Question: Sharpening Your Communication Skills
Languages never translate on a word-for-word basis. When doing business in the global marketplace, choose words that communicate a single idea clearly. Avoid using slang or idioms (words that can have meanings far different from their individual components when translated literally). For example, if a U.S. executive tells an Egyptian executive that a change in plans "really threw us a curve ball," chances are that communication will fail. Team up with two other students and list 10 examples of slang (in your own language) that would probably be misinterpreted or misunderstood during a business conversation with someone from another culture. Next to each example, suggest other words you might use to convey the same message. Make sure the alternatives mean exactly the same as the original slang or idiom. Compare your list with those of your classmates.
Building Your Team Skills
In April 2009, eight U.S. steel companies and the United Steelworkers union accused Chinese pipe manufacturers of dumping $2.7 billion worth of a particular type of stainless steel pipe on the American market the previous year. (Specifically, the type of pipe is called "oil country tubular goods" and is used in oil and gas wells.) In a petition to the U.S. International Trade Commission (ITC) and the U.S. Department of Justice (DOJ), the group said 2,000 U.S. employees had lost their jobs as a result of the unfairly priced Chinese imports. The petition asked for tariffs of up to 99 percent on the Chinese steel.50 With your team, research the outcome of the steel industry's petition.
Did the ITC and DOJ enact tariffs on Chinese steel?
After you have discovered the outcome of the petition, analyze the potential effect of the government's position on the following stakeholders:
• U.S. businesses that buy this type of steel
• U.S. steel manufacturers
• Employees of U.S. steel manufacturers
• The United Steelworkers union
• Chinese steel manufacturers Present your analysis to the class and compare your conclusions with those reached by other teams.
Developing Your Research Skills
Companies involved in international trade have to watch the foreign exchange rates of the countries in which they do business. Use your research skills to locate and analyze information about the value of the Japanese yen relative to the U.S. dollar. As you complete this exercise, make a note of the sources and search strategies you used.
1. How many Japanese yen does one U.S. dollar buy right now? (You can find the foreign exchange rate for the yen at www.x-rates.com and many similar sites.)
2. Investigate the foreign exchange rate for the yen against the dollar over the past month. Is the dollar growing stronger (buying more yen) or growing weaker (buying fewer yen)?
3. If you were a U.S. exporter selling to Japan, how would a stronger dollar be likely to affect demand for your products? How would a weaker dollar be likely to affect demand?