1. CULTURAL IMPERATIVES, ELECTIVES, AND EXCLUSIVES
1.1. IRAQ
1.1.1. Imperatives
1.1.1.1. Mutual trust is essential to doing business with them.
1.1.1.2. Be introduced by a trusted person for both parties.
1.1.1.3. Develop friendly business relations.
1.1.1.4. Iraqis need to know personal details such as home, family, ancestors, studies, work history, etc.
1.1.1.5. Business on Fridays are forbidden because it is a holiday, most people do not work on Thursday so the "week" is considered from Saturday to Wednesday.
1.1.1.6. Women are excluded from business situations
1.1.2. Electives
1.1.2.1. Use the Insh'Allah expression meaning "God willing".
1.1.2.2. Negotiator can interrupt business by phone calls from friends and family.
1.1.2.3. Avoid friendly words, expressions of courage, handshakes, kisses, hugs, touches in the face and should not be taken as an expression of politics.
1.1.2.4. Business people in Iraq work until night so you can make an appointment at night even until midnight.
1.1.3. Exclusives
1.1.3.1. Because of their culture, excessive self-confidence of the counterparty may be negatively considered at the time of negotiation.
1.1.3.2. Be aware of the popular beliefs about the Iraq culture, for example, "Arab honor." Never say or do something because someone told you that this is the "usual."
1.1.3.3. God's will governs all activities and is frequently mentioned in the negotiations and social gatherings. Don`t try to "share" their believes.
1.2. AUSTRIA
1.2.1. Imperatives
1.2.1.1. Austrians are extremely formal in dealing with foreigners, and expect equal treatment.
1.2.1.2. It is essential to target business contacts by title until you have created some familiarity.
1.2.1.3. Austrians tend to keep work and social life separate.
1.2.1.4. They do not work more hours than planned or during weekends.
1.2.1.5. If an Austrian colleague invites you home, it is recommended to bring a bottle of wine and be punctual.
1.2.1.6. Punctuality is very important.
1.2.1.7. It is also customary to remove shoes when entering someone else's house.
1.2.1.8. Business lunches are ideal for meeting people, so that issues such as family and politics should be avoided.
1.2.2. Electives
1.2.2.1. The dress code is not overly formal and you may attend a meeting without a tie.
1.2.2.2. The Austrians really enjoy meals at restaurants and business meetings are often scheduled during lunch, a negotiator may or may not eat traditional dishes.
1.2.2.3. Meetings during breakfast time are becoming increasingly popular. so it is possible to set up a meeting at this time.
1.2.3. Exclusives
1.2.3.1. English is commonly used in business environments. However, knowing a few words in German to use as an introduction never hurts, but you should not speak German if you don´t known it well.
2. HIGH CONTEXT-LOW CONTEXT
2.1. IRAQ
2.1.1. A high-context culture
2.1.1.1. The context of the negotiation is more important than words.
2.1.1.2. Words are not decisive and the use of legal documents is not that important.
2.1.1.2.1. This makes negotiations slower.
2.1.1.3. Social position is decisive and also the knowledge about it.
2.1.1.4. Businesses are slower
2.1.1.5. They require a personal relationship that establishes trust between parties
2.1.2. Most Arab countries belong to this cultural context.
2.2. AUSTRIA
2.2.1. A low-context culture.
2.2.1.1. In Australian culture messages are explicit
2.2.1.2. Words convey most of the information.
2.2.1.3. Legal documents are considered essential
2.2.1.4. Businesses are faster
2.2.1.5. Details are analyzed quickly.
2.2.2. Most countries in Europe are low context
3. LEVEL OF CORRUPTION AND ETHIC
3.1. Corruption Perception Index (2015)
3.1.1. IRAQ
3.1.1.1. RANK: 161/168
3.1.1.2. SCORE: 16/100
3.1.1.3. CONTROL OF CORRUPTION (2010): 5%
3.1.2. AUSTRIA
3.1.2.1. RANK: 16/168
3.1.2.2. SCORE: 76/100
3.1.2.3. CONTROL OF CORRUPTION (2010): 92%
4. GENERAL ASPECT TO DO BUSINESS
4.1. IRAQ
4.1.1. Tips:
4.1.1.1. 1. Reserve a unique company name at the Baghdad Chamber of Commerce.
