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.