Unit 1

INTERNATIONAL AND CROSS-CULTURAL NEGOTIATION

Objectives

1. Understand the fundamentals of international negotiation

2. Discuss the impact of globalization on world wide economics and

negotiations.

3. Appreciate the importance and impact of culture in international

negotiation

4. Understand how international and cross-cultural negotiations are

different from domestic or same-cultural negotiation

5. Examine few strategies that negotiators can adopt to another party’s

cultural style

Content

• International negotiation

• International negotiation and globalization

Change of world output and world trade

Change over time of Foreign Direct Investment

Multinational enterprise

The Changing world order

• Difference between international negotiation and domestic or same-

cultural negotiation

• Contexts of international negotiation

Environmental context

Immediate context

• International negotiation outcomes

Content

• Conceptualizing culture and negotiation

Culture, values and norms

Difference between religious and ethical systems

Christianity

Islam

Hinduism

Buddhism

Confucianism

Hofstede’s model of cultural dimensions

Schwartz’s 10 cultural values

• The Influence of Culture on Negotiation: Managerial Perspectives

• Culturally responsive negotiation strategy

Low familiarity

Moderate familiarity

High familiarity

International

negotiation

International negotiations are much more complex than domestic

negotiations. They challenge the negotiators to understand the science of

negotiation while developing their artistry.

• The science of negotiation provides research evidence to support broad trends that

often, but not always, occur during negotiation.

• The art of negotiation is deciding which strategy to apply when, and choosing which

models and perspectives to apply to increase cross-cultural understanding.

International negotiation and globalization

““Global Market”Global Market”

– Globalization of markets and products

– Interdependent global economy

– The changing demographics of the global

economics

• Change of world output and world trade

• Change over time of Foreign Direct Investment

• Multinational enterprise

• The Changing world order

Difference between international negotiation and domestic or same-cultural negotiation

Context Context

International or global Context International or global Context

National or local Context National or local Context

Contexts of international negotiation

International negotiation outcomes

• Simple arguments cannot explain conflicting international negotiation

outcomes

• The challenge is to:

– Understand the multiple influences of several factors on the

negotiation process

– Update this understanding regularly as circumstances change

Conceptualizing culture and negotiation

• Culture as learned behavior

– A catalogue of behaviors the foreign negotiator should expect

• Culture as shared values

– Understanding central values and norms

• Individualism/collectivism

• Power distance

• Career success/quality of life

• Uncertainty avoidance

The Influence of Culture on Negotiation: Managerial Perspectives

• Definition of negotiation

• Negotiation opportunity

• Selection of negotiators

• Protocol

• Communication

• Time sensitivity

• Risk propensity

• Groups versus individuals emphasis

• Nature of agreements

• Emotionalism

Culturally responsive negotiation strategy

• When choosing a strategy, negotiators should:

– Be aware of their own and the other party’s culture in

general

– Understand the specific factors in the current relationship

– Predict or try to influence the other party’s approach

• Strategies are arranged based on the level of familiarity

(low, moderate, high) that a negotiator has with the other

party’s culture

Activities

Activities To be evaluated %

Forum: GlobalizationoHow does the Internet affect international business activity and the globalization of the world economy?o“Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.” Do you agree with this statement or disagree? Why?

Interventions: content, consistent with the discussion topic and argument.

10%

Study case: Google in China. Write a one page document analyzing it.

Structure, content, grammar, coherence, argument and analysis.

10%

Watch video: “Three Billion New Capitalists”. Write on a paper your opinion about it.

Structure, content, grammar, consistent with the topic of the video and argument

10%