Global Economy

When we use the telephone in our business transactions the communication tools available to us are very limited. The person you are communicating with cannot see you. He/she cannot read the expression on your face. If he/she doesn’t understand what you are saying, he/she cannot watch your lips. You can neither gesture nor touch your interlocutor. You cannot see the  person’s reaction to what you are saying. You cannot write, out anything or draw a diagram if he/she doesn’t understand your point.

You have only three communication tools at your disposal:

 

1. Your voice.

2. Your inflection.

3. Your words.

 

Therefore you must make the best of them what really isn’t that hard to do.

Voice

Speak into the mouthpiece, not over or around it. If you do this, people can hear you and understand you much more easily. It also means that you can then speak in your normal conversational voice. Have you ever noticed how on a long dis­tance call some people automatically raise their voices and some liven shout into the phone? We are not talking about when the connection is bad; most of the time this is just human nature. You don’t have to do this if you just speak into the mouthpiece.

The phone is a marvelous device, designed to carry your nor­mal speaking voice almost anywhere in the world. So let it do its work.

Inflection

Some people freeze up on the telephone. They speak unnaturally, without any inflection. When they do so, the party on the other end often misses much of what they say. In­stead of speaking into the instrument, forget you have it in your hand. Imagine that the person you are talking to is standing or sitting right in front of you. Speak to the person, gesture, stand, sit, pace. Be as natural as if you were carrying on the conversa­tion in person. Your voice will then have the right inflection and convey the unspoken messages you want to convey.

Words

Speak distinctly; don’t swallow separate words, whole sentences and great ideas. This may mean speaking just a little slower than you would if you were talking to the other party in person. Don’t be very sophisticated. Try to use the shortest and the simplest words you can.

 

To the above three points we should add another one that you should try to follow whenever you are talking to anyone, in person or on the phone - concentrate. Concentrate both on what you want to say and on what the other person is saying to you. This is even more important when on the telephone than in person.

Be a great orator and the greatest listener!

If you keep the above points in mind and introduce them into practice you will find that you are getting more benefit out of your time on the phone. And the people you are talking to will feel the same way.

If there is more than one point you want to cover, make a few notes and have them in front of you. If you have a lot of things to cover, make an outline. In any case be ready to take notes.

Today is the first summer day. My congratulations!!!

All who have economic education study economics. But what do you know about the history of economics?

So, in the 1500s there were few universities. Those that existed taught religion, Latin, Greek, philosophy, history, and mathematics. No econom­ics. Then came the Enlightenment (about 1700) in which reasoning re­placed God as the explanation of why things were the way they were. Pre­Enlightenment thinkers would answer the question, “Why am I poor?” with, “Because God wills it.” Enlightenment scholars looked for a differ­ent explanation. “Because of the nature of land ownership” is one answer they found.

Such reasoned explanations required more knowledge of the way things were, and the amount of information expanded so rapidly that it had to be divided or categorized for an individual to have hope of knowing a subject. Soon philosophy was subdivided into science and philos­ophy. In the 1700s, the sciences were split into natural sciences and so­cial sciences. The amount of knowledge kept increasing, and in the late 1800s and early 1900s social science itself split into subdivisions: economics, political science, history, geography, sociology, anthropology, and psychology. Many of the insights how the economic system worked were codified in Adam Smith’s The Wealth of Nations, written in 1776. Notice that this is before economics as a sub discipline developed, and Adam Smith could also be classified as an anthropologist, a sociologist, a political scientist, and a social philosopher.

