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Hungarian business culture guide - Learn about Hungary

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http://businessculture.org - Find out about business culture in Hungary. This guide is part of the Passport to Trade 2.0 project which examined European Business culture in 31 countries looking at ...

http://businessculture.org - Find out about business culture in Hungary. This guide is part of the Passport to Trade 2.0 project which examined European Business culture in 31 countries looking at business communication, business etiquette, business meeting etiquette, internship and student placements, cost of living, work-life-balance and social media guide.

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    Hungarian business culture guide - Learn about Hungary Hungarian business culture guide - Learn about Hungary Document Transcript

    •            |  1     businessculture.org Business Culture in Hungary   http://businessculture.org/easterneurope/hungary/ Content Template Last updated: 02.10.2013 businessculture.org   This project has been funded with support from the European Commission. This Content  Hungary   publication reflects the view only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
    •            |  2     TABLE  OF  CONTENTS   Business  Culture  in  Hungary  .....................................................................................................  4   Xenophobia: being a foreigner in HUNGARY ................................................................................... 5   International business in HUNGARY ................................................................................................. 5   General education ................................................................................................................................ 6   Educational standards .......................................................................................................................... 8   Student Placements .............................................................................................................................. 8   Other issues such as transport infrastructure ....................................................................................... 9   Cultural taboos ..................................................................................................................................... 9   Business  Communication  ........................................................................................................  10   Face-to-face communication .............................................................................................................. 10   Language matters ............................................................................................................................... 10   Useful phrases 10   Making contact ................................................................................................................................... 12   Personal titles ...................................................................................................................................... 12   Business  Etiquette  ..................................................................................................................  14   Corporate social responsibility ........................................................................................................... 14   Punctuality .......................................................................................................................................... 14   Gift giving ........................................................................................................................................... 15   Business dress code ............................................................................................................................. 15   Bribery and corruption ....................................................................................................................... 15   Business  Meeting  Etiquette  ....................................................................................................  17   Importance of business meetings ........................................................................................................ 17   Business meeting planning ................................................................................................................. 17   Negotiation process ............................................................................................................................ 18   Meeting protocol ................................................................................................................................ 18   How to run a business meeting .......................................................................................................... 18   businessculture.org   Content  Hungary  
    •            |  3     Follow up letter after meeting with client ........................................................................................... 19   Business meals .................................................................................................................................... 19   Business meetings tips ......................................................................................................................... 20   Internship  and  placement  .......................................................................................................  21   Work experience................................................................................................................................. 21   Student Placements ............................................................................................................................ 21   Internship and placement advice ....................................................................................................... 21   Social security and European health insurance card ......................................................................... 21   Safety .................................................................................................................................................. 21   Do I need a visa? ................................................................................................................................ 22   Internship and placement salary ........................................................................................................ 22   Internship and placement accommodation ........................................................................................ 22   Cost  of  Living  ...........................................................................................................................  23   Money and banking ........................................................................................................................... 23   Travelling costs ................................................................................................................................... 23   Work-­‐life  Balance   ....................................................................................................................  