CHINDIALeading Negotiations in Chindia - 3a Ed

SMM
Trend School Center for Business Communication Leading Negotiations in Chindia Third Edition
[LEADING NEGOTIATIONS IN CHINDIA TEACHERS GUIDE]

In business, you dont get what you deserve, you get what you negotiate.
[TREND SCHOOL
CENTER FOR BUSINESS COMMUNICATION
SMS SKILLS FOR MANAGEMENT & MULTICULTURE
SMM Skills for Management and Multiculture

Welcome to SMM Skills for Management and Multiculture Program. The objective of this module is to prepare the participant to identify and do business in international markets through the development of management skills in English, especially related to Presentations and Negotiations, as well as the acquisition of multicultural knowledge in emerging markets. The curriculum encompasses the following elements to ensure that all components of business communication are integrated: 1. 2. 3. 4. 5. 6. 7. 8. 9. Topic Business Communication Concepts Business Communication Skills Communication Tools Case Study MBC Multicultural Business Communication Trend Life Self Assessment Quiz Communication Tips
Trend Life is a virtual Business Communication environment aimed at gathering people in an interactive space, where real life business applications are presented on a daily basis. The concept is a unique and innovative way of bringing executives together in a learning atmosphere, and at the same time, connecting cultural and business experiences from around the world. It is positioned as part of an integrated solution specially designed to give continuity and enhancement to the classroom program. This combination will empower participants to achieve outstanding results and motivate them in a daily learning process.
Trend School Center for Business Communication
Teachers Guide: LEADING NEGOTIATIONS IN CHINDIA
INDEX In Classroom Syllabus Unit 1: Introduction to China Unit 2: Introduction to India Unit 3: Negotiating in Chindia Unit 4: Language of Negotiations 04 06 17 30 39
Beyond the Classroom Self Assessment Trend Life 43 52
SMM SKILLS FOR MANAGEMENT & MULTICULTURE
TOPIC You are exposed to a variety of topics within business communication so as to provide you with opportunities to discuss issues, concepts, and all interrelated subjects.
BUSINESS COMMUNICATION CONCEPT
Here you will work with a specific business communication concept in order to enhance your management skills and provide you with tools for effective communication.
BUSINESS COMMUNICATION SKILLS The focus of these business communication skills is to practice oral communication skills (listening and speaking).
COMMUNICATION TOOLS This section encompasses the language skills that are necessary to communicate with accuracy. You will review grammar concepts, expand your vocabulary, and practice your reading and writing skills. CASE STUDY The case studies throughout the book provide you with an overview of multinational companies, global markets, business situations and current global and business issues.
MBC MULTICULTURAL BUSINESS COMMUNICATION Multicultural business communication is essential to companies which are entering the global market where diversity and cultural awareness play an important role in doing business. Here, you will work with cultural awareness and how diversity affects businesses. TREND LIFE Trend Life is an integrated multimedia website that provides you with all the tools to improve your communication skills. More than that, Trend Life is a way of making business communication a lifestyle that empowers you to be an effective communicator.
SELF ASSESSMENT QUIZ There is a self assessment quiz at the communication tools section so that you can see which areas of communicative competence require further practice.
COMMUNICATION TIPS Here you will find tips on how to improve your communication skills within business communication as well as the areas of language acquisition that require further practice.
SMM LEADING NEGOTIATIONS IN CHINDIA

UNIT 1 INTRODUCTION TO CHINA
Warm-up
1. What is the first word that comes to mind when you think of business in China? 2. Have you ever done business in China? If so, describe your experience. 3. What important aspects do you know about China and the Chinese culture?
Information on China
A. Read this information. Discuss most relevant points. Capital: Beijing Largest city: Shanghai Official languages: Standard Mandarin (spoken), Simplified Chinese (spoken)
Population: 1,330,044,544 (Jul.08 est.) Population growth rate: 0.629% (2008 est.) GDP (purchasing power parity): $7.89 trillion (2008 est.)
GDP (nominal): $4.222 trillion (Total) 3rd GDP - real growth rate: 11.9% (2007 est.) GDP - per capita: $5,943 (2008 est.)
Major Ports Dalian, Guangzhou, Ningbo, Qingdao, Qinhuangdao, Shanghai, Shenzhen, Tianjin Industrial production growth rate: 13.4% (2007 est.)
Exports: $1.22 trillion f.o.b. (2007 est.) Exports - commodities: Machinery, electrical products, data processing equipment, apparel, textile, steel, mobile phones Imports: $904.6 billion f.o.b. (2007 est.) Imports - commodities: Machinery and equipment, oil and mineral fuels, plastics, LED screens, data processing equipment, optical and medical equipment, organic chemicals, steel, copper
China Income Per Capita In 2007, the government speeded up efforts in its Go West program to spread industrialization to the more rural West of China and to promote infrastructure development outside the Eastern coastal areas. The new goal came in an announcement of top official in Beijing on October 12, 2008.
Teachers Note: This section is optional. However, it is important for students to understand the historical aspects of China and not only the business aspects of Chinese culture. China has one of the world's oldest people and continuous civilizations, consisting of states and cultures dating back more than six millennia. It has the world's longest continuously used written language system, and is the source of such major inventions as what the British scholar and biochemist Joseph Needham called the "four great inventions of Ancient China": paper, the compass, gunpowder, and printing. Historically China's cultural sphere has been very influential in East Asia as a whole, with Chinese religion, customs, and writing system being adopted, to varying degrees, by its neighbors Japan, Korea, and Vietnam. For 4,000 years, China's political system was based on hereditary monarchies (also known as dynasties). The first of these dynasties was the Xia but it was later the Qin Dynasty who first unified China in 221 BC. The last dynasty, the Qing, ended in 1911 with the founding of the Republic of China (ROC) by the Nationalist Kuomintang (KMT). The first half of the 20th century saw China plunged into a period of disunity and civil wars that divided the country into two main political camps the Kuomintang (KMT) and the Communists. Major hostilities ended in 1949, when the People's Republic of China (PRC) was established in mainland China by the victorious Communists. The KMT-led Republic of China government retreated to Taipei, its jurisdiction now limited to Taiwan and several outlying islands. As of today, the PRC is still involved in disputes with the ROC over issues of sovereignty and the political status of Taiwan.
Li River in Guangxi
Tibetan Plateau in Southwest China
Farmlands in East China
China's importance in the world today is reflected through its role as the world's third largest economy nominally (or second largest by PPP) and a permanent member of the UN Security Council as well as being a member of several other multilateral organizations including the WTO, APEC, East Asia Summit, and Shanghai Cooperation Organization. In addition, it is a nuclear state and has the world's largest standing army with the second largest defense budget. Since the introduction of market-based economic reforms in 1978, China has become one of the world's fastest growing economies and the world's second largest exporter and the third largest importer of goods. Rapid industrialization has reduced its poverty rate from 53% in 1981 to 8% in 2001. However, the PRC is now faced with a number of other problems including a rapidly aging population due to the one-child policy, a widening rural-urban income gap, and environmental degradation. (PPP Purchasing Power Parity; APEC Asian Pacific Economic Cooperation; WTO World Trade Organization).
Reading - How to negotiate in China and other Chinese business practices

