1、*Objectives Define the intercultural negotiation process Understand the steps in the negotiation process Learn how to avoid mistakes commonly made in intercultural negotiations Become knowledgeable about intercultural negotiation models Understand negotiation strategies,including conflict resolution
2、 Understand various trade agreements that affect intercultural negotiations*DefinitionIntercultural negotiation involves discussions of common and conflicting interests between persons of different cultural backgrounds who work to reach an agreement of mutual benefit.*“In business,you dont get what
3、you deserve,you get what you negotiate.”Why take“no”for an answer?Successful people dont.They get what they want by negotiating better deals for both parties.*winning a means of getting what you want from others gaining the favor of people from whom you want things managing power and information tim
4、e and opportunity management more of an art than a science selling the least troublesome method of settling disputesNegotiation is.*Steps in the Negotiation Process Preparation and Site Selection Team Selection Relationship Building Opening Talks Discussions Agreement*Preparation and Site Selection
5、Hiring a consultant in the country Negotiating resource videos and written materials are helpful Choosing a sitehere or there can be important*Team Selection how team is selected background of players expectations of other negotiators,their style,and the roles they have played in past negotiations e
6、nvironment free of tension*Relationship Building Time required Intermediaries or agents Friendship versus business relationship*Opening Talks Should they start promptly or should you engage in small talk?Is an agenda proper or not?Who should be present?*Discussions Variety of behaviors and norms Emo
7、tions Concessions*Agreement Close negotiations properly.Expect delays.Get tax and legal advice.Expect a long wait until final approval.Understand that contracts are not always considered final.*Common Negotiation MistakesMaking negative initial impressionFailing to listen and talking too muchAssumin
8、g understanding by the other cultureFailing to ask important questionsShowing discomfort with silenceUsing unfamiliar and slang wordsInterrupting the speakerFailing to read the nonverbal cuesFailing to note key pointsMaking statements that are irritating or contradictoryFailing to prepare a list of
9、questions for discussionBeing easily distractedFailing to start with conditional offersFailing to summarize and restate to ensure understandingHearing only what you want to hearFailing to use first-class supporting materials*Intercultural Negotiation Models Problem-solving approachconsiders national
10、 and organizational cultural differences Competitive approachindividualistic and persuasive orientation Compromisingseeks a middle ground Forcingmakes the other party comply Legalismuses legal documentation to force the partner to comply*Four-Stage Negotiation Model Investigative Presentation Bargai
11、ning Agreement*Negotiation Strategies People act on basis of their own best interests Truth in negotiations Faith Fact Feeling U.S.negotiators make fewer adjustments to their opponent Include:preparation,tactics,conflict resolution and mediation,and observation,analysis,and evaluation*Trade Agreemen
12、ts Validated licensespecific exporter and specific products Free trade zones or trade blocsproducts enter without customs duties*NAFTA Benefits To eliminate barriers to trade and facilitate cross-border movement of goods and services To promote fair competition To increase investment opportunities T
13、o provide adequate and effective protection for intellectual property To develop effective procedures for handling disputes To expand cooperation and increase benefits to the three countries(Canada,Mexico,U.S.)*The U.S.Negotiators Global Report CardPreparationB-Synergistic approach(win-win)DCultural
14、 I.Q.DAdapting the negotiating process to the host country environmentDPatienceDListeningDLinguistic abilitiesFUsing language that is simple and accessibleCHigh aspirationsB+Personal integrityA-Building solid relationships DCompetency Grade*Statements Characteristic of U.S.Negotiating Style I can ha
15、ndle this myself.(to express individualism).Please call me Steve.(to make people feel relaxed by being informal).Pardon my French.(to excuse profanity).Lets get to the point.(to speed up decisions).Speak up;what do you think?(to avoid silence).A deal is a deal.(to indicate an expectation that the ag
16、reement will be honored).*China Reserved;known for good manners and hospitality Give small,inexpensive presents Do not like to be touched Consider mutual relation-ships and trust very important Technical competence of negotiators necessary Prefer to use an intermediary Rarely use lawyers Ample room
17、for compromise*France The French have a sense of pride sometimes interpreted as supremacy.French logic(Cartesian logic)proceeds from what is known in a point-by-point fashion until agreement is reached.Protocol,manners,status,education,family,and individual accomplishments are keys to success with t
18、he French.*Germany Protocol is important and formal.Dress is conservative;correct posture and manners are required.Use titles when addressing members of the negotiating team;use please and thank you often.Germans prefer to keep a distance between themselves and the other team negotiators.Include tec
19、hnical people as part of the negotiation team as Germans are detail oriented.Punctuality is expected.Contracts are firm guidelines to be followed exactly.*India Bribery is common;having connections is important.Avoid using the left hand in greetings and eating.Request permission before smoking,enter
20、ing,or sitting.Building relationships is important;an introduction is necessary.Intermediaries are common.Use titles to convey respect.Knowledge of local affairs is important.Negotiation process can be long.*JapanBusiness etiquette is very important.Meeting should be arranged by an intermediary who
21、has a relationship with both parties.Negotiating parties usually consist of five people.Business card exchange is common.Subtle and complex verbal and nonverbal cues are used to avoid having someone lose face or lose the group harmony.Negotiating practices are based on the keiretsu system(a company
22、group formed by the principal company and the partner companies);a keiretsu group is viewed as a long-term commitment.The Japanese use more silence and less eye contact than do people of the U.S.View contracts as flexible instruments.Are suspicious of a negotiating team that includes lawyers.*Latin
23、AmericaRelationships are important.Bribery is common.Government is very involved in business.Negotiators chosen based on family connections,political influence,education,and gender(females should be in the background).Latinos are very individualistic but group oriented concerning family and friends.
24、Social competence is important;will ask about ones health and family.Most agreements are consummated over lunch.Numerous meetings is the norm;time is not seen as important.Avoid gestures.*NigeriaNigerians are skillful negotiators;view negotiation as a competitive process.When selecting negotiators,c
25、onsider age(equated with wisdom),gender,cultural background,and educational credentials.Developing a personal relationship is important.Time is not particularly important so negotiations may be lengthy.Use titles and last names.Use an intermediary to make initial introductions.Being well dressed is
26、important;courtesy and consideration are also expected.Contracts considered flexible;they may be oral or written.A bribe may be needed to expedite business.*Russian States In the past,negotiation sessions have been long,with Russians controlling the agenda.Russians are concerned with age,rank,and pr
27、otocol.Russians tend to be formal.Friendships are not crucial to conducting business.Contracts are interpreted rigidly.Russians are concerned with maximizing their profits.*“Negotiating on a global scale can present tremendous opportunities.”Corporations can expand their markets,increase their markets,their profits,and their productivity,and lower their costs by negotiating globally.
