Return to Home Page 1997 A Cross-Cultural Perspective of Gift Giving By Paul Herbig Abstract This paper examines gift-giving from a cultural perspective and provides a set of recommendations for global business relations. INTRODUCTION Understanding culture is an essential part of a successful global marketer. Ignorance of the local business practices, social culture and etiquette can ruin the relationship between a company and its potential business partner. As business becomes more globally oriented, the significant of the verbal and nonverbal communication between the two parties have increased. One of the most important of these nonverbal communications elements is gift giving. Gift giving is an appropriate way of expressing what one feels, what level of relationship one seeks from the recipient, and how one should be perceived (Lemak, Arunthanes & Tansuhaj, 1994). A study conducted by Bruhn (1996) stated that the objectives of gift giving by the recipients are 95% for fostering of business relations, 80% for expression of high regard and respect, 67% expression of gratitude, 66% presentation of the company, 58% giving pleasure. Gift giving is an integral part of conducting business both domestically and internationally. Business gifts are perceived as a mean to build a good relationship between the giver and the recipient. The practice of business gift giving, however, becomes complex within the international business framework. The differences of the cultures, ethics and legal system between each country could be the barriers for the givers to understand the appropriate gift to give their business partners or potential business partners. The suitable gift giving in one country could become unsuitable in another country. For example in Arab countries, liquor is considered as a taboo gift giving. However, in Japan, it is a common thing to give liquor as a gift. Gift giving as a means of establishing relationships in most high context cultures is an important role in conducting business. Giving the wrong gift may kill a promising business deal and also destroy a personal relationship. On the other hand, a remarkable gift could foster personal and business relationship. Consequently, high context cultures tend to prepare their gifts very seriously. Not only is the gift itself but the color of the gift, the wrap and card and the number of gifts has to be checked with any taboo associated to the local culture. The color of wrap is usually consistent with the color of the events that it is being presented. Furthermore, the manner of receiving and accepting the gift is scrutinized. Not every culture, though, has the same perception. Low context cultures tend to perceive gift giving as an optional way of conducting business. Furthermore, an expensive gift could be perceived as a hard sell or even bribery. For these countries, conducting business is more direct. Even though eventually gift giving is practiced, attention to details is not as critical. Problematic situations might occur when the recipient and giver are from different cultural context. For example, refusing the gift from one from a low context culture may equate to a slap in the face for a person from a high context culture. Inappropriate gift giving could cease the business relations or could terminate the potential business relations in the future. On the other hand, remarkable gift giving could foster the business relations for the future. This paper examines the cross-cultural elements of business gift giving by examining the cultural rationale of the gift giving function in a variety of countries. CROSS CULTURAL OBJECTIVES OF BUSINESS GIFT GIVING The person who gives a present in business basically wants to present himself in a good light and at the same time wants to express his high regard and respect for the recipient of the gift (Bruhn, 1996). Gifts can be assigned to nonverbal communication (Kroeber-Riel, 1992. p.551) as they serve an important and often very personal function of communication. However, the objective of a business gift is not exactly the same from one country to the other. In the United States, the primary purpose of gifts is to create goodwill. However, gift giving is usually not a part of a process to create a close personal relationship but only to smooth the business association. Gifts usually have a limited ability to create obligation of the receiver to the sender. Receivers rarely alter their business decisions because they have received a small gift. Thus, gifts are given during holidays, to commemorate an important occasion, to repay hospitality, or in appreciation for a special service (Kublin, 1994). In Germany, Switzerland, or other Western European countries, business entertainment and the exchange of gifts is not commonly practiced. However, it is occasionally practiced for the purpose of apologies, amends and promotion.