Do’s and Don’ts

of Cross-Cultural
Negotiations
Paul A. Herbig
Hugh E. Kramer

The potentml for error when rndlvlduals from different I ul-
tures talk together zs conslderahle Many negotlatlons have
faded due to cross-culturul commumcatlons breakdown In this
article we detail p~tjiull~ to avoid when undertaking cross-
cultural negotiations
When one takes the seemingly simple process of ne-
gotiation mto a cross-cultural context, complications tend
to grow exponentially It is naive, indeed, to venture mto
mternational negotiation with the belief that “after all,
people are pretty much alike everywhere and behave
much as we do ” Even if they wear suns hke you do,
speak English as well as (or even better than) you, and
prefer many of the comforts and attributes of American
life, it is foolish to view a member of another culture as
a brother or sister m spirit That negotiation style you
use so effectively at home may be meffective when deal-
mg with people from other cultural backgrounds, m fact,
Address correspondence to Paul A Herblg. Dept of MdndgementiMar-
ketmg, College of Commerce dnd Busmess Admmlstrdtlon. Jack\onvllle State
Untver\lty, Jacksonvdle, Alabama 36265
The first author wlshe\ to express thanks to the Edst West Center ot Hon-
olulu, Hawdu, who supported the research whtch went mto thl\ mdnuscnpt
it may often result m more harm than gam Heightened
sensitivity, more attention to detail, and perhaps even
changes m basic behavioral patterns are required when
working with mdividuals from another culture
Different cultural systems produce divergent negoti-
ating styles-styles shaped by each nation’s culture, ge-
ography, history, and polmcal system The two busmess
negotiators are separated from each other not only by
physical features, a totally different language, and busi-
ness etiquette, but also by different ways of perceivmg
the world, defining business goals, expressing thoughts
and feeling, and showing or hiding motivattons and m-
terests Unless one sees the world through the other’s
eyes (no matter how similar they appear), the parties may
not be seemg or hearing the same thmgs No one can
avoid brmgmg his or her cultural assumptions, images,
preludlces, and other attitudmal baggage into any ne-
gotiating situation
Even the language of negottatton can be misleading m
foretgn settmgs Compromise has positive meanmgs for
Americans it is an essential part of busmess and de-
mocracy, and willmgness to compromise shows morality,
good faith and fair play-but this is not necessarily so

lndustrtal M a rk rt q Management 21, 287-298 ( 1992) 287

0 Elsevler Science Pubhshmg Co , Inc . 1992
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 Different cultures produce different styles.

for peoples of other cultures Throughout the Middle mg to one’s own advantage to realize what each party
East, the word “compromlse” has a negative connota- wants from the negotlatlons, and turn the negotlatlons
tion, as m the phrase “her virtue was compromlsed ” mto a wm-wm situation for both sides Table 1 sum-
The Perslan word for “mediator” means “meddler,” marizes the do’s and don’ts of cross-cultural negotlatlon
someone who barges m umnvlted To Mexicans and
many Latin Americans, compromise IS a matter of honor, NATIONAL NEGOTIATING STYLES
glvmg m means yleldmg dlgmty and Integrity, which are
held m high regard Compromise m the Russlan culture The line-of-reasomng method persuasive to most
IS a sign of weakness to give up a demand once pre- Americans may not work at all m other cultures Amer-
sented, even a mmor or formallstlc pomt, ImplIes one IS icans are usually swayed by expert opmlon and hard
losmg control of his or her own ~111 and becoming sub- evidence and want to concentrate on the facts avallable,
Jugated to someone else’s will In other words, a weak others prefer to spend what to Americans seems an m-
mdlvldual chooses compromises, a strong person with ordinate amount of time on prmclples Mexican and Rus-
self esteem who commands the respect of his or her peers sian negotiators habitually start with the most general
forces his or her will on others and does not avold con- aspects and purpose of a negotlatlon session by defining
frontatlons maJor and minor Issues, categorlzmg them, and then de-
The common Western Ideal of a persuasive commu- cldmg on the mam points to be solved The Chinese seek
mcator-someone highly skllled m debate, able to over-
TABLE 1
come obJectIons with verbal flan-, an energetic
Do’s and Don’ts of Cross-Cultural Negotlatlon
extrovert-may be regarded by members of other cultures
as unnecessarily aggressive, superficial, insincere, even DO