24   National holidays ................................................................................................................................ 24   Working hours .................................................................................................................................... 24   Working in Hungary .......................................................................................................................... 25   Work culture ....................................................................................................................................... 25   Health insurance ................................................................................................................................ 25   Social  Media  Guide  .................................................................................................................  27   Private individuals .............................................................................................................................. 27   Search and Social Media Marketing for International Business ........................................................ 27   businessculture.org   Content  Hungary  
    •            |  4     Business  Culture  in  Hungary   The following is a very short introduction to Germany. External links at the end of this page provide you with more in depth information concerning different topics. The following video gives you an overview of the general facts: http://www.youtube.com/watch?v=H5isEVENRVI Hungary is a landlocked Central European country, the 16th largest in Europe (93,030 km2). It is a member of the European Union since 2004 and a member of the Schengen area since 2007. Its neighbours are: Slovakia, to the north; Ukraine, to the north-east; Romania, to the east; Serbia, Croatia and Slovenia to the south; and Austria to the west. The Hungarian territory consists mostly of plains and hills. Hungary’s climate is temperate, being influenced by three important climate zones: oceanic, continental and Mediterranean. Consequently, it can experience dramatic weather changes. The annual average temperature is 9.7°C (49.46°F) across most of the country and 11.2°C (52.16°F) in Budapest. The population of Hungary totals 9,909,000 (January 2013). With a population of 1.7 million inhabitants, Budapest has the role of economic and political centre of the country. The largest Hungarian cities, beside Budapest, are: Debrecen (205,000), Miscolk (178,000), Szeged (164,000), Pécs (159,000) and Gyõr (126,000). Hungary has a birth rate of 9.1‰ (2012), and a slightly higher death rate, at 13‰ (2012). The age distribution of the population is: 15.6 % are 14 years old or younger, 69.2 % are businessculture.org   Content  Hungary  
    •            |  5     between the ages of 15 to 64 and 15.2% are 65 or older. Hungary’s main ethnic group is Hungarian (92.3%). Its most numerous minorities include: Romany (5%), Germans, Romanians, Slovakians, Serbians and Ukrainians. Hungary is in the Central European Time Zone and is one hour ahead of Greenwich Mean Time (GMT+1) during the winter months and two hours ahead of it (GMT+2), to accommodate Daylight Saving Time (DST), from March to October. The weather in winter is rather cold, cloudy and damp, or windy, while summers are warm to hot and dry. Xenophobia:  being  a  foreigner  in  HUNGARY   Hungary welcomes international business opportunities. In business, Hungarians consider personal relationships crucial. Face-to-face discussion is absolutely essential in business matters and a solid relationship relies on repeated visits and phone calls. In their business dealings, Hungarians tend to be formal, adhering to hierarchical organizational structures, and yet expressive, with typical negotiations taking place through open dialogue. Hungarians are also generally outspoken and for this reason some foreigners may perceive them as abrupt, rude or even cruel. However, they always provide evidence in support of their words and when they cannot reach an agreement they tend to explain why and may propose new talks. In business and in private life, the right relationships are important and common sense and discernment are much. The Hungarians’ tendency towards distrust and suspicion can be attributed to historical reasons, so unpleasant points are discussed to mitigate future business problems as much as possible. The first meeting is always characterized by a reserved attitude but, once the ice is broken, Hungarians are rather passionate and their verbal exchanges can be very intense and spirited. A Hungarian business partner can easily turn into a friend. Nevertheless, building a trusting relationship usually takes a long time. A good sociable atmosphere at work plays a bigger role than other factors (business results, financial statements). When they feel part of an inspiring project, Hungarians show passion, originality, generosity and industry. Important decisions are usually made by the top management, which may sometimes slow down the talks. International  business  in  HUNGARY   businessculture.org     Content  Hungary  
    •            |  6     This section focuses on the general business environment in Hungary. In the first section, we examine the attitudes and values of the people, while the section presents a business-related perspective of the education system, training and placements in Hungary. Knowing the attitudes and values of your business partner can be extremely important for opening and maintaining effective relationships with your foreign partners. This will allow you to avoid mistakes that could result in cultural barriers, which could hinder your success in a particular country. How can the work-life balance be described, in the case of Hungary? What is the Hungarians’ attitude to foreigners and what subjects should be avoided? All these pieces of information may become extremely valuable when doing business in Hungary. The following section will highlight essential attitudes and values and their consequences in business practice in Hungary. Young people are enthusiastic about trying their chances abroad or in different areas in Hungary, but the older generation is generally reluctant to move around, being attached to the places and the people they are used to. Of the most numerous minorities in Hungary, 5% of the population are Romany, who are extremely poor and often find work in the grey and black sectors of the economy, which still accounts for a considerable portion of the GDP. Due to cultural prejudices and the status of the Roma population in Hungarian society, it is best not to bring up the subject in conversation. The economy in Hungary is improving despite the economic difficulties and the introduction of austerity measures by the government. Unemployment is around 10% and competition for a job remains high. Workers with specialist skills have more chances to find a job and graduates can find work in one of the main companies with subsidiaries in Hungary. Normally, graduates will be faced with fierce competition from qualified local professionals. So, it is good to know Hungarian when in search of a job. English and German are also widely spoken in Hungary, particularly by the younger generation. Some of the major industries are: mining, metallurgy, textiles, chemicals, construction, processed food, motor vehicle manufacturing and agriculture. Among the areas of recent growth, one can find the domains of retail, services, telecommunications, finance, machinery, and the pharmaceutical industry. General  education   In Hungary, school is obligatory between the age of 5 and 16. Most schools and kindergartens are set up and run by the state, local governments, minority local governments, legal entities businessculture.org     Content  Hungary  
