Doing Business in Hungary

With a strong economy in luxury car production, renewable energy and IT industries, Hungary is a growing business centre. Couple that with its emergence as a fashionable destination for high end tourism - no doubt due to its lovely climate, natural beauty and hospitable people- and you can see why Hungary is attractive place to do business. Our guide, compiled by one of our expert Hungarian interpreters, can help you get the most out of any venture to this historic land.

The Hungarian Language

Originating in Asia, the Hungarian language belongs to the Finn-Ugric family of languages (which also spreads, in different forms, to Finland and Estonia). The morphemes of Hungarian are joined together, which results in one long passage of speech which is quite difficult to understand. Nevertheless, you might find some basic greetings useful in breaking the ice and in increasing your chances of holding a successful meeting. So do not forget to greet your Hungarian colleagues with:

Jó reggelt! [yo reget] “Good Morning!”
Jó napot! [yo nu pot] “Good day!”
Jó estét! [yo esh tate] “Good Evening!”
Viszontlátásra!  [vece ont latt ash ra] “Goodbye!”
Jó éjszakát! [yo ace a cat] “Good Night!”

And of course remember the three magic phrases:

Köszönöm [kus u nume] “Thank you”
Kérem [key rem] “Please”
Elnézést kérek [l neigh zesh t] “Excuse me”

If you really want to impress your business partners, you might want to quote one of the longest words in their language: Töredezettségmentesítõtleníttethetetlenségtelenítőtlenkedhetnétek – literally, “you [plural] could constantly mention the lack [of a thing] that makes it impossible to make someone make something defragmenter-free” - unlikely to be relevant, I know, but impressive nonetheless. 

Hungarian is very descriptive; expect your business partners to express themselves in a few, highly complex, sentences, though it might take a few introductory sentences to get to the point of the conversation. The wonderful rhythm of Hungarian means that speech begins expansively, before narrowing to the key point by the end- a rhythm you may have to use in your own speech.  

Business etiquette

Appearance

Hungarian dress generally avoids bright colours, and it's advisable not to wear red clothing during meetings or negations as it is traditionally seen as provocative. Suits, like almost everywhere else, are de rigueur for everyday business and this applies to both sexes. However, since the temperatures in summer are quite high, short sleeve shirts are often worn, though often covered by a blazer or jacket. 

For men there is one cardinal sin in the business attire: white socks! We do not advise you to wear them at any occasion, apart maybe from an invitation for a morning jog on Margit Island with your business partner.

Body Language

National body language is much the same as British; an aversion to the constant eye contact used by Europeans, but looking at other business partners whilst talking signifies your respect towards them. When listening to a presentation or a lecture try to keep eye-contact to show your interest. Making notes might not only be helpful but is also seen as a sign of interest and seriousness, even if you are not going to ask questions afterwards.

Although shaking hands is used in business life, in every-day life it is usually used only during the first introduction. Wearing a hat obligates you to take it off whenever you meet a new business partner, eat or sit at the table. Wearing gloves also obligates you to take them off every time you shake hands. In winter this obligation is lessened for women, but if you do remove your gloves shaking another's hand you show great respect and deserve a compliment for doing so.

Meeting Etiquette

A number of rules of business conduct are observed during all types of meetings.

Firstly, Hungarians are punctual businessmen; one is expected to arrive at a meeting on time, though this rule is not always followed by Hungarians themselves. Being late for meetings has become so common that even managers do not excuse themselves for lateness. Of course, being on time should be your paramount concern.

Secondly, once you arrive to the meeting you should not seat yourself. An appointed person or the manager would show you to your chair. The official distance between negotiating parties in Hungary is 1.50 meters. If offered a drink during the meeting, try to sample the local mineral water (it's superb quality) or if you are feeling more adventurous, try coffee. Drinking coffee is almost a national ritual; make sure to put sugar in your cup with the spoon provided and to stir the coffee in a slow and elegant way. You might have to ask for milk separately, since Hungarians usually take their coffee and tea black.

Thirdly, as elsewhere, using mobile phones during a meeting is considered extremely rude. In practice, however, it does happen very often. You might also notice the manager asking to turn the mobiles to “silent” mode, while forgetting to do the same himself and even answering his phone. 

Gifts

Business gifts are rare in Hungarian business life, although it is advisable to bring presents in your role as a guest. Items such as sweets and flowers are suitable for women, and bottles of good (Hungarian) wine are appropriate presents for men. Give your gifts at the end of the meeting.