know your \ub\tdnce dnd be well prepdred
vulgar and repressive To other Americans, the valued
\pectfy cledr obJectlve\ dnd know your bottom fme
American traits of directness and frankness show evl- develop personal reldtton\htp\ but be cdretul not to be mdmpuldted
dence of good intentions and personal convIctIons, It IS \eek opportumtte\ lor mtormdl get-together\ \mce thdt I\ where mo$t
of the mtttdl contdct\ WIII be mdde
a compliment to be called stralghtforward and aggressive
meticulously lollou protocol lorelgner\ u\udlly dre more \tdtu\
Not necessarily so, however, for members of other con~tou\ thdn Amcrtcdm
cultures To describe a person as “aggressive” IS a de- under\tdnd ndtmndl \en\ttlvltle\ dnd do not vmldte them
rogatory characterlzatlon to a Brltlsh cmzen To the Jap- d\\e\\ flexibtltty of your opponent dnd the ob\tdcle\ he or \he tdce\
under\tdnd the dcct\ton-mdkmg proce\\ and build up your poWton
anese, those very traits mdlcate msmcerlty and lack of by tdktng ddvdntdge Of edch \tep
confidence m one’s convIctIons Instead, terms such as pm down detdds
thoughtful, cooperative, conslderate, and respectful de-
DON’T
scribe posltlve traits in the Japanese and many Asian
look dt everythmg from your own dehmtton of whdt determlnc\ d
cultures rdtmnal and \ctenttftc vtewpolnt
The way one succeeds m cross-cultural negotlatlons IS pre\\ d point If other\ dre not prepdred to dLLept It

by fully understandlng others and using that understand- look dt thmg\ tram your own ndrrow self mtere9t
d\k for conce$ston\ or compromtse~ whtch dre polltLdlfy or
culturdlly \en\ttlve
PAUL A HERBIG IS with the College of Commerce and \ttck to your dgcndd II the other pdrty hd\ d dltferent \et of prIorltle\
Business Admtntstratlon, Jacksonvie State Unlverslty, u\e jagon thdt mdy contuse the other \lde
Jacksonville, Alabama \ktp duthorlty level< \mce you wtll need middle mdnapement to
m~plemcnt the dgreem~nt
HUGH E KRAMER IS with the College of Business d\k lor d dectslon thdt you knou the other \lde cdn t or I\n’t reddq
Administration at the University of Hawail-Manoa, Honolulu, to t ll d h e

Hawall doffer with mcmbcr\ 01 your own tedm m publtc

\tdke out extreme po\mon~ be Lon%tent m your dpprodch

288
agreement on general prmciples, they expect the other
party to reveal then Interests first while the Chinese mask
their own interests and priorities
The concept of discussmg problems m a systematic,
sequential, orderly manner IS promoted by Americans,
while the Japanese prefer haragez, to talk around a subJect
m order to get a holistic view of it Only after thrs is
accomphshed will they discuss details The Japanese pre-
fer to avoid any area m which an agreement cannot be
easily reached Instead, they tend to move to another
topic. To Americans, it often appears that the Japanese
are trying to elude the issue To Americans, an unsolved
issue is a point of contention Thts, not any general prm-
ciple, must first be dealt with before the agreement as a
whole can be considered
Many who come from a non-western tradition have to
learn the value we place on give and take, as well as the
confrontational aspects of Western-style negotiation In
a host of cultures, especially those from the Orient, peo-
ple depend more on feelmgs and personal relationships
than intellectual confrontations In numerous other cul-
tures, conflict avoidance IS central In these cultures,
mediators, go-betweens, facihtators, brokers, and mid-
dlemen are used to assist m smoothmg the negotiation
process In the Middle East, the Bedouin model is often
used This mvolves mtermediaries who enJoy trust of both
sides, mamtammg the honor of both parties, and remem-
bering that face savmg is important and gestures of gen-
erosity and reciprocation must be adhered to [I] On the
other hand, the authoritarian traditions of Latin Ameri-
cans often spurn use of mediators or third parties
A primary bargammg strategy of the Chmese and Jap-
anese is to ask questions that put the opponent on the
defensive Many times the mitral meetmg is used merely
to gather mformation, which IS then fed back to superiors
and peers for deliberation and a carefully prepared re-
sponse The Japanese strongly believe it is folly to make
an offer until one knows what the other side wants This
explains the slow start, lack of mmal proposal, emphasis
on mformation gathering, and the long, drawn-out pre-
hmmary ground work that IS usually encountered when
negotiatmg m Japan. The Japanese need detailed mfor-
mation to build the foundation for whatever proposal they
intend to put forward Should the venture fail, no one
can be rebuked or blamed On the other hand, m Latin
America, questions are not valued as m the Orient, m
