RUEE

Chapter 10.- International Negotiations

CROSS-CULTURAL DIMENSIONS

With negotiations between domestic and foreign firms becoming more prevalent, it has become more important than ever that in addition to basic negotiation skills, individuals involved in global business have a solid understanding of how different cultures, practices, and customs affect negotiations

Differences affect individual and group beliefs and behaviors, and show up as differences in, for example, communication, decision making, and negotiating practices.

Individualism/Collectivism.- It is the degree to which individuals are integrated into groups. In societies that are individualistic, the ties between individuals are loose

Power Distance.- Interestingly, this dimension represents less a top-down depiction of how power is shared and more the perspective of followers or subordinates.

Masculinity/Femininity.- It refers to the distribution of gender-based behavior among society members. In countries that are more masculine, negotiators value status and will remain focused on the task at hand

Uncertainty Avoidance.- Deals with a society’s tolerance for uncertainty and ambiguity; it indicates to what extent a culture programs its members to feel either uncomfortable in or threatened by unstructured situations.

Long-Term Orientation (LTO) vs. Short-Term Orientation.- At one end, we find thrift and perseverance among the values associated with Long-Term Orientation; at the other end are values associated with Short-Term Orientation, which include respect for tradition, fulfilling social obligations, and saving face.

PREPARING FOR INTERNATIONAL NEGOTIATIONS

When negotiating abroad, preparation—the first and most important stage of negotiation— is key.

You need to clarify what you want and why, determine your BATNA, gather data to present and compare (i.e., objective criteria) your arguments/proposals, consider ways to learn the other parties’ wants and needs, and collaborate to discover mutual benefits.

In terms of communication, realize that some cultures value simple and direct communications while others rely on indirect and complex methods (e.g., facial expressions, gestures, greetings, even formality of dress) to communicate meaning.

What about the content of or what is being said during negotiation? Verbal behaviors in negotiations differ among cultures as well.

There is also a tendency to assume that language adjustments need not be made. This is simply untrue and unwise.

Aside from these differences, it is important to know about customs and laws specific to each country. what may seem a typical or common courtesy in one country may be considered offensive in another. Again, do your research.

CUSTOMS, LAWS, AND OTHER PROTOCOL

Offering gifts to a negotiating partner is expected in some countries (and considered bribery in others).

Understanding the laws and regulations of your negotiating partners’ country is even more complicated. The degree to which the government regulates industries and organizations varies widely.

Clearly there is much preparation to be done before traveling abroad. While preparation is key, there is still more you need to do once you’ve arrived at your destination to be effective.

When preparing to negotiate with Italians (taking our cue from this North American idiom), one would expect that to be successful, an American businessperson would research Italy’s culture and behave in a way that conforms to the Italian approach to doing business. Simple enough? Well, it’s not that simple.

WHEN IN ROME . . . DO AS THE ROMANS DO?

The rule of thumb for international negotiations is this: When in Rome, nonItalians should be respectful of differences among their Italian counterparts and be at least somewhat true to the characteristics of their own culture. They should not attempt to act like Romans.

THE RELATIONSHIP AND THE NEGOTIATION

Despite these similarities and differences among our global negotiating partners, one constant is the importance of the relationship. Research demonstrates that better negotiators focus on establishing a collaborative climate where relationships are nurtured and needs are met, and both sides emerge as winners.

To successfully negotiate with international partners, Americans (in particular) need to learn that negotiation is first and foremost about developing trust and mutual respect—the relationship—among individuals at the table.