Negotiation in cross cultures

In some situations it is also possible to use a combination of both cultures, for example, regarding joint venture businesses. Punctuality and agenda may be an important aspect of negotiation.

Unfortunately, knowledge of any foreign language is not enough to face and solve the problem. Verbal and non-verbal communication is a key factor of persuasion. How do we cope with the cultural differences? The way we express our needs and feelings using body language and tone of voice can determine the way the other side perceives us, and in fact positively or negatively contributes to our credibility.

The most common dilemma is related to personal relations between counterparts: Risk-Taking Propensity - Uncertainty Avoidance: In most cultures,only written agreements stamp a deal. Protocol factors that should be considered are dress codes, number of negotiators, entertainment, degree of formality, gift giving, meeting and greeting, etc.

Different cultures stress different aspects of negotiation. How is the negotiation being seen? Coping with Culture Negotiating in the international environment is a huge challenge for any negotiator.

In some cultures, like America, an informal style may help to create friendly relationships and accelerate the problem solving solution.

The final outcome is unknown when the negotiations commence. It means that less innovative and creative alternatives are available to pursue during the negotiation, unless there is a strong trust-based relationship between the counterparts.

Should we trust them? Another dimension of time relevant to negotiation is the focus on past, present or future. Negotiators from countries like Britain, Germany and Austria tend to be comfortable with shared authority and democratic structures. Certain cultures are more risk averse than others, e.

When we face a high power distance culture, be prepared for hierarchical structures and clear authority figures. In stead of generalising, we should make an effort to treat everyone as individuals. In some cultures time is money and something to be used wisely.

We usually expect people to take advantage of a situation, and during the negotiations the other side probably thinks the same way, especially when there is a lack of trust between counterparts.

The best we can do is to try to identify principal influences that the foreign culture may have on making the deal. Another possible solution is to adopt a third culture, which can be a strong base for personal relationships.

Do we feel more comfortable using a formal or informal approach to communication? Factors influencing cross-cultural negotiations Negotiating Goal and Basic Concept: It seems to be the best way to secure our interests in case of any unexpected circumstances.

In this case, if any unexpected circumstances arise, parties prefer to focus on the relationship than the contract to solve the problem.

Consider investing more time in the negotiating process in Japan. The goal of business negotiation may be a substantive outcome Americans or a long-lasting relationship Japanese. The way members of the other negotiating team reach a decision may give us a hint: There is always risk involved in negotiations.

In countries such as China or Japan, being late would be taken as an insult. The way we view other people tends to be reserved and cautious.

When there is a difficulty in finding common ground, focusing on common professional cultures may be the initiation of business relations. As we better understand that our partners may see things differently, we will be less likely to make negative assumptions and more likely to make progress when negotiating.

Will they trust us? Do they want to win? We need more effective tools, and the most important is knowledge of all factors that can influence the proceedings.

This is why specifying and understanding cultural differences is vital in order to perform successfully in inter-cultural communication Schuster-Copeland This refers to the acceptance of authority differences between people.

There are some very helpful guidelines we can apply Salacuse, What would you do in this cross-cultural conflict negotiation example? Crossing Cultures in Negotiation,” by Francesca Gino (Associate Professor, This discussion was held at the 3 day executive education workshop for senior executives at the Program on Negotiation at Harvard Law School.

The diverse makeup of many societies and global nature of business today make cross-cultural negotiation a regular part of life. Unfortunately, many major disputes in need of resolution also cross ethnic and cultural lines.

Communication and negotiation etiquette varies widely across cultures.

In France, it is rude to talk money over dinner while in. Negotiation is further complicated when the parties find themselves negotiating across dissimilar cultures. “Culture is a powerful factor in. which I strongly recommend that you use in any cross cultural negotiation. In some cultures, this is equivalent to a middle finger in other cultures.

THE INTERNATIONAL NEGOTIATION COMPETITION: A GUIDE FOR PARTICIPANTS The International Negotiation Competition offers students the unique opportunity to negotiate with other students from all across the globe.

With that opportunity come some Cross-cultural issues and advice. Falcao says we should regard every negotiation as a ‘cross-cultural exercise,’ adding that communication – the process in which people deal with each other – is a very important dimension in which rituals have a major impact.

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Negotiation in cross cultures
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