Doing business in Netherlands(Demo)
- 1. 2 A World of cultures
- 2. Netherlands Area of Country : 41,453 Sq. Kilometers Population : 16.8 million Capital : Amsterdam Government Structure : Unitary parliamentary constitutional monarchy Literacy rate : 99% Official Languages : Dutch Languages Commonly : Dutch, Frisian Spoken Major Religions : Christianity GDP per capita : 50,339 USD Unemployment rate : 7% Inflation rate : 1.1% Currency : Euro
- 3. Introduction The Netherlands is the main constituent country of the Kingdom of the Netherlands. It is a small, densely populated country located in Western Europe, with three island territories in the Caribbean. The largest and most important cities in the Netherlands are Amsterdam, The Hague and Rotterdam. The European part of the Netherlands borders Germany to the east, Belgium to the south, and the North Sea to the northwest, sharing maritime borders with Belgium, the United Kingdom and Germany. The Netherlands has 20 national parks and hundreds of other nature reserves, which include lakes, heathland, woods, dunes and other habitats. The predominant wind direction in the Netherlands is southwest, which causes a moderate maritime climate. There are cool summers and mild winters with typically high humidity. The history of the Netherlands is the history of a seafaring people thriving on a lowland river delta on the North Sea in northwestern Europe. The Dutch part of the Wadden Sea in the north, with its tidal flats and wetlands, is rich in biological diversity, and was declared a UNESCO World Heritage Nature Site in 2009. The Netherlands has a market-‐based mixed economy. It ranks 17th of 177 countries according to the Index of Economic Freedom. It had the thirteenth-‐ highest per capita income in the world in 2013, according to the International Monetary Fund. The Netherlands is a founding member of the EU, Eurozone, G-‐ 10, NATO, OECD, WTO and a part of the trilateral Benelux economic union. The country is host to the Organization for the Prohibition of Chemical Weapons. Dutch culture, or the culture of the Netherlands, is diverse, reflecting regional differences as well as the foreign influences, thanks to the merchant and exploring spirit of the Dutch and the influx of immigrants. The Netherlands and Dutch people have played an important role for centuries as a culturally liberal and tolerant center, with the Dutch Golden Age regarded as the zenith. The Dutch have a code of etiquette which is considered important and governs social behavior. Many general points of European etiquette apply to the Dutch as well. Dutch society is egalitarian, individualistic and modern. The people tend to view themselves as modest, independent and self-‐reliant. They value ability over dependency. The Dutch have an aversion to the non-‐essential. Facts about Netherlands The Netherlands' name literally means "Low Countries", influenced by its low land and flat geography, with only about 50% of its land exceeding one meter above sea level. In 2013, the United Nations World Happiness Report ranked the Netherlands as the fourth happiest country in the world, reflecting its high quality of life. 70% of the world's bacon comes from Netherlands. It was the first country to legalize same sex marriages in 2001. 75% of the world's flower bulb production comes from Netherlands. Netherlands was one of the six founding members of the European Union.
- 4. Cultural Mindset Flat Business Structures Dutch companies are rarely hierarchical. Decision making is a group process through which consensus is established. During this, all team members involved get opportunities to voice their opinion. This is a very egalitarian society where everyone can have his or her say. The worker representatives on the company council can be influential, so there should be no secrets within the organization. Relationship Oriented Building trust matters but business relationships are only moderately important in Netherlands. They are not a necessary precondition for initial business interactions. Dutch counterparts appear friendly but are somewhat reserved even after they have had several business interactions with you. They will open up once sufficient trust has been established. Once this has been established, there will be a sense of loyalty to you as a respected business partner. Group Oriented The Netherlands are a very egalitarian and tolerant society. Everyone, no matter what his or her status and influence, is considered valuable and worthy of respect. It is considered offensive to criticize a person in public or otherwise embarrass that person. Business relationships in this country exist between companies as well as between individuals. Direct Approach Communication is very direct in the Netherlands. The Dutch value straightforwardness and honesty much more highly than tact or diplomacy. They dislike vague statements and openly share opinions, concerns, and feelings with others. The concept of ‘saving face’ is not important in this country. While you want to remain respectful, pointing out mistakes is accepted and often appreciated. Diversity of opinion, across and on both sides of the negotiating table, is readily accepted. Do not Avoid Uncertainty Most Dutch are moderate risk takers. Dutch businesspeople apply universal principles rather than considering the specific situation. They dislike ‘making exceptions,’ even when arguments speak in favor of doing so. Personal feelings and experiences are considered irrelevant in business negotiations, so people focus on empirical evidence, logical arguments, and objective facts. Cultural Facts about The Netherlands Group Oriented-‐ Dutch care about who they are dealing with and team building is important. Relationship Oriented-‐ Building trust matters but business relationships are only moderately important. Flat – Dutch companies are rarely hierarchical. Direct Approach – Dutch prefer to be direct as they get to know and appreciate honesty. Concept of Saving Face is not important in Netherlands.