CHAPTER 3 INTERNATIONAL NEGOTIATION AND CROSS-CULTURAL COMMUNICATION

1. CHAPTER 3 INTERNATIONAL NEGOTIATION AND CROSS-CULTURAL COMMUNICATION

2. BASICS OF CROSS-CULTURAL COMMUNICATION

3. LANGUAGE AND CULTURE • The Whorf hypothesis

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

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

7. Exhibit 3.2 Cultural Differences in Communication Styles

8. NONVERBAL COMMUNICATION - COMMUNICATING WITHOUT WORDS

9. KINESICS • Communicating through body movements • Facial expressions • Body posture

10. 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

11. 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

12. PRACTICAL ISSUES IN CROSS-CULTURAL VERBAL COMMUNICATION

13. 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

14. 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

15. Communication with nonnative speakers, continued • Avoid “sports” words or words borrowed from literature • Avoid words that represent pictures • Mimic the cultural flavor of nonnative speaker’s language • Summarize • Test your communication success

16. AVOIDING ATTRIBUTION ERRORS • Attribution - process by which we interpret the meaning and intent of spoken words or nonverbal exchanges • Attribution errors

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

18. EXHIBIT 3.4: STEPS IN THE INTERNATIONAL NEGOTIATION PROCESS

19. STEP 1: PREPARATION STEP 2: BUILDING THE RELATIONSHIP STEP 3: EXCHANGING INFORMATION/FIRST OFFER STEP 4: PERSUASION STEP 5: CONCESSIONS STEP 6: AGREEMENT

20. 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

21. DIFFERENCES IN CULTURES IN KEY NEGOTIATING PROCESSES (EXAMPLES) • Communication styles—direct or indirect • Sensitivity to time—low or high

22. Cultural Differences in Key Negotiating Processes, Continued • Forms of agreement—specific or broad (EX 3.5) • Team organization—a team or one leader

23. Exhibit 3.5 Preferences for Broad Agreements

24. 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

25. STEP 3: EXCHANGING INFORMATION AND THE FIRST OFFER • Task-related information is exchanged • First offer

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

27. VERBAL AND NONVERBAL NEGOTIATION TACTICS • Promise • Threat • Recommendation • Warning • Reward • Punishment • Normative appeal

28. Negotiation Tactics, Continued • Commitment • Self disclosure • Question • Command • No • Interrupting

29. “DIRTY TRICKS” IN INTERNATIONAL NEGOTIATIONS Dirty tricks are negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions

30. 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

31. 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

32. 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

33. STYLES OF CONCESSION • Sequential approach • Each side reciprocates concessions • Holistic approach • Concession making begins after all issues are discussed

34. BASIC NEGOTIATION STRATEGIES • Competitive • The negotiation as a win-lose game • Problem solving • Search for possible win-win situations

35. 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

36. EX 3.10 Preferences for Problem-Solving Negotiation

37. THE SUCCESSFUL INTERNATIONAL NEGOTIATOR: PERSONAL CHARACTERISTICS • Tolerance of ambiguous situations • Flexibility and creativity • Humor • Stamina • Empathy

38. Personal Characteristics, Continued • Curiosity • Bilingual

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