Throughout the l8th and 19t centuries economists such as Adam Smith, Thomas Malthus, John Stuart Mill, David Ricardo, and Karl Marx were more than economists; they were social philosophers who covered all aspects of social science. These writers were subsequently called Clas­sical economists. Alfred Marshall continued in that classical tradition, and his book, Principles of Economics, published in the late 1800s, was written with the other social sciences in evidence. But Marshall also changed the question economists ask; he focused on the questions that could be asked in a graphical supply-demand framework. In doing so he began what is called neo-classical economics…

One way of describing the function of the office is the administrative back-up for the organisation. Everyone involved in a business operation has to refer to the office from time to time. Even in the first minutes of the day the office comes alive. The salesperson telephones from a customer’s shop to find out some details about prices, or discounts, or delivery dates. A customer telephones to find what has happened to the order he sent in last week. The short-listed applicants for the new Quality Control Manager’s job turn up for their interviews with the Personnel Manager. The company secretary arrives earlier than usual to ask whether the agenda for the Board of Directors’ meeting later in the day has been typed yet. And the office junior brings in the morning mail which he has opened and sorted, and which now needs to be distributed to the various managers. There is a great variety of tasks undertaken in the office and the staff engaged in these operations need to know a great deal about the business. For example, when customers visit the office or telephone, they naturally expect the staff who deal with them to be knowledgeable. They expect their enquiries to be dealt with courteously, promptly and competently. Receptionists may occupy a comparatively lowly position in the organisational hierarchy, but they create the vital first impression which often determines whether we get the order or not.

The importance of the office is obvious. It is the hub of the communications network for the whole organisation. Technology affects the whole of business, not least the office, and the concept of a completely paperless office is beginning to emerge. Already on many executives’ desks there are keyboards or other devices to communicate with the computers which control all the electronic de-vices in the office. Electronic files are replacing conventional filing cabinets, and copying machines are appearing together with a variety of printers able to print anything from letter-quality characters to four-colour diagrams. Telephone systems are now incorporating a host of facilities from an answering service to video-conferencing.

Video-conferencing involves executives separated by hundreds and per-haps thousands of miles, discussing problems face-to-face on television screens. This in turn conjures up the notion of clerical workers performing many of their daily tasks away from the office, so that offices of the future are not only going to be paperless. They are also going to occupy less space, require fewer staff and al-low much shorter working weeks.

These changes will affect a large number of people. The introduction of robotic production lines in factories and new technology in offices will change the way men and women work, and the roles they expect to fulfil. There have al-ready been great changes in the traditional patterns of employment due to new technology, and this seems likely to continue, with implications for both sexes.

Whatever happens as a result of the new technologies, the role of the office will be changed rather than diminished. Most office workers of the future will find themselves seated at multi-function work-stations able to exercise control over routine purchases, sales, market research, production runs and accounting procedures. In other words, we can expect a centralisation of decision-making powers, with the office becoming even more emphatically the very hub of the business.

I want to explain, that SWOT analysis is an analysis of strengths, weaknesses, opportunities and threats. You can use it to analyze business activity. Also it will be very helpful for you marketing plan. But you can use SWOT analysis not only in business, but in you live to see you own strengths, weaknesses, opportunities and threats. For example, I did it analyzing my English studies at university (my first year - 2003):

 

«As for my progress in English studies and also in special subjects as economics, mathematics, etc.,  I’d like to say that my English has become much better this  semester, than it was at school, and my progress in other subjects is not worse too. I think it is so, because I have overcome such my weaknesses as laziness and absent-mindedness, but some problems have still remained unsolved. For example, I often have a good plan for my working day, but I seldom follow it.  And I try to change the things I can’t change; it’s hard for me to accept them. I don’t overlook threats that can prevent my study. For example, when something is important, I don’t deal with it I often wait until it becomes argent. But I also have some strength as patience, persistence and a critical attitude to myself. I also remember my opportunities to become successful. For example, I have ability for independent studying. And I have an opportunity to improve my physical form at our university. »

I hope that SWOT analysis will help you to improve not only your business, but you own live too

Speaking about company structure, I’d like to say that there are two main types of it. The first is hierarchical and the second is flat. The hierarchical system or organization is one in which people have different ranks or position, depending on how important they are. Companies with a flat structure are organized in less hierarchical way than traditional companies, with the aim of giving all employees an equal status within the company.