1. What are the challenges of negotiating in a country with such a contrasting cultural background? 2. Read the text below and underline all advice you consider important. 3. Compare/discuss with your colleagues or teacher.
Relationships in China are based on mutual trust and respect; equality, commitment and common goals, communication and compromise. It takes time and effort to build relationships, which Western companies (Motorola, Vodaphone, Intel to name a few) have found to be the case. Below are insights that successful expatriate managing directors; leaders of global teams, and explorers of business opportunities follow to build business in China. Communication Strategies Persuasion - There may be sensible and intellectual discussions, but individuals know their place in the team or organization (hierarchy), e.g., contributing or deciding role. They know when to stop or when pushing too hard may be offensive or counterproductive. Feedback - Chinese generally do not volunteer information or give feedback. If you want feedback, ask persistently and politely. Remember that Chinese are not comfortable giving praise. Self-glorification or Promotion Expressing one's attributes or accomplishments runs contrary to Chinese values of modesty and humility. The norm is to be selfdeprecating. Sending a company a letter ahead of your meeting that gives bio data with accomplishments (academic titles, positions held, major
deals or projects completed) of the visiting team members is appropriate. Confrontation - Chinese avoid confrontation altogether. This is done to save face and preserve group harmony (as confronting can translate to there being a winner and a loser). Individuals should discuss different viewpoints and try to build consensus. This holistic culture does not compartmentalize work and personal feelings. Its important to note everything is personal. Negotiation Strategies Chinese Negotiating Style - While Westerners are generally resultsoriented (focusing on tasks at hand, specific terms and conditions, and time efficiency) Chinese are relationship-oriented. They focus on harmony and flexibility, and are patient in getting the job done. They do all they can to avoid 'tong chuan yi meng' which translates to 'same bed, different dreams'. Chinese are known to be tough negotiators. Building Trust - Begin to build trust based on mutual respect, modesty, equality and harmony. Chinese are not comfortable being rushed, or jumping right into business discussions without proper introduction. They believe getting to know each other and building trust is necessary in negotiations.
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Rationale - Chinese take time to understand the reason, logic and motivating factors in a holistic manner - connecting the dots. They must be convinced there's a win-win deal to be made. Cultural Priorities - In negotiations, Chinese cultural priorities are relationship first followed by rationale, and legal. Check your cultural assumptions in relation to these priorities - they may be in reverse order. Style - Chinese listen more than they talk. They may appear to be delaying, but they are gathering pertinent details on issues and personalities. The indirect, unemotional style accompanied by vagueness allows room for maneuverability and outs. Silence is constructive ambiguity'. It is rude to interrupt. To build a productive relationship each side must accept different styles of team building and group dynamics. Compromise - Chinese know what they want and are willing to compromise. Give and take' is a means to achieve harmony in Chinese culture. As such, compromise is not considered weak or giving in. Revisiting agreed items or terms - It is not unusual for Chinese to revisit items previously discussed and agreed upon, and try to renegotiate. If this happens, graciously enter into talks, be flexible and well prepared for what you are willing and unwilling to do, and prepare your organization that there may have to be changes. Subtleties Matter Attitude matters and yours will be constantly read by the Chinese. Your patience, professionalism, and courtesy are sending messages of your personal integrity. Understand that you must take many small steps
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before taking larger steps. Focus on developing a consensus. Know and stick to your company's policy on ethics. Listen empathetically and observe. Pay attention to details. Note Chinese body language and hidden meanings. Understand cross-cultural communication barriers such as cultural frames, traditions, etiquette, time and place, status and power, English comprehension level. Always bring your own interpreter, even when the Chinese offer to provide one for you. The one who speaks least in a meeting may actually be the most powerful. Be sure to know the position of those you're dealing with. Don't rush to give your opinion or advice. Take the time to diagnose and understand the problem first. Respect viewpoints of others. Make your self' easy to understand. Speak clearly, concisely, and slowly. Avoid asking or' questions (you may get a both' answer). Ask questions and clarify politely. Focus on issues. Take the blame out of discussions. Don't insist you are right even if you are. Leave room for outs' (face-saving maneuvers). 1. Avoid saying no. A direct and blunt no may be perceived as a slap in the face. Use wording such as like "It's very difficult for me to.....", "It's really not possible to...." Try not to overuse the word you'; instead use the third person one'. Pronouns aren't used as much in Mandarin as in English, and as the listener, hearing you' could be taken personally. For example, instead of "You should not jump to conclusions without all of the facts...", say, "One should not jump to conclusions..." Err on the side of being more formal in meetings. Sit straight and be attentive.
Slouching and relaxing postures are considered bad manners. It's impolite to cause disruptions such as standing up to stretch and walking around the room. Do not interrupt unless the presenter or the leader makes a point to allow so. Asking questions during a presentation is considered interrupting and rude. Whenever possible, use laser pointers. Avoid pointing with any one finger; use whole-hand gestures instead. .
However your meetings go with your Chinese counterparts, focus on building the relationship for the long term, and extending your guan-xi network. Patience, politeness and persistence will bring opportunities for you and your Chinese customers, suppliers or coworkers. Recognize that social-personal relationships drive business culture in a holistic way. They're cultivated over time. Remember, relationships first and results will follow.
Published on VentureOutsource.com (http://www.ventureoutsource.com)
Business Communication Concept: Guanxi

1. What does the text above say about Guanxi and relationships? 2. Have you understood the concept? Explain using your own words.
Video 1: Western - Chinese Culture Part 1

http://www.youtube.com/watch?v=qingy5JAt8w Western-Chinese Business You could already be in too deep
1. Does the speakers definition of Guanxi match your own? 2. Does this concept exist in your country? If not, are there any similarities?

http://www.youtube.com/watch?v=Ul4WWhMZpj8 Western-Chinese Business Why Westerners Do Not Get It
A. Watch the video once. B. Choose the best option 1. Westerners tend to: a) see everything from their own perspective b) accept other perspectives c) see China from a different perspective 2. Westerners are defined as being from: a) North America, Canada and Australia, mainly b) All of America and Oceania c) Europe, North America, Canada and Australia, mainly 3. Westerners. a) Share and understand many cultures b) Are comprised of many cultures c) Share only one culture
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4. Westerners tend to think a) There is a better way to do things b) There is only one way to do things c) There are many ways to do things 5. Europeans have a) an advantage b) a disadvantage c) more benefits 6. Because a) They are more adaptable b) They are better prepared c) Both a and b 7. The main requirement to negotiate with Chinese executives is a) to understand the differences b) to understand the similarities c) to understand the right way to do things 8. In summary, executives must learn to a) respect b) understand c) both a and b
About the Speaker

Greg Bissky is Managing Director of Treasure Mountain Consultants in Victoria, Canada, Shanghai and Taipei. Greg Bissky is Canadian, 53, with an MA, University of British Columbia (modern Chinese politics), BA, University of Victoria (Chinese studies and modern Chinese politics). He lived in Taiwan from 1985 to 1998 and, in 1990, founded a management consulting and training firm that is currently active throughout the region. His strengths are sales and marketing, project and team leadership, cross-cultural understanding and communication, product and service development. He conducts speeches, seminars and workshops for both Western and Chinese managers (in English or Chinese). He also is active leading Chinese teams in major reengineering and performance management projects for Western and Chinese firms. Author of Wearing Chinese Glasses, 2007.
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Communication Tools: Supposed/Expected/Meant to

Teachers note: Tell students that supposed has other meanings which are out of context in this unit. For more information, they should consult their grammar books. Suppose is similar in meaning to think: I suppose we should be leaving. Its getting late. We use mean to to say we intend to do something: I meant to meet you as we agreed, but I was delayed. We use be supposed to, be expected to and be meant to to describe something someone else thinks we should / shouldnt do: Youre not supposed to park here. Youre expected to arrive by 9.00 for the interview. When talking about the past we use was/were supposed to/expected to/meant to in place of should have done to criticize someones behavior: Youre late! You were supposed to be here an hour ago. You were expected to wear a suit for the meeting. We use was/were supposed to to say that events didnt happen the way we expected: We were supposed to stop somewhere nice for lunch. (but we didnt) A. Underline the correct option 1 Visitors suppose / are supposed to see the famous London sights. 2 Lunch should / was supposed to be in a typical English restaurant, but it wasnt. 3 I was meant / meant to send you a card for your birthday, but I forgot. 4 According to the invitation, what time do we expect / are we expected to arrive? 5 A famous actor meant / was meant to open this restaurant. 6 Youre not suppose to / supposed to walk on the grass. 7 The result wasnt what it was expected / expected to be. 8 We supposed / were supposed to have a meeting. B. Tick the correct sentence in each pair. 1a. You expected to dress smartly for a wedding. 1b. You are expected to dress smartly for a wedding. 2a. Cars meant to make our lives easier. 2b. Cars are meant to make our lives easier.
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C. Write 10 sentences using meant to, supposed to and expected to based on past experience with foreign/Asian executives. Read the sentences to your teacher for feedback and corrections. Teachers Note: Students may need some help with this exercise. Allow them to make up some sentences first, and write them on the board. For example, In China, you are supposed to leave your shoes at the door, but I did not. In India, you are expected to know certain customs. Negotiations went better than expected.
Quiz: Business in China

