Rommel N.

Layosa
Identify two countries which are culturally diverse. Compare the cultures and discuss
how cultural differences influence, the costs of doing business, business practices and
business ethics.

A. The costs of doing business in each country

In the World Bank's Ease of Doing Business Report of June2013, Nigeria ranked 147th
of189 countries globally. Compare this to South Africa which ranked 41st and Ghana
which ranked 67th over the same period. The implications of high costs of doing
business are far reaching. Enterprises find their growth from small to medium or
medium to large, very difficult without government intervention. The financial cost of
doing business squeezes both the producer and the consumer and over the long term
leaves both parties ravaged and, in many cases, extinct. This includes the near
absence of affordable credit to genuine businesses and the unwillingness of financial
institutions to provide venture capital to start-up firms. The limited talent pool makes the
cost of attracting and retaining top-performers significant and often times costly. Social
costs are usually responsible for the inactivity and slow pace of growth of many firms. A
main thrust of this is frequently changing regulation, especially without adequate
planning and warning. An example of this type of regulatory cost is depicted in ATM
operations. There are multiple regulators and various regulatory bodies that enterprises
are obliged to affiliate and comply with.

Chad is Africa's fifth largest country by geographical area with a rapidly growing
population of 15.81 million (2019 estimate). Chad has the tenth largest oil reserves in
Africa and the largest population of camels in the world. Formidable challenges
including poor infrastructure, low consumer purchasing power, weak human capital, and
bureaucracy and corruption can be overcome with sound business plans and patience.
In 2019, Chad ranked No. 146 in U.S. total trade value with a total of $217.5 million, a
deficit of $48.2 million, according to the United States Census Bureau. Chad is eligible
for the African Growth and Opportunity Act (AGOA), receiving duty-free entry for certain
goods. Chad's primary export partners in 2018 included India, the Netherlands, and the
United Arab Emirates. China was Chad's most important export partner with 42 percent.
B. Business Practices

In Nigeria, business is centered on relationships, and face-to- face encounters are the
norm. Expect to spend a significant amount of time getting to know your new business
contact as you try to comprehend your shared company objectives. Chadians value the
chance to get to know" potential partners before entering into formal negotiations.
Before getting business, most down to meetings start with courteous queries about
personal and family health. Supplementing textual communication with as many face-to-
face interactions as feasible is beneficial in Chad. Doing business in Chad takes
patience and perseverance. Chadians typically dress in business or traditional clothes
in professional contexts. For business meetings in Chad, ladies should dress modestly
in accordance with cultural norms. Chad's official languages are French and Arabic.
French should be used for all business communication, brochures, and promotional
materials. The ability to translate items into Arabic can also be beneficial. Although most
business calls are conducted in French, certain talks require the assistance of an
interpreter.

REFERENCE LINKS:
http://www.nigeria-consulate-frankfurt.de/English/Nigeria/Culture/culture.html
https://www.iexplore.com/articles/travel-guides/africa/chad/history-and-culture
https://www.trade.gov/country-commercial-guides/chad-market-overview
https://assets.ctfassets.net/be5plzzokcr0/gSsM8SGQbTNH1kY9oL7IL/
bacc6aee2c9a510994e77499a12b4565/AGP_Cost_of_Doing_Business.pdf
https://www.worldbank.org/en/country/nigeria/publication/nigeria-development-update-
ndu https://www.afdb.org/en/countries/central-africa/chad/chad-economic-outlook
https://kpakpakpa.com/spotlight/business-culture-101-understanding/
https://www.privacyshield.gov/article?id=Chad-Business-Travel