The cultural challenges of doing business abroad The fall of the Soviet Union in 1989 and the Velvet Revolution brought an end to Czechoslovakia's turbulent political history and the establishment of democracy. The Czech Republic is embracing Western-style models of political and economic reform. Furthermore, the Czech Republic has entered into an agreement and is now a member of the European Union. This will increase their potential for expanding markets and creating an ideal environment for foreign trade and business investment opportunities (kwintessential, 2008). Cultural Differences There are major differences and incompatibilities between U.S. and Czech cultures that can create problems. The main difference in Czech culture is that the family is the center of the social structure and obligations to the family are the first priority. Czech people are polite and reserved until a personal relationship is built. Some of their concepts include a logical, practical and efficient way of thinking about the future to provide a sense of security through careful planning, both in work and personal life (commuicaid, 2007). Czech etiquettes and customs should be learned, because they are different than U.S. etiquettes such as meeting and greeting, giving and accepting gifts, and dining etiquette. In Czechoslovakia, initial greetings are formal and reserved; Most greetings involve a firm handshake and eye contact. The invitation should also be made to use one's name or an informal greeting that shows a sign of friendship (kwintessential, 2008). The culture or customs of the Czech Republic are carried over into the work aspect of life. The protocol of business etiquette in the Czech Republic is similar to that of their partners...... middle of paper ......//cbw.czBusiness in the Czech Republic, Czech social and business culture. (2007). Retrieved January 22, 2008, from http://www.communicaid.com/crossculturaltrainingGlobal Economics Company. (2008). Retrieved January 23, 2008, from http://globaleconomics.net Czech Republic - Culture and Customs. (2008). Retrieved January 26, 2008, from http://www.kwintessential.co.uk/resourcesIntercultural Business Communication. (2008). Retrieved January 24, 2008, from http://kwintessential.co.uk/interculturalbusinesscommunication/toolsMcConnell, CR, & Brue, SL (2004). Economics: Principles, Problems and Policies. New York: McGraw-Hill. Membership of the Czech Republic in other international organizations. (2008). Retrieved January 25, 2008, from http://www.mpo.cz/en/foreigntradeOnline Encyclopedia. (2008). Retrieved January 25, 2008, from http://www.wikipedia.org