International Business: United States and Saudi Arabia

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Date:  23rd July2011
International Business: United States and Saudi Arabia
Introduction
On the fifteenth of July 2011 the Washington state department of commerce and the Saudi Arabian business council signed a memorandum of cooperation that is intended to help in promoting bilateral business relationship between the two states. In addition to that several agreements have been signed in the past and this has enabled the council to help company`s realize over $ 46.3 million in new business deals with Saudi Arabia. These include business opportunities in industries including agriculture, organic farming, live stock and water maintenance as well as water reuse technologies.
Therefore in order to ensure that an investor becomes successful in making investment in Saudi Arabia one must bear in mind the contrast and similarities in various aspects of doing business especially considering the Islamic religion as well as westernization. Fr anyone wishing to conduct business with or in Saudi Arabia understanding of Saudi etiquette and personal manner in which business conducted is very essential to success. This paper will analyze the various contrasts and differences regarding the negotiation style in business between these two countries and its significant to successful business delays. Also the roles that cultural components palsy in ensuring a successful business in Saudi Arabia especially by Americans interested in investing in the country. Finally, this paper will analyze the implication of Hofstede`s Dimensions of Culture in conducting business inn Saudi Arabia.
Negotiation
Before embarking in a new business venture in new markets, as manager its very important that one undetsand how other cultures handle the issues of negotiations to prevent offending them especially considering that different cultures do things differently. The culture of Saudi Arabia is quite homogenous and Saudi businessmen especially among younger generation are quiet experienced in doing business and interacting with culturally diversified visitors. For a long time Saudi Arabians have been engaged in trading and this has made them develop the merchant culture which has made them shrewd and skilled highly skilled bargainers. On the other hand, they are not open minded business men thus when negotiating business they expect things to be done their own way. Also, considering that Saudi Arabia is an Islamic country, showing any disrespect for Islamic religion yields disastrous results when it comes to business negotiations.
Relationships and respect
The culture of Saudi Arabian expect its member to poses a strong sense of loyalty to the group while at same time leaving an opportunity for individual preferences. Its therefore very important for one to build a lasting and trusting relationship as they expect establishment of strong bonds before closing any business deal. Its very important that one proceeds ...