CHAPTER 8

BUSINESS TRAVEL ABROAD


Business travel abroad can locate and cultivate new customers and
improve relationships and communication with current foreign
representatives and associates. As in domestic business, there is
nothing like a face-to-face meeting with a client or customer.

The following suggestions can help U.S. companies prepare for a trip. By
keeping in mind that even little things (such as forgetting to check
foreign holiday schedules or neglecting to arrange for translator
services) can cost time, opportunity, and money, a firm can get maximum
value from its time spent abroad.

PLANNING THE ITINERARY

A well-planned itinerary enables a traveler to make the best possible
use of time abroad. Although travel time is expensive, care must be
taken not to overload the schedule. Two or three definite appointments,
confirmed well in advance and spaced comfortably throughout one day, are
more productive and enjoyable than a crowded agenda that forces the
business person to rush from one meeting to the next before business is
really concluded. If possible, an extra rest day to deal with jet lag
should be planned before scheduled business appointments. The following
travel tips should be kept in mind:

*    The travel plans should reflect what the company hopes to
     accomplish. The traveler should give some thought to the trip's
     goals and their relative priorities.

*    The traveler should accomplish as much as possible before the trip
     begins by obtaining names of possible contacts, arranging
     appointments, checking transportation schedules, and so on. The
     most important meetings should be confirmed before the traveler
     leaves the United States.

*    As a general rule, the business person should keep the schedule
     flexible enough to allow for both unexpected problems (such as
     transportation delays) and unexpected opportunities. For instance,
     accepting an unscheduled luncheon invitation from a prospective
     client should not make it necessary to miss the next scheduled
     meeting.

*    The traveler should check the normal work days and business hours
     in the countries to be visited. In many Middle Eastern regions, for
     instance, the work week typically runs from Saturday to Thursday.
     In many countries, lunch hours of two to four hours are customary.

*    Along the same lines, take foreign holidays into account. The U.S.
     Department of Commerce's Business America magazine annually
     publishes a list of holidays observed in countries around the
     world. Information from this useful schedule, entitled "World
     Commercial Holidays," can be obtained by contacting the local
     Commerce district office. The potential U.S. traveler should also
     contact the district office to learn what travel advisories the
     U.S. Department of State has issued for countries to be visited.
     Each district office maintains a file of current travel advisory
     cables, which alert travelers to potentially dangerous in-country
     situations. The Department of State also has a telephone number for
     recorded travel advisories: 202-647-5225.

*    The U.S. business person should be aware that travel from one
     country to another may be restricted. For example, a passport
     containing an Israeli visa may disallow the traveler from entering
     certain countries in the Middle East.

OTHER PREPARATIONS

Travel agents can frequently arrange for transportation and hotel
reservations quickly and efficiently. They can also help plan the
itinerary, obtain the best travel rates, explain which countries require
visas, advise on hotel rates and locations, and provide other valuable
services. Since travel agents' fees are paid by the hotels, airlines,
and other carriers, this assistance and expertise may cost nothing.

The U.S. traveler should obtain the necessary travel documents two to
three months before departure, especially if visas are needed. A travel
agent can help make the arrangements. A valid U.S. passport is required
for all travel outside the United States and Canada. If traveling on an
old passport, the U.S. citizen should make sure that it remains valid
for the entire duration of the trip.

Passports may be obtained through certain local post offices and U.S.
district courts. Application may be made in person or, in some cases, by
mail. A separate passport is needed for each family member who will be
traveling. The applicant must provide (1) proof of citizenship, (2)
proof of identity, (3) two identical passport photos, (4) a completed
application form, and (5) the appropriate fees. The cost is $35 per
passport ($20 for travelers under 18) plus a $7 execution fee for
first-time passports or travelers applying in person. The usual
processing time for a passport (including time in the mail) is three
weeks, but travelers should apply as early as possible, particularly if
time is needed to obtain visas, international drivers licenses, or other
documents. Additional information is available from the nearest local
passport office or by calling the Office of Passport Services in
Washington, D.C. (202-647-0518).