fact, there they are often Interpreted as prymg and m-
appropriately nosy
Often, the team on the other side of the table IS not
composed of the final decision makers The Japanese
often conceal their top person by positioning him or her
mconspicuously on the frmge of the team Inmally he or
she makes no contribution while a Junior member acts as
spokesperson The Japanese team leader might only be
marginally technically competent m the specific subJect
matter under negotiation but still be the undtsputed head
credentials for leadership mclude seniority and frequently
a degree from the right school The leader may have been
chosen because he or she represents the company con-
sensus, which was achieved before the negotiations
started The leader’s symbolic authority IS high and the
team shows the leader great deference So, one cannot
assume the makeup of the opponent’s negotiating team
is identical to that of one’s own [2] Japanese negotiating
teams usually consist of large groups To avoid bemg
mtimidated by sheer numbers, the Western negotiator is
well advised to be prepared to bring sufficient staff to
provide numerical balance (including sufficient techmcal
experts)
Lawyers do not enJoy as much prestige m most cultures
as they do m America In some cultures, they are con-
sidered to be more of a problem, a hindrance to an agree-
ment, than an advantage In Japan, lawyers are seen as
people who comphcate personal relationships, mhibit
basic understanding, and prevent the parties’ getting to
know each other better A long-term business relationship
between a Japanese and a foreign partner IS expected to
be built on the principles of mutual trust, friendship, and
cooperation, rather than on the legahstic grounds a lawyer
would tend to emphasize In fact, the presence of a lawyer
may be viewed as a sign of distrust, mtroducmg a lawyer
mto the situation is often considered an unfriendly act or
an implied threat of lmgation, since lawyers are tradi-
tionally used for that specific purpose m Japan [3] Brmg-
mg a lawyer to a first meeting with a Japanese company
may be the kiss of death for an agreement In busmess
289
transactlons, a contract IS secondary to harmomous re-
latlonshlps, Japanese negotiators prefer conclhatlon and
medlatlon over htlgatlon The Chinese also shun legal
conslderatlons and instead stresses ethlcal prmclples
The proficient mtematlonal negotiator understands the
national negotlatmg style of those on the other side of
the table, accepts and respects their cultural beliefs, and
IS conscious of his or her own mannerisms and how they
may be viewed by the other side
DIFFERENCES IN DECISION MAKING
In mtematlonal negotiations one must also take mto
account the nuances m other cultures’ declslon processes,
that is, the way officials and executive\ reach decisions
and instruct then negotiators, as well as personal styles
of declslon-making behavior In most of the non-western
world, declslon making does not rest with an mdlvldu-
al Many cultures go to extraordinary lengths to avold
mdlvldual action on any problem, group responslblhty
replaces mdlvldual declslon-makmg responslblhty
Americans view the Japanese mablhty to deviate from
their position as mdlcatlng stubbornness and thus perceive
the Japanese as unwlllmg to compromlse or as umnter-
ested m keepmg the negotiation process ahve To the
Japanese, the Western concept of “declslon makmg” IS
ahen and not applicable to the Japanese process (rlng~-
bulldmg consensus from mid-levels), which can be
thought of as more of a drrectlon-indicating proces\ The
Japanese come to a negotlatlon with a hard-gamed, time-
consummg, mtraorgamzatlonal consensus already estab-
lished that can not be easily changed at the bargammg
table, no matter how small or seemmgly Irrelevant To
the Japanese, the Americans m their give and take appear
msmcere and unprepared, as they seem not appear to
have a prepared positIon To the Latm Amencan\, de-
clslons are typlcally made by those mdlvlduals who are
m charge of declslon makmg m this area In KOred,
middle managers have maJor veto power\ but no authority
to commit their orgamzatlon to a long-term agreement
To Amencans, anythmg I\ permitted unles\ It ha\ been
restricted by the state or by company policy For RUV
slans, nothmg IS permltted unless It I\ mltlated by the
state Polltics has pervasive influence on Chme5e and
Russlan behavior, whdc Americans tend to separate busl-
ncs\ and polltIcs The Ru$slans have an authorttarlan
government with a ba\lcally ohgarchlcal declslon-makmg
network controlled from the Politburo Not Ju\t major
dccl\lons but many details of negotiations are \et at the