Behaviour

Hungarians are largely open and proud of their culture. Feel free to ask about something you find strange or surprising – Hungarians will happily explain it with additional historical and social background. One tale often told explains why men enter restaurants before their female companions. It is not, as it might seem to those brought up on the 'Ladies first' tradition, chauvinistic. Instead it dates back to the Middle Ages, when eateries were less peaceful and cultural, men would enter first and check if the atmosphere is proper for their lady companion. A chivalric (tall?) tale, and one proudly told.

Eating Customs

One could write an entire book on Hungarian eating customs, and no doubt someone has, and it's easy to get lost amongst the cuisines, customs and streets of Hungary wondering what and where to eat. So... be brave! Rely on your Hungarian business partner, or even someone sitting at a nearby table, to be your culinary guide; they will be delighted to instruct you. 
You might expect to be invited by your Hungarian colleagues for a traditional Hungarian meal in a traditional Hungarian restaurant, so feel free to ask about the decoration, the music (quite often folk Gipsy music) and the dishes served. You can expect heavy, very filling food, so avoid eating too much before the meeting. Hungarian food is also full of onions, garlic and peppers. It might be spicy, so your Hungarian colleagues should ask you first if you like spicy food and advise you on ordering a suitable meal. Do not be surprised if you have to look for salads and fresh vegetables – green leaves and dressings are not the most favourite of dishes in Hungary. Desserts are a specialty; most of those served today in Budapest were once ordered from Hungary by the Austrian court, so you might expect an imperial treat!

What even the most uninitiated gourmand can quickly grasp, though, is the strong culture of drinking wine. Hungary is a wine country, so if invited for a dinner, try to taste some of their national specialties. It is a custom to discuss the type, origin and taste of the wine while tasting it- just try not to taste too much!

 This post has, hopefully, taught you something about the intricacies of Hungarian business culture. There is, however, a lot more to learn: a professional life time's worth. At TJC Global, our interpreters are experts in Hungarian practices as much as they are experts in the language. To find out how our services can assist you on your next business trip to Hungary, visit TJC Oxford or contact us.

Doing Business in Japan

Japan is often seen as a land of paradoxes; a place where ancient tradition meets ever evolving luminous gadgetry. Its economy is technologically advanced, futuristic to outsiders, and the Japanese people have seemingly innate talent for innovation. At the same time, Japanese society has veins of tradition running through it; a highly developed sense of formality and politeness shows itself in everyday ceremonies that leave many Westerners nervous at the thought of embarrassing themselves or their hosts. 

      These fears shouldn't put you off; Japan, and its industries, are vibrant, enchanting things. Simply, if you're going to do business there, you have to do it right. Our helpful guide, compiled by our Japanese expert interpreter, can assist you if you should decide to venture to that colourful island without an interpreter.

Japanese Business Etiquette

A Westerner venturing to Japan for the first time will recognise many of the country's business practices, as the Western influences of international trade pervade the workplace. However, there are a reassuring number of traditional Japanese practices still around to attract your cultural interest, though they are often misunderstood or mistaken by non-Japanese businessmen.

         Meishi (名刺 pronounced mei-she) are the Japanese equivalent of business cards. Usually exchanged after bowing, they have a special meaning; to receive a business card without due care and attention can be seen as a personal rudeness. The correct way to present meishi is to hold it at the top corners with the lettering facing the person receiving the card. The receiver should then take the card by both lower corners, read it carefully and place it somewhere safe. There is a procedure to this exchange; the individual with a lower position within their company should give their card first, before the senior member completes the exchange with their own meishi.

         Keigo (敬語 pronounced kay-go) is a polite style of Japanese used frequently in business when talking to superiors. Keigo, meaning literally “respectful speech”, is used to show respect or humility to people you are unfamiliar with. This polite style is unknown to many Japanese people until they enter a company, since it is often not taught in schools or at home, and it becomes part of the learning curve for a new employee.

         Uchi/soto means, roughly, Inner/Outer and refers to your relationship with a particular group. In Japan status is conferred not only vertically, i.e. superior and subordinate, but also horizontally, i.e. those with whom you are familiar and those with whom you are not. This group dynamic is very important, and when you first meet anyone you will take up the position of soto, or outsider. One can be soto simply from being in a different branch of the same company, and the foreign traveller should not see it as xenophobia. Instead, you should see the distance you are shown as a sign of respect.