4.1.1.1.1. The name must be in arabic
4.1.1.2. 2. Hire a lawyer to draft articles of association
4.1.1.2.1. They will help the registration process
4.1.1.3. 3.Deposit the initial capital at a commercial bank.
4.1.1.4. 4.Obtain the shareholders' tax clearance certificates from the General Commission of Taxation
4.1.1.5. 5. Apply for registration at the Companies Registry
4.1.1.5.1. Documents that must be presented
4.1.1.6. 6. Obtain the registration certificate Agency: Companies Registry
4.1.1.7. 7. Make a company seal
4.1.1.8. 8. Register for taxes at the General Commission of Taxation
4.1.1.8.1. Create
4.1.1.9. 9. Legalize accounting books
4.1.1.10. 10. Register employees for social security
4.1.1.10.1. The employer will deduct 5% from the employee’s salary and add to it an amount equal to 12% of the employee’s salary.
4.2. AUSTRIA
4.2.1. Tips:
4.2.1.1. 1. Obtain the confirmation from the Economic Chamber (Austrian Ministry of Finance) that the start-up company is really a new enterprise
4.2.1.2. 2. Notarize the statutes/articles of association or the declaration of establishment
4.2.1.3. 3. Deposit the minimum capital requirement in the bank
4.2.1.4. 4. Register the company at the local court (Handelsgericht)
4.2.1.5. 5. Tax Office registration
4.2.1.5.1. Registration is not available online
4.2.1.6. 6. Register trade with the trade authority
4.2.1.6.1. Procedures takes longer, depending on the requirements and authorities involved
4.2.1.6.2. Companies can register
4.2.1.7. 7. Register employees for social security
4.2.1.7.1. Companies with employees
4.2.1.8. 8. Register with the municipality
4.2.1.8.1. Municipalities levy community taxes on all businesses.
5. GENERAL CONSUMER BEHAVIOR
5.1. IRAQ
5.1.1. Variables
5.1.1.1. Social
5.1.1.1.1. Conservative
5.1.1.2. Psychological
5.1.1.2.1. Affected
5.1.1.3. Product
5.1.1.3.1. Look for improve
5.1.1.4. Price
5.1.1.4.1. Low - medium
5.1.1.5. Promotion
5.1.1.5.1. High
5.1.1.6. Place
5.1.1.6.1. Important
5.1.2. Factors
5.1.2.1. Monthly income
5.1.2.1.1. Average monthly salary
5.1.3. Types of behavior
5.1.3.1. Extensive decision making
5.1.3.1.1. Level of involvement
5.1.3.1.2. Product cost
5.1.3.1.3. Brand preference
5.1.3.1.4. Search effort
5.1.3.1.5. Time spent
5.1.3.2. Routine response behavior
5.1.3.2.1. Level of involvement
5.1.3.2.2. Product cost
5.1.3.2.3. Brand preference
5.1.3.2.4. Search effort
5.1.3.2.5. Time spent
5.1.3.3. Limited decision making
5.1.3.3.1. Level of involvement
5.1.3.3.2. Product cost
5.1.3.3.3. Brand preference
5.1.3.3.4. Search effort
5.1.3.3.5. Time spent
5.2. AUSTRIA
5.2.1. Variables
5.2.1.1. Social
5.2.1.1.1. Traditional
5.2.1.2. Psichological
5.2.1.2.1. Stable
5.2.1.3. Product
5.2.1.3.1. Improve
5.2.1.4. Price
5.2.1.4.1. Medium . High
5.2.1.5. Promotion
5.2.1.5.1. Important
5.2.1.6. Place
5.2.1.6.1. Store
5.2.1.6.2. Online
5.2.2. Factors
5.2.2.1. Monthly income
5.2.2.1.1. 3.624 Euros
5.2.3. Types of behavior
5.2.3.1. traditional buyer-seller relationship
5.2.3.1.1. Level of involvement
5.2.3.1.2. Product cost
5.2.3.1.3. Brand preference
5.2.3.1.4. Search effort
5.2.3.1.5. Time spent
5.2.3.2. Online buyer
5.2.3.2.1. Level of involvement
5.2.3.2.2. Product cost
5.2.3.2.3. Brand preference
5.2.3.2.4. Search effort
5.2.3.2.5. Time spent
5.2.3.3. Purchase decision
5.2.3.3.1. Purchase besed on urgent need
