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Intercultural
Negotiation
Process
International Business Communication, 4th ed., Chaney & Martin
Topics
Steps in the Negotiation
Process
Mistakes Commonly Made
During Negotiations
Intercultural Negotiation
Models
Negotiation Strategies
Trade Agreements
International Business Communication, 4th ed., Chaney & Martin
Definition
Intercultural negotiation involves
discussions of common and conflicting
interests between persons of different
cultural backgrounds who work to reach
an agreement of mutual benefit.
Team Selection
Consider number, age, gender,
and rank of team members.
Consider background of players.
Evaluate other negotiators - their
political affiliation, social class,
age, and risk-taking propensity.
Relationship Building
Time required
Intermediaries or agents
Friendship versus business
relationship
Agreement
Investigative
Presentation
Bargaining
Agreement
Negotiation Strategies
People act on the basis of their own best interests.
Truth in negotiations:
Faith
Fact
Feeling
U.S. negotiators make fewer adjustments to their
opponents.
Strategies include: preparation; tactics; conflict
resolution and mediation; and observation,
analysis, and evaluation.
Trade
Agreements
General license never actually issued
Validated license allows specific
exporter to export specific products to
specific places
Free trade zones or trade blocs
products enter without customs duties
NAFTA Benefits
To eliminate barriers to trade and facilitate
cross-border movement of goods and
services
To promote fair competition
To increase investment opportunities
To provide adequate and effective
protection for intellectual property
To develop effective procedures to handle
disputes
To expand cooperation and increase
benefits to the three countries
International Business Communication, 4th ed., Chaney & Martin
Grade
Statements Characteristic of
U.S. Negotiating Style
"I can handle this myself" (to express
individualism).
China
Reserved; known for hospitality and good
manners
Give small, inexpensive presents
Do not like to be touched
Consider mutual relationships and trust very
important
Technical competence of negotiators necessary
Prefer to use an intermediary
Rarely use lawyers
Ample room for compromise
International Business Communication, 4th ed., Chaney & Martin
France
Have a sense of pride sometimes interpreted as
supremacy
French logic ("Cartesian" logic) proceeds from
what is known in a point-by-point fashion until
agreement is reached
Protocol, manners, status, education, family, and
individual accomplishments are keys to success
with the French
Germany
Protocol is important
Dress is conservative; correct posture and manners are
required
Use titles when addressing members of the negotiating team
Prefer keeping a distance between themselves and the other
team
Have technical people as part of the negotiation team as
Germans are detail oriented
Punctuality is expected
Contracts are firm guidelines to be followed exactly
India
Bribery is common; having connections is
important
Avoid using the left hand in greetings and eating
Request permission before smoking, entering, or
sitting
Building relationships is important; an introduction
is necessary
Intermediaries are common
Use titles to convey respect
Knowledge of local affairs is important
Negotiation process can be long
International Business Communication, 4th ed., Chaney & Martin
Japan
Business etiquette is very important, including
business card exchange
Meeting should be arranged by an intermediary
Subtle and complex verbal and nonverbal cues
are used to avoid having someone lose face or
lose the group harmony
The Japanese use more silence and less eye
contact than U.S. persons
Consider contracts as flexible instruments
Are suspicious of a negotiating team that
includes lawyers
International Business Communication, 4th ed., Chaney & Martin
Latin America
Nigeria
Nigerians are skillful negotiators; they view negotiation as a competitive
process
When selecting negotiators, consider age (equated with wisdom), gender,
cultural background, and educational credentials
Developing a personal relationship is important
Time is not particularly important so negotiations may be lengthy
Use titles and last names
Use an intermediary to make initial introductions
Being well dressed is important; courtesy and consideration are also
expected
Contracts (oral or written) are flexible
A bribe may be needed to expedite business
Russian States
In the past, negotiation sessions have been long,
with Russians controlling the agenda
Are concerned with age, rank, and protocol
Tend to be formal
Friendships are not crucial to business
Contracts interpreted rigidly
Concerned with maximizing their profits