CROSS-CULTURAL COMPLICATIONS AND SUGGESTED SOLUTIONS

Business is conducted in an ever-changing environment, a blend of economic,political,cultural and personal realities and events. Different understandings of the respective obligations of the parties to a commercial transaction will often occur even when the parties belong to the same low-context society and the transaction is embodied in a legal document which can seldom anticipate all contingencies. CROSS-CULTURAL COMPLICATIONS AND SUGGESTED SOLUTIONS
Further negotiation between parties who have contracted with each other is often needed and practical considerations will usually be given greater weight than strict legal interpretation because only legal counsel really wins when there is business litigation.

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;
 (4) The supplier is unable for some reason to comply precisely with the contract and therefore,provides a substitute order , hoping that the buyer will inadvertently pay before discovering the switch and then reluctantly accept the merchandise with only minor adjustment.

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