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CHAPTER 3 INTERNATIONAL NEGOTIATION AND CROSS-CULTURAL COMMUNICATION. BASICS OF CROSS-CULTURAL COMMUNICATION. LANGUAGE AND CULTURE. The Whorf hypothesis. HIGH CONTEXT. Communications have multiple meanings interpreted by reading the situation

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slide1

CHAPTER 3

INTERNATIONAL NEGOTIATION

AND CROSS-CULTURAL COMMUNICATION

language and culture
LANGUAGE AND CULTURE
  • The Whorf hypothesis
high context
HIGH CONTEXT
  • Communications have multiple meanings interpreted by reading the situation
  • Asian and Arabic languages are among the most high context in the world
low context
LOW CONTEXT
  • The words provide most of the meaning
  • Most northern European languages including German, English, and the Scandinavian languages are low context
kinesics
KINESICS
  • Communicating through body movements
  • Facial expressions
  • Body posture
proxemics
PROXEMICS
  • The use space to communicate
  • The personal bubble of space - nine inches to over twenty inches
  • North Americans prefer more distance than from Latin and Arab cultures
touch
TOUCH
  • Basic human interaction
  • In greeting - shake hands, embrace, or kiss
  • Latin European and Latin American cultures-more touching than Germanic, Anglo, or Scandinavian cultures
interpreters
INTERPRETERS
  • Provide simultaneous translation of a foreign language
  • Require greater linguistic skills than speaking a language or translating written documents
  • Insure the accuracy and common understanding of agreements
communication with nonnative speakers
COMMUNICATION WITH NONNATIVE SPEAKERS
  • Use the most common words with most common meanings
  • Select words with few alternative meanings
  • Follow rules of grammar strictly
  • Speak with clear breaks between words
communication with nonnative speakers continued
Communication with nonnative speakers, continued
  • Avoid “sports” words or words borrowed from literature
  • Avoid words that represent pictures
  • Mimic the cultural flavor of nonnative speaker’s language
  • Summarize
  • Test your communication success
avoiding attribution errors
AVOIDING ATTRIBUTION ERRORS
  • Attribution - process by which we interpret the meaning and intent of spoken words or nonverbal exchanges
  • Attribution errors
international negotiation
INTERNATIONAL NEGOTIATION
  • More complex than domestic negotiations
  • Differences in national cultures and differences in political, legal, and economic systems often separate potential business partners
slide19

STEP 1: PREPARATION

STEP 2: BUILDING THE

RELATIONSHIP

STEP 3: EXCHANGING

INFORMATION/FIRST OFFER

STEP 4: PERSUASION

STEP 5: CONCESSIONS

STEP 6: AGREEMENT

step 1 preparation
STEP 1: PREPARATION
  • Is the negotiation possible?
  • Know what your company wants
  • Know the other side
  • Send the proper team
  • Agenda
  • Prepare for a long negotiation
  • Environment
  • Strategy
differences in cultures in key negotiating processes examples
DIFFERENCES IN CULTURES IN KEY NEGOTIATING PROCESSES (EXAMPLES)
  • Communication styles—direct or indirect
  • Sensitivity to time—low or high
cultural differences in key negotiating processes continued
Cultural Differences in Key Negotiating Processes, Continued
  • Forms of agreement—specific or broad (EX 3.5)
  • Team organization—a team or one leader
step 2 building the relationship
STEP 2: BUILDING THE RELATIONSHIP
  • No focus on business
  • Partners get to know each other
  • Social and interpersonal exchange
  • Duration and importance vary by culture
step 3 exchanging information and the first offer
STEP 3: EXCHANGING INFORMATION AND THE FIRST OFFER
  • Task-related information is exchanged
  • First offer
step 4 persuasion
STEP 4: PERSUASION
  • Heart of the negotiation process
  • Attempting to get other side to agree to a position
  • Numerous tactics used
verbal and nonverbal negotiation tactics
VERBAL AND NONVERBAL NEGOTIATION TACTICS
  • Promise
  • Threat
  • Recommendation
  • Warning
  • Reward
  • Punishment
  • Normative appeal
negotiation tactics continued
Negotiation Tactics, Continued
  • Commitment
  • Self disclosure
  • Question
  • Command
  • No
  • Interrupting
dirty tricks in international negotiations
“DIRTY TRICKS” IN INTERNATIONAL NEGOTIATIONS

Dirty tricks are negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions

ploys dirty tricks possible responses
PLOYS/DIRTY TRICKS - POSSIBLE RESPONSES
  • Deliberate deception - point out what is happening
  • Stalling - do not reveal when you plan to leave
  • Escalating authority - clarify decision making authority
ploys dirty tricks continued
Ploys/Dirty Tricks, Continued
  • Good guy, bad buy routine - do not make any concessions
  • You are wealthy and we are poor - ignore the ploy
  • Old friends - keep a psychological distance
steps 5 and 6 concessions and agreement
STEPS 5 AND 6: CONCESSIONS AND AGREEMENT
  • Final agreement: The signed contract, agreeable to all sides
  • Concession making: requires that each side relax some of its demands
styles of concession
STYLES OF CONCESSION
  • Sequential approach
    • Each side reciprocates concessions
  • Holistic approach
    • Concession making begins after all issues are discussed
basic negotiation strategies
BASIC NEGOTIATION STRATEGIES
  • Competitive
    • The negotiation as a win-lose game
  • Problem solving
    • Search for possible win-win situations
competitive or problem solving international negotiation
COMPETITIVE OR PROBLEM SOLVING INTERNATIONAL NEGOTIATION
  • Cultural norms and values may predispose some negotiators to one approach (EX 3.10)
  • Most experts recommend a problem solving negotiation strategy
the successful international negotiator personal characteristics
THE SUCCESSFUL INTERNATIONAL NEGOTIATOR: PERSONAL CHARACTERISTICS
  • Tolerance of ambiguous situations
  • Flexibility and creativity
  • Humor
  • Stamina
  • Empathy
conclusions
CONCLUSIONS
  • Successful negotiators:
    • Understand the negotiation steps
    • Build cross-cultural communication skills
    • Understand nonverbal communication
    • Avoid attribution errors