Based on your experience and the information studied in this unit, complete the following quiz. 1. Aggressive negotiation tactics are recommended. a) true b) false 2. Is it acceptable to answer phone calls in meetings. a) true b) false 3. Who would you expect to make decision from negotiations and meetings? a) The negotiation team through consensus b) Most senior ranking attendee c) Your director counterpart 4. Which of these should you do when negotiating in China? a) Inflate your prices b) Pretend to reject demands c) Concede easily to demands for concessions 5. Which of these should you try and have on your business cards? a) Title b) Age 6. How should one receive business cards? a) Both hands
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b) Right hands c) With left hand propped by right
7. Which of these should you not do during a business meeting? a) Address anyone but the head of the Chinese contingency b) Show emotion 8. Gifts within the business context are seen as bribes. a) True b) False 9. A handshake in China should be a) Limp and brief b) Strong and lengthy c) Firm but brief 10. The Chinese prefer business communication by which of these methods? a) Phone b) Face to Face c) Writing

http://www.youtube.com/watch?v=T7GKa57mwqY - Western-Chinese Business Doing Business in Asia
Teachers Note: This video is optional. It provides better understanding of the Chinese mind frame and is purely informative for students who show interest of this subject.
Video 4: This is China (optional)

http://www.youtube.com/watch?v=2TRs2s-22tg&feature=related
Teachers Note: To wind down, play the video, This is China. I strongly suggest you play the entire 8 minutes.
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UNIT 2 INTRODUCTION TO INDIA
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Warm-up
1. What do you know about India and Indian culture? 2. What do you think is the greatest challenge of doing business in India? 3. Name the biggest difference between India and Brazil.
Information on India
A. Read this information. Discuss most relevant points. India's total area is 3.29 million square kilometers. Size is slightly more than onethird the size of the US. Capital: New Delhi Government: Federal republic Languages spoken: English is the preferred business language. Hindi is the national language and primary tongue of 30% of the people.
Population: 1,129,866,154 (July 2007 est.) GDP (purchasing power parity): $4.042 trillion (2006 est.) GDP (official exchange rate): $796.1 billion GDP - real growth rate: 8.5%
GDP - per capita (PPP): $3,700 Labor force: 509.3 million Inflation rate (consumer prices): 5.3% Industrial production growth rate: 7.5%
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Exports: $112 billion f.o.b. Exports - commodities: textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures Imports: $187.9 billion f.o.b. Imports - commodities: crude oil, machinery, gems, fertilizer, chemicals Export and import growth (%) Exports 2002 2003 2004 2005 2006 2007 2008 20.3 23.3 28.5 23.4 20.0 16.0 15.0 Imports 14.5 24.1 48.6 32.0 26.2 20.0 19.2
Sources: Reserve Bank of India
India, officially the Republic of India is a country in South Asia. It is the seventhlargest country by geographical area, the second-most populous country, and the most populous democracy in the world. It is
bordered by Pakistan to the west; People's Republic of China (PRC), Nepal, and Bhutan to the north; and Bangladesh and Myanmar to the east.
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Four major world religions, Hinduism, Buddhism, Jainism and Sikhism originated there, while Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium CE and shaped the region's diverse culture. Gradually annexed by the British East India Company from the early eighteenth century and colonized by the United Kingdom from the mid-nineteenth century, India became an independent nation in 1947 after a struggle for independence that was marked by widespread nonviolent resistance.
In the 20th century, a nationwide struggle for independence was launched by the Indian National Congress and other political organizations. Indian leader Mahatma Gandhi led millions of people in national campaigns of non-violent civil disobedience. On 15 August 1947, India gained independence from British rule, but at the same time Muslim-majority areas were partitioned to form a separate state of Pakistan.[3 On 26 January 1950, India became a republic and a new constitution came into effect.
Delhi
India is a republic consisting of 28 states and seven union territories with a parliamentary system of democracy. It has the world's twelfth largest economy at market exchange rates and the fourth largest in purchasing power. Economic reforms since 1991 have transformed it into one of the fastest growing economies; however, it still suffers from high levels of poverty, illiteracy, and malnutrition. A pluralistic, multilingual, and multiethnic society, India is also home to a diversity of wildlife in a variety of protected habitats.
Topographic map of India.
Tso Kiagar Lake at Ladakh on the Himalayas
Since independence, India has faced challenges from religious violence, casteism, naxalism, terrorism and regional separatist insurgencies. Since the 1990s terrorist attacks have affected many Indian cities. India has unresolved territorial disputes with P. R. China, which in 1962 escalated into the Sino-Indian War; and with Pakistan, which resulted in wars in 1947, 1965, 1971 and 1999. India is a founding member of the United Nations (as British India) and the NonAligned Movement. In 1974, India conducted an underground nuclear test and five more tests in 1998, making India a nuclear state. Beginning in 1991, significant economic reforms have transformed India into one of the fastest-growing economies in the world, increasing its global clout.
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Communication Tools - Giving Opinions

What did you find most interesting about this information? Is there anything you are specifically interested in? Check the two endings for adjectives in English: -ed and ing Compare these sentences: He is very interested in politics. Did you meet anyone interesting on your trip? I am not pleased with your performance this month. She did not find my performance very pleasing. The ing adjective tells you about the job, trip, performance, etc. The ed adjective tells you how someone feels about the job, trip, performance, etc. In other words, a person is interested if something is interesting, and something is boring when it makes a person bored. A. Change the word in brackets into an adjective (-ed or ing) and fill in the blanks to complete the sentences. 1) (Confuse) The instructions in the exam were very complicated and left the students feeling totally __________________ 2) (Fright) I don't find horror films at all __________________ - in fact, I find them quite funny. 3) (Interest) Would you be __________________ in coming to the theatre this evening? I have a spare ticket. 4) (Irritate) Can't you fix that dripping tap? It's getting on my nerves - it's really __________________. 5) (Surprise) I didn't expect to see my boss at the party. I was really __________________ to see him there. 6) (Depress) He's had a lot of bad news recently and is feeling a bit __________________. Let's go and cheer him up. 7) (Relax) I find it __________________ to lie on the sofa and listen to music after a hard day's work. 8) (Bore) I was told the film was really good but I felt utterly __________________ by it. 9) (Annoy) I get really __________________ when people throw rubbish down in the streets. It makes me furious.
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10) (Embarrass) If I said anything as stupid as he did in front of a thousand people, I'd feel really __________________ . 11) (Disgust) The kitchen hadn't been cleaned for ages. It was really __________________ 12) (Excite) I'm starting a new job next week. I'm quite __________________ about it. 13) (Bore) The lecture was __________________ I fell asleep. 14) (Embarrass) It's sometimes __________________ when you have to ask people for money.
Key 1. confused 2. frightening 3. interested 4. irritating 5. surprised 6. depressed 7. relaxing 8. bored 9. annoyed 10. embarrassed 11. disgusting 12. excited 13. boring 14. embarrassing
B. Give your opinion about the information on pages 18, 19 and 20. Use some of the following structures and the words in the box below. I found the information on imports very.. I was .. to see that.. The GDP figures were very The facts on population seemed..
shock confuse
amaze alarm
interest bore encourage amuse
Which other words can you think of? Annoy, concern, embarrass, energize, humiliate, entertain, exhaust, frustrate, intrigue, overwhelm, please, perplex, relax, satisfy, terrify, surprise, and tire.
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Video 5 Indias Global Influence