In fact, the position of soto does have some advantages over that of insider, uchi; you are given more leeway in your behaviour and suggestions and are not expected to follow the same strict rules as someone who is uchi.

 

         In Japan, silence is golden, and Japanese culture makes a definite connection between silence and wisdom. The Japanese character for knowledge, 知, combines the characters for losing 失 and mouth 口, and highlights the fact that Japanese consider people wise who refrain from speaking. Westerners may consider this silence hostile or uncomfortable, indeed some less scrupulous Japanese business books advocate silence as an intimidation tool against Westerners. The vast majority of the time however silence is simply to allow thought; try to analyse what sort of a silence it is through body language or the all important context, and decide whether it is a respectful silence or an upset silence.  

         Gifts in Japan are given to show appreciation of a favour done for you or to establish a sound business or personal relationship. Gifts should be something from your country and of a reasonably high quality, preferably with a special significance to your company or local area and not made in Asia. Gifts should be wrapped in “business colours” like dark greens, greys, blues and browns, but avoid white as it symbolises death. As with meishi, gifts should be given and received with both hands. Remember that to your business partners the gift you give and the way that you give it reveal a lot about your character and your attitude towards business.

Hints and tips on visiting Japan

         When doing business in Japan, appearance is everything. Dress conservatively and avoid anything that might suggest a lack of seriousness or respect. Tattoos, because of their association with the yakuza, are frowned upon, and one should do your best to cover them up. Bring shoes which can be put on and removed very easily, as you will be required to do so in public homes and in many restaurants.

         Bowing is something that also has its own intricacies, and could fill several blog entries by itself. For now, know that the depth and length of the bow both show your attitude to the person you’re bowing to. Bowing is usually done in various standardised increments, depending on how you treat the person opposite. A good rule of thumb is to bow to the same degree as the person you’re meeting, with your eyes down and hands by your sides. If you are unsure of yourself, do not attempt it, as it may be embarrassing or, worse, be seen as mockery. Non-Japanese should feel free to just acknowledge a bow and hold out a hand to be shaken, rather than attempting to bow yourself.

The Japanese language

The Japanese language is very different to most European languages or even other Asian languages, and its nuances will take many years to fully master. In the first place, its sentences feature verb-final construction – the verb comes at the end of the sentence – unlike English, which is mostly verb-second.
        Furthermore, Japanese has no definite or indefinite articles such as the English “a”, “an” or “the”, nor does it have plural forms. Shiryou might mean 'document' or 'documents'. Also, the same word can have any number of meanings depending on the context it is used in. For example, hai, can mean “Yes”, “thank you”, “I understand”, “I agree” and many more, simply by the situation in which it is used. A lot of Japanese communication relies on context, which you (or your interpreter) must take into account to fully understand what is being said.

        The Japanese alphabet is made up of characters for syllables rather than letters for individual phonemes like English, and they have two alphabets. Each contain 46 characters, in addition to

around 8000 pictographs, or kanji, which have multiple pronunciations and often only subtle differences between them. Contrary to popular belief these kanji are not just stylised pictures of what they mean, but a complex system of radicals that must be mastered and learnt off by heart.

 This post has, hopefully, taught you much about the intricacies of Japanese business culture. There is, however, a lot more to learn, a professional life time's worth. At TJC Global, our interpreters are experts in Japanese practices as much as they are experts in the language. To find out how our services can assist you on your next business trip to Japan, visit TJC Oxford or contact us.

Doing Business in Croatia

With a Mediterranean climate, rich history and vibrant culture, Croatia makes for a memorable place to conduct business. To make the most out of your trip, please read our expert guide.

Croatian Language

The Croatian language (rather than Serb-Croat language) is a Slavic one, and has 30 characters in its alphabet. To help you when you don't have an interpreter, follow this pronunication guide to help you tackle the additional letters, and deal with more familiar characters. 

Š as in shop 　　　　　　　　　　　　　             J as in yellow

Đ as in gin 　　　　　　　　　　　　　　            C as in biscuits

Ž as in treasure　　　　　　　　　　　　           Nj as in canyon

Č as in church                                             Lj as in billion

Ć as in nature                                              Dz as in jam

            

                                   

Traveling around Croatia

Croatia has an extensive public transport system, with buses being especially well connected, and timetables for buses, trains and ferries have long since been made available online. 