The hierarchical system is characteristic for the majority of the companies. Such system is used by the Philips company. Royal Philips Electronics is managed by the Board of Management, which looks after the general direction and long-term strategy of the Philips group. The President is in the head of the Board of Management. The Supervisory Board supervises the general course of business of the Philips group; makes sure policy is realized and advises the Board of Management. The policy of the company is realized by the Corporate Departments, which consist from different departments, such as Finance, Information Technology, Human Resources Management, Legal Affairs and Communication and Public Relations.

So as we know such organization of the management of this company has made it the world’s biggest electronics company.

At the beginning I would like to recollect the scientific statistic about main reasons people don’t like shopping. About 42 per cent of people don’t like shopping because of queues. 18 per cent don’t like shopping because of crowds and about 8 per cent because of finding products. But of course there are other reasons why people don’t like shopping. They are parking, not enough time, carrying it, inconvenient opening hours, cost or pricing, packing or unpacking and so on.

To my mind these problems can be overcame. Firstly, retailers can place a big parking near their shops. It is very convenient for customers, because they can economize their free time instead of looking for a place for their car. Secondly, retailers can improve the service. Because sometimes shop assistants don’t execute their duties. For example, from time to time they are very rude or they can leave their job earlier. It seems to me that it will be very good if retailers offer a special service such as home delivery.

As for me I like shopping especially when I buy presents for my close friends and relatives. Shopping gives me some energy and raises my mood.

Don’t look a gift horse in the mouth.

But nevertheless you should know bout recommended gifts, gifts to avoid, good and bad colours for wrapping paper in some countries. And of course it will be very good if you will know how present a gift to individuals and groups.

Gift Giving

Japan:

- Gift-giving is an important part of Japanese business protocol.

- An expensive gift will not be a bribe.

- Present gifts with both hands.

- Gifts are opened in private, because if the gift turns out to be a poor choice, “loss of face” will result.

- Before accepting a gift, it is polite to modestly refuse at least once or twice before finally accepting.

- Ensure that your gifts are wrapped. The safest gift-wrapping choices are pastel-colored papers, without bows.

Gifts to Avoid:

- Lilies, lotus blossoms, and camellias are associated with funerals. White flowers of any kind should be avoided.

- Giving four or nine of anything is considered unlucky.

- Red Christmas cards should be avoided, since funeral notices are customarily printed in this colour. There is also a superstition that potted plants encourage sickness.

China:

- Today, official policy in Chinese business culture forbids giving gifts; this gesture is considered bribery, an illegal act in this country. In many organizations, however, attitude to gifts are beginning to relax.

- The Chinese will decline a gift three times before finally accepting, so as not to appear greedy.

- If possible, have your gifts wrapped in red paper, which is considered a lucky colour.

- Wrapping in yellow paper with black writing is a gift given only to the dead.

Gifts to Avoid

- Numbers such as ‘73′ meaning ‘the funeral’ and ‘84′ meaning ‘having accidents’ are to be avoided.

- Scissors, knives, or other sharp objects

- The following items are to be avoided as they are associated with funerals: handkerchiefs, gifts or wrapping paper in white, black, or blue

The following items are to be avoided as they are associated with funerals: clocks, four of any item [the Cantonese word for “four” sounds similar, in the same language, to “death”]

India:

- Gift giving is customary in India, and is seen as a sign of friendship.

- It is advisable not to give expensive gifts, unless you are very close to the person.

- Normally, gifts are not opened in the presence of the giver. However, sometimes your Indian host may insist on your opening the gift, and would expect appreciation for his/her choice.

- Alcohol is culturally not accepted in most parts of India.

- Be cautious in giving a leather item as a gift. Since many Indians are vegetarians, they may not appreciate items made of leather.

Spain:

- In ordinary Spanish business culture, however, gifts are usually given only at the conclusion of successful negotiations.

- If you receive a gift, you should open it immediately and in front of the giver.

- When offering any gift, you should ensure that it is a high-quality item [perhaps a brand-name] and that it is finely wrapped.

