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Chapter 10. Intercultural Negotiation Process. Topics. Steps in the Negotiation Process Mistakes Commonly Made During Negotiations Intercultural Negotiation Models Negotiation Strategies Trade Agreements. Definition.

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intercultural negotiation process

Chapter 10

Intercultural Negotiation Process

International Business Communication, 4th ed., Chaney & Martin

topics
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
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.

International Business Communication, 4th ed., Chaney & Martin

slide4

“In business, you don't get what you deserve, you get what you negotiate.”Why take “no” for an answer? Successful people don't. They get what they want by negotiating better deals for both parties.

Dr. Chester L. Karrass, Leader in Negotiating

steps in the negotiation process
Steps in the Negotiation Process
  • Preparation and Site Selection
  • Team Selection
  • Relationship Building
  • Opening Talks
  • Discussions
  • Agreement

International Business Communication, 4th ed., Chaney & Martin

preparation and site selection
Preparation and Site Selection
  • Hire a consultant in the country.
  • Consult resource videos and written materials on negotiation.
  • Choose a site—here or there can be important.

International Business Communication, 4th ed., Chaney & Martin

team selection
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.

International Business Communication, 4th ed., Chaney & Martin

relationship building
Relationship Building
  • Time required
  • Intermediaries or agents
  • Friendship versus business relationship

International Business Communication, 4th ed., Chaney & Martin

opening talks and discussions
Opening Talks and Discussions
  • Observe opening rituals - small talk, humor, etc.
  • Consider the appropriateness of an agenda.
  • Expect a variety of behaviors.
  • Plan ahead for concessions.
  • Move to an informal location when appropriate.

International Business Communication, 4th ed., Chaney & Martin

agreement
Agreement
  • Close negotiations properly.
  • Expect delays .
  • Get tax and legal advice.
  • Anticipate a long wait until final approval.
  • Remember that contracts are not always considered final.

International Business Communication, 4th ed., Chaney & Martin

common negotiation mistakes
Common Negotiation Mistakes
  • Making negative initial impression
  • Failing to listen and talking too much
  • Assuming understanding by the other culture
  • Failing to ask important questions
  • Showing discomfort with silence
  • Using unfamiliar and slang words
  • Interrupting the speaker
  • Failing to read the nonverbal cues

International Business Communication, 4th ed., Chaney & Martin

slide12
Failing to note key points
  • Making statements that are irritating or contradictory
  • Failing to prepare a list of questions for discussion
  • Being easily distracted
  • Failing to start with conditional offers
  • Failing to summarize and restate to ensure understanding
  • Hearing only what you want to hear
  • Failing to use first-class supporting materials

International Business Communication, 4th ed., Chaney & Martin

intercultural negotiation models
Intercultural Negotiation Models
  • Problem-solving approach — considers national and organizational cultural differences
  • Competitive approach — individualistic and persuasive orientation
  • Compromising — seeks a middle ground
  • Forcing — makes the other party comply
  • Legalism — uses legal documentation to force the partner to comply

International Business Communication, 4th ed., Chaney & Martin

four stage negotiation model
Four - Stage Negotiation Model
  • Investigative
  • Presentation
  • Bargaining
  • Agreement

Kozicki, Creative Negotiating

negotiation strategies
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.

International Business Communication, 4th ed., Chaney & Martin

trade agreements
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

International Business Communication, 4th ed., Chaney & Martin

nafta benefits
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

the u s negotiator s global report card
The U.S. Negotiator’s Global Report Card

Competency Grade

  • Preparation B-
  • Synergistic approach (win-win) D
  • Cultural I.Q. D
  • Adapting the negotiating process

to the host country environment D

  • Patience D
  • Listening D
  • Linguistic abilities F
  • Using language that is simple

and accessible C

  • High aspirations B+
  • Personal integrity A-
  • Building solid relationships D

International Business Communication, 4th ed., Chaney & Martin

statements characteristic of u s negotiating style
Statements Characteristic of U.S. Negotiating Style
  • "I can handle this myself" (to express individualism).
  • "Please call me Steve" (to make people feel relaxed by being informal).
  • "Pardon my French" (to excuse profanity).
  • "Let's get to the point" (to speed up decisions).
  • "Speak up; what do you think?" (to avoid silence).
  • "A deal is a deal" (to indicate an expectation that the agreement will be honored).

International Business Communication, 4th ed., Chaney & Martin

china
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
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

International Business Communication, 4th ed., Chaney & Martin

germany
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

International Business Communication, 4th ed., Chaney & Martin

india
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
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
Latin America
  • Relationships are important
  • Bribery is common
  • Government is very involved in business
  • Negotiators chosen based on family connections, political influence, education, and gender (females should be in the background)
  • Social competence is important
  • Most agreements are consummated over lunch
  • Numerous meetings is the norm; time is not seen as important
  • Avoid gestures

International Business Communication, 4th ed., Chaney & Martin

nigeria
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

International Business Communication, 4th ed., Chaney & Martin

russian states
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

International Business Communication, 4th ed., Chaney & Martin

slide28

Negotiating globally can present many opportunities. Corporations can expand their markets, increase their markets, increase their profits and productivity, and lower their costs by negotiating globally.

International Business Communication, 4th ed., Chaney & Martin