CHAPTER 3

INTERNATIONAL NEGOTIATION
AND CROSSCULTURAL COMMUNICATION

BASICS OF CROSS-CULTURAL COMMUNICATION

LANGUAGE AND CULTURE

The Whorf hypothesis

HIGH CONTEXT Communications have multiple meanings interpreted by reading the situation Asian and Arabic languages are among the most high context in the world

LOW CONTEXT The words provide most of the meaning Most northern European languages including German, English, and the Scandinavian languages are low context

EX 3.1 High Context and Low Context Countries

High Context: Meaning Implicit Languages Japanese Arabs Surrounding Latin Americans Information Italians Necessary for Understanding British French North Americans Scandinavians Germans Swiss

Low Context: Meaning Explicit in Language

Exhibit 3.2 Cultural Differences in Communication Styles

100 80 60 40 20 0
N SA U tian en rg A n ai Sp o ic ex M ia er ig G K U l zi ra B a di In ny a m er C n pa Ja ce an Fr na hi

% Direct

% Formal

NONVERBAL COMMUNICATION COMMUNICATING WITHOUT WORDS

KINESICS

Communicating through body movements Facial expressions Body posture

PROXEMICS
The use space to communicate The personal bubble of space - nine inches to over twenty inches North Americans prefer more distance than from Latin and Arab cultures

TOUCH
Basic human interaction In greeting - shake hands, embrace, or kiss Latin European and Latin American cultures-more touching than Germanic, Anglo, or Scandinavian cultures

PRACTICAL ISSUES IN CROSSCULTURAL VERBAL COMMUNICATION

INTERPRETERS
Provide simultaneous translation of a foreign language Require greater linguistic skills than speaking a language or translating written documents Insure the accuracy and common understanding of agreements

COMMUNICATION WITH NONNATIVE SPEAKERS

Use the most common words with most common meanings Select words with few alternative meanings Follow rules of grammar strictly Speak with clear breaks between words

Communication with nonnative speakers, continued

Avoid sports words or words borrowed from literature Avoid words that represent pictures Mimic the cultural flavor of nonnative speakers language Summarize Test your communication success

AVOIDING ATTRIBUTION ERRORS

Attribution - process by which we interpret the meaning and intent of spoken words or nonverbal exchanges Attribution errors

INTERNATIONAL NEGOTIATION
More complex than domestic negotiations Differences in national cultures and differences in political, legal, and economic systems often separate potential business partners

EXHIBIT 3.4: STEPS IN THE INTERNATIONAL NEGOTIATION PROCESS

STEP 1: PREPARATION
STEP 2: BUILDING THE RELATIONSHIP STEP 3: EXCHANGING INFORMATION/FIRST OFFER STEP 4: PERSUASION

STEP 5: CONCESSIONS

STEP 6: AGREEMENT

STEP 1: PREPARATION
Is the negotiation possible? Know what your company wants Know the other side Send the proper team Agenda Prepare for a long negotiation Environment Strategy

DIFFERENCES IN CULTURES IN KEY NEGOTIATING PROCESSES (EXAMPLES)

Communication stylesdirect or indirect Sensitivity to timelow or high

Cultural Differences in Key Negotiating Processes, Continued

Forms of agreementspecific or broad (EX 3.5) Team organizationa team or one leader

Exhibit 3.5 Preferences for Broad Agreements

50 40 30 20 10 0
SA U l zi ra B tina en rg A na hi C ce an Fr a di In ny a m er G n pa Ja N K U n ai Sp o ic ex M ia er ig

% Preference for Broad Agreements

STEP 2: BUILDING THE RELATIONSHIP

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

STEP 3: EXCHANGING INFORMATION AND THE FIRST OFFER

Task-related information is exchanged First offer

STEP 4: PERSUASION Heart of the negotiation process Attempting to get other side to agree to a position Numerous tactics used

VERBAL AND NONVERBAL NEGOTIATION TACTICS

Promise Threat Recommendation Warning Reward Punishment Normative appeal

Negotiation Tactics, Continued

Commitment Self disclosure Question Command No Interrupting

DIRTY TRICKS IN INTERNATIONAL NEGOTIATIONS

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

PLOYS/DIRTY TRICKS POSSIBLE RESPONSES

Deliberate deception - point out what is happening Stalling - do not reveal when you plan to leave Escalating authority - clarify decision making authority

Ploys/Dirty Tricks, Continued Good guy, bad buy routine - do not make any concessions You are wealthy and we are poor ignore the ploy Old friends - keep a psychological distance

STEPS 5 AND 6: CONCESSIONS AND AGREEMENT

Final agreement: The signed contract, agreeable to all sides Concession making: requires that each side relax some of its demands

STYLES OF CONCESSION
Sequential approach

Each side reciprocates concessions

Holistic approach

Concession making begins after all issues are discussed

BASIC NEGOTIATION STRATEGIES

Competitive The negotiation as a win-lose game Problem solving Search for possible win-win situations

COMPETITIVE OR PROBLEM SOLVING INTERNATIONAL NEGOTIATION

Cultural norms and values may predispose some negotiators to one approach (EX 3.10) Most experts recommend a problem solving negotiation strategy

EX 3.10 Preferences for Problem-Solving Negotiation

100 80 60 40 20 0
K U SA U a di In ce an Fr ina t en rg A na hi C n pa Ja M n ai Sp l zi ra B ia er ig y N an m er G o ic ex

% Win-Win

THE SUCCESSFUL INTERNATIONAL NEGOTIATOR: PERSONAL CHARACTERISTICS

Tolerance of ambiguous situations Flexibility and creativity Humor Stamina Empathy

Personal Characteristics, Continued

Curiosity Bilingual

CONCLUSIONS
Successful negotiators: Understand the negotiation steps Build cross-cultural communication skills Understand nonverbal communication Avoid attribution errors