Trade Knowledge

Passing on a Common Business Culture
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Sharing an alcoholic drink is an aspect of doing business in many cultures.  If it’s not your thing, you don’t have to participate.  But while it’s permissible to abstain you should take care not to give offense that may impede a budding business opportunity.


 

Your WPG correspondent was first introduced to the role alcohol plays in business culture during a visit to Russia.  Concluding a deal with a university to engage in some student exchanges, a door flung open and in came the biggest bottle of vodka that one could imagine.  It was so big, it needed wheels to get from place to place.

 

My companion, leaned over and whispered, “Don’t try to keep up with them (our Russian hosts).”  Wise advice.  I couldn’t and didn’t try.  So cherished is the beloved vodka, that it’s sometimes used for creative purposes.

 

Once while flying out of the Russian Far Eastern city of Magadan, the airport there ran out of deicing fluid.  The jetliner was grounded until fluid could be found, and that could be days.  Pilots and ground crews huddled, and a call went out for every bottle of vodka that could be found in the local jurisdiction.  In no time the hastily assembled vodka was dumped into the deicing truck and sprayed over the plane, an MD-80.  Sooner than you could say “I’d like an olive with that,” the jet was on its way.

 

Spirits were omnipresent. Even airport arrivals within Russia can be occasions for toasts, including vodka and local sparkling wine, or champagnsky.   On several occasions, my business hosts greeted me planeside, glasses clinking.  This was before the advent of strict security procedures, but you get the point.

 

When in Beijing

 

In China, liquor is also part of the business culture.  President Richard Nixon exchanged toasts with Chairman Mao on his ice breaking trip to Beijing in 1972.  The preferred drink was called a Mao Tai, which is a strong grain alcohol.

 

People who abstain from drinking alcohol may be at somewhat of a disadvantage, but hosts are usually understanding, especially if the foreign guest allows a drink to be poured, participates in the toasts but doesn’t actually drink the contents.  Efforts to encourage you to drink can be responded to with a polite refusal without causing offense.

 

Offense sometimes happens when the foreign guest makes a clumsy show of refusing to participate.  One Chinese acquaintance related the following story.  He worked for an American company that was pursuing business in China.  The Chinese company signaled its interest in partnering with the American firm and its CEO flew over to consummate the deal.  A banquet was held and toasts were made.  The CEO didn’t drink or didn’t want to on this occasion.  He signaled his preference by turning over the drinking cup with a loud bang on table.  The hosts were aghast and deeply offended.

 

There was no deal to be had, despite many apologies after the fact. The American had offended his host, communicating a disdain for ritual that came across as crude and dismissive of the host’s carefully orchestrated oasis to exchange good feelings. 

 

Foreign women often are treated differently than foreign men when the hosts for social events are local men.  Drinks will be soft-pedaled with ample refills suggested. By accepting the first pour, guarding it for the remainder of the evening, and giving a toast when requested you can still be the life of the party.  Enjoying the spirit of the event without consuming the accompanying spirits, will generate good memories and maybe good business.  
( Melissa )04 May,2018

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