290
top, almost to the pomt of complete subservience to In-
structions from Moscow In such a declslon-making
framework, the Russians have an advantage m that they
can develop negotlatlon posmons and tactics wlthout
other domestic conslderatlons But they are typically so
much at the mercy of mstructlons from superiors that at
times It seems to foreign observers that they need per-
mlsslon from the Kremlm before they can even speak at
the negotlatmg table [3] Russlan negotiators are gov-
ernment employees wlthout exceptlon, while American
negotiators usually are businessmen
Some cultures have strong authorltarlan elements The
Mexican president has Immense authority, but any pres-
idential directIon 1s slowed or frustrated by a formidable
and powerful bureaucracy The Mexican president IS the
prmclple declslon maker, therefore, governmental ne-
gotiators have hmlted dlscretlon m actIon\ and decrslon-
makmg capablhtles by American standards LIkewIse,
the Egyptlan president pohtlcally has a very strong po-
sItIon, but the actual lmplementatlon of a negotiated
agreement eventually requires the acceptance of the pow-
erful Egyptlan bureaucracy For long-term commitments
m Brazil, declslons are made at the top of orgamzatlons,
lmplementatlon of such declslons by the bureaucracy tend
to be cumbersome and time consummg
The American hlerarchlcal model of responslblhty-
accountablhty-power IS not universal, the “top man’s
word” may not be enough In the Chinese pohtlcal cul-
ture, there IS no assumption that declslon power must be
tied to accountabdlty On the contrary, In the eyes of the
powerful, proof of authority and respon\lblllty he\ In
being 5hlelded from accountablhty Those below them
will protect them from ml\takes and crltlclsm [4] The
Chinese blur line\ of responslblhty and provide vague
and confllctmg \lgnal\ as to the Ilmlts of thclr negotlatmg
authority As government officials, most Russian ncgo-
tlators, untd recently, could only dl\cus\ what they were
told by therr \upenors They could go no further and had
to get approval for further moves, action\, and responses
from their \upenors Fear of dlsclphnary action forced
them to carefully follow order\ A Ru\slan negotiator
rarely took mltlatlvcs The Soviet people take virtually
no step m their public or private IIves that doe\ not depend
on the state
Americans love to compare negotlatmg to playing a
poker game, they are quick to take advantage of a better
power porltlon or strength Latm Americans are also great
power players, to be stronger than the others IS partlcu-
larly cherished The Jdpanese rcll\h subtle power plays
 Negotiation is often macho.
m their goal of achlevmg conclhatlon The French typ-
ically have an elaborate, well-prepared opening posltlon,
but few (if any) mtermedlate fallbacks before their mm-
lmum position IS reached In Eastern Europe, one team
negotiates one day, followed by a fresh team the next,
thus, it becomes very difficult for Western negotiators to
ascertain which team IS most Important or has the final
authortty
The accomplished international negotiator prepares for
negotiation by understandmg the declslon-makmg pattern
of the specific culture, learning the hmltatlons of the
delegates’ authority and who wlthm the nation or com-
pany will make the final decision, and prepares for tra-
ditional culturally based power plays that may occur
wlthm the negotiation
STATUS AND PROTOCOL
American egahtarlamsm can also present a problem m
cross-cultural negotiations Negotlatlons between equals
IS basically a Western concept, It IS not found m such
status-oriented socletle\ as Japan, Korea, or Russia The
Japanese and Korean\ rate others as either Jumor or semor
to them but rarely as their equals, the Russians view others
as either inferior or superior to themselves All of these
cultures-Korea, Russia, and Japan-tend to see nego-
tiations as war, a macho challenge They beheve m the
rightness of their mltlal posltlon When pressed, the Jap-
anese fully explam their position and underlymg mten-
tlons m order to persuade the other side of the rightness
of the Japanese posmon, but they will hesitate to yield
their own posltlon The Chinese revere age and authority,
unless men sport beards, be prepared for an uphill battle
American mformahty m down playing status, m usmg
first names, m attire, and m other ways of showmg cas-
ualness, IS not umversal The Japanese dress conserva-
tlvely, they always prefer dark busmess suits Therefore,
to be dressed casually during negotlatlons with the Jap-
anese 1s mapproprlate. The Japanese do not believe m
usmg first name5 unless it IS between the very best of
