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CHAPTER 3 INTERNATIONAL NEGOTIATION AND CROSS-CULTURAL COMMUNICATION

Learn about the basics of cross-cultural communication and the complexities of international negotiations. Explore different communication styles, nonverbal communication, practical issues in verbal communication, and strategies for successful negotiation.

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CHAPTER 3 INTERNATIONAL NEGOTIATION AND CROSS-CULTURAL COMMUNICATION

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  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

  6. Exhibit 3.2 Cultural Differences in Communication Styles

  7. NONVERBAL COMMUNICATION - COMMUNICATING WITHOUT WORDS

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

  9. 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

  10. 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

  11. PRACTICAL ISSUES IN CROSS-CULTURAL VERBAL COMMUNICATION

  12. 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

  13. 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

  14. 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

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

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

  17. EXHIBIT 3.4: STEPS IN THE INTERNATIONAL NEGOTIATION PROCESS

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

  19. 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

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

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

  22. Exhibit 3.5 Preferences for Broad Agreements

  23. 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

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

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

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

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

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

  29. 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

  30. 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

  31. 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

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

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

  34. 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

  35. EX 3.10 Preferences for Problem-Solving Negotiation

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

  37. Personal Characteristics, Continued • Curiosity • Bilingual

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

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