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| Cultural
Summaries
By Harriet Murray
July 13, 2003 |
Last week, some of the cultural characteristics
of North and Latin America were discussed. Knowledge
of similarities and differences in cultures help us
relate to a buyer or seller of real estate.
 These
summaries are broad-based and are not meant to be all-inclusive.
They are meant to be guides to understanding.
Now let’s look at other cultures.
ASIA is home to over 3 billion people,
which make up half of the world’s population.
This is a population ten times larger than the population
of North American.
Asia contains some of the fastest
growing economies in the world in recent years. Among
these countries in the Asian region that are playing
a significant role in terms of outgoing or incoming
international investment in real estate are: Japan,
South Korea, China, Australia, Hong Kong, India, Indonesia,
Malaysia, Singapore, Pakistan, the Philippines, Taiwan,
Thailand, New Zealand.
Some of the cultural influences,
which may affect business practices in this region,
include:
1. Hindu, Buddhist and Confucian
traditions.
2. Conflict resolution by role authority versus law
3. Legal traditions of civil law versus common law
4. Hierarchical social structure
5. Group priority over individual interests
6. Situational logic based on circumstances rather
than on reason
7. Non-linear notions of time
8. A tendency to regard foreigners as outsiders
Note the similarities and differences
between North and Latin American cultures.
The following are cultural sketches
to help you better relate to another person and are
not to be construed as specific or stereotypical.
JAPAN
Cultural: The “Japanese way”
is to eliminate tension, promote group spirit and maintain
harmony. Vertically structured relationships govern
life. Individual rights are subordinated to the interests
of the group. Decision-making is reach by consensus.
People are racially and culturally very homogeneous:
they may have difficulty-accepting outsiders. Logic
is flexible and subjective, based on adaptation to circumstances
and feelings; rather than on fixed principles.
Doing Business: Use formal references
to the person, addressing them by their last name. Never
suggest that they call you by your first name. Never
discuss serious business at first meetings. The exchange
of business cards is important to establish one’s
credentials. Never write on them or put them into your
back –pocket. These first meetings are reserved
for establishing a recognized official relationship.
To develop relationships further, dinner or entertainment
may be conducted after business hours. The Japanese
do not like to sign restrictive contracts; they prefer
loose arrangements based on trust and good will.
SOUTH KOREAN
Cultural: South Korean is one of
the most homogenous nations in the world, racially and
linguistically. Confucianism is the basis of conduct
and character for most Koreans. Confucianism calls for
total loyalty to a hierarchy of authority, moving from
parents to family to clan to community to nation. The
culture is collective: individuals may speak for the
group, but decisions are made by consensus. A sense
of harmony (kibun) must be maintained at all times.
Class, breeding and character are defined by the ability
to control emotions. Men tend to dominate in public
situations.
Business: Be punctual, even if your
counterpart is not. Be sincere and honest: relationships
are more important to Koreans than the actual business
at hand. Keep in mind that you will often be told what
they think you want to hear: “maybe” usually
means “no.” Koreans are distinct from other
Asians in food language and culture. Gift-giving to
acquire favors is common in the workplace. Do not open
gifts in front of the giver. Be aware that an ancient
art of studying faces (nunch’i) is well developed.
Words may be misleading.
CHINA
Cultural: The Chinese are masters
of the oblique. What is not said is often more important
than what is said. You will be told what they think
you want to hear. Social status and connections are
very important. China is a collective culture: a group
leader makes decisions and individuals are expected
to follow. Decisions are made subjectively, based on
prior experiences. Feelings can be accepted as valid
over facts.
Business: Use titles with a person’s
surname. Chinese names are in the order of surname,
generational name, and birth name. If a gift is given,
it is a newer practice. Know that the Chinese normally
decline three times before accepting. Eye contact is
important. Eyes should be slightly lowered during introductions
to show deference and respect. Decision-making is by
consensus. Feng-shui practices are believed to harmonize
life. Feng-shui involves manipulating the environment,
including the placement of buildings and objects to
produce good fortune. Business discussions will be most
likely discussed by the senior member of the group.
AUSTRALIA
Cultural: Australians are generally
open-minded and trusting of others until given reason
not to be. Rules and laws take precedence over emotions.
Individualism is important in decision-making. The nuclear
family is the strongest socializing force. There is
a great deal of emphasis on ability, rather than on
rank or wealth. Australians are highly ethnocentric
and take great pride in their country.
Business: Be punctual. Australians
believe that tardiness conveys a careless attitude.
Be direct. Australians value a forthright and honest
manner. Do not use high pressure negotiating tactics.
Presentations should be made with modesty, brevity and
a degree of casualness. Academic qualifications are
downplayed in public. Do not discuss business in a social
setting unless the other party brings it up first.
Being aware of cultural differences
can help us greatly in business, including the buying
and selling of real estate. “Directness”
is prized or expected in some cultures, while it is
offensive and damaging in another culture.
One cultural may value objective
rules and law over emotions. In another culture, the
specific situation or emotional feelings become the
basis of logic. Living in linear or non-linear time
is a very important difference.
Understanding a culture means recognizing
the critical elements that define it, including language,
religion, social structures, values and customs. It
is also important to recognize the historical context
in which cultures have interacted, as well as any deeply
rooted stereotypes or prejudices.
This article is based upon legal
opinions, current practices and my personal experiences
in the Puerto Vallarta-Bahia de Banderas areas. I recommend
that each potential buyer conduct his own due diligence
and review. The National Association of REALTORS has
provided information for this article.
HARRIET MURRAY
Harriet
Murray, Broker
For additional information on properties for sale or
lease within the bay, please call or e-mail me at: harriet@casasandvillas.com
Thanks and until next week.
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