Visas, which are required by many countries, cannot be obtained through
the Office of Passport Services. They are provided for a small fee by
the foreign country's embassy or consulate in the United States. To
obtain a visa, the traveler must have a current U.S. passport. In
addition, many countries require a recent photo. The traveler should
allow several weeks to obtain visas, especially if traveling to Eastern
Europe or developing nations (embassies and consulates in the United
States are listed in appendix IV). Some countries that do not require
visas for tourist travel do require them for business travel. Visa
requirements may change from time to time.

Requirements for vaccinations differ from country to country. A travel
agent or airline can advise the traveler on various requirements. In
some cases, vaccinations against typhus, typhoid, and other diseases are
advisable even though they are not required.

BUSINESS PREPARATIONS FOR INTERNATIONAL TRAVEL

Before leaving the United States, the traveler should prepare to deal
with language differences by learning whether individuals to be met are
comfortable speaking English. If not, plans should be made for an
interpreter. Business language is generally more technical than the
conversational speech with which many travelers are familiar; mistakes
can be costly.

In some countries, exchanging business cards at any first meeting is
considered a basic part of good business manners. As a matter of
courtesy, it is best to carry business cards printed both in English and
in the language of the country being visited. Some international
airlines arrange this service.

The following travel checklist covers a number of considerations that
apply equally to business travelers and vacationers. A travel agent or
various travel publications can help take these considerations into
account:

*    Seasonal weather conditions in the countries being visited.
*    Health care (e.g., what to eat abroad, special medical problems,
     and prescription drugs).
*    Electrical current (a transformer or plug adapter may be needed to
     use electrical appliances).
*    Money (e.g., exchanging currency and using credit cards and
     travelers' checks).
*    Transportation and communication abroad.
*    Cultural differences.
*    Tipping (who is tipped and how much is appropriate).
*    U.S. Customs regulations on what can be brought home.

ASSISTANCE FROM U.S. EMBASSIES AND CONSULATES

Economic and commercial officers in U.S. embassies and consulates abroad
can provide assistance to U.S. exporters, both through in-depth
briefings and by arranging introductions to appropriate firms,
individuals, or foreign government officials. Because of the value and
low cost of these services, it is recommended that the exporter visit
the U.S. embassy soon after arriving in a foreign country.

When planning a trip, business travelers can discuss their needs and the
services available at particular embassies with the staff of the local
Commerce district office. It is also advisable to write directly to the
U.S. embassy or consulate in the countries to be visited at least two
weeks before leaving the United States and to address any communication
to the commercial section. The U.S. business traveler should identify
his or her business affiliation and complete address and indicate the
objective of the trip and the type of assistance required from the post.
Also, a description of the firm and the extent of its international
experience would be helpful to the post. Addresses of U.S. embassies and
consulates are provided in Key Officers of Foreign Service Posts, a
publication available from the Superintendent of Documents, U.S.
Government Printing Office, Washington, DC 20402-9371; telephone
202-783-3238. The cost for this publication is $5 for one year, and it
is issued three times per year.

A program of special value to U.S. business travelers is the Department
of Commerce's Gold Key Service, which is custom tailored to U.S. firms
visiting overseas markets. This service combines several forms of
Commerce assistance, including agent and distributor location,
one-on-one business counseling, prescheduled appointments with key
contacts, and U.S. embassy assistance with interpreters and translators,
clerical support, office services, and so on. The service is not
available in all markets and may be known under a different name in some
countries (e.g., RepFind in Mexico). Further information and assistance
are available from any Commerce district office.

