CROSS-CULTURAL COMPLICATIONS AND SUGGESTED SOLUTIONS
* When a party from a high -context culture takes part in a business understanding the factors discussed in the preceding two paragraphs may be even further complicated by very different beliefs about the significance of formal business understandings and the ongoing obligations of all parties. Hall’s anecdote about the INDIAN sales manager in Latin America describes a basic implicit disagreement about what is important for a business relationship.
* India is an important supplier of crude and processed agricultural and forest product raw materials to the United states and many other countries. Collectors and processors,usually small family-owned enterprises, are typically required to offer,months before the crop is in, processed product for later delivery to foreign buyers who must make long-team contractual commitments to their own customers. It is not possible for the Indian firms to hedge reliably by making forward crop purchases because typically the farmers or sellers of forest products do not have the resources to cover their sales if the crop fails and there are no regulated commodity exchanges for these products. Nearly every year there are major problems because——-
1) Natural disaster or insufficient plantings result in short crops;
2) Strikes,protracted power shortages, or the lack of spare parts result in excessive shipment delays and reduced capacity;
3) Business downturns or unexpected changes in the buyers required inventory levels or consumption lead buyers to request or even insist that shipments be held back or prices be reduced even though such action will cause the supplier severe financial hardship;