- You should not give anything too extravagant as your generosity may be perceived as a bribe.

France:

- French business etiquette dictates that you don’t include your business card with a gift.

Не that talks much errs much.

A good English proverb, but it is not acceptable for modern business. Doing business worldwide I must be aware of what you are talking about. Here is some tips to help you conduct talks successfully.

Spain:

- In conversation, Spaniards may not only stand uncomfortably close, but may also pat your arm or shoulder. If you are put out by such gestures, it will only cause offence to try to retreat into your own private space.

Topics to avoid:

- Bullfighting [if you and your counterpart are likely to disagree];

- Religion [i.e. any aspect of Roman Catholicism];

- The Civil War and WWII;

- Franco;

- Basque separatism and Catalan regionalism;

- Gibraltar;

- Enquiries of a personal nature, especially during first introductions;

- Machismo and feminism.

France:

- Give opinions only on subjects that you are knowledgeable about.

Topics to Avoid:

- It is extremely bad manners to ask an individual about his political leanings or how he voted. You can, however, inquire about the political system or public opinion about political leaders.

- Do not criticize Napoleon, who has a lasting identity with the French spirit.

- Refrain from using the standard U.S. conversation opener, ‘What do you do?’

- Avoid making personal inquiries in the course of a conversation, especially during first introductions.

Germany:

- Be prepared to take the first step as the newcomer to introduce yourself to an established group when you arrive in a new environment.

- Giving compliments is not part of German business protocol and can often cause embarrassment and awkwardness. Compliments, especially from strangers can be taken with suspicion [“What does he/she really mean to say or want?”].

Topics to Avoid:

- World War II/the Holocaust

- Personal questions [especially salary, cost of personal objects] among people you don’t know or know well, especially in a business environment [work and family life are usually kept separate]

So, as you see that it isn’t rather difficult to converse in European countries, but the rules of conversation in Moslem countries are stricter.

I could say that Islamic people are very proud of their country, language, culture and history

Turkey:

- Avoid giving opinions over sensitive issues involving Turkey, especially Turko-Kurdish relations, EU membership.

- Turkey has had a turbulent political history which may be best left in the past. Try and avoid this subject as a whole.

- There is a West-East divide in Turkey on the issue of Islam. Generally, the Eastern Turks are a lot more conservative due to their closer adherence to Islamic values. Western Turks, especially those in Istanbul, Ankara or Izmir are usually a lot more westernized. Islam takes on more of a cultural feel rather than a religious one. Depending on where you are, be careful how you approach any topic about Islam.

Iran:

- Avoid questions around polemics in Islam, inquisitive questions about Islam are possible.

- Contentious issues that may lead to debate are the Revolution of 1979, Iranian- US relations and domestic policy.

- Do not ask personal questions unless a very close relationship has been established.

- Avoid making any negative comments about Iran regarding the leadership, infrastructure or people.

- And try to be always honest in the conversation. If they feel that you are hiding smth or there is an element of suspicion about your motives, you may not get very far.

So, as you can see that in conversations with the Moslem people you should be very attentive…

Japan:

- You may be asked extremely personal questions regarding your salary, education, and family life. If you don’t want to answer, remain polite but try to side step the question.

- It is considered polite to frequently say “I’m sorry.” For example, the Japanese will apologize for having a cold, taking you to see a disappointing movie and practically any other personal flaw. Visitors are encouraged to do the same.

- Don’t make direct refusals. In your dealings with Japanese business culture, remain indirect.

- Use as many Japanese sentences as you can.

Please, remember some Topics to Avoid:

- World War II

- Making jokes [unless they are very easy to understand]

China:

- Negative replies are considered impolite. Instead of saying ‘no’, answer ‘maybe’, ‘I’ll think about it’.

- You may be asked questions concerning your age and income. If you don’t want to reveal this information, remain polite and give an unspecific answer.

- Make an effort to learn and use at least a few words in Chinese.