personal friends In Asia, honorifics, title, and status are
extremely Important, address counterparts by their proper
title Frankness and directness, Americans virtues, are
not well received by Mexicans m formal encounters or
by Japanese at any time Americans and Germans are
more likely to start out expecting to trust the other party
until they prove untrustworthy, while m Latm America
and some parts of Asia people are mclmed to mlstrust
others until good faith IS proven American humor 1s
sometimes seen as strange or mapproprlate to members
of other cultures, the Japanese art of being overly humble
and apologetic seems condescending and artlficlal to
many m the West
Some cultures have strong tradmons governmg dally
life and social mteractlons In formal settmgs, Mexlcam
respond with rhetoric and lofty prmclples They are proud
of their country and traditions but frequently exhlblt a fear
and susplclon of the “grmgos from the north” and their
possible motives There IS no tradmon for solving busl-
ness problems by holding public meetings, the Mexican
appreclatlon of form and ceremony goes back to their
Spamsh roots Protocol and status are Important to Ko-
reans, they feel shghted if one does not recognize their
proper status and posItIon m hfe The Arabs are highly
rltuahstlc m their social interaction, an intimate knowl-
edge of their customary formahty and protocol IS requn-ed
If one IS to succeed with members of their society The
Russlans are highly conscIou4 of protocol and not Inclined
to accept any \urpnse change\ m the negotlatmg agenda
or venue In Japan, tradition extends even to the proper
way one must present a bu\mes\ card or drmk tea or \ake
The valued American handshake 1s often out of place
m Japan, where bowing IS customary and the exact angle
and number of bows are important according to whom
you are meeting Even use of the hands can vlolate un-
spoken rules of proper conduct The American thumbs-
up and forefinger-thumb “OK” are consldered obscene
gestures m many cultures When meetmg d devout Mo\-
lem, never shake with the left hand or use it for any
purpose-m Islam the left hand 14as\oclated with human
excretion To use It m any lnteractlon with d Moslem 14
considered rude and a personal affront
The successful foreign negotiator appreciate\. under-
stands, and respects national protocols, ntuals, and statu\
symbols The competent global negotiator \ubordmates
his or her own preferences to that of the ho\ts or guests
291
 Patience
SOCIAL ASPECTS OF NEGOTIATIONS
The function of entertamment and other social actlv-
ltles related to negotiation varies markedly from culture
to culture Americans feel comfortable conducting busl-
ness m a relaxed social setting, negotiators m other cul-
tures may feel awkward m such settings and may even
see this as a breach of etiquette towards one’s guests
Americans eat m public and bathe m private, the Japanese
vice-versa The Japanese rarely bring wives or family
members to a busmess gathering Likewise, the French
believe the home IS for intimate relationships, not for
conducting business The bazaar model of bargammg
through a series of formal sequential steps IS found m
Egypt and m many parts of the Middle East It starts with
a prellmmary period of discussing issues that go well
beyond the contemplated transactlon and subsequently
focuses on estabhshmg a personal relatlon\hlp, often over
endless rounds of coffee and tea, finally, the actual bar-
gammg aimed at a compromise position commences The
parties engage m the fine art of haggling, sometimes
simply for the fun of It No step must be overlooked
Patience 1s the key to success [l]
In social interaction, face-savmg IS crucial to the Jap-
anese Decisions are often made on the basis of saving
someone from embarrassment To Americans, decisions
are typically made on a cost-benefit basis, with little or
no conslderatlon for saving face For Latin Americans,
face-saving 1s crttlcal to preserve honor and dignity Dlf-
ferent values and prlorltles are clearly accorded to social
and busmess conslderatlons by different cultures The
French see negotlatmg not as a place for bargammg but
for searching out the reasoned solutions for which they
have so carefully prepared They start with a long-range
view of their purposes and place lower prlorlty on ac-
commodatlon m short-range declslon\
Gift-glvmg IS a custom m many parts of the world It
1s not so much the cost but the source or nature of the
gift that impresses In many cultures, especially the On-
ent, glvmg a gift creates an obhgatlon between partie\,
a reciprocal gift IS required If one receives a gift This
can quickly spiral out of control, as the reciprocal gift
292
is key.