    •            |  7     (foundations, churches, etc.) and natural persons. Only 10 per cent of children attend private institutions. Primary schools are obligatory, and may have 4, 6 or 8 grades. General secondary schools continue primary school education up to the 8th grade and conclude with the so-called maturity examination. Secondary vocational schools currently provide upper secondary general and pre-vocational education in grades 9-12/13 (an extra year is included in certain programmes starting with a language preparatory year). The secondary school leaving examination qualifies for higher education entry. Beginning with September 2013 (following the Vocational Education and Training Act of 2011), there will be a secondary vocational education in parallel to the general one from grade nine. The pupils undertaking it will obtain a “vocational secondary school leaving examination”. The new VET Act of 2011 launched a three year-programme (grades 9-11). In some schools this offer became available in 2012, and as of September 2013 vocational schools can only offer this type of training. Graduates can go on with their studies at post-secondary nontertiary level or in higher education only if they complete three more years of a full- or parttime general education programme in order to pass the secondary school leaving examination. In the new structure of vocational education, graduates can acquire a secondary school leaving certificate within two years. Those who do not have this certificate but pass the master craftsman examination and at the same time accumulate five years of work experience can enter post-secondary VET. In Hungary, 81% of adults aged 25-64 are the possessors of an equivalent of a high-school degree. This situates Hungary above the OECD average of 74%. Out of the best 44 universties in Hungary, half are located in Budapest. the other half being spread throughout the country. All the signatory countries of the Lisbon Convention (Hungary inclued) allow the possessors of a valid school leaving certificate who qualify for higher education studies in their home country to also qualify for higher education studies in the other countries. However, an appropriate knowledge of either Hungarian or English needs to be demonstrated. Sometimes additional qualifying courses (preparatory courses) are also necessary. To join a master’s degree program, a relevant Bachelor’s or equivalent degree diploma is needed. businessculture.org     Content  Hungary  
    •            |  8     To apply for doctoral studies at an institution in Hungary, you need a relevant diploma or Master’s degree program. Scholarships fall under two systems: bilateral agreements and scholarship pool. Romania benefits of the second category. Scholarships can be received for: semester/partial studies for a period established in advance; postgraduate studies; full / partial PhD studies; postdoctoral studies; research stay; and summer courses. Where do local residents and expatriates send their children to school? Most Hungarians use the public school system. Children normally go to the local public schools in their area. In almost all Hungary, public schools are the only option. In Budapest, there are several international schools and private bilingual schools; they all charge tuition fees. International schools are very expensive for ordinary Hungarians and so these schools are available to a small minority. Most expatriates send their children to international or private schools. International schools accept students (non-native speakers) at all times throughout the school year, and provide language support. If the family plans to be in Hungary for an extensive period, private bilingual schools can help children attain an effective knowledge of Hungarian while studying some subjects in their native language. These possibilities are characteristic rather for Budapest and main cities than for the rural areas. International schools frequently have wait lists. Educational  standards   Just as in other European countries, the educational standards are similar for all levels of education. This offers the advantage of compatible education with other counties. During undergraduate studies, certain specializations require the students to go through a practical work experience. Student  Placements   A placement involves the placement of a student in a temporary work, school or research environment to acquire valuable experience profitable in the long run. businessculture.org     Content  Hungary  
    •            |  9     There are several student organizations facilitating student placements in Hungary: the International Association for the Exchange of Students for Technical Experience (IASTE) helps students find summer placements for science and engineering; AIESEC (Association Internationale des Etudiants en Sciences Economiques et Commerciales) facilitates the exchange of information on programmes for students and recent graduates worldwide; the Leonardo Da Vinci Programme helps students with vocational training and business placements and is funded by the European Commission. In the private sector, placements can be found more often in multinational companies, which are, many of them, based in Budapest. Other  issues  such  as  transport  infrastructure   To go to Hungary you can use the airplane, train, bus or car. All the transport networks are available around the country and generally respect s the international rules. Airport – most important airports are Budapest Airport, located at 16 km from Budapest city. It could be reached by bus or train. Other airports are Heviz-Balaton Airport, Debrecen International Airport, Gyor-Per Airport, Pecs-Pogany Airport all of them related wit tourist or economic centres. A network of about 7.600km of railways and 1515 km of highways are available to travel around the country. The main cities are connected through railway and highways. Public transport in Budapest includes buses, trolleybuses, trams and underground trains. Cultural  taboos   Hungarians consider their country as part of Central Europe, rather than Eastern Europe. The expression Central-Eastern Europe can also be deemed appropriate. Some topics are safe (such as sport, the economy, culture, history, food, and family); while other more delicate subjects should be avoided (religion, politics, minorities, salaries and living costs). businessculture.org     Content  Hungary  