(Bruhn, 1996) In many Asian countries, such as India, South Korea, and Japan , gift giving plays a far more prominent role than in the most Western countries. The Japanese give gifts out of a sense of obligation and duty as well as to convey feeling such as gratitude and regret (Dunung, 1995). Business gifts are used in Asia as a way to nurture a business and personal relationship. Gifts are presented to preserve harmony. Presenting gifts is also common for the powerful person. The very offer of a present may suggest that a person wishes to do business or at least is moving in that direction. Oftentimes, a gift has a manipulative purpose: to create a sense of obligation. Business gift giving in many Asian cultures is an important form of persuasion as it enhances the one-on-one communication process. As a result, companies often gain benefits from giving business gifts and feel compelled to give appropriate gifts. At other times, it can also become little more than a simple bribe (Kublin, 1994). WHEN TO GIVE BUSINESS GIFTS The events for business gift giving vary from country to country. Some countries have specific times to exchange the gifts while others exchange the gifts when opening the business relationship. In Japan, specific business gift giving occasions exist, specifically oseibo (year's end) and ochugen (midsummer). These are must give occasions for Japanese businesses. Oseibo gifts are presented in the first half of December as a token of gratitude for earlier favors and loyalty. This is a good opportunity to thank clients for their business. Ochugen usually occurs in mid-July in Tokyo. Originally an occasion to provide consolation to the families of those who had died in the first half of the year; ochugen falls two weeks before obon, which is a holiday honoring the dead (Dunung, 1995) New Year's is the common time in Korea to exchange gifts, particularly with business associates in other firms. The government recognizes the first three days of January as the New Year; however, most Koreans celebrate the New Year according to the lunar calendar. Gifts should be presented to everyone involved in a transaction or present at an event in China. In general, gifts are exchanged to mark the establishment of the relationship. Accordingly, the gift is not presented until the business interaction or negotiation is mature. The business gift is given at the birthday, wedding and funeral ceremony in Taiwan. The occasion of the Chinese New Year and New Year is an important event for giving presents for business context (Dunung, 1995). In Hong Kong, small gifts are appropriate when first meeting business people. Bringing gifts is also necessary when visiting private homes for the first time (Taylor, 1993). Gifts are presented after a negotiation begins and before the signing or conclusion of the agreement in Indonesia. Business gifts are also always presented during the Ramadhan month. In the Philippines, it is appropriate to give something before and after the signing of a contract. On a personal level, it is appropriate to present gifts at Christmas to employees as well as to business associates. In the Newly Independent States, gift giving takes place during social events, such as receptions or formal dinners when business negotiation is conducted (Plock, 1995). In United States, business gifts are usually given after the sale, during the holiday time such as Christmas, Halloween, Valentine's Day, and Easter. The anniversaries of the date the company opened its business and the beginning date of the relationship between two parties is also a suitable event to give a gift. Giving a birthday card or small gift to a business counterpart is a proper way to express a good deed. Companies also reward their customers with a thank-you card or appropriate gift to the customer referring the company (Rudick, 1995). In the Netherlands at St. Nicholas' Day, December 6, business gifts are usually exchanged. In Denmark, December 24, 25 and January 1 employers hand out gifts for their workers. The Germans give out their present during the Christmas time on the evening of December 24, while much of Europe does so on the 25th (International Management, 1993). The events to give the business gift in every country are usually on the major holiday of each country, the beginning of the business relation, and also an individual’s birthday, wedding or funeral. However, in some countries it is necessity to present business gift before starting business negotiation. Countries such as Japan, even have specific days to exchange gifts. Nevertheless, not every country gives the business gift on every of those events. Not knowing when to give the gifts could destroy business relationship. For example, not giving the gifts on the established day in Japan can be considered rude and insensitive. BUSINESS GIFT GIVING IN ASIA In Japan, gift giving is taken seriously. There are specific guidelines for the type and price of gifts, their packaging, and the timing for various occasion. The Japanese give gifts out of a sense of obligation and duty as well as to convey feelings such as gratitude and regret. Therefore, care should be given to the appropriateness of the gift as well as to its aesthetic beauty. Gifts given for first time business encounters should be tasteful, moderate-to-low in price, never overly expensive. Suitable gifts include items from the native country of the company, special products from the company, fine products from prestigious stores, wines and liquors. Gifts must always be wrapped in tasteful paper, but never in white because it is the funeral color. Wrapped gifts are often kept in