Joke of the Week: The Linguistic Pitfalls of International Trade


ImagesBelieve it or not, but a few of my readers actually complain that sometimes my posts are "too technical."  I guess, they forget that, even though I manage to squeeze a ton of cultural references here,  this is primarily a business blog and some of the topics will be amusing and/or relevant only to financial professionals, executive managers, and business owners.

Well, even though this may further aggravate the merriment seekers, I cannot pass on the opportunity to share the following 100% true episode that has occurred in one import/export company early last week.  It's just so hilarious (at least to me)! 

Here is the premise.  English has become a common language of international business many years ago.  Of course, there are other linguistic possibilities: if transacting parties are both Latin American, they will use Spanish; employees of a company in Shanghai will speak Mandarin to their counterparts in Guangdong region.  But I guarantee that communications between, let's say, a Turkish manufacturer and a Dutch banker, or a Latvian banker and a Swiss financial broker, will be conducted in English. 

Of course, a Korean supplier has no choice but to employ English to communicate her concerns about a Letter of Credit (LC) provided as a form of payment by an American importer.  The document itself is prepared in English for crying out loud.  Still, it's a foreign language – some linguistic pitfalls are unavoidable.  

Those who work in international trade or read my book CFO Techniques know that LCs are very strict documents treated in a very literal manner by the banks responsible for making sure that a supplier gets paid only if and when it complies with conditions stipulated in the buyer's LC.  For example, the shipping documents (most frequently these are Bills of Lading (BLs)) must be prepared in accordance with the importer's requirements.

Now, enter a young and anxious clerk at the Seoul office of the said Korean supplier.  She is responsible for putting together all documents to be presented at the bank so that her employer can get paid $2,745,000 for 1500 mt of the product that just sailed away.  She knows very well that the papers must be in full compliance with the LC.  She is a novice and feels a lot of pressure to do it right.  On top of that, it's all in English, and, even though she is pretty good with it, the stress makes her paranoid.  Basically, she is a nervous wreck. 

One thing in particular bothers her the most.  So, she writes the following email to the customer's CFO:

"LC request is 'FREIGHT PAYABLE WITHING 7 DAYS OF SHIPMENT DATE' but the shipping line put on Bill of Lading 'FREIGHT PAYABLE WITHIN 7 DAYS OF SHIPPING DATE'.  Please urgently ask the shipping agent to revise the BL."[sic]

The American CFO, who has dealt with the international trade issues for many years, had a good laugh reading it, thought that the girl needs some Xanax, and replied:

"Relax.  The difference between the words 'SHIPMENT DATE' and 'SHIPPING DATE' will not be construed as discrepancy by ANY bank as these phrases mean EXACTLY THE SAME."

Hey, it's all good.  At least she didn't have to gesture and guess.            

   

Language Barrier


I don't know why, people still single out the US as a country of immigrants.  Just because before Columbus "found" the "New" World, this land was vastly unpopulated, and after that Europeans started moving in?  Well, people,  all over the world, migrated from one place to another through the history of humanity.  And I can assure you that Americans who can trace their origins to Mayflower and beyond, don't consider themselves immigrants.    

Of course, we have an inflow of new immigrants, and we  do lead in absolute numbers, but per capita, Australia's and Canada's immigration rates are currently three times higher than America's.  Also, there is a question of concentration.  What we should be called is a country of uneven immigration

There are places where people have never seen an immigrant.  I have a Turkish friend who once stopped with his half-Swedish-half-French wife in a small Midwestern town for gas and the shop-keeper called a sheriff.  100% true story. Homogeneous regions and countries scare me – they are too easy to manipulate.

I enjoy the blessed places, where you can see different faces and hear different tongues every step you take.  And it is with a great reluctance, I have to recognize the fact that the language barrier problem sometimes affects the work environment.  Well, it's rather accent barrier.   

I myself have no such problem.  Over the years I worked with people from more than 20 countries.  I pay attention and my ears got accustomed to all sorts of accents and grammatical deviations.  Unfortunately, that cannot be said about everybody.  Many times I have encountered situations of stark misunderstanding between employees of different origin.  It results in  frustration, waste of time and even errors. 

Few years ago I had two employees in my analytics group – one was a woman from Ukraine and another was a man from China.  While I had no problem communicating with them, they could not understand each other.  The woman was very cautious about filling the gaps in information with her own assumptions and guesses.  Instead, she would drag him into my office, asking me to explain.  CFO, the Interpreter! 

Something needed to be done.  I thought of replacing one of them, but that's not my way of doing things.  Instead, I asked them to communicate in writing – every time they needed to say something to each other, they used IM.  Some people may think that it took away more time – not true.  They spent so much time trying to understand one another and getting me involved, my solution was actually a time-saver.  Actually, seeing the words has improved their verbal communication as well.    

I think problems like that are rooted in the lack of effort.  The two kept asking me why I didn't have problems understanding either of them.  I'd said,  "Just pay attention to expressions and emotions and it will be easier to understand."

Like in this video.  The great comedian speaks a cartoon language he invented himself.  Yet, people all over the world understand him.