    •            |  10     Business  Communication   The right language and gestures can be very important in establishing a trusting relationship. During a meeting try to be polite and avoid giving the impression that you are in a hurry. Hungarians like to take their time and evaluate a situation thoroughly before making important decisions. Face-­‐to-­‐face  communication   Hungarians use circulars, memos and written records in their business dealings. They are not very good at answering written communications or returning missed calls. So, in a business context, it is better to invest in constant direct interaction. When business partners meet, they usually shake hands with each other. When a man and a woman meet for business, it is expected that the woman will extend her hand first. In Hungary, it is still considered good manners for a man to open the door for a woman and such like. Maintaining direct eye contact is when being spoken to is crucial, in both social and business situations. You should maintain a medium interpersonal distance of about an arm’s length between you and a Hungarian partner; any more may be taken as a lack of respect or an expression of mistrust, which could complicate the talks. Verbal communications should always be clear and direct. Language  matters   Hungarian is the official language of Hungary, but many people speak several languages because of its closeness to many countries. The business language in Hungary is English and most Hungarian business people speak English to different levels of ability. Learning a few words and phrases in Hungarian is a good way to break the ice and impress your host. Hungarians are not generally reserved, but they might give that impression on the first meeting. Nonetheless, once they get familiar with you, they are able to relax and communicate more. If a business relationship develops into a partnership, your Hungarian counterpart might invite you to their home for a meal and to meet the family. Useful phrases The following table contains phrases that you may find useful when visiting Hungary: English-Hungarian: businessculture.org     Content  Hungary  
    •            |  11     • Hello. Heló.; • Hi. Heló.; • Good morning. Jó reggelt. • Good afternoon. Jó napot. • Good evening. Jó estét. • Goodbye. Viszontlátásra. • Bye. Viszontlátásra. • See you. Viszontlátásra. • Good night. Jó éjszakát. • Have a good day. Kellemes napot kívánok. • Have a good weekend. Kellemes hétvégét. • Safe trip. Jó utat. • Take care. Vigyázzon magára. • Good luck. Sok szerencsét. • Have a good holiday. Kellemes nyaralást. • I don’t speak Hungarian. Nem beszélek magyarul. • I don’t understand. Nem értem. • My name is Peter. A nevem Peter. • Nice to meet you. Örülök, hogy megismerhetem. • Thank you! Köszönöm! • Thank you very much! Köszönöm szépen! • You are welcome! Szívesen! • Sorry! Sajnálom! • I’m sorry I’m late! Elnézést a késésért! • It’s all right, don’t worry! Semmi probléma! • Excuse me! Elnézést kérek! • Yes! Igen! • Of course! Persze! • OK! OK! • That’s fine! Redben! • You’re right! Igaza van! • That’s great! Nagyszeru! • No! Nem! • I think you’re not right! Azt hiszem, nincs igaza! • It’s impossible! Lehetetlen! • I don’t agree! Nem értek egyet! • Cheers! Egészségedre! • Bless you! Egészségedre! businessculture.org     Content  Hungary  
    •            |  12     • Business relationship Hungary welcomes most international business opportunities. Due to the need to build personal relationships in business, recurrent visits and phone calls are necessary. Indeed, important phases in the development of a business relationship require face-to-face meetings to show respect and build up the necessary level of trust. Making  contact   Communication is an extremely important aspect of business, and when dealing with people from different backgrounds, the differences between face-to-face, verbal and written communications need to be recognized. Hungary has a strategic location in central Europe, which makes it perfect as a central distribution point for Europe. The government policies favour the creation and expansion of new companies and support foreign investment. Nevertheless, to start a business in Hungary, it would be advisable to contact one of the Hungarian business development centres or an international advisor for assistance. A good opportunity for direct meetings with business companies is participation in business fairs, exhibitions or conferences. The most significant national fair in Hungary is the Budapest National Fair, which takes place annually. The Hungarian Convention Bureau provides a great deal of information and assistance with planning meetings and conventions. Once a potential business partner has been selected, it is best to approach them using a written form of communication (fax or letter) to avoid possible language barriers and miscommunications. You should express your preference concerning the language in which you would like to communicate, and mention whether or not you speak Hungarian. Email is frequently used for everyday business communications, but any important documents are exchanged on paper and many companies still use a fax to communicate. Personal  titles   Hungarian surnames normally precede first names, so pay attention when addressing your Hungarian business partner. The right way to address a Hungarian man is ‘Mr’ followed by the family name. If you are unsure whether your female business partner is married or not, then call her ‘Miss’ with the family name or employ the increasingly popular Ms form. However, many Hungarians, especially those working in international settings or for companies dealing internationally, change the format of their names on their business cards to the style businessculture.org     Content  Hungary  
    •            |  13     preferred by their international partners. Academic titles are rarely used and the only exceptions are the medical and legal sectors. However, the title of Doctor is not expected to be used when talking (e.g. Dr. Kovacs Janos). One can encounter three different ways of addressing married Hungarian women. For example: Dr. Molnár Arpád (man) marries Dr. Timár Andrea (woman). So, she might be addressed Dr. Molnár Andrea, Dr. Molnár Árpádné or Dr. Molnárné Timár Andrea. businessculture.org     Content  Hungary  
    •            |  14     Business  Etiquette     Values and beliefs are measurements of the importance a person gives to something. The way values and beliefs are expressed forms the attitude that is then revealed through words and behaviour. Usually unwritten, these values and beliefs govern the expectations of social behaviour within a society, social class or group. Accepting attitudes and values as essential elements of every culture with a huge influence on people’s behaviour can contribute to improved intercultural understanding and reduced misunderstandings when doing business with foreign partners. Corporate  social  responsibility   Corporate Social Responsibility (CSR) has become important in Hungary after its adhesion to the European Union in 2004, not so much under the pressure of consumers, or civic pressure, but rather as a result of the expectations of multinational corporations with Hungarian subsidiaries. Just like in other countries, the activity of the CSR sector is visible in the spreading of the concept through books and studies published on the subject and best practices collections circulating on the web. In Hungary, ecological problems are less marked than in the other countries of Central Europe. Nevertheless, the high standards demanded by the European Union remain a challenge, especially in terms of water pollution, waste management and air quality. A great deal of money has been invested in improving waste management, with the aim of increasing water quality. Since 2005, Hungary has reformed its environmental policy in order to get closer to EU standards. Investments, administrative measures and industrial restructuring have triggered quite important improvements. Still, additional investments are called for to ensure the protection of the environment and the control of industrial pollution. The most difficult challenge remains a cultural one, namely to instil an awareness concerning environmental protection. Punctuality Punctuality is extremely important when Hungarians meet foreigners. If possible, try to arrive about ten minutes before your scheduled meeting time and allow for heavy traffic when travelling in a city, especially in Budapest. Nevertheless, traffic is always a good excuse for businessculture.org     Content  Hungary  
