international negotiation

5/24/2018 International Negotiation

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CHAPTER 3

INTERNATIONAL

NEGOTIATION

AND CROSS-

CULTURAL

COMMUNICATION


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BASICS OF CROSS-CULTURAL

COMMUNICATION


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LANGUAGE AND CULTURE

The Whorf hypothesis


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HIGH CONTEXT

Communications have multiple

meanings interpreted by reading thesituation

Asian and Arabic languages are

among the most high context in theworld


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LOW CONTEXT

The words provide most of the

meaning Most northern European languagesincluding German, English, and the

Scandinavian languages are lowcontext


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Swiss

Germans

Scandinavians

North Americans

Arabs

French

Italians

Latin Americans

British

Japanese

High Context: Meaning

Implicit Languages

Low Context: Meaning

Explicit in Language

Surrounding

Information

Necessary for

Understanding

EX 3.1 High Context and

Low Context Countries


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Exhibit 3.2 CulturalDifferences in

Communication Styles

0

20

40

60

80

100

Nigeria

MexicoSpainArgentian

USA Germany

IndiaBrazilUK China

FranceJapan

% Direct % Formal


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NONVERBALCOMMUNICATION -

COMMUNICATINGWITHOUT WORDS


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KINESICS

Communicating through body

movements Facial expressions

Body posture


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PROXEMICS

The use space to communicate

The personal bubble of space - nineinches to over twenty inches

North Americans prefer more

distance than from Latin and Arabcultures


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TOUCH

Basic human interaction In greeting - shake hands,

embrace, or kiss Latin European and Latin

American cultures-more touching

than Germanic, Anglo, orScandinavian cultures


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PRACTICAL ISSUES IN CROSS-CULTURAL VERBALCOMMUNICATION


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INTERPRETERS

Provide simultaneous translationof a foreign language

Require greater linguistic skillsthan speaking a language ortranslating written documents

Insure the accuracy and commonunderstanding of agreements


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COMMUNICATION WITHNONNATIVE SPEAKERS

Use the most common words with mostcommon meanings

Select words with few alternativemeanings

Follow rules of grammar strictly

Speak with clear breaks betweenwords


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Communication with nonnativespeakers, continued

Avoid sports words or words borrowedfrom literature

Avoid words that represent pictures Mimic the cultural flavor of nonnativespeakers language

Summarize

Test your communication success


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AVOIDINGATTRIBUTION ERRORS

Attribution - process by which weinterpret the meaning and intent ofspoken words or nonverbal exchanges

Attribution errors


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INTERNATIONALNEGOTIATION

More complex than domestic

negotiations Differences in national cultures anddifferences in political, legal, and

economic systems often separatepotential business partners


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EXHIBIT 3.4: STEPS IN THE

INTERNATIONALNEGOTIATION PROCESS


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STEP 1: PREPARATIONSTEP 2: BUILDING THE

RELATIONSHIPSTEP 3: EXCHANGING

INFORMATION/FIRST OFFER

STEP 5: CONCESSIONS

STEP 6: AGREEMENT

STEP 4: PERSUASION


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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

E E E


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DIFFERENCES INCULTURES IN KEY

NEGOTIATINGPROCESSES (EXAMPLES)

Communication stylesdirect orindirect

Sensitivity to timelow or high

C l l D ff K


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Cultural Differences in KeyNegotiating Processes,

Continued

Forms of agreementspecific or broad

(EX 3.5) Team organizationa team or one leader


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Exhibit 3.5 Preferences forBroad Agreements

0

10

20

30

40

50

JapanGermany

India FranceChinaArgentina

BrazilUSA Nigeria

MexicoSpain UK

% Preference for Broad Agreements


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STEP 2: BUILDING THERELATIONSHIP

No focus on business Partners get to know each other Social and interpersonal exchange Duration and importance vary by culture


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STEP 3: EXCHANGINGINFORMATION AND THE

FIRST OFFER

Task-related information isexchanged

First offer


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STEP 4: PERSUASION

Heart of the negotiation process

Attempting to get other side to agreeto a position

Numerous tactics used

E E


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VERBAL AND NONVERBALNEGOTIATION TACTICS

Promise

Threat

Recommendation Warning

Reward

Punishment Normative appeal


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Negotiation Tactics, Continued

Commitment

Self disclosure

Question

Command

No Interrupting


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DIRTY TRICKS ININTERNATIONALNEGOTIATIONS

Dirty tricks are negotiation tacticsthat pressure opponents to acceptunfair or undesirable agreements or

concessions


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PLOYS/DIRTY TRICKS -

POSSIBLE RESPONSES

Deliberate deception - point out

what is happening Stalling - do not reveal when you plan

to leave

Escalating authority - clarifydecision making authority


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Good guy, bad buy routine - do notmake any concessions

You are wealthy and we are poor -ignore the ploy

Old friends - keep a psychologicaldistance

Ploys/Dirty Tricks, Continued

STEPS 5 AND 6


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STEPS 5 AND 6:CONCESSIONS AND

AGREEMENT

Final agreement: The signedcontract, agreeable to all sides

Concession making: requires thateach side relax some of its demands


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STYLES OFCONCESSION

Sequential approach

Each side reciprocates

concessions Holistic approach

Concession making begins after

all issues are discussed


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BASIC NEGOTIATIONSTRATEGIES

Competitive The negotiation as a win-lose game

Problem solving Search for possible win-win situations

COMPETITIVE OR


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COMPETITIVE ORPROBLEM SOLVING

INTERNATIONALNEGOTIATION

Cultural norms and values maypredispose some negotiators toone approach (EX 3.10)

Most experts recommend aproblem solving negotiationstrategy

EX 3 10 P f f


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EX 3.10 Preferences for

Problem-Solving

Negotiation

0

20

40

60

80

100

Japan

China

Argentina

France

IndiaUSAUK Mexico

Germany

Nigeria

Brazil

Spain

% Win-Win

THE SUCCESSFUL


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HE S ESSF LINTERNATIONAL

NEGOTIATOR: PERSONALCHARACTERISTICS

Tolerance of ambiguous situations

Flexibility and creativity

Humor

Stamina Empathy

P l Ch i i


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Curiosity

Bilingual

Personal Characteristics,Continued


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CONCLUSIONS

Successful negotiators:

Understand the negotiation steps

Build cross-cultural communication skills Understand nonverbal communication

Avoid attribution errors

international negotiation

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