An interview with Minister of Commerce, Kamal Nath
A. Watch the video and discuss the answers to the following questions with your classmates. 1. Why are we seeing all these Indian companies making acquisitions outside of India? 2. Why is foreign investment increasing substantially in India? 3. What are the difficulties of doing business in India? 4. What is Mr. Kammal Nath doing to make it easier to do business in India? 5. What does he mean by There is a paradigm shift in the way India is looking at the economy? 6. What is the message to the American CEOs attending the Fortune Global Forum? 7. Why did he choose the slogan Incredible India?
Video 6 Interview with Kamal Nath

http://www.youtube.com/watch?v=1WCQVCgGnTg - Erin Burnett in India - Interviewing Kamal Nath
A. Watch the video once. B. Choose the best option to complete the statements. All answers should be based on the video. 1. Erin Burnet wants to know if India is really . to become an economic superpower. a. poised b. posed c. positioned 2. The main concern regarding business in India is. a. infrastructure b. structure c. information 3. In addition to airports and railways, the challenge includes a. real roads b. rural roads c. urban roads 4. People need access to drinking water and medical a. facilities b. services c. establishments 5. The trillion dollar investment on infrastructure will be . in five years. a. employed b. deployed c. enjoyed 6. Roads will assure rural .. a. collectivity b. connectivity c. complexity
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7. The only closed and controlled sector in India is.. a. outsourcing b. wholesale c. retail 8. Investments in ports, airports and roads are: a. on the handle b. on the angle c. on the tangent 9. Investment has risen dramatically in the past four years due to: a. labelisation b. globalization c. innovation 10. India has been self-sufficient regarding. a. food b. edible oils c. minerals 11. Self-sufficiency may only be hindered in the case of . failure a. monsoon b. month-long c. Munson 12. China has a . growth story, while India is a growth story a. export market-driven/domestic market-driven b. domestic market-driven/export market-driven c. none of the above 13. Both countries have their own. a. geniuses b. genius c. ingenious 14. Relations between India and France are. a. ambiguous b. friendly c. close 15. India is considered the biggest market on earth because a. it is equal to China b. it is larger than the US c. it has a larger middle class C. Watch the video again to check your answers. Teachers Note: Labelisation accreditation On the angle occurring, on the rise Trade commerce (tell students that the word Trade is often used to refer to Commerce) Monsoon - A wind from the southwest or south that brings heavy rainfall to southern Asia in the summer.
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Task
Teachers Note: This section contains a huge amount of text. Students should only scan the text, look up new words and prepare the outline without your interaction. Not all titles need to be covered in the questions and answers. Make sure questions (Student B) are complex and interesting. They should avoid silly questions like, How do I say, Hello? and ask complex questions like, What are the rules for greetings between men and women? When both students/ groups are ready, initiate the 20 Questions session. Incorrect answers should be included during feedback, so make sure you know the text. Student A/Group A You are an expert on India. Read the information below and take notes. Underline all important information and use the headings as guidelines to prepare a short guide to business in India. Student B/Group B You are visiting India next week on business. Read the information below and prepare 20 questions. Use the headings as guidelines. Remember, you are not supposed to know the answers!
Reading
In India business life and home life are largely fused into synthetic cooperation, work and play. The private and the corporate are often brought together in the common thread of the day-to-day. The following is cultural and practical information that should aid you in your business and personal interactions. Culture and Business
Cultural life in India can be described as a constant negotiation between strongly held traditional values and emerging modern business and personal practices. While this dynamic may sometimes cause frustration to foreigners doing business in India, it is also the means by which India has been defining itself in relation to the global market, protecting its own resources, and attempting to positively benefit Indian interests as much as possible while becoming a formidable player. After India's independence in 1947, the Indian government enacted a number of protectionist laws that made India relatively isolated from the larger free-market global streamlined communications, and a host of similar matters. In India, however, many of these virtues are underplayed or absent. In their place are unique sets of issues that help define business culture in India. Below we review those we think are most essential in seeing to the success of your personal interactions in India. Not all of the items listed below may apply to all companies and industries in India. In many cases, the larger industries or those companies well-versed in foreign business are often closer to their Western counterparts. For example, the IT industry in India is thoroughly multinational and, as a result, is an exceptionally efficient industry in terms of international trade and business practice.
Business Transactions and Protocol

In the U.S., the virtues of good business include efficiency, adhering to deadlines,
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Timing - In general, the workday is from 9am to 5pm, though most inter-business matters are conducted between 11am and 4pm. Most businesses have a one-hour lunch. The work week is generally six days long, with Sundays off. Some businesses give their employees every other Saturday off, or make a shorter work day on Saturday. Business is not conducted during the numerous government and religious holidays. Different holidays are observed throughout the many regions and states of India. Delays - Indians appreciate punctuality but don't always practice it themselves. Keep your schedule flexible enough for last-minute rescheduling of meetings. In India delays are inevitable, particularly when dealing with government bureaucracy. The Indian government is well-known for moving at a slow pace, and communication within the country can sometimes be a challenge. The Indian Company Family - In many companies in India, strict hierarchies are adhered to, and the CEO of a company takes on the mantle of a father figure. Depending on your position within this hierarchy, you may have to play a variety of roles. Emphasis in the workplace is often placed on protocol, manners, and obligations. The chain of command is often strictly enforced, and breaching this chain can have adverse effects. For example, an employee will always call his or her superior "Sir" or "Madam," and an employee will rarely expect to do tasks outside of their job description unless specifically asked to do so by a superior. Furthermore, one should first approach the senior-most person in an organization, even though a subordinate may be delegated the work requested. Business Dress - Formal business attire is normal for the workplace in India unless otherwise made explicit. For men suits and ties are appropriate. However, in very warm weather (April-June usually), men may opt
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for an Indian safari suit, which is a comfortable suit made of lightweight cotton consisting of a button-down, untucked shirt, and matching pants. For casual wear, shortsleeved shirts and long pants are preferred for men. Shorts are acceptable for men only when exercising; women who jog should wear track pants. Businesswomen should wear conservative dresses or pant suits. Dresses should not reveal too much of the legs. Pants for women are also acceptable. Sandals or chappals are an alternative during the hot months and the monsoon. Special occasions require a sari, if desired. Your hosts will interpret it as a gesture of good will and equality if you make the effort to wear an Indian outfit. For men during cultural ceremonies, a well-made kurta and pajama is appropriate. This consists of a long thin shirt, usually made of silk, and thin matching pants. Women often wear a similar outfit called a salwar kamiz.
Mens formal attire
Salwar kamiz
Names & Titles - There is a reverence for titles in India. Whenever you can, use professional titles such as Professor and Doctor. For those without professional titles, use courtesy titles such as Mr., Mrs., or Miss. Wait to be invited before addressing someone by his or her first name. Interpersonal Relationships and Corporate Politeness - The hierarchical nature of Indian society demands that the boss be recognized as the highest individual in authority. In some offices, employees rise each time the boss enters the room to acknowledge respect. Employees also tend to follow the lead of their superiors in other actions and
aspects of the work environment. Even if an employee may think that the boss is wrong, he/she would often find it inappropriate to disagree. The boss makes all of the decisions and accepts all of the responsibility. Consequently, you'll often find that subordinates are reluctant to accept responsibility. In general, subordinates will be able to meet only with a subordinate and bosses with bosses. In a group discussion, only the most senior person might speak, but that does not mean that the others agree with him. Similar to a family, many smaller businesses function on handshakes, verbal agreements, and trust. While it should be obvious that one should not base an international business transaction simply on trust, one should take the time to get to know one's business contacts individually in order to develop professional trust. Professional trust can move mountains, especially mountains of stalled paperwork. Talking about your friends and family is an important part of establishing a relationship with those involved in the business process. Many Indian businesses are run by families. Within family-run businesses, business affairs are often restricted within the family and there is a distrust of outsiders. All transactions are conducted by the head of the family, in his/her presence. Interpersonal skills such as the ability to form friendships are sometimes considered more important than professional competence and experience. Nevertheless, there is admiration for accomplishment, such as previous successful business ventures or an individual's university degrees. Saying No - Many Indians are generally too polite to directly answer no. Equivocal answers are considered more polite, rather than a straightforward refusal. For example, when declining an invitation, an Indian may be more likely to answer, "I'll try," rather than "No, I can't."
An Indian who hesitates to say no may actually be trying to convey that he is willing to try, but it may also indicate a negative response. Criticism and Aggressiveness - While moderate aggressiveness is often revered in the Western workplace as a sign of confidence and ingenuity, in the Indian context it can be seen as a sign of disrespect, particularly if it is from a subordinate or from someone unfamiliar. Gender and the Workplace. As is the case in Western societies, women in India are finding themselves more comfortable in the workplace, but equality between the sexes by no means has been achieved. Men still dominate the working world in India, as in the U.S., but times are changing, especially in new economy sectors. Both Indian and foreign women feel safe and are able to adapt to a corporate work environment. However, it is necessary to bear in mind the conservative dress codes and modest gender interactions.
Food and Business