    •            |  15     being late. Compared to business meetings, public events almost never start on time, and a delay of 5 to 10 minutes is typical. To be a “little bit late” is not a problem if you are a foreign collaborator. Such a lack of punctuality will not influence business negotiations or the final result. Gift  giving   In Hungary, gifts are not usually expected, except at Christmas time. Small presents, like a corporate gift (such as a diary or pen engraved with the company logo) or a souvenir representing the country you are coming from (such as liquor, artisanal handicrafts or porcelain) would be acceptable but not necessary. An exchange of corporate Christmas cards will also be appreciated. If invited to a business partner’s home for a meal, it is normal to bring flowers, high quality chocolates or a bottle of liquor from your country. It is important to note that there are a number of cultural conventions surrounding the giving of flowers. Flowers should always be given in odd numbers, except the number 13, which is considered bad luck. Also, lilies, red roses and chrysanthemums, as these are typical at funerals. Bringing a bottle of wine may be a difficult choice, as Hungarians are immensely proud of their wines. Business  dress  code   In business meetings, Hungarians prefer traditional elegance. Cleanliness and tidiness are an absolute necessity. Any formal business clothes are acceptable, with dark colours being preferred during the winter and lighter ones in summer. During normal office hours, Hungarians dress less formally. In small or medium sized businesses, there is usually no official dress code and employees tend to wear casual business attire. Bribery  and  corruption   With respect to corruption, Hungary has approved and signed the most important international conventions against corruption. Although corruption continues to represent a problem for the country, Hungary ranks among the least corrupt third of 176 countries (46th place according to the Transparency International Corruption Perception Index 2012) Corruption is perceived as highly prevalent amongst underpaid government officials. Party financing and internal financial control are also areas where corruption is rife, due to the lack of cooperation between state institutions. In the health care system, the practice of giving “gratuities” is very common, where it is considered a cultural norm rather than serious businessculture.org     Content  Hungary  
    •              |  16   corruption. There is no independent organization charged with the duty of fighting corruption. Responsibility for law enforcement is divided between the Police and Border Guards, with certain criminal offences under the investigative remit of the Customs and Excise Authority. businessculture.org     Content  Hungary  
    •            |  17     Business  Meeting  Etiquette     As in all European countries, in Hungary the business meetings are one of the important issues. People, even if they are not very friendly, they need to share experience, to discuss on strategies, opportunities and further development of they company, but also to talk with the business partners. After you meet your partner and discuss details of the business people are more confident about the further evolution of the contact. Importance  of  business  meetings   In Hungary, hierarchy is very significant for the business community and crucial decisions are reserved for management. Consequently, business meetings are generally considered necessary to exchange ideas and talk, but they are rarely perceived as opportunities to get things done. During a first meeting, Hungarians are formal and polite, although they prefer less formal meetings, without the rigidity of schedules or deadlines, where they can honestly express their opinion. Hungarian partners are not patient and want quick answers to their questions, though they are not good at doing the same when asked. It is best not to rely on verbal agreements. Promises made during the meetings are usually respected, but agreements are only binding when signed into a written contract. Business  meeting  planning   When proposing a meeting, you should offer several alternative dates, out of respect for your partner’s schedule. State the topic you wish to address, why you want to meet, and the participants you desire to meet. If you want quick decisions, it will be necessary to ensure that decision-makers are invited to participate. Try to obtain a written confirmation of the place and time of the meeting with who is expected to attend, including name and function. In case you cannot participate, always call or write to cancel the meeting in advance. The best time for a business meeting is between 9 am and 1 pm – although a working lunch after 12:30 pm would be a good option. For a lunch, whoever is the host will be in charge of reserving the venue, the meeting room and the refreshments. Always agree with your partner on the language of the meeting. If an interpreter is needed, let your host know if you have one or ask if they have someone they can bring. Sometimes a colleague of your partner may be able to translate. If they do not know your business, take with you some supporting material. businessculture.org     Content  Hungary  
    •            |  18     Negotiation  process   Business negotiations can be perceived from the perspective of relationships rather than the deals that can be made. During talks, Hungarians are more direct than polite. Most Hungarian businessmen seem to enjoy bargaining and wise negotiators make allowances for this bargaining nature until the discussions have come to a conclusion. The opening bid should be pragmatic, but at the same time should include enough room for manoeuvre. Hungarians are known to be well prepared and flexible in business negotiations, where the main goal in their strategy is to obtain a final agreement. They are ready to compromise only if they had already included this as one of the possible solutions. Talks can last for different periods of time, depending on partners’ attitudes and on the nature of the sector. Negotiating with the public sector usually takes longer than with the private sector. Hungarians like to express vividly their satisfaction about how well they do things. Meeting  protocol   Greet your partner looking them in the eyes, shake hands firmly, state your name clearly and present your business card. Shake hands with all the participants. Pay attention