CARNETS

Foreign customs regulations vary widely from place to place, and the
traveler is wise to learn in advance the regulations that apply to each
country to be visited. If allowances for cigarettes, liquor, currency,
and certain other items are not taken into account, they can be
impounded at national borders. Business travelers who plan to carry
product samples with them should be alert to import duties they may be
required to pay. In some countries, duties and extensive customs
procedures on sample products may be avoided by obtaining an ATA
(Admission Temporoire) Carnet.

The ATA Carnet is a standardized international customs document used to
obtain duty-free temporary admission of certain goods into the countries
that are signatories to the ATA Convention. Under the ATA Convention,
commercial and professional travelers may take commercial samples; tools
of the trade; advertising material; and cinematographic, audiovisual,
medical, scientific, or other professional equipment into member
countries temporarily without paying customs duties and taxes or posting
a bond at the border of each country to be visited.

The following countries currently participate in the ATA Carnet system:
Australia, Austria, Belgium, Bulgaria, Canada (certain professional
equipment is not accepted), Cyprus, Czechoslovakia, Denmark, Finland,
France, Gibraltar, Greece, Hong Kong, Hungary, Iceland, India
(commercial samples only), Iran, Ireland, Israel, Italy, Ivory Coast,
Japan, Luxembourg, Mauritius, Netherlands, New Zealand, Norway, Poland,
Portugal, Romania, Senegal, Singapore, Sri Lanka (certain professional
equipment not accepted), South Africa, South Korea, Spain, Sweden,
Switzerland, Turkey, United Kingdom, United States, Germany, and
Yugoslavia.

Since other countries are continuously added to the ATA Carnet system,
the traveler should contact the U.S. Council for International Business
if the country to be visited is not included in this list. Applications
for carnets should be made to the same organization. A fee is charged,
depending on the value of the goods to be covered. A bond, letter of
credit, or bank guaranty of 40 percent of the value of the goods is also
required to cover duties and taxes that would be due if goods imported
into a foreign country by carnet were not reexported and the duties were
not paid by the carnet holder. The carnets generally are valid for 12
months. Contact U.S. Council for International Business, 1212 Avenue of
the Americas, New York, NY 10036; telephone 212-354-4480. Council
offices are also located in Boston; Timonium, Md.; Miami; Schaumburg,
Ill.; Houston; Los Angeles; and San Francisco. Further information on
the ATA Carnet system can be found in Carnet: Move Goods Duty-free
Through Customs, an informative free brochure published by the council.

CULTURAL FACTORS

Business executives who hope to profit from their travel should learn
about the history, culture, and customs of the countries to be visited.
Flexibility and cultural adaptation should be the guiding principles for
traveling abroad on business. Business manners and methods, religious
customs, dietary practices, humor, and acceptable dress vary widely from
country to country. For example, consider the following:

*    Never touch the head of a Thai or pass an object over it; the head
     is considered sacred in Thailand.

*    Avoid using triangular shapes in Hong Kong, Korea, and Taiwan; the
     triangle is considered a negative shape.

*    The number 7 is considered bad luck in Kenya and good luck in
     Czechoslovakia, and it has magical connotations in Benin. The
     number 10 is bad luck in Korea, and 4 means death in Japan.

*    Red is a positive color in Denmark, but it represents witchcraft
     and death in many African countries.

*    A nod means no in Bulgaria, and shaking the head from side to side
     means yes.

*    The "okay" sign commonly used in the United States (thumb and index
     finger forming a circle and the other fingers raised) means zero in
     France, is a symbol for money in Japan, and carries a vulgar
     connotation in Brazil.

*    The use of a palm-up hand and moving index finger signals "come
     here" in the United States and in some other countries, but it is
     considered vulgar in others.

*    In Ethiopia, repeatedly opening and closing the palm-down hand
     means "come here."

Understanding and heeding cultural variables such as these is critical
to success in international business travel and in international
business itself. Lack of familiarity with the business practices, social
customs, and etiquette of a country can weaken a company's position in
the market, prevent it from accomplishing its objectives, and ultimately
lead to failure.