Food Taboos - Keep in mind that most Hindus do not eat beef, and most Muslims do not eat pork. For Muslims, other types of meat must be ritually slaughtered. Most Jains do not eat meat, honey, or many kinds of vegetables. Some Indians are strict vegetarians so take this into account when Indian executives visit your country. As is well known, the left hand in India has particular connotations of uncleanliness and inauspiciousness. When dining, be sure to eat, if possible, with your right hand. Serving Alcohol - Although Islam prohibits drinking and the Sikh religion prohibits drinking and smoking, not everyone is strict in these observances. Traditional Indian women, regardless of their religion, do not smoke or drink, but Indian women of a certain social position sometimes do.
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Among those who drink alcohol, the fine liquors are appreciated, especially whiskey, ideally imported. Some of the many brands of Indian beer are good. One can find good Indian wines, especially in the state of Maharashtra. It is better to ask your guest: "What would you like to drink?" rather than "Can I get you a beer?" Even guests who are drinkers will not drink alcohol on certain occasions such as religious festivals or if there is an older, respected individual present (such as one's boss). Always have juice and soft drinks available for the non-drinkers. Entertaining for Business - In India, the hostguest relationship is quite important, and it is normal for business contacts to invite you to their homes and indulge in personal talk often. All this is very much a part of business. One is expected to accept the invitation gracefully. Taking a box of sweets, chocolates or a simple bouquet of flowers would be a welcome gesture. Businesswomen can take Indian businessmen out for a meal without causing awkwardness or embarrassment to the men. Lamb, chicken, and fish are the meats eaten by all Indians who are not vegetarians. During events, the food at the buffet table should be clearly labeled so everyone finds it easy to decide what they can eat. Ensure that you have plenty of vegetarian dishes. When you are hosting a social event, every guest should be contacted personally by phone, even if you have already sent a printed invitation. Phone calls should be placed closer to the party day. Husbands or wives should be invited to bring their spouses to a social function, though it is not uncommon that the spouse will not attend. Some guests bring their own guests, so be prepared for a larger number than expected. Business Lunches/Dinners - Many of your business interactions will not be as formal as hosting an event or attending one. As in the
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West, much business takes place over a meal at a restaurant. One note on tipping may be in order: over-tipping is discouraged. In better restaurants, 10-15% is a sufficient tip, if the service charge hasn't been added to the bill. When in doubt, you may certainly ask your dinner companion what would be appropriate.
A common dish - thali.
Day-to-day concerns
Exchanging Gifts - Gifts, in general, are not opened in the presence of the giver. If you receive a wrapped gift, set it aside until the giver leaves. Don't wrap gifts in black or white, which are considered unlucky colors. Instead, use green, red, and yellow, since they are considered lucky colors. When invited to an Indian's home for dinner, bring a small gift of imported chocolates or flowers. If you are staying with a family, feel free to ask them what they would like. Images of dogs are considered unacceptable to Muslims, so never give toy dogs or gifts with pictures of dogs to Indian Muslim friends. Many Hindus do not use products that are made from cattle. Consequently, most leather products may not be appropriate gifts for Hindu friends. Daily Etiquette - In India public intimacy is not common. Indians of all ethnic groups disapprove of public displays of affection between people of the opposite sex. Refrain from greeting people with hugs or kisses. Outside of the work setting, if you are male it is prudent to avoid talking to a woman who is alone.
Westernized Indians will shake hands with the opposite sex. If you are unsure of whether to offer your hand, the best policy is to follow your counterpart's lead. Western women should not, however, initiate handshaking with Indian men. The traditional Hindu greeting and farewell is "namaste." To perform the "namaste," hold the palms of your hands together (as if praying) below the chin, nod or bow slightly, and say "namaste" (nah-mas-tay). Pointing with your finger is considered rude; Indians prefer to point with the chin. Feet are considered unclean, so never point your feet at another person. You will be expected to apologize whenever your shoes or feet touch another person. Whistling under any circumstances is considered rude and unacceptable. Gratuity & Alms - If you want to tip a taxi driver, simply round up the fare. Tipping for
taxis, however, is wholly optional, unlike at a restaurant where it is expected. When making purchases at a store, your change is often simply placed in your hand without explanation of the amount. Keep plenty of small change on hand, as street merchants and taxi drivers will often claim that they don't have change. The average visitor to India will not only marvel at the beauty and complexity of its culture, but also at the depth of the poverty it holds. If you are moved to give money to the poor, it is our recommendation that you do so by donating funds to a known and reputable charity, rather than distributing change to beggars on the street. Often children who beg have a "manager" who will take the money from them. If you want to give directly to the poor on the street, we suggest you give food.
http://asnic.utexas.edu
Video 7 I am India
http://www.youtube.com/watch?v=F2qZEiZMgWs&feature=related
Teachers Note: To wind down after a tough day, play the video I am India. The music is relaxing ;)
This film is a journey through emerging India," the fastest growing free market democracy in the world". It celebrates the relentless spirit of the people of India, who through their karma give it a place amongst the leading economic nations of the world.
Conceived and produced by Bharatbala Productions (BBP) for India Band Equity Foundation (IBEF).
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UNIT 3 NEGOTIATING IN CHINDIA
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Warm-up
1) In one word, how would you describe China and how would you describe India? 2) How does your opinion influence the way you would negotiate with executives from these countries? 3) Do you think you could negotiate with Indian or Chinese executive as you do in your own country? Explain. 4) In which ways are business people from China and India similar to business people in your own country? Does this similarity help during negotiation?
Business Communication Concept: Chindia

Chindia is a portmanteau word that refers to China and India together in general, and their economies in particular. The credit of coining the now popular term goes to Jairam Ramesh, an Indian politician. China and India are geographically proximate, are both regarded as growing countries and are both among the fastest growing major economies in the world. Together, they contain about one-third of the world's population. They have been named as countries with the highest potential for growth in the next 50 years in a BRIC report. The economic strengths of these two countries are widely considered complementary - China is perceived to be strong in manufacturing and infrastructure while India is perceived to be strong in services and information technology. China is stronger in hardware while India is stronger in software. China is stronger in physical markets while India is stronger in financial markets. The countries also share certain historical interactions - the spread of Buddhism from India to China and trade on the Silk route are famous examples.
Teachers Note: A portmanteau word (pronounced port-man-toe) is used broadly to mean a blend of two (or more) words, and narrowly in linguistics fields to mean only a blend of two or more function words.
Video 8 CRH practices cultural understanding in India and China

http://www.youtube.com/watch?v=htN1m3uZSKA
About CRH CRH plc is one of the top five building materials groups in the world. It is also one of Irelands largest industrial companies. CRH operates in 28 countries across three continents and employs around 90,000 people. The company has three closely related core businesses: Primary materials (cement, aggregates, asphalt, etc) Value-added building products (bricks, rooftiles, insulation, etc) Specialist distribution (Builders Merchants, DIY stores, etc) CRH was founded in 1970 following the merger of two Irish companies, Cement Ltd. and Roadstone Ltd. During four decades of solid growth, they have expanded their operations by a combination of shrewd internal investment and by buying small companies in the same industry.
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A. Watch the video once. B. Check true or false for the following statements. Correct all false statements. 1) 2) 3) 4) 5) 6) 7) 8) China and India are looking for advice from other countries (true/false) Business relations between China, India and Europe are based on reciprocity (true/false) Joint ventures in India comprise high domestic participation (true/false) CRH buys small to mid-sized companies in the same areas (true/false) India has less similarities with Ireland (the British Isles) than China (true/false) Rules of law in China, India and Ireland are based on similar concepts (true/false) They is too much red-tape in India due to the civil-service mentality (true/false) The Chinese way of doing business is more dynamic than the Indian way of business (true/false) 9) CRH is interested in acquiring stakes in a large Chinese textile company (true/false) Its a cement company. 10) Liam OMahoney believes that the company employees are their greatest asset (true/false) C. What is the secret of CRHs success in India and China, in particular?
Communication Skills Studying cultural clashes

