • Environment
Human rights • Arms Control
Seek to provide guidance and support to established international organizations
Countries include Britain, France, Germany, Italy, Canada, US, Japan, and Russia

77. G20 What is the G-20? Established in 1999
The Group of Twenty (G-20) Finance Ministers and Central Bank Governors of important industrialized and developing economies to discuss key issues in the global economy.
Mandate
The G-20 is an informal forum that promotes open and constructive discussion between industrial and emerging-market countries on key issues related to global economic stability.
To help support growth and development across the globe by contributing to the strengthening of the international financial architecture and providing opportunities for dialogue on national policies, international co-operation, and international financial institutions
Source: About G20. [Online] Available:

78. Other Free Trade Agreements
Free Trade Area of the Americas
Central American Free Trade Agreement (2004)
European Free Trade Association (1960)
Asia-Pacific Economic Cooperation (1989)

79. TOPIC #8
The Future of International Business

80. The Future of International Business
Reduction of Protectionism
European Union
NAFTA
Impact of Cultural Differences
Global Dependency

81. The Future of International Trade
Protectionism
a term to describe when countries seek to protect their individual economic interests by imposing tariffs on other countries or restricting external trade.
Economic experts agree that such practices will hurt the global economy as it is all interconnected.
APEC is the fastest growing trading group and largest trading bloc in the world and engages in protectionism practices by imposing tariffs and other trade barriers on countries outside of APEC.

82. European Union (EU)
27 European countries represent a single market in Europe
All but the UK and Denmark have adopted a the euro as the single currency to be used in member states
It has its own elected government
EU court rulings over rule individual country court rulings and/or laws.
Citizens of member states may travel, move, and work freely in each other’s countries.
Population is currently about 370 milion.

83. Evolution of NAFTA
Will NAFTA emerge into a union similar to the EU where citizens of Canada, Mexico, and the US would be able to move freely into each other’s countries where one currency would be used for all three countries?

84. Impact of Cultural Differences
Culture
the sum of a country’s way of life, beliefs, customs
Influences how things are purchased, sold,
Sets boundaries on what can or can not be done
Impacts preferences, style, values, and norms
May be represented by a specific language

85. Cultural Differences
In order to do business with differing cultures, much market research is needed to help companies understand various similarities and differences even when dealing with everyday cultural norms dealing with people such as:
Punctuality
Greetings
Nonverbal communication signals
Good Manners
Decision making

86. Punctuality Punctuality Norms in North America?
People are expected to be
on time
Rely on books, calendars and
even pay a fee sometimes
for missed appointments
Punctuality Norms in Other Countries
Time is considered flowing, flexible, beyond’s people control

87. Greetings Eye contact made in some countries, not in others
Shaking hands – differs from one country to the next
Eye contact made in some countries, not in others
Bowing before an elder acquaintance versus not bowing at all

88. Nonverbal Communications Signals
Considered rude in Asian cultures to refuse someone’s request, so an Asian business person may not give a direct “no” answer to a sales request
A “nod” means “yes” to North Americans but “no” to a Bulgarian.
Shaking the head “side to side” means “no” to North Americans but “yes” to Bulgarians.
The sign okay with ones hand is a symbol for money in Japan and is an offensive gesture in Brazil.
Personal space interpretations also differs from place to place.

89. Good Manners
In North America, getting down to business is the norm when to business people meet.
In other Asian and Latin American countries it would be considered rude not to discuss family, friends, and favours first to establish a personal relationship before business.

90. Decision Making
In some cultures, decisions are made from the top down approach, in others, from the bottom up approach.

91. Other Differences North Americans read from right to left.
Israel and Egyptians read left to right.
This difference may impact the order in which a sequential advertisement is laid out from one country to another.

92. Other Sources
Wilson Jack et al. The World of Business, 5th Ed. Nelson Education Ltd., Canada, 2007