5.2.3.3.2. Impulse purchase
5.2.3.3.3. Bought on discount / promotion
5.2.3.3.4. Regular purchase - re.fill
5.2.3.3.5. Purchased for self
5.2.3.3.6. Purchase on special occasion
5.2.3.3.7. Purchase for social gathering
6. TIME MANAGEMENT
6.1. IRAQ
6.1.1. P-Time
6.1.1.1. Prefer doing many things simultaneously
6.1.1.1.1. Flexible relationships
6.1.1.2. Order based on preferences
6.1.1.2.1. Agreed-upon deadlines and how that may affect
6.1.1.3. Emphasis on people rather than the deal itself
6.1.1.3.1. Don´t want to upset others
6.2. AUSTRIA
6.2.1. M-time
6.2.1.1. Clear timeline
6.2.1.1.1. Organization
6.2.1.2. Deadlines
6.2.1.2.1. Puntuality
6.2.1.3. Schedule meetings
6.2.1.3.1. Means respecful
7. DRESSING CODE
7.1. IRAQ
7.1.1. Businessmen
7.1.1.1. Hot summers may allow the exclusion of suits
7.1.1.2. formality their needs to be observed by keeping sleeves down and shirts buttoned up.
7.1.2. Business women
7.1.2.1. women need to keep their shoulders, arms, knees, and legs covered regardless of occasion.
7.1.2.2. Also do well to wear a head scarf in keeping with the dress code for local women
7.1.2.3. Make-up should be low key or minimal in order to do away with unwanted
7.2. AUSTRIA
7.2.1. Businessmen
7.2.1.1. should wear dark coloured, conservative business suits; solid, conservative ties, and white shirts.
7.2.2. Business-women
7.2.2.1. should wear complemented with elegant accessories.
7.2.2.1.1. The loud clothes are not acceptable.
8. BUSINESS GIFTS CODE
8.1. IRAQ
8.1.1. Chocolates, well-packaged fruits, nuts, and snacks are recommended gifts for families
8.2. AUSTRIA
8.2.1. Gifts are not expected in business. Austrians sometimes give gifts to close business, but not frequently
9. Hosftede characteristics:
9.1. IRAQ
9.1.1. Power distance
9.1.1.1. (11 )Hierarchy for convenience only, equal rights, superiors accessible, management facilitates and empowers. Communication is direct and participative.
9.1.2. Individualism Vs Collectivism
9.1.2.1. (55)High preference for a loosely-knit social framework
9.1.3. Masculinity Vs Femininity
9.1.3.1. (79)live in order to work
9.1.4. Uncertainty Avoidance
9.1.4.1. (70) Rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. Time is money.
9.1.5. Long term orientation
9.1.5.1. (60)Pragmatic orientation, a strong propensity to save and invest.
9.1.6. Indulgence
9.1.6.1. (63)Enjoying life and having fun, Positive and optimistic attitude.
9.2. AUSTRIA
9.2.1. Power distance
9.2.1.1. (95)Hierarchy in an organization subordinates expect to be told what to do and the ideal boss is a benevolent autocrat
9.2.2. Individualism Vs Collectivism
9.2.2.1. (30) Loyalty in a collectivist culture is paramount and strong relationships.In collectivist societies offence leads to shame and loss of face.
9.2.3. Masculinity Vs Femininity
9.2.3.1. (70) live in order to work
9.2.4. Uncertainty Avoidance
9.2.4.1. (85) Rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. Emotional need for rules. time is money.
9.2.5. Long term orientation
9.2.5.1. (25) Truth; they are normative in their thinking and respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results
9.2.6. Indulgence
9.2.6.1. (17) Tendency to cynicism and pessimism and the societies do not put much emphasis on leisure time and control the gratification of their desires.