Unit 2

Where Gift Giving Matters
When it comes to the importance and expectations of gift giving, Japan is clearly in a class by itself. In other Asian cultures, because of the importance of personal relationships, gift giving is still important but not on the scale of that of Japan. In some cultures, it is now often considered more appropriate for a visitor to host an expensive and formal dinner or banquet, rather than to give expensive material gifts. The key here is reciprocity. If your foreign host decides to throw a banquet in your honor while visiting, it would be expected and appropriate to return the favor—during that visit. The following list will help you judge the relative importance of gift giving in each culture. The list refers to gift giving as a business practice. When invited to someone’s home for a social occasion, regardless of the culture, it is always appropriate to bring some sort of gift for the host or hostess.

Successful Gift Giving
Gift giving does not have to be a complicated process. With the proper research, an eye to cultural sensitivities and planning for the presentation, the chances of a cultural faux pas are greatly diminished. As mentioned previously, success can be assured if you provide the answers to such fundamental questions as who should be getting a gift? What is a culturally appropriate gift? And how and when should the gift be presented? Also don’t be afraid to flaunt brand names. Well-known global brands such as Gucci, Dior, and Mont Blanc add value in most parts of the world and reflect favorably on the giver.

The Etiquette of Receiving Gifts
Knowing how to appropriately receive a gift from a business colleague is not usually something a businessperson spends an inordinate amount of time thinking about. Still, it is an area where one can still offend. Always accept a gift gracefully, regardless of how you feel about the gift or the giver. Some basic do’s and don’ts of receiving an international business gift:
□It is considered rude in many cultures to unwrap or open a gift in the presence of the giver. In others, the giver may even request that you open it right away. When in doubt, ask the giver if they would like you to open it immediately.
Refusing Gifts
Actually refusing a gift is fairly rare in international business circles. However, with the movement towards common global ethics standards, it is likely to become a little more common. It is important to distinguish between a proper gift of appreciation or respect, and a bribe masquerading as a gift. In American culture, it is perfectly acceptable to refuse a gift and, under certain circumstances, it is because mandatory. A western executive is more likely to return a gift to a giver because it is considered too extravagant or might be misconstrued as a bribe. Frequently in North American and European cultures, company policy states that an employee, regardless of rank, is not allowed to receive a gift of any size. As a courtesy to international colleagues, most companies and company executives will mention this up front to avoid any embarrassment to the giver. If you have any doubt a counterpart’s company policy towards gifts by all means ask—but do so discreetly. By the same token, any executive working for such a company should let a foreign colleague know as early as possible what the company gift policy is. Politely letting others know either beforehand or at the time the gift is offered that you appreciate the gesture but are prohibited by company policy from accepting is good manners and should never create hard feelings.
Refusing a gift in most Asian culture is a tricky dance and runs a real risk of insulting and frustrating the giver if they are the host. If at all possible, accept it, even if you don’t personally keep the gift but instead pass it on to a charity. Refusing a gift shows a lack of cultural sensitivity. Any company wishing to work on an international stage should make exceptions where the law permits for gift sense and personal morals of employees is preferable to an outright ban on gift giving and receiving. Such a ban can be misconstrued as out –and –out rudeness in much of the world.

Latin America
Gift giving in this part of the world is much less ritualistic compared to Asia and the Middle East, but it still plays an important part in the social culture. Not presenting a colleague with a small token of appreciation at the conclusion of a business deal is considered rude—but not fatal to a business relationship. Most Latin American nations are high-context, relationship-driven cultures where gift giving underscores the value of business relations. Latin Americans simply appreciate and look favorably on individuals and companies that display thoughtfulness and generosity.
□Gifts to women can easily be misconstrued as a flirtation. It should be made abundantly clear by content and presentation that no sexual innuendo is meant.
□Avoid gifts that the receiver might feel compelled to wear or display unless very sure about his or her personal tastes.