Differences in Business Practices in Islamic Countries Compared to the United States
Differences in Business Practices in Islamic Countries Compared to the United States
Timothy D Bell
University of the Incarnate Word
Abstract
The purpose of this paper is to give professionals working in Islamic countries a better understanding of the business system in those countries. The Islamic world may be complex as its 1.3 billion people, but there is one rule is straightforward for all Westerners and should never be broken if you want to do business in this area.
“One thing you do not bring up is the Palestinian-Israeli situation.” Advised Samuel L. Hayes III, an expert on Islamic finance and an emeritus professor of investment banking at Harvard Business School. (Lagace, 2002)
Business people, particularly Westerners who work in this region of the world or do business with an Islamic business person, need to understand the extent to which religion and Islamic law are intertwined at all levels of society, including commerce, to greater and lesser degrees depending on the country. “This law is seen as deriving from direct, divine command.” Said Vogel. “This is important to grasp.” (Lagace, 2002)
Keywords: Koran, Islamic Law, Islamic World
When doing business within an Islamic country you must understand the basic tenets of the Islamic religion as it relates to commerce. Knowing this you will have an easier time abroad. Contracts should be fair to all parties. A partnership is preferred over hierarchical claims. (Lagace, 2002)
Any type of speculation is prohibited. There is no gambling. “For instance, if you invested in an Islamic mutual fund, among those industries which would be barred from representation as funds would be the gambling industry. But gambling also relates to futures to currency hedging; so it’s a major situation that you have to be aware of” (Lagace, 2002) this is also found in
Timothy D Bell
University of the Incarnate Word
Abstract
The purpose of this paper is to give professionals working in Islamic countries a better understanding of the business system in those countries. The Islamic world may be complex as its 1.3 billion people, but there is one rule is straightforward for all Westerners and should never be broken if you want to do business in this area.
“One thing you do not bring up is the Palestinian-Israeli situation.” Advised Samuel L. Hayes III, an expert on Islamic finance and an emeritus professor of investment banking at Harvard Business School. (Lagace, 2002)
Business people, particularly Westerners who work in this region of the world or do business with an Islamic business person, need to understand the extent to which religion and Islamic law are intertwined at all levels of society, including commerce, to greater and lesser degrees depending on the country. “This law is seen as deriving from direct, divine command.” Said Vogel. “This is important to grasp.” (Lagace, 2002)
Keywords: Koran, Islamic Law, Islamic World
When doing business within an Islamic country you must understand the basic tenets of the Islamic religion as it relates to commerce. Knowing this you will have an easier time abroad. Contracts should be fair to all parties. A partnership is preferred over hierarchical claims. (Lagace, 2002)
Any type of speculation is prohibited. There is no gambling. “For instance, if you invested in an Islamic mutual fund, among those industries which would be barred from representation as funds would be the gambling industry. But gambling also relates to futures to currency hedging; so it’s a major situation that you have to be aware of” (Lagace, 2002) this is also found in
Cited: Coady, D. (2013, Jan 23). http://www.harbus.org/2002/Doing-Business-in-Islamic-1042/. Lagace, M. (2002, Feb 04). Harvard Buisness School. Retrieved from http://hbswk.hbs.edu/item/2745.html: http://hbswk.hbs.edu/item/2745.html Qur 'an. (n.d.). ----------------------- DIFFERENCES IN BUSINESS PRACTICES IN ISLAMIC COUNTRIES 1