Some of the cultural distinctions that U.S. firms most often face
include differences in business styles, attitudes toward development of
business relationships, attitudes toward punctuality, negotiating
styles, gift-giving customs, greetings, significance of gestures,
meanings of colors and numbers, and customs regarding titles.

American firms must pay close attention to different styles of doing
business and the degree of importance placed on developing business
relationships. In some countries, business people have a very direct
style, while in others they are much more subtle in style and value the
personal relationship more than most Americans do in business. For
example, in the Middle East, engaging in small talk before engaging in
business is standard practice.

Attitudes toward punctuality vary greatly from one culture to another
and, if misunderstood, can cause confusion and misunderstanding.
Romanians, Japanese, and Germans are very punctual, whereas people in
many of the Latin countries have a more relaxed attitude toward time.
The Japanese consider it rude to be late for a business meeting, but
acceptable, even fashionable, to be late for a social occasion. In
Guatemala, on the other hand, one might arrive anytime from 10 minutes
early to 45 minutes late for a luncheon appointment.

When cultural lines are being crossed, something as simple as a greeting
can be misunderstood. Traditional greetings may be a handshake, a hug,
a nose rub, a kiss, placing the hands in praying position, or various
other gestures. Lack of awareness concerning the country's accepted form
of greeting can lead to awkward encounters.

People around the world use body movements and gestures to convey
specific messages. Sometimes the same gestures have very different
meanings, however. Misunderstanding over gestures is a common occurrence
in cross-cultural communication, and misinterpretation along these lines
can lead to business complications and social embarrassment.

Proper use of names and titles is often a source of confusion in
international business relations. In many countries (including the
United Kingdom, France, and Denmark) it is appropriate to use titles
until use of first names is suggested. First names are seldom used when
doing business in Germany. Visiting business people should use the
surname preceded by the title. Titles such as "Herr Direktor" are
sometimes used to indicate prestige, status, and rank. Thais, on the
other hand, address one other by first names and reserve last names for
very formal occasions and written communications. In Belgium it is
important to address French-speaking business contacts as "Monsieur" or
"Madame," while Dutch-speaking contacts should be addressed as "Mr." or
"Mrs." To confuse the two is a great insult.

Customs concerning gift giving are extremely important to understand. In
some cultures gifts are expected and failure to present them is
considered an insult, whereas in other countries offering a gift is
considered offensive. Business executives also need to know when to
present gifts _ on the initial visit or afterwards; where to present
gifts _ in public or private; what type of gift to present; what color
it should be; and how many to present.

Gift giving is an important part of doing business in Japan, where gifts
are usually exchanged at the first meeting. In sharp contrast, gifts are
rarely exchanged in Germany and are usually not appropriate. Gift giving
is not a normal custom in Belgium or the United Kingdom either, although
in both countries, flowers are a suitable gift when invited to someone's
home.

Customs concerning the exchange of business cards vary, too. Although
this point seems of minor importance, observing a country's customs for
card giving is a key part of business protocol. In Japan, for example,
the Western practice of accepting a business card and pocketing it
immediately is considered rude. The proper approach is to carefully look
at the card after accepting it, observe the title and organization,
acknowledge with a nod that the information has been digested, and
perhaps make a relevant comment or ask a polite question.

Negotiating _ a complex process even between parties from the same
nation _ is even more complicated in international transactions because
of the added chance of misunderstandings stemming from cultural
differences. It is essential to understand the importance of rank in the
other country; to know who the decision makers are; to be familiar with
the business style of the foreign company; and to understand the nature
of agreements in the country, the significance of gestures, and
negotiating etiquette.

It is important to acquire, through reading or training, a basic
knowledge of the business culture, management attitudes, business
methods, and consumer habits of the country being visited. This does not
mean that the traveler must go native when conducting business abroad.
It does mean that the traveler should be sensitive to the customs and
business procedures of the country being visited