If you prefer driving, all the major car hire companies operate in Croatia, though be sure to mind these important driving rules;

• It is the law in Croatia that you must always drive with your headlights on.
• There is a zero tolerance law [0.0 ml/l] for drinking and driving.
• During the summer months [particularly July and August], when there are an increased number of visitors to Croatia, the roads and ferries can be very crowded. This is particularly the case on Saturdays. If you are planning an extensive tour around Croatia for the purpose of business it is probably best to avoid these months.
• If you do have the misfortune to have a road traffic accident, you should call the Police [telephone number: 92], who will make a report about the accident- vitally important for insurance purposes. This should be the case even for minor 'bumps', but its always best to use your common sense

Business matters

             

In general, business in Croatia is conducted much the same way as any other European country, so one should not worry too much about additional formalities or specifically 'Croatian' business practices. Simple rules to follow are;

• Do get in touch with your business contacts well in advance to make an appointment.
• Refer to your business contact by their title. Sometimes your business contact may call you by your first name with your title [i.e. Mr Bob/Ms Sally]. This is less formal than using your surname, but more formal than just first names.
• At Christmas time, a lot of companies send their business partners a small gift [such as a calendar, or a pen with the company’s logo].
• Most business transactions are expressed in Euros, Dollars or Swiss Francs. However, payments must be received in the Croatian currency of Kunas. ATM machines are widely available, and the majority of business outlets take the major credit cards. 

However, one important thing that foreign businessmen in Croatia should be aware of is the country's penchant for bureaucratic procedures, and this red tape can be quite complex and lengthy. Make sure you are fully aware of the relevant processes (and what you can do to speed them up) before travel. See 'Buying Property' below for key examples.

Wining and dining

As in many business cultures, food and drink play a key part in building relations and celebrating particularly satisfactory mutual gains.

• It is the custom that the person who hands out the invites to a meal should also be handed the bill for the meal. 
• Punctuality for meals is especially valued, and if you are aware that you're going to be late do your best to inform the host.
• As in the UK, a toast is finished by a clinking glasses with everyone else on the table. Make eye contact with the person you're 'clinking'.
• Rakija is the Croatian form of grappa, normally served as an aperitif or digestif. Although it is  a grape based drink, it can be infused with a number of different fruit, herbs and grasses. Be warned that it is quite a strong drink.
• Noted Croatian wines are Plavac [red wine], Teran [thick bodied red wine], Žlahtina [white wine] and Malvazija [white wine].
• If you are a vegetarian, it is probably better to inform your host in advance. Some restaurants specialise in meat dishes and would not be a suitable dining choice for vegetarians.

Buying Property in Croatia

Recently, there has been much interest in the purchase of property in Croatia; its climate and recent stability have made it a growing holiday destination. While there are a number of estate agents who specialise in selling property to foreign citizens, you can also find property advertised in local advertising newspapers (though not always in English). 

If you find a property that interests you, it is imperative that you find yourselves a good lawyer since the purchasing process is complex. Your Embassy can offer you advice on finding a lawyer who speaks English. Due to the system of inheritance, where houses are jointly inherited by a number of family members, do not be surprised if you find that more than one person owns the property you are interested in buying. If this is the case, you must make sure that your lawyer has checked that all of the owners are willing to sell. In addition, as a result of property having been de-nationalised after the break up of the Socialist Federal Republic of Yugoslavia, the people living in the property may not be the recorded owners in the land registry. Again, it is imperative that your lawyer checks this. 

If you are a foreign citizen you will need to apply to the Ministry of Justice for approval to buy property in Croatia, a process that (predictably) can take a very long time.  

It can be slightly problematic more for people who are buying property with the intention of renting it out, since in order to legally rent out the property you must have ownership papers. In addition, in order to avoid paying capital gains tax you need to be the ‘official’ owner for a certain number of years. Once again, you should speak to a lawyer about this who can explain to you in detail the laws regarding the renting out of property.

Joining the European Union

Croatia is in the process of preparing for joining to the European Union, and hopes to have done so by the end of 2013.

Health care in Croatia

In case of an accident, the telephone number for an ambulance is 94. If it is a minor medical complaint, then there are a number of private GP’s or dentists who offer an extremely high standard of medical care and often speak a number of European languages. If not, they will be able to arrange a translator/interpreter for you. Your host/business partner/hotel will be the best contact to help you arrange this.

We hope that this brief guide is of interest to you. If you should need more information, please visit the Croatia Profile at TJC Oxford  or consult the Croatian Tourist Board [www.croatia.hr]

Bon Voyage!