India

- Most Indians enjoy good conversation on a variety of topics.

- Sometimes, Indians ask questions which can be seen as too personal. However, one must remember that discussing one’s family and personal life is normal among Indians.

- Indians seldom express their disagreement in a direct manner.

Please, remember the topics to avoid in conversation:

- Religious beliefs

- Pakistan

- The large rich-poor divide in India

So, now you know about welcome and unwelcome topics of conversation and the tone of voice to be used.

Today I would like to continue the previous topic and to say some words about Public Behavior in the countries, which were a question of yesterday’s post.

Spain:

- When summoning someone [e.g. a waiter], you should turn your palm down and wave your fingers or entire hand.

- Foreign [especially blonde] women continue to hold a particular fascination for the older generation but, although it is now considered rude to whistle, any attractive woman must be prepared for turned heads and lengthy stares from admiring males. The correct response is to smile and ignore such unwanted attention.

France:

- When you speak their language, be gracious if the French correct your mistakes in grammar or pronunciation. Usually, people who make these efforts care about the French language and are only trying to help you speak it effectively.

- Men should stand, or at least initiate a move to do so, whenever a superior makes an entrance.

- Despite the formality of French business culture, people tend to stand close when speaking to each other. Moreover, touching a shoulder or patting an arm is also commonplace and usually within the bounds of French business etiquette.

- Maintaining eye contact is important, but try not to focus too intently on the other person.

- If you feel the need to point, motion with your whole hand, rather than your index finger.

Germany:

- Eye contact during the introduction is serious, direct, and should be maintained as long as the person is addressing you. Even in public between strangers, eye contact or out and out staring can be direct and not necessarily smiling.

- Although this is usually a very formal, law-obeying society, pushing, shoving, and other displays of impatience in lineups are not uncommon. Apologies are in such cases not necessarily the rule. Interestingly, despite the high value of rules and social order in most aspects of public life, queuing and waiting your turn are not strong traits in present day Germany.

- Having made this point, be aware that the liberty taken with lines at a bakery doesn’t translate to lines at any bureaucratic institution.

Moslem countries (United Arab Emirates, Iran and in Turkey )

- Generally, one should always shake hands with every man present but not with women. If a man knows a woman well enough to touch her at all, he knows her well enough to kiss her [e.g. blood relatives]. The respectful greeting between subjects and rulers is a kiss on the nose. In Turkey holding hands with someone from the opposite sex is acceptable in the cities.

- Not only is it improper to eat with the left hand, it should be reserved only for unclean usage. To offer someone something with the left hand is very rude.

- Do not forget that Friday is a traditional Islamic holiday, although this is now Sunday in turkey.

Japan:

- Maintain a quiet and polite manner at all times.

- The American “O.K.” sign actually means “money” in Japan.

- Blowing one’s nose in public is regarded as impolite. When this action is necessary, use a disposable tissue only and then throw it out immediately. Generally speaking, the Japanese find the idea of keeping a used handkerchief disgusting.

- Laughter may indicate embarrassment or distress, rather than amusement.

- Smiling is a popular gesture here. It is often used, however, for self-control, particularly in masking displeasure.

China:

- The Chinese do not use their hands when speaking, and will only become annoyed with a speaker who does.

- The Chinese dislike being touched by strangers.

- Members of the same sex may hold hands in public in order to show friendliness.

- Blowing your nose with a handkerchief is acceptable, but it is advisable to turn away from people while doing so.

India:

- Among Indians, it is normal for them to use their hands to gesticulate while talking with each other.

- Feet are considered unclean in India. In the case that your feet or shoes touch another person, you are expected to apologize by saying ’sorry.’

- Indians do not maintain continuous eye-contact while talking with others. On the other hand, do not feel uncomfortable if you find an Indian gazing at you; this is because Indians are curious.

- The comfortable distance is much closer in India than in most Western countries. In general, a distance of about 2 feet is seen as comfortable.