when your partner pronounces their name. Once introduced, address your counterparts by their title and family name if you are not invited to do otherwise. If your hosts invite you to call them by their first name, this will be a sign that the relationship has reached a certain level of comfort, without necessarily meaning that you are negotiating on friendly terms. Business cards are usually exchanged at the beginning of a meeting. Hungarian business cards contain all the necessary business information and occasionally personal details (mainly for entrepreneurs). If you place your partners’ business cards in front of you when discussions begin, it may help you remember names and positions. Most Hungarian companies naturally use Hungarian as the language of their business card. International companies will usually have their business cards in two languages, Hungarian and English. When saying good-bye, shake hands again with all the participants. How  to  run  a  business  meeting   Hungarians usually begin their meetings with some small talk. Agendas are not necessarily adhered to and instead, spontaneity is often a driving force. Meetings can tend to run late, as Hungarians like telling jokes and debates are always taken seriously. To facilitate understanding, it is important to use clear and simple language and provide supporting documentation during meetings. If the meeting is conducted in English, Hungarians may say some things between themselves in Hungarian to make sure they all have a common businessculture.org     Content  Hungary  
    •            |  19     understanding of the discussion. When presenting a project, do your research because you need to give good reasons and arguments. Hungarians are known to be inquisitive and if you want to convince Hungarian managers, you will need to prove your ability for reflective thinking. They will appreciate a broad knowledge of the context more than just a narrow field of specialization. Be prepared to answer many questions. Often, especially with a large delegation of attendees, decisions will not be made on the spot. Decisions are usually made when management has had the time to reflect and discuss. During meetings, coffee, tea, soft drinks and water will be offered; and sometimes a sandwich lunch may be provided. Follow  up  letter  after  meeting  with  client   Written memos usually sum up the main points of any discussion, the decisions made and the actions to be taken. Either party may send out these meeting summaries several days after the meeting. Once both sides have come to an agreement, it is important for the Hungarian partner to confirm the agreement in writing and shaking of hands. Hungarians are proud of their language skills, but they sometimes overestimate their abilities. So, it is important to ensure that all agreements and decisions are written and agreed to in both languages to avoid confusion and misinterpretation. Signing of a written agreement is a formal and necessary recognition of the end of negotiation. Agreements should always include detailed descriptions of action items, deadlines, milestones and the name of the person who will be responsible for each piece. Regardless of the success of a business meeting, it is always a good idea to write to your hosts and thank them for their time and efforts following the meeting. Business  meals   To be invited to a business contact’s home is a rare event and an honour in Hungary, which happens when a business relationship turns into friendship. Otherwise, business meals and entertaining typically take place in restaurants. Business meetings take place in the office, bigger events in hotel meeting rooms. Breakfast meetings are not common and tend to only occur on a visitor’s request. Business lunches do happen, but an evening meal is preferred as the main way to relax and get to know each other. Breakfast is served between 8am and 9am, lunch between noon and 2pm, while the evening meal starts around 7 or 8 pm. Business lunches and dinners are usually fairly formal, so formal dress is recommended, especially on a first meeting. When a business dinner is more for entertaining and spending time getting to know one another, rather than discussing business, then more casual attire can be worn. businessculture.org     Content  Hungary  
    •            |  20     Hungarian people are famous for and proud of their hospitality. They may also propose nonbusiness activities (e.g. sightseeing). Socializing outside business is seen as part of doing business and they may suggest activities like sightseeing to complement your visit. Business  meetings  tips   You should know your subject matter intimately, but do not appear condescending or talk down to your Hungarian partners. Hungarians hate being underestimated, as they are proud and expect to be treated as equals. Ask for their opinion, give them time and they will produce numerous theoretical ideas. They may sound pessimistic or cynical now and then, but they are very creative and this is just their normal style of doing business. Once they begin to gain trust in a relationship, they will start showing their appreciation and will be motivated in finding ways towards a win-win solution. In Hungary, the temperature may rise to over 30oC in summer and fall to less than -10oC in winter. Large hotels usually have air conditioning, but this is not always the case in restaurants or offices, so you should plan accordingly. businessculture.org     Content  Hungary  
    •            |  21     Internship  and  placement     Work  experience   Just as in other European countries, during undergraduate studies, certain specializations require the students to go through a practical work experience. Student  Placements   A placement involves the placement of a student in a temporary work, school or research environment to acquire valuable experience profitable in the long run. There are several student organizations facilitating student placements in Hungary: the International Association for the Exchange of Students for Technical Experience (IASTE) helps students find summer placements for science and engineering; AIESEC (Association Internationale des Etudiants en Sciences Economiques et Commerciales) facilitates the exchange of information on programmes for students and recent graduates worldwide; the Leonardo Da Vinci Programme helps students with vocational training and business placements and is funded by the European Commission. Internship  and  placement  advice   Universities, students’ organization and other structures are willing to organise the placement for the students. They have to settle agreements with the host companies and to plan the internship program. For the students that are interested in getting by themselves a job or a placement opportunity the main sources of the vacancies are presented below. Social  security  and  European  health  insurance  card   If, as a student, you need medical help, being a citizen of the European Union, you can ask for an international social insurance card (EHIC). This card allows you to receive treatment under the same conditions and at the same costs as any Hungarian citizen. Safety businessculture.org     Content  Hungary  