must be more expensive than the gift received Be sure
to offer a gift on the first meeting with a Japanese com-
pany, but if a gift 1s tendered to you, open it only after
returning home or to the hotel
TIME
Many Westerners, especially Americans, are con-
stantly m a rush Seen through foreign eyes, Westerners
always seem to be m a hurry, under pressure for results,
and suffering from a “do it yesterday” syndrome With
time runnmg out on self-imposed and frequently arbitrary
deadlines, Americans tend to give away more than
planned m order to finish “on time” and move on to the
next deal [5] In this scenario, experienced A5lan ne-
gotiators know that all they have to do IS to stall, be
patient, and they will eventually be handed a favorable
contract by an American Just so he or she can have one
signed Koreans tend to be especially keen to take ad-
vantage of negotiation deadlines by mfllctmg numerous
delays with the help of flimsy excuses
Time moves at a different pace for the Chinese and
most Asians The Chinese are more sedate and move at
a rate that pleases them and at a pace that IS m their own
self- and national interests This slowdown 1s sometimes
used as a bargaining ploy to exploit natural American
tendencies for impatience the foreign hosts take the
American visitor\ touring and entertaining until their
deadline nears and then negotiate a very favorable agree-
ment There are other reasons for employmg the delaying
tactic It could be partly host, partly frlendshlp/relatlon-
ship oriented, or m the case of the Japanese, represent
an intense studying of the proposal as a consequence of
the need to sohclt approval from all company departments
that will be affected by the outcome of the negotiation
With the Japanese, one should schedule many sessions
with a great deal of intervening time (weeks or even a
month) to allow the rmgl to operate
In the case of the Chinese, delays are frequently caused
by the fact that the Chinese negotiators want to be certain
of all details and provlslons of the contract and not be
held liable by their superiors for any mistakes Delays
from Mexicans indicate the different view of time most
Latin Americans have, they are more relaxed and m less
of a hurry than most North Americans Whereas most
busmess people m the West try to be punctual, the Jap-
anese are even more conscientious and precise m keeping
appomtments The former Soviets are often unpredicta-
ble, arrivmg late for appointments or simply cancelmg
them without notice With Arabs, one should plan longer,
less formal negotiating sessions
The mternational negotiator should clearly understand
how people in each culture view time and value punc-
tuality It is equally important that the negotiator have
enough time to complete a negotiation and not be pressed
by self-imposed deadlines
PERSONAL RELATIONSHIPS
To most Asians and Latin Americans, good personal
relationships and feelings are all that really matter m a
long-term agreement After all, the written word is less
important than personal ties Once personal trust has been
established, cooperation increases The social contacts
developed between the parties are often far more sigmf-
icant than the technical specifications and the price [6]
In many countries the heart of the matter, the maJor point
of the negotiations, is getting to know the people m-
volved Brazilians and many Latin Americans cannot de-
pend on their own legal system to iron out conflicts, so
they must depend on personal relationships
Americans negotiate a contract, the Japanese negotiate
a relationship In many cultures, the wrttten word IS used
simply to sattsfy legalities In their eyes, emotion and
personal relations are more Important than cold facts
The key issue is, “can I get along with these people and
their company and do I want to sell (or buy) their prod-
ucts?” rather than “can I make money on this deal?”