Now you have learned acceptable behavior, rules for eye contact and gestures

International relations are primarily official contacts among the governments of independent countries. Such contacts may be peaceful or warlike and they are very important for the global economy.

Agreement is an arrangement or promise to do something, made by 2 or more people or organizations. A treaty is a formal agreement made by national governments. The agreement may be bilateral (signed by 2 countries) or multilateral (signed by more than 2 countries). Only the official representatives of independent countries may draw up a treaty. Before the agreement can go into effect, it must be approved by the governments of the countries involved. A nation may sign a treaty to promote its own economic interests.

When governments or other bodies wish to reach an agreement they usually organize a visit or hold or have talks, discussions or negotiations. And it’s very important to have special skills doing business worldwide. I have already told about the importance of cross-cultural skills in modern business. And now I’d like to give you some tips. I hope they will help you to understand business etiquette better.

First of all there are some words about greeting in some countries.

Spain:

Initial introductions with Spaniards are always formal: extend a brief but firm handshake, while maintaining eye contact and saying «buenos días» or «buenas tardes» depending on the time of day.

Men will continue to shake hands on all subsequent occasions. Women will embrace and kiss. In the company of friends, it is also common for men to hug or pat each other on the back as well as shaking hands.

France:

Expect to be greeted by a handshake; kissing on the cheeks [across genders] is also common amongst colleagues at work. It is not extended to outsiders and you should not attempt it until your female colleagues have made the initial move.

Germany:

Germans do not expect to be greeted by strangers, even when eye contact has been made, in the office environment.

Firm, brief handshakes at the time of arrival and departure are standard in both business and social relationships. Hugging and kissing on both cheeks are common only among good friends and family members. When arriving and leaving, take the time to shake hands with everyone individually in a group. The simpler American «group wave», for example, will not be appreciated in all but the most casual and familiar gatherings.

 

I should say that the greeting in United Arab Emirates, Iran and in Turkey does not vary significantly, because they all are Moslem countries.

The standard greeting is «As-salaam alike», [peace be upon you] to which the standard reply is «Wa alaikum as-salam» [and upon you be peace]. On arrival at the reception room, the visitor should stand in the doorway and utter the former of these phrases. Only after receiving the reply is he entitled to enter. In the event of no reply, he may repeat the greeting but continued failure to reply means that he is not welcome.         

If the room is carpeted, the visitor should remove his shoes and leave them outside to avoid bringing in impurities and thereby rendering the carpet ritually unclean for prayer. Once inside the room, he should shake hands with the most senior person first [usually but not invariably the host]. Then, he should make his way around the room in an anti-clockwise direction, shaking hands with each person in turn before taking his seat and joining in the conversation.            

The visitor should not change the subject of conversation except by logical opportunity or invitation. If there are more than fifty or so people in the room or if the seating is inconvenient, there may be consensus permission for him merely to shake hands with the host and wave a greeting to the others.    Once seated, crossing legs is perfectly acceptable, provided one does not direct the sole of the foot to an individual, which is a «go away» gesture.

 

Japan:

The Japanese greet each other by bowing. A bow can be a way of expressing thanks, saying “I’m sorry” or even asking for a favor.

China:

The Chinese will sometimes nod. Bowing is seldom used except in ceremonies. Handshakes are also popular.

If you visit a school, theater, or other workplace, it is likely that you will be greeted with applause as a sign of welcome. In turn, you should respond by applauding back.

 In Chinese culture, the question «Have you eaten?» or «Where have you been?» is the equivalent to «How are you?» in North America. Simply answer, ‘yes’ or smile and say «thank you».

India:

The traditional way of greeting in India is performed by holding your palms together, as in praying, and saying «Namaskar» [nah-mas-kar], with a slight bow. While «Namaskar» are Hindu ways of greeting, they are also accepted among all other communities. Shaking hands is also an acceptable way to greet people, but shaking hands with women is not universally accepted in Indian society.

 

Now you know how to greet your business partner according to the customs of his country.