    •            |  22     In Hungary, safety precautions are similar for those of other countries. Non residents should try to beware of pickpockets and should not leave their luggage unattended. Do  I  need  a  visa?   Citizens of the EU do not require a visa to enter Hungary. For them, an identity card is sufficient to travel throughout the European Union. Internship  and  placement  salary   Like in other European countries, usually internships are not paid. For a paid job during the internship, students can search online for information and for a list of companies. The minimum wage in Hungary is €260 per month and the average blue-collar worker has a net monthly income of €340. With such a salary, it is often a considerable challenge for workers to make ends meet. Office workers and professionals earn almost twice the salary of blue-collar workers. Internship  and  placement  accommodation   Depending on the organisation, a student may need to find their own accommodation. If working with a non-profit organisation e.g. in the field of humanitarian work a room and even food may be provided. businessculture.org     Content  Hungary  
    •              |  23   Cost  of  Living     A student with a limited budget, including paying the rent, going out once or twice a month, and eating at a cheap restaurant needs at least €400 per month to live basically. The cost of running a family home would be at least €1000 per month in the suburbs and three to six times greater in certain districts in Budapest. Universities generally provide information on the possibility of renting student apartments and accommodation. The price of a flat or shared apartment can vary widely. Money  and  banking   Non residents of Hungary may find it difficult to open a bank account if they do not live in the country. Yet, there are banks that open accounts to non residents as well. Short-term residents may also find it difficult to open a bank account as some banks require their clients to prove their long-term residence. Travelling  costs   Travel costs depend on the city in which you are staying in Hungary. Larger cities tend to be slightly more expensive than smaller ones in point of travelling costs. Foreign students can benefit of a discounts of their transport fees, with a valid student card. businessculture.org     Content  Hungary  
    •            |  24     Work-­‐life  Balance     Hungarians do not mind working overtime for the sake of a good life for themselves and their families. As in other developed countries, a balance between work and leisure time is sometimes hard to find. Once a comfortable business relationship has been established, Hungarians usually enjoy talking about their families. An average Hungarian family has no more than 2 children. During their adulthood, children, just as the elderly and extended family are expected to provide for themselves and do not normally receive financial support from their relatives. Usually, both spouses go to work and many will get a second job in farming or small family enterprises to be able to earn sufficient income. The declining birth rate is ascribed to the increasing number of educated and economically active women who are tending to marry later in life and have fewer children. Important events such as weddings, funerals and other occasions bring the family together. When abroad, Hungarians tend to maintain their national ties and establish local communities. National  holidays   The Public Holidays in Hungary are: January 1 (New Year’s Day); March 15 (National Day); May 1 (Labour Day); August 20 (Constitution Day/Saint Stephen’s Day); October 23 (Republic Day); November 1 (All Saints’ Day); December 25-26 (Christmas). In Hungary, people can take 21 days of vacation, which increases with seniority. Hungarians tend to take their holidays in June, July and August and around Christmas in winter. Sometimes, when Public Holidays fall on a Tuesday or Thursday, workers may exchange a Saturday in order to gain a long weekend. Working  hours   A standard working week is 8 hours a day, 5 days a week, starting at 8 or 8:30 am. Part-time work is not well regulated yet and business people commonly stay late at work, even on weekends. As office hours may vary, you should check before contacting your business partner. Friday is often a short day and business people may leave at about 4 pm or earlier. Banks generally open at 8am and close early, while shops are open until 6pm from Monday to Friday. Daily lunch breaks usually do not last long, although business lunches may turn into long discussions. businessculture.org     Content  Hungary  
    •            |  25     Working  in  Hungary   Generally, working hours and employment conditions (defined in the Hungarian Labour Code) are like in Western Europe. Fulltime working hours are generally eight hours a day (40 hours per week). Despite some flexibility in certain employment areas, the rules in force make sure that working hours do not go over 12 hours a day (60 hours a week). Holiday leave in Hungary is in harmony with age, although employers may offer more than the minimum. Holiday entitlement starts from 20-30 days, and increases as one gets older. Moreover, there are ten public holidays, including Christian festivals and Hungary’s National Day (October 23). In point of tax rates, personal income tax is commonly 16%. The employer also deducts an additional amount from the gross salary for pension insurance (10%), health insurance (6%) and labour market contributions (1.5%) (paid directly to the National Customs and Tax Authority – NAV). Work  culture   Hungary work culture is mainly based on seriousness, good quality and respect of the customers. The working program is according with the international labour regulation of 40 hours per week, but it could be extended since the employees are interested in additional income. Second jobs are also an option for the ones interested, the general behaviour is in favour of work. Punctual and dedicated to their jobs, Hungarian are efficient at their working position no matter the field of activity. In business they are hard negotiators, but ones their obligations are settled the results are on the way. Health  insurance   If you get ill or have an accident during a visit to Hungary, free or reduced-cost treatment is available, in most cases, on production of a valid EHIC card or relevant documentation. This only covers state-funded hospital treatment, so you will receive treatment on the same terms as insured residents of Hungary. Treatment in private clinics is generally not covered without additional private health insurance and sometimes you may have to pay for a part of the treatment received from the state-hospital. Pharmacies are usually open from 8am to 8pm from Monday to Friday for prescriptions and over-¬the-counter drugs. However, pharmacists are not allowed to distribute controlled medication without a prescription from a doctor. businessculture.org     Content  Hungary  
    •            |  26     Pharmacies are usually open from 8am to 8pm from Monday to Friday. There are also designated duty pharmacies that can be accessed during the night, at weekends and on public holidays. Three types of hospital exist in Hungary: the standard type (“korhaz”), a hospital tied in with a university (“klinika”) and a private clinic (“rendelo”). The national emergency telephone number for ambulance services is 104. (Source: Global Market Briefing. (2003) Doing Business with Hungary. London, Kogan Page). businessculture.org     Content  Hungary  