They are particularly interested m the smcerity of those
with whom they are negotiatmg The Japanese are es-
pecially unwillmg to do busmess with someone they thmk
may be arrogant or unpleasant “I do not do busmess
with someone who does not like usi” The Japanese do
not separate personal feelmgs from busmess relatton-
ships Therefore, the effective Amertcan negotiator
should display cultural empathy, be polite and honest,
and go out of his or her way to be good natured, practical,
social, frank, responsible, and efficient-traits Japanese
and most other Asians value
Personal affinity is also immensely important to Mex-
icans and other Latm Americans The goal is to nurture
a mutual confidence, engage m mformal discusstons, and
seek solutions to problems Therefore, personal rapport,
prehmmary meetmgs, telephone conversattons, and so-
cial acttvities are necessary when dealing wtth busmess
people south of the border To the Malays, trust is fun-
damental to a successful relationship a person’s capa-
bthty for loyalty, commttment, and companionship 1s
uppermost m the decision to do busmess Koreans
love to lavish attention and mtimactes on their friends but
give hostile and blunt treatment to those they don’t
know Bmldmg relattonshtps there 1s necessary to good
busmess
The development of personal friendships 1s an tmpor-
tant prerequisite to butldmg long-term busmess contacts
with foreigners However, it can also be used to the
disadvantage of the American negotiator An effective
strategy used by the Chinese, for example, is to attempt
to identify members of the opposite team who are sym-
pathetic to the Chinese cause, cultivate a sense of friend-
ship and obligation m thetr counterparts, and then pursue
their ObJectives through a variety of stratagems designed
to take advantage of feelings of friendships, obhgatton,
or even guilt Deeply rooted m Chmese traditions is the
belief of reciprocity of actions favors are to be considered
investments with return expected, if not for oneself, then
for subsequent generations To the Chinese, a friend is
one who will work to resolve problems that an unsym-
pathetic person would not The American negotiator
should be cognizant of these assumptions and conse-
quences and not promise more than he or she can deliver
Playing host allows the Chinese to use tactics of sur-
prise and uncertainty China can be an overwhelmmg
experience for first-time visitors Often, livmg arrange-
ments are not up to Western standards or expectations
and may make visitors Impatient to get the deal done and
return home The Chinese sometimes try to Influence the
other party by shammg them or making them believe the
difficulties and problems are their own fault Chinese
hosts delight m structuring a negotiating environment that
enhances a sense of obhgatlon on the part of their guests
The Chinese seek a relatlonshlp based on permanence,
steadfastness, and faithfulness To wm them over, West-
erners would have some proficiency m Chinese, under-
stand the mtricacies of the culture, and live m or at least
visit the country as often as possible
Rather than cultivatmg friendly relattonships, the typ-
tcal Russian strategy has been to put Westerners imme-
diately on the defensive with confrontational, blunt, and
combative tactics A widely applied tactic was to wear
293
down the Western team with the help of long sessions,
all-mght meetmgs, stem lectures at the conference table,
and avoidance of the slightest compromise until the op-
ponent was exhausted and gave m to their terms The
Russian negotiator must first establish a hierarchy and
the supertor/subordmate posmon of each party mvolved
For the Japanese, persona1 relations are established not
for manipulative purposes but because through them so-
cial conflict can be mmimized Negotiators from these
countries are very careful not to offend or use strong
words and expect their opponent\ to do hkewise
The Japanese proclivity toward shunning confrontation
and avoidmg hurtmg other people’s feelmgs has led them
to develop 16 ways to pohtely avoid saymg “no ” A
“Hal” from a Japanese means “I understand” but not
necessarily “yes ” Knowmg when an answer IS m fact
“yes” or “no” requires expert Judgment and gut feelmg
or mtumon Mexicans also usually avotd \aymg “no”,
it IS necessary to read gestures, not words, to determmc
an accurate response To not hurt another’s feelings,
many Asians are mclmed to tell people what they want
to hear, rather than the facts, so as not to lose face They
are not consciously lymg or concealmg, Just attempting
not to hurt the other party When challenged, a Japanese
will remam quiet rather than verbally argue This does
not symbolize stubbomnes, or clo\ed mmdednes\, but
rather a defensive technique to encourage harmony
The Japanese are not very argumentative, extroverted,
or persuasive m the American seme They preter to be
quiet when right, respectful and patient, modesty and self
restraint are highly valued They do not criticize m public
but seek harmony among all The Japanese prefer to avoid
formal negotiations, smce to them negotiation5 arc a form
of social conflict and avoiding social conflict IS para-
mount The Japanese, m then pursuit of harmony and
avoidance of conflict, often do not make eye contact this
is not a virtue to American\ On the other side of the
table, the Japanese view the American stare as rude and