the shopping bag during a meeting to avoid calling excessive attention to the gift. During successive rounds of gift giving, one should be certain to present gifts of equal or slightly greater value than the previous round. Adding items keyed to a hobby or a collection of interest is a valued way to communicate respect and friendship. Giving copies of photographs of group including each other is typical of the Japanese culture. Gifts are given and received with both hand and accompanied with a slight bow. Usually, gifts should not be opened in the presence of the giver. The Japanese are very materialistic and brand conscious. At the senior level, it is common for people to change gift worth $300 - $400.. Gift giving is very important in Korea where appropriate gifts include silk ties and scarves, leather goods, quality pens, and items with corporate logos. Korean businesspeople will also appreciate an invitation for a fine meal and drinks. It is inappropriate to give money as a business gift. However, money is the common gift for weddings, funerals, and the first and sixtieth birthday of a child. Money should be placed in a nice envelope. When giving a gift, Koreans always show respect to the recipient and say something humble. When receiving a gift, they may show hesitation. It is considered inappropriate to open gift in front of the giver. Gift giving has reached the level of graft in some situations as international companies compete for access to the Chinese marketplace. However gifts of reasonable value are a normal part of business interactions and are not considered to be graft. In general, gifts are exchanged to mark the establishment of a relationship. Red is a very auspicious color in China and is used on happy occasions, such as weddings. Accordingly, one should wrap the gift in red paper. However, writing in red ink is considered not appropriate as it is a symbol of severing a relationship. In China, gifts should be given and received using both hands. Gifts should be presented to everyone involved in transaction with the value of each gift based on the rank of the person. Suitable items include pens, books, calculators, imported whiskey, brandy, chocolates, and company logo gifts. Once people get to know each other, they will often tell you what they want as a gift on the next visit. Gifts are often in groups of 2, 6 and 8, with 8 being the lucky or most auspicious number. Accepting an expensive gifts might create a significant future obligations in China. In Hong Kong business gifts are not normally given during early encounters. However, the business people usually appreciate small gifts such as gourmet chocolates, flowers and handicrafts after initial contact has been made. More expensive items, such as crystal are normally given at the later relationship. It is important to give gifts at the Chinese New Year to all employees and other professional and domestic staff. The color red symbolizes happiness and is considered a lucky color. When giving the gift associated with numbers, certain numbers are considered to bring good luck. The good number include 2, which sounds like the word for easy; 3, which sounds like living or giving birth; 6 which sounds like continuous; 8 which sounds like prosperity and 9 which sounds like the word for eternity. Gift giving as bribery exist in Hong Kong, but is less prevalent than in neighboring China. The government, has made significant progress in curtailing corruption, which is linked to winning contracts or gaining financial advantage. Gift giving is very important in Taiwan and each occasion warrants slightly different attention. Expensive, foreign-brand liquor is one of the best gift choices. Company logo gifts, like a baseball cap, or tasteful pen and pencil are also appropriate. Gifts are never opened in public to avoid embarrassing either the giver or the receiver. The usual gift for weddings and birthdays is money which should be placed in red envelopes (hung bao) and using new or clean, crisp bills. Money is also given for funerals in smaller amounts. White envelopes are used to symbolize mourning. For the Chinese New Year, suitable gifts include sweets and cookies. At New Year's, it is important to give bonuses to factory and blue-collar workers, secretaries and household help equal to the amount of one month salary. Graft is widespread in Taiwan. The form of gift giving or commission as a graft is given to keep business moving forward, particularly if it is for government contracts. In Indonesia, to win contracts, it is essential for the company to present a gift. Although the business gift giving is not necessary legal, it is important in concluding business negotiations. Gifts can range from ties and athletic shoes, to household appliances, to prestigious gifts from international designers, such as leather bags, silk scarves and sunglasses. An airline ticket is normally requested as a gift to visit to the company's headquarters overseas for someone negotiating a big contract. This request is actually for the purpose of holiday. It is considered impolite to refuse a gift, and it is better not to open the gift in the presence of people to avoid embarrassing the giver. Presenting gift giving as a bribe is rare in Brunei. Business