export import research paper part 2
Assignment 5: Export/Import Research Paper-Part II
Export/Import Research Paper-Part II
Culture always varies from one community to the other. However, when it comes to the business field, different businessmen and women, originating from different cultures around the globe, always interact since business does not have boundaries. That is why you will find one country based on different cultural practices trading/conducting business activities, i.e. import and export kind of business activities, with another country based on a totally different cultural activities. An example of such countries is the U.S and the France which we analyzed in the first part of this assignment.
Moreover, when one indulges himself/herself in a business environment, the viability of such an environment is always determined by various extrinsic/external factors, some of which may include: government policies (that may determine the compliance of the business), and security factor. For one to conduct a business in a given environment, he/she must always make security the key factor since it this activity involves monetary activities and a businessman/woman will never want to risk on insecurity matters. From the results of the analysis done in the first part of this assignment, it is, therefore, clear that the cultures of the two countries in question, i.e. U.S and France, have distinct cultures especially when it comes to business matters. It hence follows that for a U.S citizen/individual to conduct any business activities such as export/import activity in France, he/she has to, most importantly, consider the determinants of the viability of hi/her business activity. Such determinants include cultural, governmental, compliance management and security requirements.
France and the U.S. have varied cultures and hence different business culture. In France’s business culture, the most crucial dimension is the uncertainty avoidance. French people do not like to ignore something, guess or anticipate what can probably happen in the future. According to them everything has to be structured, organized and planned, they hate surprises. On the other hand, Americans do not require a lot of rules and are less emotionally expressive than the French. They welcome innovations, new ideas and do not care very much about what the future holds as long as they can fix any potential problem.
After arriving at the decision to conduct an export/import kind of business activity in France, it is therefore very much important to consider some cultural determinants about this country that will be of much importance to you in the field of business within France. As a U.S citizen, it will be crucial to learn the French language because the French people (especially the French businessmen) value their language. It is true that in most of the international business activities and interactions, the English language is mostly used. However, since this is not the case in France, as a result of them valuing their language, it is quite important to learn the French language. Even if you don’t know it very well and hence cannot speak fluently, it is also good to make apologies of which they will appreciate your efforts in learning the language and will switch to English after some time for a more efficient communication.( INTERNATIONAL BUSINESS TIMES, 2011).
The other cultural determinant is to understand their business model. As stated earlier in the first part of the assignment, the French business structure is hierarchical in nature. Most, if not all, of the French organisations, always follow a vertical line of command. With this kind of command, the top management always holds the ultimate decision on matters on business deals. This decision is delegated down-wise to the subordinates during meetings meant for passing of information. It is hence important to consider recognizing their business model to carry on smoothly in your business. Furthermore, since you will intend to carry out long term business activities within the country, it is wise discussing your issues with the CEO (i.e. PDG, according to France) before commencing with your activities. This is because CEO is always the top management. The French people always value humility and patience. Therefore, as a foreigner, from U.S to be specific, it is worth for you to learn to be patient and humble.
It is also important to put emphasis on being formal and professional. It is known to us that French businessmen and women value formality. You should learn how to greet a French colleague, how to speak at the start of a meeting and you should avoid calling French people by their first names. The French nationals always introduce themselves with their surname first. According to the French culture, as a businessman/woman you should always dress conservatively and tastefully. This business attire will portray your professionalism and your status which will enable you to obtain favor from the French nationals. (Jones, 2011).Finally on cultural determinants, having decided to conduct a business there, you should, therefore, be prepared for a cultural exchange. French nationals, most specifically those in the business, are always proud of their country and cultures. As a matter of fact, they further respect someone who can speak eloquently about their cultures and politics. This simply implies that you should be ready to discuss the French culture with your business colleagues.
Focusing on governmental, compliance management and security requirements, we understand that the U.S and France have been trading for so many years. It is also clear that France welcomes foreign investors and businessmen/women to conduct business activities within the nation. France also has a stable and a safe and reliable business climate that attracts investment from all over the globe. The French government has put a significant quantity of resources in the process of attracting more foreign investors. The government has accomplished this through policy incentives, marketing and investor support mechanisms.
Moreover, the lawful and administrative environment in France is very straightforward and stable. The administration additionally keeps up a generous research and development tax credit as well. The French government as of late actualized new work laws, which will fortify professional preparing and add components of adaptability to the French work market. Endeavors are under the approach to improving French assessment and work laws and managerial techniques. These endeavors and methods being led by the France government are very appealing for the outside speculators. These methods subsequently are entirely critical determinants to conducting an export/import business action in France. This is so because through such set approaches and strategies and tax rearrangements, makes an empowering situation for one to direct a business action inside of France. (Olivier Collette, 2015)
In the U.S, compliance and security are the issues that any businessman/woman is conducting an export/import activity or supply chain, has to comply and contend with. Compliance deals with corporations or organisations managing their governmental regulatory obligations when engaged in import/export supply chains. Some, among many others, of these obligations, include documentation, recordkeeping, valuation, and classifications. On the other hand, security deals with issues to do with protecting and safeguarding the prime interests of the corporations and organisations as well as the citizenship from any potential harmful acts that may incorporate terrorism, war, civil commotions, among many others. This two, compliance and security, always go hand in hand in most cases. That is no one can ever be secure and noncompliant or vice versa.
An example of this is “the 24-Hour Manifest Requirement” that mandates that, on inbound freight into the U.S, the U.S Customs receives a detailed manifest sent electronically, twenty-four hours before ship departure from the foreign port of what will be entering the United States. This is the new security procedure in the U.S and failure to comply results in import refusal, seizure of goods, and fines and penalties. This security procedure, however, has a compliance element in that there is a regulatory aspect to the requirement with a finance consequence, and there is a recordkeeping component to the overall process. (Mastering Import and Export Management,106).
Having decided to conduct an international business, it is thus wise to understand the INCO terms and documentation. These are the International Commercial terms that normally provide the definitions for the terms of international trade. They are the terms of sales that are to be understood by sale operators to carry on with the international transactions. These terms transverse all trading nations and thus are universal under all circumstances. Therefore, as an exporter has to understand these terms to carry out the import/export activity, and he/she need to have a copy of these terms.
J. Melanie. (2011).INTERNATIONAL BUSINESS TIMES. Doing Business in France: 8 Cultural Cues That Make (or Break) a Deal.
Gide Loyrette Nouel. (2011). Guide to Doing Business in France
Thomas A. Cook, Rennie Alston and Kelly Raia. (2011). Mastering Import and Export management.United States – Geert Hofstede. (n.d.). Retrieved from http://geert-hofstede.com/united-states.html