Question

Eric, an exporter of sports apparels, lost out on a contract with an importer of a developing country because the importer percerved him to be too aggressive during negotiations Which socio cuiltural factor proved to be a barrier in this global trade?

Answer 1

Obviously, Eric didn’t put into consideration the kind of attitudes and behavior of a business person working for a company in a developing country.  Putting into consideration the mindset of the importer in a developing country for instance, the decision-making process would take more time when it comes to evaluating proposals, for instance. Jumping into a contract immediately is something the importer would not be open to as taking risks for him is not an option because he would have to study the feasibility of selling the imported products, how much it would cost, et. al. And all of these things take time and hence, he would need a business partner who would patiently work with him in coming up with the most cost-efficient package that would be beneficial for both of them. The importer would definitely shy away from an aggressive person who would just dictate his proposal and would not even give signs that he’s open to collaborate for a longer period of time before the importer can make a final decision. Context cues and behaviors mean a lot for some businessmen.