people do not expect to receive presents from their business counterparts. However, for normal gift-giving situations, tasteful and elegant gifts are appreciated. Business gift giving as a graft is widespread in Malaysia. Due to the variety of ethnic groups in Malaysia, normal gift giving can be difficult. Using both hands to give the present is important for the Chinese. Chocolates are suitable items to be given for the Muslim counterparts. However, liquor and pork is prohibited for Muslim. A company pen or some other gift with the company logo is appropriate. For Indian business counterparts, items ending in number 1 are considered lucky. Gifts should not be opened in the presence of giver. Singapore is an anomaly for East Asia as graft is unacceptable. Presenting business gift giving to individual can be alleged as a bribery. Giving the business gift to individuals can be taking into account as long as the other peers receive the same item. Token gifts, such as pens or items with a company logo are appropriate, provided that they are not expensive. Typically though, the gift is normally presented for groups of individuals in company. The recipient is obligated to respond by giving a gift back to the giver. The giver usually has to insist that the recipient accept the gift, and normally the recipient will refuse the gift to indicate humility. Typically gifts will not be opened in the presence of the public to avoid embarrassing both parties. A dinner invitation to an expensive restaurant or club after closing the deal is a common gift giving in the Philippines. Crystal and other branded name items are also suitable for business gifts. Value and quality is an important aspect to consider for the giver. Local weekend vacations are often given to the business counterparts disguised as a working trip. Small gifts such as company products or calendars are acceptable. Opening the gift in the presence of other people is considered impolite. It indicates a materialistic nature and may cause embarrassment to all parties. Even though bribery is illegal in Philippines, it is a normal part of many business interactions, particularly those with the government. In many situations, kickbacks are already built into the contract price, often representing 5-10 percent of the value of the contract. Gift giving as a bribe is common in Thailand, particularly among the military and government officials. In normal business interactions, as the relationship between companies increases, presenting small gifts to business counterparts is necessary in Thailand. The meaning behind the gift is more important than the gift itself. Appropriate gifts are home country souvenirs, liquor and sweets. Flowers are normally given for the funeral. Gifts should not be opened until the giver leaves. In most Asian countries, business gifts are considered as an important part of nurturing the business and personal relationship. Not only is the gift itself important, but also the superstitious and the hidden meaning of the gift must be taken into context. The manner of giving and receiving the gift is also scrutinized. Gifts should be given and received using both hands. For the most part, opening the gift in the presence of other people is considered impolite. The value of gift has to be compatible to the rank position of individual: The higher the rank, the more expensive is the gift. The givers intentions is to give the present to create obligation for the recipient towards the sender. Gift giving as a bribe is widespread, especially in the less developed portions of Asia. BUSINESS GIFT GIVING IN UNITED STATES Business gift giving in United States has different practices from the Asian countries. The biggest occasion for business gift giving in United States is during the Christmas/Hanukkah season (cited by 74.5 percent of respondents to the Facts survey, 1993). Other occasions include conventions/ trade shows (42.4 percent), birthdays (16.3 percent), company anniversaries (14.7 percent), sales-related activity incentives, closings (10.3 percent), promotional events (9.2 percent), meetings (6 percent) and other occasions (4.9 percent). The variety of business gift giving in United States includes personal merchandise such as writing instruments (cited by 66.1 percent in incentive's FACTS survey, 1993), watches or clocks. The second most popular type of business gifts are desk accessories (58.3 percent). Food accounts are the third most popular business gift (33 percent). Home or decorative items, including crystal, china and tabletop selections account for 17.2 percent of the corporate gifts. Gift certificate and catalog merchandise are the choice of 15 percent of corporate gift buyers. Other items are also sports-related product. In the United States, the recipient normally opens the gift in the presence of public. The gift is admired and appreciation is expressed verbally; the oral expression of thanks is followed by a written note of appreciation, unless the gift is small and is used as an advertisement. Business gifts sent to the office such as fruits or chocolates will be distributed among employees. It is considered in poor taste for the manager to take these gifts home. The manager who receives gifts will sent a thank you note to