Doing business in Asia

Asia is the main destination for Chilean exports. It also is the only region in the world expected to experience growth next year, according to most reports. As such, Chile’s business sector will definitely be focused on the region. Before doing business in this market, said sector should be clear about certain aspects of negotiation. This article endeavors to illuminate the subject.

Asia is growing mainly due to economies such as China, Japan and Korea. However, differences in culture and business models may hinder the success of Chilean companies in these markets. There are differences in doing business to which the West is not accustomed. However, understanding these issues is one of the very reasons successful Western firms make money. A few, crucial rules of etiquette and protocol can help to overcome language, religious and cultural barriers, thereby allowing Westerners to establish successful personal and business relationships. 

While there is much diversity among Asian countries, they have certain features in common. They are polite, have respect for elders, avoid controversy and confrontation, rarely raise their voice to others and are reserved about shows of affection in public. If a business deal seems difficult to close, Asians prefer to say it will be difficult or nearly difficult to close, instead of openly stating it will be impossible. 

So when beginning a business deal, it is important to know the basic characteristics of the Asian markets. Namely, be aware of the current economic situation and outlook, development levels in the various regions, and of the countries and sectors that offer the best markets for Chilean products.

Furthermore, there are basic things to know before exporting, such as forms of payment, opportunities and challenges, tariffs and free trade agreements in force. Exporters should also take into account the following: Asian values, culture and business style; business etiquette; and, identifying the person responsible for decision-making in the negotiation process.

We must also place importance on social issues such as good personal relationships, which may take precedence over an immediate need. Good communication is also paramount, whereas cultural and language differences may blur many issues. One should be focused on a long-term business plan. Namely, one must be patient in Asia, because their decisions will be slow in coming. It is also important to be innovative and present several business alternatives. One should prepare for a wide-spectrum negotiation and never promise anything which cannot be delivered with a high degree of certainty.