A study of cultural clashes can be very helpful before initiating a cross-cultural negotiation. Some of the topics to consider are: Introduction Individualism Uncertainty Avoidance Non-verbal communication Business Etiquette The study should compare your own country with the country of interest, and contain a conclusion regarding the most relevant differences between both cultures. Teachers Note: Uncertainty Avoidance - Acceptance of assumed causes or explanations of a situation as facts to escape the discomfort associated with ambiguity or uncertainty. Specify some sub-topics for each of the topics above. Fill in the chart below/overleaf. Teachers Note: Students will need help with this activity = Brainstorm. Some ideas are provided.
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Introduction
Country Overview (population, languages, religion, etc.)
Individualism
Individualism vs. Collectivism, whether family/business/results oriented Pitfalls Credit Index, the influence of religious beliefs in decision-making (karma, etc.), national economic situation (indexes, etc.)
Uncertainty Avoidance
Non-verbal communication
Eye contact, prohibited gestures, personal space
Business Etiquette
Greetings (use of titles, handshake, interaction between men and women, Meetings (punctuality, duration, etc.)
Conclusion
Many points and differences to take into consideration (more/less personal space, strict punctuality, less/more eye contact, etc.
Video 9 Asian Business Culture Saying No

http://www.youtube.com/watch?v=z4HB1aUE4p4
1. 2. 3. 4.
Is it common to simply say, no during a negotiation in your country? What other ways are there for saying, no? Is it polite to say no in most Asian countries? How do you know when a Chinese executive is saying, no?
A. Watch and listen to a very interesting situation told by Greg Bissky. 1. What is one method the Chinese use to say, no? (They use objections) 2. How does Mr. Smith interpret these objections? (He thinks Mr., Chan needs more convincing, more information) 3. How does Mr. Smith interpret Mr. Chans silence? (He thinks it means agreement) 4. What does Mr. Chans silence actually mean? (That X should not be done) 5. How can these misinterpretations be clarified? (Confirm agreement) 6. Are these misinterpretations common? (Yes, in Asian) 7. Why? (Rules of communication are different) 8. What is Greg Bisskys advice? (Two objections means disagreement)
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Reading Cultural Notes: India and the meaning of Yes

Indians have founded more engineering and technology companies in the U.S. during the past decade than immigrants from Britain, China, Taiwan and Japan combined. The entrepreneurial abilities of Indians in general have amazed business people around the world for years. It seems that Indian culture produces an uncommon blend of innovative thinking, business-minded aggression, and comfort with numbers. But there is another ingredientIn India, every transaction EVERY transaction is negotiated. Merchandise, cab fare, restaurant bills, wedding dowries the list is endless. Hotmail founder Sabeer Bhatia credited the bargaining skills he learned in vegetable markets at home for getting Microsoft to push its acquisition price for his company from $160 million to $400 million. Stepping on Trust Trust and relationships take time to build, and Indians take that all too seriously! They also consider it rude to question the client. Rather than express their inability to understand, they prefer to solve the problem "among themselves, through discussions." The general belief is, "Let's at least give it a shot; if we can't do it, we'll learn that later." According to the founder of a leading venture capital firm, Indian programmers have always had the tendency to say they are adhering to the schedules, but when the delivery time arrives, they admit to not completing the same. This puts the entire planned agenda of the client in jeopardy -and, of course, the long-term relationship. To avoid any pitfalls, you must ensure that the service providers have a complete understanding of the quality and time of deliverables. Clearly state all the requirements in the contracts and try to evolve effective communication channels. In a nutshell: The Indian mindset is that clients are always right. Indian vendors may agree to the most unreasonable demands in the hope of building relationships. Indians have always maintained that it is better to say, "There is a possibility" than refuse. You'll find similar trends across Asia. Competing? Yes or Maybe No? The outsourcing industry faces similar problems across Asia. The Thai language has no word for "No"! In China, a "Yes" can be translated as, "We can take the talks to a more concrete level." The same is true for Indonesia. Not willing to be impolite or embarrass, Indonesians end up conveying exactly the opposite of what they actually mean. The native language Bahasa Indonesian -- has 12 words that say, "Yes," but actually mean, "No." Translations in English fail to capture the intent! Evidently, phrases such as, "I understand," "We will see," "Yes, but" are just polite versions of "No" in the Asian culture. It's imperative that the client be able to decipher these phrases appropriately, as they may not necessarily indicate agreement.
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Video Signing Contracts (optional)

http://www.youtube.com/results?search_type=&search_query=western-chinese+business&aq=f
Teachers Note: This video is optional and should only be played if students are hungry for more information.
Business Communication Concepts Negotiation Styles

Negotiation styles vary with the person, their beliefs and skills, as well as the general context in which they occur. Here are a number of different styles considered from different viewpoints. There is a common spectrum of negotiation that ranges from collaborative to competitive. The approach taken is generally based on: 1. The spectrum of negotiation styles: From concession to competition.
2. Collaborative negotiation: Negotiating for win-win. In collaborative negotiation, the approach is to treat the relationship as an important and valuable element. The biggest dilemma occurs when the other person is acting competitively, and will try to take advantage of your collaborative approach (possibly seeing it as a weakness). The approach with aggressive others is to be assertive rather than fall into the fight-or-flight reaction. 3. Competitive negotiation: Negotiating for win-lose. In competitive negotiation, the approach is to treat the process as a competition that is to be won or lost. The basic assumption of competitive negotiation is that it is a 'zero sum game'. That is, the people involved believe that there is a fixed amount to be gained which both people desire, and if one person gains then the other person loses.
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Summary of differences There are a number of differences between Competitive and Collaborative negotiation, which are summarized in the following table: Characteristic Relationship Consideration Atmosphere Focus Aim to gain Information Strategy Tactics Outcome Competitive approach Temporary Self Distrust Positions Advantage, concession Concealed, power End justifies means Coercion, tricks Win-lose Collaborative approach Long-term Both parties Trust Interest Fair agreement Shared, open Objective and fair rules Stick to principles Win-win
4. Balanced negotiation: Walking between collaborative and competitive negotiation. It is in this gray zone between black and white where many real-life negotiations tread, as the participants struggle between the need to achieve their more immediate substantive goals whilst also keeping within social norms and personal values.
Task - Preparation
A. In groups or pairs
1. 2. 3. 4. 5.
Think of all the information you have gathered in Units 1, 2 and 3. Prepare a chart (see page 35) with all important information from India or China. Provide conclusions based on a comparison with your country. Decide on the negotiation style you should adopt, based on this information. Think back to the last negotiation you participated in (domestic or overseas companies). This experience will be the backdrop to your task. Write a short pre-negotiation objectives memorandum. The memo should include:
a. b. c.
Defined goals and objectives Anticipation of the goals of the opposition (based on information from units) Alternative to main objectives
Teachers Note: Students may role-play the entire negotiation or only one aspect (pricing, delivery, contract terms, etc.). This is a pre-activity for the final role-play in the next unit.
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Introduction
Individualism
Uncertainty Avoidance
Non-verbal communication
Business Etiquette
Conclusion
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Teachers Note: This is a sample Pre-Negotiation Memorandum. Students can use their own formats, with less information, or write on this page directly. Obviously, most information can be omitted but the terminology of the memorandum can be useful.
PRE-NEGOTIATION MEMORANDUM (PM) FORMAT 1. Grantee Contracting Activity ___________________________________ 2. Date ____________ 3. RFP/IFB or Contract Number _____________________________________________________ 4. Modification Number ___________________________________________________________ 5. This acquisition is being accomplished by (check one) Full and Open Competition _____________ Other than Full and Open Competition _____ State reasons for other than full and open competition. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 6. Contract Type _________________________________________________________________ 7. Offeror's (Name, Address) ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 8. Business Size and Type (Small, Large, WOB) ________________________________________ 9. Offeror's Proposed Amount ______________________________________________________ 10. Procurement Description (briefly describe the procurement) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 11. Pricing Structure Pre-negotiation Objective Cost $_______________ Fee/Profit ______%) $_______________ Total Price $_______________ 12. Delivery of Performance Period ___________________________________________________ 13. Points of Contact for this Document (name and phone number) a. Contracts___________________________________________ b. Technical___________________________________________
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UNIT 4 LANGUAGE OF NEGOTIATIONS
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Introduction
When negotiating with foreign executives in English, remember that structures should be kept simple. Avoid phrasal verbs, colloquialisms, complex jargon or slang. Jokes, sarcasm and irony should also be avoided to prevent misinterpretation. This is one of the main differences between negotiating in your own language or with native English speakers. Can you think of any other important differences? This unit will present and provide practice for basic language you will need during your negotiation task. Before we start, lets practice some vocabulary.
Vocabulary of Negotiations
Teachers Note: Use the vocabulary cards (provided with this course book) for this activity. This activity can be a quiz in which students must match the words with the correct definition and then make up a sentence with the corresponding word. The best/correct/first sentence gets a point.
The Art of Negotiation - Overview