the company that sent the gift and with a note of appreciation from all of the employees (Chaney and Martin, 1994). Business gift giving in the United States is highly restricted. In the United States, a company can deduct business gifts worth $25 per recipient per year (not including such incidental expenses as mailing, wrapping and engraving). But if the gift is designated for a company, rather than an individual, there's no limit on the value. For example, one firm can thank its biggest customer with a contribution to its favorite charity or box seats to the Metropolitan Opera or tickets to baseball's All Star Game as long as the gift is to the company, and not a specific person (Incentive, 1993) For the American, business gift-giving is not necessary to nurture the business relationship. However, small business gifts are usually given to present the giver in good light. A tendency to give presents as a charity to a particular company or town are often made by a large or multi national company. The purpose of doing this is to build good community relations with the town or company. For example, as Sun Microsystems Inc. planned the opening of its new manufacturing plant in West Lothian, Scotland, its charitable foundation was preparing its first gift to the community, a $17,200 grant to the West Lothian Enterprise, which set up a program to help small firms improve their marketability to big business. The practice was chosen as to avoid the complex issues of regulation, taxation, and social and cultural standards (Fix, 1993). BUSINESS GIFT GIVING in WESTERN EUROPE In Germany, business gift giving is normally given during the Christmas and New Year occasions. Occasions include successful business transactions, apologies/amends and professional occasions (promotion / transfer). Nevertheless, the business gift related to successful business deals may result the suspicion of bribery (Bruhn, 1996). Wine, books, calendars and office equipments are most frequently given, followed by flowers, products of the gift giving company, food, glassware/china, bags/suitcases as well as perfumes. Invitations to special events like weekend journeys, festivals and sporting events are an increasing trend. These though, must be treated delicately, for the recipient may consider them to be a bribe. There is also a tendency to substitute donations for gifts.(Bruhn, 1996). In Belgium and the United Kingdom, gift giving is not a normal custom. However, flowers are a suitable gift if invited to someone's home.(Business America, 1994). Similar to Americans, Europeans view business gift as optional. Without having it, there will not be hard feelings. An expensive gift could be refused by the recipient, and a thought as a bribery. CULTURAL RATIONALE BEHIND GIFT-GIVING AROUND THE WORLD Business gift giving can be analyzed along the cultural complexity dimension. Cultures vary in their use of contextual information. The more contextual information required for understanding social situations, the more the cultural complexity. Countries can be categorized as having a high level of cultural complexity to a low level, according to the amount of contextual information needed. Low-context cultures are more explicit and overt in their communication and social interaction, while high-context cultures are covert and implicit. Examples of low-context culture are the United States, Germany, and Switzerland. China, Japan, Latin America, and the Middle eastern countries are high context (Fatehi, 1996). In low-context cultures, business relationships are explicit and direct. Business gift giving in this culture is only an optional activity but, if it is done properly, it could enhance the competitive advantage of the company. Doing business in this culture usually minimizes the personal relationship between the negotiators. Building a business relationship is based on the signed contract and therefore, nurturing the personal relationship is secondary . On the contrary, high-context cultures tend to view gift giving as an imperative. Doing business in this culture is not based on the paper, but trust. Trust is built through a long and complex process. One of the ways to build trust is to respect one another by presenting gifts. For these cultures, customs of giving gifts are complex, delicate, and are considered relatively more meaningful activities. To be accepted in the business community one must conform in accepting the way of gift giving. A tendency exists in high-context countries to expect practicing gift giving while they conduct business. More expensive gifts for superior level are considered normal in order to show respect to them. In the low-context country, as interpersonal relationships tend to be temporary and shallow, valuable gifts are usually considered a bribe. Many of these countries conduct the legal restrictions on gift giving. According to Hofstede, high power distance is one of the characteristic of high-context culture. In these culture a powerholders is entitled to privileges. Consequently, gifts are presented more frequent to the one who conduct the business with the powerful. The giver need to show the respect by present the gift to the powerful. The gift is presented in order to break the ice between the