Mongolia - Business CustomsMongolia - Business Customs
Personal relationships in business are critical: Mongolians like to deal with family and friends. Exporters, importers, and investors must establish and maintain close relationships with their Mongolian counterparts and relevant government agencies. Equally important, American exporters should encourage strong personal relationships among their Mongolian agents or distributors and buyers and end-users. A web of strong personal relationships can smooth business in Mongolia.
Family and school ties remain strong in Mongolia: It is important to learn who is related or connected to whom when establishing business relationships.
Mongolians look for cues of serious intent by how much effort — time and material — a foreign investor or exporter puts into the early phases of the relationship: Initial meetings should be conducted in formal settings, in formal business wear, with an exchange of cards. Small gifts are always appreciated as are hosted meals. Subsequent meetings can be more relaxed as circumstances permit. However, expect and allow Mongolians to be generous hosts, as this is an important part of local culture. Being a good guest and business partner requires that one partake of the festivities at the start of any business relationship. However, to keep the relationship balanced from the start, we advise businesses to host as well as accept invited meals.
New entrants to the Mongolian market should not view Mongolians through the prism of their neighbors: While historical and cultural affinities exist between Mongolia and its neighbors, Mongolians are very conscious and proud of their history and of the progress Mongolia has made over the last decades. Mongolians become particularly offended if confused with Chinese and deeply resent being compared to other developing countries with similar commodity-dependent economies.
Avoid letting cultural sensitivity to Mongolian norms impede good judgment and commonsense: Some Mongolians will tell investors that Mongolian customs preclude best commercial practices, insisting that an attractive deal may not go through if the foreign partner does not ignore those practices. Investors and exporters should politely but firmly adhere to sound business and ethical principles. Investors who do so will earn the respect of the Mongolians and may protect their investment, too.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Family and school ties remain strong in Mongolia: It is important to learn who is related or connected to whom when establishing business relationships.
Mongolians look for cues of serious intent by how much effort — time and material — a foreign investor or exporter puts into the early phases of the relationship: Initial meetings should be conducted in formal settings, in formal business wear, with an exchange of cards. Small gifts are always appreciated as are hosted meals. Subsequent meetings can be more relaxed as circumstances permit. However, expect and allow Mongolians to be generous hosts, as this is an important part of local culture. Being a good guest and business partner requires that one partake of the festivities at the start of any business relationship. However, to keep the relationship balanced from the start, we advise businesses to host as well as accept invited meals.
New entrants to the Mongolian market should not view Mongolians through the prism of their neighbors: While historical and cultural affinities exist between Mongolia and its neighbors, Mongolians are very conscious and proud of their history and of the progress Mongolia has made over the last decades. Mongolians become particularly offended if confused with Chinese and deeply resent being compared to other developing countries with similar commodity-dependent economies.
Avoid letting cultural sensitivity to Mongolian norms impede good judgment and commonsense: Some Mongolians will tell investors that Mongolian customs preclude best commercial practices, insisting that an attractive deal may not go through if the foreign partner does not ignore those practices. Investors and exporters should politely but firmly adhere to sound business and ethical principles. Investors who do so will earn the respect of the Mongolians and may protect their investment, too.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.