Skilful negotiators are flexible. They do not "lock themselves" into a position so that they will lose face if they have to compromise. They have a range of objectives,- thus allowing themselves to make concessions, for example, "I aim to buy this machine for 2,000" and not "I must buy it for 2,000". Poor negotiators have limited objectives, and may not even work out a "fall-back" position. Successful negotiators do not want a negotiation to, break down, If problems arise, they suggest ways of resolving them. The best negotiators are persuasive, articulate people, who select a few key arguments and repeat them. This suggests that tenacity is an important quality. Finally, it is essential to be a good listener and to check frequently that everything has been understood by both parties.
(from Business Class: David Cotton, Sue Robbins. Pearson Education)
In summary Good negotiators try to create a harmonious atmosphere at the start of a negotiation. Good negotiators try to reach an agreement which meets the interests of both sides. Skillful negotiators are flexible Successful negotiators do not want a negotiation to break down. It is essential to be a good listener.
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Always keep in mind that a negotiation... Involves more than one person Bargaining Solving Problems Agreement and disagreement Closing the deal
The secrets of good negotiators

Planning & Preparation The more you do, the better Know your negotiation limits Set your goals at the planning stage Research Do as much as possible Technique Establish a good rapport by confirm your negotiation theme, listening carefully, avoiding conflict, summarizing, agreeing, and confirming. Ask for more than you expect to get. Put yourself in the other partys shoes. Negotiate the package not just the price. Never give without asking for something in return.
Language
Soften your language Use negative questions: That seems rather high Isnt that a little low? Not very + positive adjective: The hotel was dirty The hotel was not very clean. Be clear to avoid misunderstandings What exactly do you mean? When did you say you can do that/When can do you that? Im sorry, I dont quite understand Ask (direct) questions Can you tell me about your terms of payment? What sort of discount would you give? What kind of discount were you looking for?
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What exactly did you have in mind? Make proposals and concessions We normally only offer these conditions to regular customers, but we can do this for you. Thats a little short for us, but we could deliver in a month. If you deliver in four weeks, we will place an order. Can you do that? If we order in bulk, what sort of price could you give us? Use word you know well Use different ways of saying, no Ill see what I can do Ill let you know Maybe Only use phrases like, No, Im afraid not, when you can provide a clear reason.
Stages of Negotiation
Negotiations usually comprise the following stages:
In the following pages, we will discuss the correct language for these stages.
Teachers Note: To make this section more dynamic, ask students to provide their own sentences (see below). Write them on the board and make sure they use them all during their role-play
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Preparation
Preparation generally includes the following: Introduction Opening the negotiation Clarifying proposals Check the language next to each heading and underline which option you would be most likely to use in your own language. Some topics can be omitted altogether.
Introduction Welcoming: On behalf of ... I would like to welcome you to ... It's my pleasure to welcome you to ... Good morning/afternoon and welcome to ... Introducing: I would like to introduce .. Firstly, allow me to introduce. Suggesting a procedure: I would like to begin now by suggesting the following procedure (agenda). To start with, I think we should establish the overall procedure. As our first order of business, can we agree on a procedure? Checking for agreement: Does that seem acceptable to you? Is there anything you'd like to change? Is this okay with you? Giving the discussion leadership to a colleague: I will now hand you over to Mr. Brown___ , who is ... I will now hand the floor over to Mr. Adams , who is ... Now let me hand the meeting over to my colleague, Ms. Jones , who General outline of a proposal: May I please ask what your proposal is in connection with our company? What, in general terms, are you looking for here? Putting forward future possibilities: We foresee ... We predict ... We see ... Defining a proposal more specifically: It involves ... It covers ... It includes ... It leaves out ... Could you clarify one point for me? I'm not sure I fully understand your point. What exactly do you mean by ... ? Could you be more specific?
Opening
Clarifying proposals
Seeking clarification:
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Bargaining
The bargaining stage involves a variety of issues. Check which phrases you would use in each situation. Signaling the start of bargaining We've looked at what you have proposed, and we are ready to respond. After serious consideration, we are prepared to respond to your proposal Responding to a proposal Regarding your proposal, our position is ... Our basic position is ... As far as your proposal is concerned, we think that ... Making and qualifying concessions We would be willing to ..., provided, of course, that ... We'd be prepared to.... However, there would be one condition. Making counter proposals May we offer an alternative? We propose that ... We'd like to make an alternative proposal. We propose that ... From where we stand, a better solution might be ... Identifying obstacles The main obstacle to progress at the moment seems to be ... The main thing that bothers us is ... One big problem we have is ... Analyzing an obstacle What exactly is the underlying problem here? Let's take a closer look at this problem. I would like to analyze this situation and get to the bottom of the problem. Asking for concessions In return for this, would you be willing to ...? We feel there has to be a trade off here Declining an offer I'm afraid your offer doesn't go far enough. Unfortunately, we must decline your offer for the following reason(s). I'm sorry, but we must respectfully decline your offer. Asking for further information Would you like to elaborate on that? Could you go into more detail on that? Agreement and understanding on a point I agree with you on that point.
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So what you're saying is that you... In other words, you feel that... You have a strong point there. I think we can both agree that... Objection to a point or offer I'm prepared to compromise, but... The way I look at it... The way I see things... I'm afraid I had something different in mind. That's not exactly how I look at it. From my perspective... I'd have to disagree with you there. I'm afraid that doesn't work for me. Is that your best offer?
Closing and Commitment

Checking Let's just confirm the details, then. Let's make sure we agree on these figures (dates/ etc). Can we check these points one last time? Delaying We would have to study this. Can we get back to you on this later? We'll have to consult with our colleagues back in the office. We'd like to get back to you on it. I'd like to stop and think about this for a little while. Let's meet again once we've had some time to think. Accepting We are happy to accept this agreement. This agreement is acceptable to us. I believe we have an agreement. Commitment I think we both agree to these terms. I think we should get this in writing. Would you be willing to sign a contract right now?
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Task Negotiation
(Continued from the task in Unit 3). Teachers Note: You must provide all the instructions for this activity based on number of students, fluency, etc. Students should maintain the same team, group or pair of the previous task (Unit 3). This task requires your active participation or the participation of an outsider (another teacher or student that speaks fluent English). You, or this person, must play the role of Indian or Chinese negotiator. If you have enough students, you can also ask one of the students from Group A to play to role of foreign negotiator for Group B, and vice versa. This assures tough negotiating practice as the foreign negotiator will not cooperate with the opposing team. This activity should be a competition. Students should compete to produce the best negotiation styles, language and results. This will also force students to perform better and speak more during negotiations. The outsider, or neutral party, should choose the best team and give reasons for this choice (confidence, richness of vocabulary and phrases, etc.). If there is time, show students DVD 1 Trend Life Activity (see page 52) and, ask them to do the Self-Assessment, which contains lots of useful grammar and structures. Based on the preparation task in Unit 3, plan a detailed negotiation outline. You must use all phrases you selected in this unit, and go through all the negotiation stages. Remember you are negotiating with executives from China or India. Think about how you would alter your negotiating style, technique and language accordingly. Your teacher will give you instructions for the role-play activity. Good Luck!
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Self Assessment
Part I - Forming Questions
Fill in the crossword puzzle with the missing words in the clue-sentences below. Write phrases with more than one word as one word, e.g. how much = howmuch.
1 2 3 5 6 7 8 9 10 11 12 4
Across 4. _HAVE__ you had a look at the samples weve sent you? 5. _HOW MANY_ tons of soy meal would you like? 7. _ARE_ you absolutely sure that's the best price you can find? 8. You wouldn't mind receiving the buns in cardboard boxes of 40, _WOULD_ you? 10. _IS__ the suggested supplier ISO 9001 certified? 11. _DID__ we discuss prices on the phone? 12. _CAN__ we deal with technical details later?
Down 1. _WHERE_ do you manufacture the gearboxes? 2. _WHY_ is your product 30% more expensive than your competitors? 3. _DO_ you want the first shipment next week? 5. _HOW_ can we proceed from here? 6. _WOULDNT_ you agree that this solution is exactly what you need? 9. You handled the shipment to Ultrafert yesterday, _DIDNT_ you? 12. _COULD_ you tell me about your quality control system?
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Part II - Forming Questions