powerholder and his or her business counterparts. Low individualism is common among the high-context culture. People in this culture tend to maintain harmony among themselves. They try to avoid conflict as hard as they can. One of the way to avoid business and personal conflict is to present gifts to their business counterparts more frequent. Consequently, cross-cultural business gift giving can be further elaborated between the two cultural contexts. Legal Factors In low-context countries, the laws applying to business gift giving are well defined. For example the U.S. Foreign Corrupt Practices Act (FCPA), prohibits U.S. companies, their subsidiaries and representatives, from making payments to high- ranking foreign government officials, or political parties for the purpose of making a sale or increasing the profits from a sale. Every consumer and business promotion has to be approved by the government in Scandinavian countries. Bribes can be legally deducted as business expenses in Italy and Germany, but only in transactions abroad (Cateora, 1993) On the other hand, many high context countries view gifts, payoffs and even bribes as merely a cost of business (Coppett and Staples, 1990). In some Middle Eastern and Far Eastern countries, such payments are legal (Laczniak and Murphy, 1985). Bribery is actually a part of the commercial traditions in part of Asia, Africa and the Middle East (Fadiman, 1986). For example, in such countries, it is expected that government officials will make up for low salaries and even provide for retirement by accepting bribes. Bribery is simply seen as a tax for using government services and therefore considered by many as a harmless business practice (Braybrooke, 1983) Ethical Factors In the low context countries, business gifts of high value are generally discouraged and are often not accepted by business executives. Expensive gifts are often perceived by the receiver as a form of the hard sell or as a bribe. Such gifts could create a negative attitude, and destroy the original purpose of the gift, which was to stimulate reciprocity (Shama and Thompson, 1989). In the high-context countries, three traditions exist that form a condition for payoffs: the inner circle, the future favor, and the gift exchange. Concerning the inner circle tradition, one is considered either an "insider" or an "outsider". To get into the inner circle tradition, one must create an obligation. The future favor tradition is to strengthen buyer-seller relationships, gifts are given to create an obligation that can be reciprocated sometime in the future. The exchange of gifts creates an inner debt which has to be discharged. (Arunthanes, Tansuhaj and Lemak, 1994). Ethics pertaining to business gift giving, therefore, appear to be more stringent and more elaborate in a low context culture than those in a high-context culture. Company Policies Companies from a low context culture tend to have a stronger formal policy addressing business gift giving than those form a high context culture. For example, because many US multinational corporations view the FCPA as ambiguous on business gift giving issues as legal ways to facilitate payments, bribes and gift giving, they have banned these practices altogether so as to remain on the safe side of the law (Braybrooke, 1983). On the other hand, multinational companies from high context cultures appear to have less formal company policies and standards on the issues of giving and accepting gifts. Some even choose no to address the issue completely, allowing for a wider latitude to use gifts for influencing others to, perhaps, gain a competitive edge (Arunthanes, Tansuhaj and Lemak, 1994). Acceptable Value and Price Range Cultural and legal factors tend to affect an acceptable price range of a gift. In a high-context culture, position or status is very critical in determining gift value for various people. The higher the hierarchy of power, the more valuable the gift is. In the low context culture, expensive gifts may be mistaken as a bribe although monetary value alone cannot be used to distinguish a bribe from a gift (Reardon, 1984). Legally, under the American IRS tax laws, up to $25 per client can be deductible as a business gift expense and up to $4 per client can be deducted for logo and promotional items as advertising expenses (Bryan, 1987) Taboos in Gift Giving In low-context culture, frequent incidents of strong beliefs and taboos are less associated with gift giving. In high-context culture, there tends to be more taboos associated with the what, when, where, how, by whom and to whom. Moreover, people are more sensitive to and more prone to attaching meanings to product attributes (such as country of origin, quantity, physical characteristics, and color of gifts) (Aruntahnes, Tansuhaj and Lemak, 1994). For example, one should not give four of anything to a Japanese or Korean; it is the “bad luck” number, don’t give a clock to a Chinese; the word for clock in Chinese has a morbid, funeral connotation to it. In Hong Kong, giving two of something, or a pair, carries better luck than a single item. RECOMMENDATION FOR INTERCULTURAL GIFT GIVING The checklist by Kublin (1994) should be perused by the international businessperson before giving the business gift. 1. Identify the function of business gift giving in the host culture. Several functions to present a business gifts are for the promotional appear, create goodwill, develop a close personal relationship, create a sense of obligation or to thank someone for his or her hospitality. Different gift represents different kind of function. For example, giving a gift for the purpose of creating a sense of obligation must present a more valuable type of gift than the gift for the purpose of developing a close personal relationship. 