新編大學(xué)英語(yǔ)第三冊(cè)u(píng)nit10 Text D: Doing Business in Asia

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UNIT 10 AFTER-CLASS READING 3; New College English (III)

Doing Business in Asia

1 Many Westerners wanting to do business in Asian nations seek information and advice about things they need to know in order to be successful. By Westerners who have already been working in Asian nations, they are told to remember as priorities the five "Fs": family, face, fate, favors and friends. Although they do have some subtle differences in meanings and connotations in different parts of Asia, nevertheless, Western businessmen need to be sensitive to these issues if they wish to be successful. The five "Fs" are explained in the following way.

2 Family: This means that business is often closely connected to family and that there is a family network that branches out regionally and internationally, providing efficient political, financial and emotional support, as well as distribution knowledge. This networking is particularly obvious among Chinese who control huge business segments in Asia and are by far the most successful business group in the region. Their large presence also helps Singapore is 77 percent Chinese; Malaysia, 45 percent; Taiwan, a Chinese province, 99 percent. Indonesia and the Philippines also have sizable and prosperous Chinese communities. It is explained that the importance of family goes back to Confucius, who taught that family represents relationships that one can trust. Although families in the West may be connected, they're almost never as closely connected as in Confucian Asia. This family dependence is also true in Korea. The largest corporation in South Korea is Hyundai, a multibillion-dollar company. Headed by the eldest brother, the company's five major divisions are either managed by one of the five brothers, a brother-in-law or a son-in-law.

3 Face: Two interpretations are given for the meaning of "face". One is literal Asians like to do business face-to-face. They want to put a face together with a business, to recognize an individual and to associate an individual with a given company. Many foreign companies have made the mistake of sending a series of different executives to Asia during lengthy contract negotiations. They are advised not to do this; that if negotiations are started by one individual they should be completed by that same person if at all possible. However, if a change must be made, then the first person should take the new one and formally present him as his successor so that the two faces are identified. The second interpretation of "face" is that in a way it means "respect". The businessman is told that he must show the "proper respect" according to the age and position of the person he is dealing with and also take into account the size of the person's company in comparison with his own. In Western countries, age is not necessarily given respect, but in Confucian Asia, age is given great respect. Thus businessmen are told to always pay attention to any elderly persons attending a business meeting. They are also warned that it is very difficult for Japanese to speak directly and say no. This too has everything to do with "face". They will do almost anything to avoid saying no, even to the point of not giving an answer at all. By giving no answer or saying something like "I'll think about it", or "I'll consider it", they are "saving face", and really mean "no". This is the opposite of the Western yes or no" mentality. Thus a Western businessman is warned never to put a Japanese businessman in the position of having to say yes or no

4 Businessmen are also given advice about how to show "face" to someone of higher rank. Richard Tallboy, CEO of the World Coal Organization, who has had extensive experience in Asia, tells foreigners not to forget the "Chairman's 1/2 percent for the chairman's own pocket". He says that this means they should always start negotiating at a higher price with Asians. In the first round of negotiations foreigners should allow themselves to come down in price 10 percent. In the second round of negotiations they should at last come down another five percent. Then finally when everyone is ready to sign the contract, the Westerner should allow the chairman to negotiate another 1/2 percent off. This way the chairman can say he was able to achieve more than his staff was able to. Thus he gains great "face". Tallboy concludes that this way everyone is happy and the Westerner is assured that his product will be well taken care of.

5 Fate: Westerners are told that many Asians strongly believe that fate influences life, that certain events are destined, and that people have lived many lives and will live many more after death. Because of this philosophy, Asians are more willing than most Westerners to accept things they cannot change. Many Westerners may call these beliefs superstitious. However, they are warned to keep these thoughts to themselves and are told to learn about local customs and beliefs in Asia and to respect them.

6 Favors: Westerners are told that "Always repay a favor" is a common saying among Asians. A favor or debt should never be forgotten. If a Western businessman gets a favor from an Asian, he should expect to repay this favor, no matter how much time passes. Asians are thus serious about the saying, "If you'll scratch my back, I'll scratch yours." In other words, Asian societies are reciprocal societies. The former deputy mayor of New York City, Kenneth Lipper, tells the following story. When he was in Japan for six months in the early 1960s, he suggested the name of a Japanese acquaintance for a possible scholarship. One day, 27 years later in New York City, he received a call from this man who was making his first trip to the United States with his family. Now a top executive in a major Japanese company, he and his family wanted to pay their respects to the man who had done him a favor so long ago.

7 Friends: If Westerners have no relatives in Asia, they are told that the next best thing to have when doing business in Asia is to have gone to school with someone from there. Asians want to deal with people that they know well, or with people to whom they have been introduced by people they know well. One successful American business executive working in Asia tells people that he spent most of his time developing and maintaining GUANXI, which he explains as a Chinese word meaning ties, relationships, or connections. The Japanese equivalent is KONE. How can Western businessmen make the right connections in Asian countries? Hiring a consultant is one way, but the best way is to make friendships and to keep them. How can a Westerner do this? The answer for those people working in Korea, Thailand and Japan is "golf". Successful businessmen agree that it's the best way to get to know important people in society, the way to meet royalty, top government officials, and corporate chiefs. A lifetime golf membership in Tokyo can cost an incredible one million dollars, but some Western businessmen or their corporations have been willing to pay this because of the connections it will bring.

8 So these are the five "Fs": family, face, fate, favors, and friends. These are the priorities for Westerners when they are doing business in Asia.