Crash Course for U.S. Businesses Wanting to Do Business in Thailand

As an emerging third world democracy led by billionaire Prime Minister Thaksin Shinawatra, Thailand has become an ideal trading partner with US Companies. Thailand has continued its historical role of aligning itself with Western society, and strengthened its diplomatic relationship with the US by contributing troops to George Bush Jr.'s Iraq War. In turn, the Bush administration has economically rewarded Thailand for its support by cultivating an increasingly favorable trade relationship. Though Thai society has increasingly Westernized itself, it is imperative to gain some local knowledge and understanding of Thailand and America's social and cultural differences. This will ensure the success in developing a working and mutually respectful business relationship.

Thai Business Etiquette

- Thailand cultivates an extremely hospitable culture, especially towards foreigners. Thais are mildly obsessed with others' opinion of them and go to great lengths to impress and entertain foreigners. Often, foreigners notice a deep-rooted economic inferiority complex pervasive within Thai society.

- After Thailand's 1997 economic crash, property values plummeted, hundreds of businesses failed and thousands declared bankruptcy. Thailand's modern corporate society is relatively young and a twenty year-old company is considered old. Mentioning how long your company has been doing business can be impressive to your Thai counterpart.

- Thais often merge professional and personal relationships. Whereas in the West, a common saying "It's not personal, it's business" justifies certain actions, Thais base all professional relationships on friendship. Thai companies go to great lengths to entertain potential customers and expect to be entertained similarly when they are the client. Part of the reason for this is to "get to know" one another and cultivate the necessary personal relationship so a mutually beneficial professional relationship can follow. Often, your Thai counterparts will express the desire to become "friends."

- Thais love their karaoke and often take their foreign guests out for a night of karaoke. The time spent socializing with potential business partners is as important as the time spent talking business. Thai companies allocate a large budget for "entertaining" purposes.

- Negotiating prices is typically expected. Thais view Westerners as rich and tend to inflate prices-this extends to all aspects of business transactions in Thailand.

- When visiting Thai offices, it is customary to remove one's shoes. Feet are considered the lowest point of one's body, so one should never use their foot to point at anything sacred. Likewise, one should never point any part of their foot at another, including the bottoms of their feet.

General Thai Etiquette

- Conversely, the head is literally and spiritually the most sacred part of a person's body and should not be touched, with the exception of small children.

- Thais traditionally regard their king as semi-divine. Any perceived insult directed towards the king is punishable by law and will be regarded as highly offensive.

- Be wary of touching people, accepting objects or eating with your left hand. Traditionally, the left hand is considered dirty, as it is used to supplement toilet-paper.

- Yelling or speaking loudly is inappropriate.

- Age is to be respected and though the upper-elite is making strides in equalizing gender relations, men are still viewed as superior to women. Under no circumstances are women allowed to touch monks.

- As a sign of greeting, respect, gratitude, apology and good-bye, Thais will place palms together at their chest and often bow (a Wai). Generally, younger people initiate this act when interacting with an elder and are expected to bow. Elders and monks only lower their heads when bowing to those younger than themselves.

- Ninety percent of Thai society is devout Buddhists. Act respectfully in all Buddhist temples and towards all Buddhist iconography.

- Thais are extremely careful to "save face," and will do everything to avoid any type of conflict. They are afraid of taking responsibility and will even lie rather than admit they are wrong.

- Whereas in Western society the respectful way to address someone is Mr. or Mrs. (last name). In Thailand, the polite means of addressing another is Mr. or Mrs. (first name)

Eating Etiquette

- There are very few Thai vegetarians, and this concept of abstaining from consuming meat for non-religious reasons is nearly incomprehensible to the average Thai. Because Buddhist laws prohibit the killing of animals, some monks are vegetarians, but eat eggs and shellfish. Most Thais do not understand veganism, so those subscribing to these dietary principles should explain to their hosts exactly what they do and do not eat.

- Thai food is notoriously spicy, and Thais generally expect that Westerners are unable to handle the spice. Your hosts will typically ask before ordering.

- It is polite to taste all dishes. Thai eating customs dictate that a variety of dishes be ordered for everyone to share, rather than everyone ordering their own personal dish. Because of the communal nature of eating, it is polite to take only small amounts of the main dish, and go back for fourth and fifth helpings.

- Do not completely finish your whole plate of food. An empty plate can send the message that you are still hungry, not satisfied, or even insult your host by sending the message that not enough was provided.

- Eating with a fork in the left hand and a spoon in the right hand is customary in Thai society. Thais often assume that foreigners cannot eat with chopsticks.

Making a good impression

- Knowing even a couple words in Thai language will impress the Thais and will be viewed as an act of respect. Thais appreciate any small attempt at learning their language and will generally laugh at the foreigner speaking Thai. Though laughing may be perceived by the Westerner as a form of ridicule, it is quite the opposite. This reaction is an expression of appreciation and gratitude.
Here are some basic Thai words/phrases:
Sawat di ka- Hello (women) / Sawat di kup- Hello (men)
Kup Coon Ka- Thank you (women) / Kup Coon Kup- Thank you (men)
Aroy Ka- Delicious (women) / Aroy Kup- Delicious (men)
Chop Ka- I like (women) / Chop Kup- I like (men)

- Having some knowledge of Thai history, culture or Buddhist philosophy will impress your host and demonstrate respect for their country. Here are some basic facts about Thailand:

Prime Minister Thaksin Shinawatra won the country's biggest ever election victory in February 2001 under the 1997's People's Constitution. As an extremely successful businessman, his policies are geared at encouraging foreign investment by not charging any export tax when buying from manufacturers.

Rama IV is one of the most highly respected kings in Thai history. He modernized Thailand by establishing the first Thai university (Chulalongkorn University located in central Bangkok), improved the country's infrastructure, built hospitals, and abolished slavery. Rama IV was featured in the book, play and movie "Anna and the King," where his British teacher gave him Uncle Tom's Cabin to read as a child. Thai's consider Rama IV to be one of the most influential kings in history.

Thai society generally expects every male to enter the monk-hood at one point in their life. The current king was educated in America and spent 10 years as a monk. Today, he is now the longest reigning monarch, even beating England's Queen Elizabeth.