2.Is a gift expected ? If so, who gets the gift ? Should everyone get the same gift ? Giving a gift to someone who does not expect it, could induce a suspicious thought from the recipient. Usually gifts are presented to the highest ranking person in the host company, the most helpful person, the person that spent most time, or might be everyone on the other side. 3. When are gifts exchanged ? When should a gift be opened ? Gifts can be exchanged during the first meeting, after the conclusion of the negotiation, every counterparts birthday, etc. Opening a gift also has different perspective between cultures. For high-context culture, gift should be opened without the public presence in order not to lose face. 4. How should the gift wrapped ? What kind of gift should be given ? How expensive should be the gift ? One must be aware of cultural taboos that apply in the host country. The Color, number, and image of the gift must not be against the superstitious belief of the recipient. For example, even though red is the Chinese favorite color for gift and wrap, writing with the red ink is inappropriate in China. CONCLUSION Most of Asian countries, which could be considered as having a high-context culture, view the gift giving as an art of conducting business with their counterparts. Gift giving can be represented to show their attention, respectivity, sensitivity, gratitude, regret to the recipients. However, gift giving is also given to create the obligation of the recipients in some of the developing countries. The low salary of the government official in developing countries is one of the reasons for them to expect valuable gift giving. Gift giving can also be viewed as a tip from their business counterparts. Consequently, gift giving as a bribing becomes a common thing to conduct the business in these countries even for the high level person. Although the practice of bribing is unlawful, the line between gift giving and bribing is unclear. Therefore, giving an expensive gift after the transaction is concluded could be not considered as a bribe. Not like in most of Western countries, the law of business gifts are rare in Eastern countries. On the contrary, wealthier Western countries view the acceptance of the business gifts as greediness. The government enacts the law for the very limited price range of business gifts that individual can accept. In conclusion, is that one way to see the rationale of the gift giving practices is from the wealth of the countries. Expensive gift giving in developing countries is more acceptable, as in the case of giving a tip to the waiter. On the other hand, expensive gift giving is unacceptable in developed countries. The differences of business gift giving practices between each countries could cause the misinterpretation or misunderstanding. In the high-context countries, business relationships are built through the ongoing trust and personal relationship. Therefore, business gift giving is considered imperative. Customs of giving gifts are complex, delicate, and are considered relatively more meaningful activities. Therefore, business gift giving is a critical part of conducting business and cannot be avoided. In the low-context culture, however, business gift giving is an optional activity. Conducting business in this culture is through the real capability of individual, without concerning the personal relationship. Attention has to be given when the recipient and the giver are not from the same cultural context. For example, when the recipient is from a high context culture and the giver is from a low context culture, the business gifts are expected from the recipient but the giver underestimate the practices. The giver might buy an invaluable gift for the high level position business counterparts. He or she also might care less of the color of wrap, the gifts itself, the number of gifts, when to give the gifts, how to give the gifts, etc. The mistakes by the givers could be viewed as not serious, careless and not providing suficient respect of doing business with the recipients. The reverse situation could be also problematic. The recipients from low-context culture often view the excessive business gifts as a graft or bribe or even offended by the expensive gifts. The refusal of the gifts could also insult the givers from high-context culture . The recipients could be viewed as trying to sever the business relationship. The recipients of business gifts in this case also often regulated by the law not to accept the excessive value of gifts. In conclusion, these phenomena could describe the other rationale of the gift giving between the high-context culture and low-context culture. 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