    •            |  27     Social  Media  Guide     Private  individuals   In 2012, there were 6,516,627 internet users in Hungary (65.3% of the population), according to Internet World Stats. Three fourths of the population have used the internet at some point, according to the Hungarian Central Statistical Office (March 2012) Hungarians consider the internet as an indispensable tool to manage their lives. Gfk Hungaria consider there are five basic group of internet users: fanatics or people emotionally attached to the net (230 000); those hanging on the net, who are interested in Wikipedia and writing blogs (320 000); gadget maniacs, who like to use not so much the internet as the mobile tools connected to it (about half a million people); targeted information seekers (750 000); and the distrustful, who fear viruses and the protection of their personal data (1.1 million people). Search  and  Social  Media  Marketing  for  International  Business   Learn how to use social media for business from one of Salford Business School’s latest business management courses. The course was jointly researched by the Passport to Trade 2.0 project team and prepared in collaboration with some of the leading digital marketing agencies in the UK. This Massive Open Online Course (MOOC) can help businesses and individuals to make the best use of search and social media platforms. The course is called Search and Social Media Marketing for International Business and is applicable to students looking for placements abroad as well as businesses thinking about new trade links; it comprises the following twelve topic: businessculture.org     Content  Hungary  
    •            |  28     How to develop a personal brand online (1/12) • • Whether you are a student beginning a job search or a business person planning a new business venture, personal branding can make a difference. Learn about personal branding and why it is important for you. http://www.youtube.com/watch? v=l9LYw0mgtn4&feature=player _embedded How to use Twitter (2/12) • • Learn the basics of using Twitter to develop an individual or business profile. Remember to use hash tag #SSMMUoS to share your learning journey on this course so far! http://www.youtube.com/watch? v=9CVY3pp91Dc&feature=playe r_embedded How to use Search Engine Optimisation (SEO) (3/12) • • Learn the principles of SEO to ensure that your website and any social media profiles are found by individuals searching for your name, products and services. These basic principles of SEO include keyword research, on-page optimisation and off-page optimisation. http://www.youtube.com/watch? v=zw27cRcwtM0&feature=player _embedded businessculture.org     Content  Hungary  
    •            |  29     How to use social media for international business development (4/12) • • Social media networks break down the traditional country barriers, but do you know which networks are relevant for the country you are interested in trading with? Find out in this video how to identify the relevant networks and what social media strategies you might be able to use on these networks. http://www.youtube.com/watch? v=Bx-B56AHS4c&feature= player_embedded How to use Facebook (5/12) • • Facebook is currently the largest social media network in the world and it can benefit you as a business as well as an individual. Learn how to develop a Facebook business page and see how other businesses use it and what strategies work for them. http://www.youtube.com/watch? v=UmRGn-vdcO8&feature= player_embedded How to use YouTube (6/12) • • YouTube was identified as the second largest social network amongst younger internet users as part of the Passport to Trade 2.0 project. Learn how to optimise your video content in order to reach wider audiences for your profile. http://www.youtube.com/watch? feature=player_embedded&v=G2 0OVpmTBss businessculture.org     Content  Hungary  
    •            |  30     How to use LinkedIn (7/12) • • LinkedIn is one of the three main professional social networks – the others being Xing and Viadeo which are also popular in several European countries. Learn how to make the most of LinkedIn for your profile. http://www.youtube.com/watch? v=N6e_EAUQqic&feature=playe r_embedded How to use Google+ (8/12) • • • Google+ is the second largest social network as of January 2013. It is one of the fastest growing social networks and one that has the biggest impact when it comes to search engine results integration for anyone who uses Google as their main search engine. Learn how to make the most of Google+ for you and your digital profiles. http://www.youtube.com/watch? feature=player_embedded&v=8ti 3SPHkEWw How to use copywriting online (9/12) • • Copywriting is a process of translating technical specifications and product descriptions into engaging and understandable customer focused text. Learn about the basic techniques in structuring your online content here. http://www.youtube.com/watch? v=5f1hx_f2ONI&feature=player_ embedded How to stay legal on social media (10/12) businessculture.org     Content  Hungary  
    •            |  31     • • Everything and anything you do and say online can be potentially viewed by anyone who has internet access. Always respect the law and familiarise yourself with new options offered to you through a creative commons licence which is popular online. http://www.youtube.com/watch? v=eQxDpiHsdk&feature=player_embedde d How to use monitoring and reporting (11/12) • • Whether you are an individual or a business spending time on social media – there has to be a return on your engagement online. How do you justify your engagement on social media to your boss? Listen to the industry experts in this area and see what you might be able to measure in respect of your on-line engagements. http://www.youtube.com/watch? v=LbEq7jsG0jg&feature=player_ embedded How to blog (12/12) • • http://www.youtube.com/watch? v=OqVjR7oI8Rs&feature=player _embedded businessculture.org     • Blogging is a process of writing text and sharing content with others. It can help your customers or friends to keep in-touch regardless of social media platforms. Think about the voice you might want to adopt and who your audience might be. Share your thoughts with us by writing a blog post about this MOOC. Tweet us the link to your post on the #SSMMUoS Twitter hash tag. Content  Hungary  
    •              |  32   Passport  to  Trade  2.0  Project  Partnership   Five Universities: Lead partner: Salford Business School, University of Salford, United Kingdom Elena Vasilieva Aleksej Heinze Alex Fenton URENIO research unit at Aristole University of Thessaloniki, Greece Christina Kakderi Nitsa Papadopouloui TSE Entre Research Centre Turku School of Economics, University of Turku, Finland Satu Aaltonen Elisa Akola Institute for Information System Research University of Koblenz-Landau, Germany Verena Hausmann Susan P. Williams Petra Schubert Valahia University of Targoviste, Romania Adriana Grigorescu Leonardo Badea Three Small & Medium Sized Enterprises (SMEs) Spin, Italy Carmine Antonio Donato Dorella De Tommaso Technology Development & Innovation – TDI LTD Bulgaria Milanka Slavova Ivan Stoychev TIS Praha, Czech Republic Anna Klosova Richard Adekeye businessculture.org   Content  Hungary