International Business Negotiations

1. International Business Negotiations Communicating Effectively Across Cultures

2. Learning Objectives • Identify trends in international business communication • Be aware of the role of language in international business • Understand the many different ways to communicate across culture, including nonverbal communication

3. Overview • Value of communications savvy • Spoken and written communication • Nonverbal communication

4. Value of Communications Savvy in International Setting • Negotiations • Decision making • Strategy • Understand and interpret behavior • Leadership

5. Communication Styles • A common style of communicating that is tacit and difficult for people in other cultures to appreciate • Use of irony • Sarcasm • Understatement • Body language

6. Spoken & Written Communication • Language most important way to communicate • Language impacts culture • Over 2,500 languages • 8,000 dialects • 10 languages represent majority

7. The Ten Most Widely Used Native Languages in the World

8. Speaking Other Languages • International managers must either • Speak the language or • Trust a translator • Dealing with language can be expensive • Definition of language competence varies

9. Americans on Foreign Languages and Foreigners on English

10. English & the International Environment • Few U.S. citizens speak a second language • English most popular second language • Many MNCs use English • Technology & publications often in English • Some resistance to English dominance

11. Percentage of World Output Tied to Language Group

12. Relative Ranking of Developed and Developing countries on Knowledge of Foreign Languages and Cultures

13. Relative Ranking of Developed and Developing countries on Knowledge of Foreign Languages and Cultures (Cont’d)

14. Communicating in a Foreign Language • Advantage • Language proficiency ≠ Effective communication • Accent and usage variations • Many dialects • Multiple languages within a country

15. Implications for Business • Translation errors • Cultural communication context • i.e., ways to say no • Missed meaning in local context

16. Ways to Avoid Saying No in Japanese

17. Embarrassment & Apology • Dealing with miscommunication • Loss of face • Embarrassment • Shame

18. Embarrassment & Apology (Cont’d) • Responses to miscommunication • Direct or indirect • Justifications and attributions • Admission of guilt • Show of humility

19. U.S. 39 modifiers most frequent sincere brief Japan 79 modifiers most common sunao–submissive, compliant, obedient seii o motte–in good faith, with sincerity kokoro kara–from the heart Apologies in the U.S. and Japan: Study of Conduct Manuals Adapted from: Naomi Sugimoto. (1998). Norms of apology depicted in U.S. American and Japanese literature on manners and etiquette. International Journal of Intercultural Relations 22, 3.

20. Content of Apologies Adapted from: Naomi Sugimoto. (1998). Norms of apology depicted in U.S. American and Japanese literature on manners and etiquette. International Journal of Intercultural Relations 22, 3.

21. Embarrassment & Apology • MNCs should prepare employees to handle • Apologies • Face management • Accounts and explanations

22. Compliments as Communication • Variations in use of praise • Tied to underlying cultural norms • Individualist use more than collective cultures

23. Criticism as Communication • Differences in use of criticism • High- versus low-context cultures • Group orientation and importance of “face”

24. Monitoring Others • Receiving and interpreting cues from others • Effective tool for understanding • Self-monitoring—differences in ability to understand how one is perceived by others in a social setting • Individualist more self-focused • Collectivists more focused on situational cues

25. Written Communication • Volume (e.g., e-mail) • Can be as difficult as verbal • Formality, courtesy, directness, & length are impacted by culture • Bypassing—same word, different definitions

26. An Analysis of Letters Written to and Received From Foreign Countries

27. Nonverbal Communication • Subtle cures used to communicate within and across cultures • Conveying messages without words or writing

28. Nonverbal Communication (Cont’d) • Can include • How one stands – Eye contact • What one wears – Movements • Facial expressions – Gestures • Body posture – Alignment

29. Nonverbal Communication (Cont’d) • Interpersonal space—physical space between people • Haptics—use of touch as communication tool • Vocal qualities—characteristics of voice such as speed & loudness

30. Context and Nonverbal Communication • High-context • Setting, surroundings & cultural norms provide input • Low-context • Require explicit statement of facts to convey message

31. Characteristics of Communication in Low- and High-Context Cultures

32. Improving Your Cross-Cultural Communication Skills: Four Basic Suggestions