A. Form questions by putting the words in the correct order. 1) history / tell / you / us / could / about / your / something / companys _Could you tell us something about your companys history_____? 2) would / a month / how / of / powder/ you / tons / need / egg yolk / many __How many tons of egg yolk powder would you need a month____? 3) production / your / a month / maximum / Whats / capacity __Whats your maximum production capacity a month__________? 4) and / system / drawing / have / smart boards / for / the / writing / does __Does the system have smart boards for drawing and writing_____? 5) turbines / eight / and / install / 200 / be able/ in / less than / to build / would /months /you __Would you be able to build and install 200 turbines in less than 8 months__? 6) be able / give / think / do / youd / when / to / us / a firm / you / order __When do you think youd be able to give us a firm order_________? 7) standard / are / the / and / between / what / versions / differences / Enterprise __What are the differences between the standard and enterprise versions__? 8) was / what / I / finish / I / could / saying / just __Could I just finish what I was saying______? 9) be impossible / it / is /that / what / would / saying / youre/ to give a discount /so, __So, what youre saying is that it would be impossible to give a discount___? 10) by / what / mean / you / low quality product / exactly / do __What do you mean exactly by low quality product_?
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Part III
A. Fill in the blanks with the words in the box. wont wont cant sign reduce well dont receive well come up with cant accept
cant agree
1) Unless you __COME UP WITH_ some better conditions, we __WONT_ do any business with you. 2) If you __CANT AGREE__ to paragraph 2 in the contract, _WELL_ have to call it a day. 3) We __CANT SIGN__ the contract, if you __WONT__ change the terms of delivery. 4) I __CANT ACCEPT__ this quality, unless you _REDUCE_ the price substantially. 5) If we __DONT RECEIVE_ the first shipment on the 16th, __WELL_ cancel the contract.
B. Use the form in exercise 1A (If, or unless) to exert pressure in the following situations. Example: (Supplier to company) Accept our standard contract / get our standard discount. Unless you accept our standard contract, you wont get our standard discount. You wont get our standard discount, if you dont accept our standard contract.
1) (Negotiator to other negotiator) Call it a day / a concession.
__UNLESS YOU MAKE A CONCESSION, WELL CALL IT A DAY._________ 2) (Company to ISP (Internet Service Provider)) Cancel your services / reduce your fees. ___IF YOU DONT REDUCE YOUR FEES, WELL CANCEL YOUR SERVICES._____
3) (Purchaser to supplier) Choose another supplier / better offer. __UNLESS YOU MAKE A BETTER OFFER, WELL CHOOSE ANOTHER SUPPLIER._______
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4) (Employee to boss) Find another job / better salary. __IF I DONT GET A BETTER SALARY, ILL FIND ANOTHER JOB.______
5) (Boss to employee) Stop pressuring / get fired. __UNLESS YOU STOP PRESSURING, YOULL GET FIRED._______
C. Attaching Conditions - Fill in the blanks with the words in the box. offered Id accept guaranteed changed wed agree would offer accept reduced agreed would want would write
1) We __WOULD OFFER__ you one per cent, if you __AGREED__to payment within fifteen days. 3) On the one condition you __CHANGED__ that in the contract, __WED AGREE__ to the rest. 4) I _WOULD WRITE__ a check right away, provided that you _OFFERED/GUARANTEED__ a five per cent discount. 4) __ID ACCEPT__ this quality as long as you __REDUCED__ the price substantially. 5) We __WOULD WANT___ to hire your services, if you __AGREED____ to maintaining our web site as well.
D. Make offers and attach conditions. Example: Offer: Condition: renew the contract a two per cent discount
We could renew the contract on the condition that you offered us a two percent discount.
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Offer/Condition 1. Offer: be our sole distributor Condition: sign distributor agreement __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 2. Offer: new notebook computers Condition: reach sales targets __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 3. Offer: free internet access Condition: give a firm order now __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 4. Offer: get a raise and some perks Condition: work hard the next two months __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 5. Offer: position on the board Condition: agree to work in Argentina __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
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About China The following videos give you good glimpses of doing business in China. Business Ethics in China 9. Why is Guanxi important to business in China? 10. Regarding business attire, what are some observations that men and women must pay attention to in China? 11. Mianzi is a very important part of the Chinese culture. Can we trust the facial expressions of people from other countries like Brazil and the U.S.? Are they as transparent? 12. In negotiating in China, how should we interpret: possibly, maybe or Ill think about it? 13. The Chinese are very skilled negotiators, what are some tips you must know? Modern Business in China 1. Could a wrong handshake for example, jeopardize a business negotiation in China? 2. Has modern business principals in China changed drastically over the years? 3. What are some tips that were presented that can help during a meeting in China? 4. During a presentation in China, what are some things you must do? 5. Is it easy building business relationships in China? How is it different from Brazil? Business with China 1. Before doing business, what are the most important things you need to know about a country? 2. Does knowing the local language help in a business meeting or negotiation? 3. Are business meetings in Brazil the same as in China? What are some differences? 4. How does this new translating software system work? Would it be useful for you? 5. Does your company do business in China? What type? China and UAE strengthen ties 1. How do you see this new tie between China and the UAE? 2. Have Middle Eastern nations always had a close business relation with China? 3. Why do you think the UAE and China are teaming up? Will this pose a threat to the Brazilian and American markets? 4. What are these countries doing to better understand each others culture? 5. What were some of the initial problems involving cultural diversity between China and the UAE?
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Task Preparing for a Business Call: Negotiating and Closing Deals

1. Brainstorm ideas on what you think the video Negotiating and Closing Deals is about. 2. Watch the video once for general comprehension. Dont take notes. 3. Watch the video 2 to 3 times and answer the following questions. a. What does he say about being the first to putting an offer on the table? DONT MAKE AN OFFER. TEST THE WATERS. b. Do you remember what the four points to have a good negotiation are? TEST THE WATER, OFFERS IMPACT EXPECTATIONS, PEOPLE BUY PACKAGES, COME UP WITH SPECIFIC NUMBERS. c. Do you have to negotiate often in your work? d. Are you a good negotiator? e. What tips would you give from your personal experience on negotiating and closing deals? 4. Make two questions to ask the counselors.
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CHINDIALeading Negotiations in Chindia - 3a Ed

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CHINDIALeading Negotiations in Chindia - 3a Ed

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SMM

[LEADING NEGOTIATIONS IN CHINDIA TEACHERS GUIDE]

SMM Skills for Management and Multiculture

Trend School Center for Business Communication

Teachers Guide: LEADING NEGOTIATIONS IN CHINDIA

Beyond the Classroom Self Assessment Trend Life 43 52

Trend School Center for Business Communication

SMM SKILLS FOR MANAGEMENT & MULTICULTURE

BUSINESS COMMUNICATION CONCEPT

Trend School Center for Business Communication

Trend School Center for Business Communication

SMM LEADING NEGOTIATIONS IN CHINDIA

Trend School Center for Business Communication

Trend School Center for Business Communication

Trend School Center for Business Communication

Tibetan Plateau in Southwest China

Farmlands in East China

Trend School Center for Business Communication

Reading - How to negotiate in China and other Chinese business practices

Trend School Center for Business Communication

Published on VentureOutsource.com (http://www.ventureoutsource.com)

Business Communication Concept: Guanxi

Video 1: Western - Chinese Culture Part 1

Video 2: Western - Chinese Culture Part 2

Trend School Center for Business Communication

About the Speaker

Trend School Center for Business Communication

Communication Tools: Supposed/Expected/Meant to

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Quiz: Business in China

b) Right hands c) With left hand propped by right

Video 3: Western - Chinese Culture Part 3

Video 4: This is China (optional)

Trend School Center for Business Communication

SMM LEADING NEGOTIATIONS IN CHINDIA

Trend School Center for Business Communication

Trend School Center for Business Communication

Sources: Reserve Bank of India

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Topographic map of India.

Tso Kiagar Lake at Ladakh on the Himalayas

Trend School Center for Business Communication

Communication Tools - Giving Opinions

Trend School Center for Business Communication

interest bore encourage amuse

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Video 5 Indias Global Influence

Video 6 Interview with Kamal Nath

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Business Transactions and Protocol

Mens formal attire

Food and Business

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A common dish - thali.

Trend School Center for Business Communication

SMM LEADING NEGOTIATIONS IN CHINDIA

Trend School Center for Business Communication

Business Communication Concept: Chindia

Video 8 CRH practices cultural understanding in India and China

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Communication Skills Studying cultural clashes

Trend School Center for Business Communication

Country Overview (population, languages, religion, etc.)