13InternationalNegotiationand

Cross-CulturalCommunicationLearningObjectives(1of2)Understandthebasicsofverbalandnonverbalcommunicationthatmayinfluencecross-culturalmanagementandnegotiation.Describethebasicinternationalnegotiationprocessesfrompreparationtoclosingthedeal.Explainthebasictacticsofinternationalnegotiations.Recognizeandrespondto“dirtytricks”ininternationalnegotiations.LearningObjectives(2of2)Knowthedifferencesbetweentheproblem-solvingandcompetitiveapproachestointernationalnegotiation.Identifythepersonalcharacteristicsofthesuccessfulinternationalnegotiator.InternationalNegotiationInternationalNegotiation:theprocessofmakingbusinessdealsacrosscultures;itprecedesanymultinationalprojectWithoutsuccessfulnegotiationandtheaccompanyingcross-culturalcommunication,thereareseldomsuccessfulbusinesstransactions.Astheworldbecomesincreasinglyglobal,companieswillneedtobecomeadeptatsuchnegotiations.TheBasicsofCross-CulturalCommunication(1of2)Successfulinternationalnegotiationrequiressuccessfulcross-culturalcommunication.Negotiatorsmustunderstandallcomponentsofculturallydifferentcommunicationstyles,bothverbalandnonverbal,including:SubtlegesturesofhandandfaceTheuseofsilenceWhatissaidornotsaidTheBasicsofCross-CulturalCommunication(2of2)Mistakesoftengounnoticedbythecommunicator,buttheycandodamagetointernationalrelationshipsandnegotiations.AvoidattributionerrorsAttribution:theprocessbywhichweinterpretthemeaningofspokenwordsornonverbalexchangesLanguageandCultureLanguageissoessentialtoculturethatmanyconsiderlinguisticgroupssynonymouswithculturalgroups.Whorfhypothesis:thetheorythatasociety’slanguagedeterminesthenatureofitscultureWordsprovidetheconceptsofunderstandingtheworld;languagestructuresthewaywethinkaboutit.Alllanguageshavelimitedsetsofwords.Restrictedwordsetsconstraintheabilitytoconceptualizetheworld.

High-andLow-ContextLanguages

Low-contextLanguage:peoplestatethingsdirectlyandexplicitly,andyouneednotunderstandthecontext.Examples:MostnorthernEuropeanlanguagesincludingGerman,English,andtheScandinavianlanguagesHigh-contextLanguage:peoplestatethingsindirectlyandimplicitly.AsianandArabiclanguagesCommunicationsmayhavemultiplemeaningsdependingonthecontextExhibit13.1:

CountryDifferencesinHigh-ContextandLow-ContextCommunication

BasicCommunicationStyles(1of2)

Otherculturaldifferencesincommunicationcaninfluencecross-culturalinteractions&negotiations.DirectCommunication:communicationthatasksquestions,statesopinions,comestothepointandlacksambiguityIndirectCommunication:peopleattempttostatetheiropinionsoraskquestionsbyimpliedmeaning,believingdirectcommunicationisimpolite

BasicCommunicationStyles(2of2)

FormalCommunication:communicationthatacknowledgesrank,titles,andceremonyinprescribedsocialinteractionPeopleintheU.S.areamongtheleastformalincommunication,casuallyusingfirstnames,anddispensingwithtitles.Mostotherculturescommunicatewithmoreformality,especiallyinbusinesssettings,takingcaretoacknowledgerankandtitleswhenaddressingothers.Exhibit13.2:

CulturalDifferencesin

CommunicationStylesNonverbalCommunicationNonverbalCommunicationmeanscommunicatingwithoutwords.Onemaycommunicatewithoutspeaking;peoplegesture,smile,hug,andengageinotherbehaviorsthatsupplementorenhancespokencommunication.Suchnonverbalcommunicationincludes:Kinesics,proxemics,haptics,oculesics,andolfacticsKinesicsKinesicsmeanscommunicationthroughbodymovements.Everycultureusesposture,facialexpressions,handgesturesandmovementtocommunicatenon-verbally.MostAsianculturesusebowingtoshowrespect.It’seasytomisinterpretthemeaningofbodymovementsinanotherculture.Thesafeststrategyistominimizetheiruse.ProxemicsProxemicsfocusesonhowpeopleusespacetocommunicate.Eachculturehasanappropriatedistanceforvariouslevelsofcommunication;violationsofspacemaybeuncomfortableorevenoffensive.Thepersonalbubbleofspacemayrangefrom9inchestoover20inches.NorthAmericansprefer20inches,whileLatinandMiddleEastculturespreferless.HapticsorTouchingHapticsortouchingiscommunicationthroughbodycontact,andisrelatedtoproxemics.Thetypeoftouchingdeemedappropriateisdeeplyrootedinculturalvalues.Generally:NotouchingculturesareJapan,U.S.,England,andmanyNorthernEuropeancountries;ModeratetouchingculturesareAustralia,China,Ireland,andIndia.TouchingculturesareLatinAmericancountries,ItalyandGreece.OculesicsOculesicsreferstocommunicationthrougheyecontactorgazing;thedegreeofcomfortwitheyecontactvarieswidely:U.S.andCanada:Peopleareverycomfortableandexpecteyecontacttobemaintainedforashortmomentduringconversations.ChinaandJapan:Eyecontactisconsideredveryrudeanddisrespectful;respectisshownbyavoidingeyecontact.OlfacticsOlfacticsistheuseofsmellsasmeansofnonverbalcommunication.U.S.andU.K:Theseculturesareuncomfortablewithbodyodors,andmayfinditoffensive.Arabsaremuchmoreacceptingofbodyodors,andconsiderthemnatural.Negotiatorsmustbeawareoftheseperspectivesandacceptandadapttothem.UsingInterpretersTheroleofanInterpreteristoprovideasimultaneoustranslationofaforeignlanguage.Thisrequiresgreaterlinguisticskillsthanspeakingalanguageortranslatingwrittendocuments.TheInterpretermusthavethetechnicalknowledgeandvocabularytodealwithtechnicaldetailscommoninbusinesstransactions.Evenifanegotiatorunderstandsbothlanguages,itsbesttohaveaninterpretertoensuretheaccuracyandcommonunderstandingofagreements.

Tipsforthe

SuccessfulUseofInterpreters(1of2)

Spendtimewiththeinterpreter,sos/hegetstoknowyouraccentandgeneralapproachtoconversation.Goovertechnicalandotherissueswiththeinterpretertomakesuretheyareproperlyunderstood.Insistonfrequentinterruptionsfortranslationsratherthantranslationsattheendofstatements.Learnaboutappropriatecommunicationstylesandetiquettefromtheinterpreter.Tipsforthe

SuccessfulUseofInterpreters(2of2)Lookforfeedbackandcomprehensionbywatchingthelistener’seyes.Discussthemessagebeforehandwiththeinterpreterifitiscomplex.Requestthatyourinterpreterapologizeforyourinabilitytospeakinthelocallanguage.Confirmthroughaconcludingsessionwiththeinterpreterthatallkeycomponentsofthemessagehavebeenproperlycomprehended.CommunicationwithNonnativeSpeakers(1of2)Usethemostcommonwordswiththeirmostcommonmeanings.Selectwordswithfewalternativemeanings.Strictlyfollowtherulesofgrammar.Speakwithclearbreaksbetweenwords.Avoidsportswordsorwordsborrowedfromliterature.Avoidwordsorexpressionsthatarepictures.Avoidslang.CommunicationwithNonnativeSpeakers(1of2)Mimictheculturalflavorofthenonnativespeaker’slanguage.Summarize.Testyourcommunicationsuccess.Repeatbasicideasusingdifferentwordswhenyourcounterpartdoesnotunderstand.Confirmimportantaspectsinwriting.InternationalNegotiationInternationalNegotiationismorecomplexthandomesticnegotiation.Differencesinnationalcultures,&political,legal,andeconomicsystemscanseparatebusinesspartners.Stepsininternationalnegotiation:Preparation,buildingtherelationship,exchanginginformation,firstoffer,persuasion,concessions,agreement,andpostagreement.Exhibit13.3:

StepsinInternationalNegotiationsStep1:

PreparationDetermineifthenegotiationispossible.Knowexactlywhatyourcompanywants.Beawareofwhatcanbecompromised.Knowtheotherside.Sendtheproperteam.Understandtheagenda.Prepareforalongnegotiation.CulturalDifferencesinNegotiatingProcesses(1of2)WhatistheNegotiationgoal-signingthecontractorformingarelationship?Shouldyouuseaformalorinformalpersonalcommunicationstyle?Shouldyouuseadirectorindirectcommunicationstyle?Issensitivitytotimeloworhigh?Whatformofagreement-specificorgeneral?CulturalDifferencesinNegotiatingProcesses(2of2)Whatistheteamorganization-ateamoroneleader?Whatistheattitudetowardsnegotiation-win-loseorwin-win?Whatistheappropriateemotionaldisplay-highorlowemotions?LatinAmericansandtheSpanishshowtheiremotionsthroughnegotiations.JapaneseandGermanstendtobemorereserved.Exhibit13.4:

CulturalDifferencesin

PreferenceforBroadAgreementsExhibit13.5:

UnderstandingNegotiators

fromOtherCountriesStep2:

BuildingtheRelationshipAtthisstage,negotiatorsdonotfocusonthebusinessissues,butonsocialandinterpersonalmatters.Negotiationpartnersgettoknowoneanother.Theydevelopopinionsregardingthepersonalitiesofthenegotiators,includingwhethertheycanbetrusted.Theduration,importanceofthisstagevarybyculture.U.S.negotiatorsarenotoriousintheirattemptstogetdowntobusinessafterbriefsocializing.Step3:

ExchangingInformation

andtheFirstOfferPartiesexchangetask-relatedinformationontheirneedsfortheagreement,whichpertainstotheactualdetailsoftheproposedagreement.Typically,bothsidesmakeaformalpresentationofwhattheydesireoutoftherelationship.Then,bothsidesusuallypresenttheirfirstoffer,whichistheirfirstproposalofwhattheyexpectfromtheagreement.Exhibit13.6:

InformationExchange

andFirst-OfferStrategiesStep4:

PersuasionInthepersuasionstage,eachsideinthenegotiationattemptstogettheothersidetoagreetoitsposition.Thisistheheartofthenegotiationprocess.Numeroustacticsareused,buttwogeneraltypes:Standardverbalandnonverbalnegotiationtactics,andSomedirtytricksVerbalandNonverbalNegotiationTactics(1of2)PromiseThreatRecommendationWarningRewardPunishmentVerbalandNonverbalNegotiationTactics(2of2)NormativeappealCommitmentSelfdisclosureQuestionCommandRefusalInterruptionExhibit13.7:

ComparisonofBrazilian,U.S.,

andJapaneseNegotiatorsDirtyTricksAllnegotiatorswanttogetthebestdealfortheircompany,andtheyusearangeoftacticstodothat.However,peoplefromdifferentculturesconsidersomenegotiatingtacticsdirtytricks:negotiationtacticsthatpressureopponentstoacceptunfairorundesirableagreementsorconcessions.Culturesdifferonthenormsandvaluesthatdetermineacceptablestrategiesfornegotiation;someexamplesfollow.DirtyTricks

andPossibleResponses

Deliberatedeceptionorbluffing-Pointoutwhatyoubelieveishappening.Stalling–Don’trevealwhenyouplantoleave.Escalatingauthority-Clarifydecisionmakingauthority.Good-guy,bad-guyroutine–Don’tmakeanyconcessions.Youarewealthy,wearepoor–Ignoretheployandfocusonthemutualbenefitsofpotentialagreement.Oldfriends–Keepapsychologicaldistance.Step5

ConcessionsConcessionMakingrequiresthateachsiderelaxsomeofitsdemandstomeettheotherparty’sneeds.Stylesofconcessionmakingdifferamongcultures:Sequentialapproach:Eachsidereciprocatesconcessionsmadebytheotherside.CommoninNorthAmericaHolisticapproach:Eachsidemakesveryfew,ifany,concessionsuntiltheendofthenegotiationCommoninAsiaStep6:

AgreementSuccessfulnegotiationsresultintheFinalagreement:thesignedcontract,agreeabletoallsides.Theagreementmustbeconsistentwiththechosenlegalsystemorsystems.Thesafestcontractsarelegallybindinginthelegalsystemsofallthesigners.Mostimportant,peoplefromdifferentnationalandbusinessculturesmustunderstandthecontractinprinciple,andhaveatruecommitmentbeyondlegal.BasicNegotiatingStrategiesTherearetwobasicnegotiatingstrategies:CompetitiveNegotiation:Eachsidetriestogiveaslittleaspossibleandwinthemaximumforitsside.Seekswin-loseresolution;usesdirtytricks.