Visit From Mr. Jozsef Szamosfalvi at the Seminar

Seminar participants had the opportunity to hear from Mr. Jozsef Szamosfalvi, a professional specialized in emerging market structured finance underwriting and risk mitigation. The focus was on infrastructure, financial and energy sector projects.  Mr. Jozsef Szamosfalvi is managing director of Interlink Capital Strategies. He highlighted the role of the private sector in trade finance, and directly addressed employment opportunities. Georgetown graduates have left a strong track record.  A new option to become a true insider!

Visit From Prof. Demir Yener at the Seminar

It was a great pleasure to have Prof.Yener of Johns Hopkins University visit us in the Seminar. He shared his thoughts about corporate governance and increased transparency in an entertaining way.

The Unspoken Truth about International Business

Language has been described as the mirror of culture. Language itself is multidimensional. This is true not only of the spoken word but also of the nonverbal language of international business.

Messages are conveyed not just by the words used, but also by how those words are spoken and through such nonverbal means as gestures, body position, and eye contact. These nonverbal actions and behaviors reveal hidden clues to culture.

Five key topics – time, space, body language, friendship patterns and business agreements – offer a starting point from which managers can begin to acquire the understanding necessary to do business in foreign countries.

Understanding national and cultural differences in the concept of time is critical for an international business manager. In many parts of the world, time is flexible and is not seen as a limited commodity; people come late to appointments or may not come at all.

In Mexico for instance, it is not unusual to show up at 1:45PM for a 1:00PM appointment. Although a late afternoon siesta cuts apart the business day, businesspeople will often be at their desks until 10 o’clock at night.

In Hong Kong, too, it is futile to set exact meeting times because getting from one place to another may take minutes or hours, depending on traffic.

Showing indignation or impatience at such behavior would astonish an Arab, Latin American, or Asian.

Perception of time also affects business negotiations. Asians and Europeans tend to be more interested in long-term partnerships, while Americans are eager for deals that will be profitable in the short term, meaning less than a year.

Individuals vary in their preferences for personal space. Arabs and Latin Americans like to stand close to people when they talk. If an American who may not be comfortable at such close range, backs away from an Arab, this might incorrectly be perceived as a negative reaction.

An interesting exercise is to compare and contrast the conversation styles of different nationalities. Northern Europeans are quite reserved in using their hands and maintain a good amount of personal space, whereas Southern Europeans involved their bodies to a far greater degree in making a point.

International body language, too, can befuddle international business relations.

For example, an American manager may after successful completion of negotiations, impulsively give a finger-and-thumb “okay” sign. In southern France, this would signify the deal was worthless, and in Japan, it would mean that a little bribe had been requested. The gesture would be grossly insulting to Brazilians.

Misunderstanding nonverbal cues can undermine international negotiations. While Eastern and Chinese negotiators usually lean back and make frequent eye contact while projecting negativity, Western negotiators usually avert their gaze for the same purpose.

In some countries, extended social acquaintance and the establishment of appropriate personal rapport are essential to conducting business. The feeling is that one should know one’s business partner on a personal level before transactions can occur.

Therefore, rushing straight to business will not be rewarded because deals are made on the basis of not only the best product or price, but also the entity or person deemed most trustworthy. Contract may be bound on handshakes, not lengthy and complex agreements – a fact that makes some, especially Western, businesspeople uneasy.

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Excerpt from Fundamentals of International Business, 3rdby Michael R. Czinkota, Ilkka A. Ronkainen, and Michael H. Moffett

Michael Czinkota (czinkotm@georgetown.edu) teaches international business and trade at Georgetown University’s McDonough School of Business and the University of Kent. His latest book, forthcoming in October 2018, is “In Search for the Soul of International Business”.

 

 

Georgetown First Year Seminar Guest Speaker

We were visited by Mr. Barry Rhoads, Chairman of Cassidy and Associates. He presented his insights on the role of private sector influence on government, establishing and disrupting relationships and the achievement of thought for legislation.

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Mr. Rhoads arrived in Washington as an officer in the U.S. Army, became a tax prosecutor for the U.S. Department of Justice. He is now the head of one of the largest lobbying firms in Washington D.C where he represents interests both foreign and domestic, such as Airbus Industries.