aggressive, improper behavior Americans are seen a\
bemg extremely argumentative. whether right or wrong,
impersonal when argumg, and accommodating when pre-
sentmg arguments
The Japanese VdlUe emotions but hide them They are
truly as emotional as Italians, but their emotions dre di-
rected toward or against other\ The Japanese also go out
of their way to conceal then sentiments, showing emotion
I\ considered m bad taste and poor conduct for any Jap-
anese, let alone a businc\\man Formal display of emo-
294
tion means loss of respect or face Therefore, Americans
are advised not to lose then temper when dealing with
Japanese or others m the Orient Calm IS respected by
the Chmese and shows \mcerny, seriousness, and com-
petence To them, aggressive or assertive behavior IS
rude
Many Latin Americans tend to get passionate and emo-
tional when arguing, they enJoy a warm Interaction a\
well as a hvely debate In Latm America, sensitivity i\
valued In fact, many tasks in negotiatmg a bu\mess
operation cannot be effectively communicated and ac-
comphshed unless the person displays emotion and
thereby demonstrates how close this issue IS to his or her
heart These emotions may only reflect the individual’s
feelmgs at that moment m time In Mexico and other
Latin American countrie\, emotion, drama, and feelmg
play a much larger part m negotiations compared with
American considerations of efficiency
The deft multmational negottator recognizes ethmc dif-
ference\ m the display of personal feelmgs and relation-
ships He or she IS primed for them and has prepared the
proper response
LOW VS. HIGH CONTEXT
Nonverbal commumcation IS a key element m all ne-
gotiations It IS especially vital that its ramifications are
fully understood m cross-cultural settmg\ What words
fail to convey i\ told through gestures and body move-
ments People will often disregard the spoken word when
physical expressions Indicate otherwise People m non-
Western cultures are more prone to understandmg non-
verbal commumcations than we are m the West Such
seemmgly harmless and even mundane behavior as cross-
mg one’\ legs and exposmg the soles of one’s shoes or
puttmg hands m one’s pockets are, m some culture\,
considered m poor taste, offensive, and msultmg to the
host The Japanese believe in mtumve mutual under-
standmg and arc adept at the analysis of nonverbal be-
havior They do not understand why Westerners talk 50
much and often appear to contradict each other at the
bargammg table The Japanese can relate large amounts
of mformation to one another with merely d glance, a
movement, or even silence
Noise occurs more often m cross-cultural negotiations
than in domestic \ettings, for a whole new range of noise
reflecting cultural differences may be Introduced These
can be gestures, behavior, clothmg, or unfamiliar envi-
ronmental surroundmgs Mexicans and Italians get close
to then counterpart Some cultures believe m virtually
eyeball to eyeball contact, the Japanese and English prefer
greater distances Americans unknowmgly also create
noise for negotiators from other cultures slouchmg,
chewing gum, using first names, forgetting titles, Joking,
wearing too casual clothing, being overtly friendly toward
the opposite sex, speaking too loudly, being too egah-
tanan with the wrong people (usually lower class), work-
mg with one’s hands, carrying bundles, tippmg too much
Americans’ directness and overbearing manner may sig-
nal to the Japanese a lack of self-control and imphcit
untrustworthmess, at the very least it signals a lack of
sincerity Such noise m one’s conduct, although perfectly
natural m commumcation with another of one’s own cul-
ture, may have the unintended effect of derailing the
message in a cross-cultural setting
The most n-rrtatmg “noise” to Americans when ne-
gotiatmg with the Japanese IS silence or the use of long
pauses before responding The Japanese often use little
verbal activity, nod frequently, use silence, and even
close then eyes while others are speaking (this helps them
concentrate m Zen Buddhist fashion) Silence to a Jap-
anese means one is proJectmg a favorable impression and
is thmkmg deeply about the problem When m an impasse
m negotiation, the typical Japanese response 1s silence,
withdrawal, or change of subJect Japanese pohteness can
at times come across as artificial and excessive to many
Americans
The adept negotiator recognizes potential sources of
noise and consciously attempts to mmlmize its produc-
tion, and is prepared for likely noise elements from the
other side of the table
SEVEN RECOMMENDATIONS FOR SUCCESS
1 The path to success m negotlatlons IS “prepare,
prepare, prepare ” Preparation IS difficult enough in
domestic negotiations, but when the many multifaceted
cross-cultural aspects are added, the problems and ttme
necessary for adequate planning rise exponentially Plan-
mng means coming to the table prepared, technically as
well as culturally Many foreigners are prepared tech-
mcally and operationally and expect you to be likewise
Poor preparation, m addition to being a maJor obstacle
to achieving an agreement, also can have adverse cultural
considerations-m the Orient, not having the answers or
being sloppy may be a reason to lose face The Chinese
(as well as the Japanese and Russians) usually are me-
ticulous m their preparation and well briefed on techmcal
uses Any sloppmess m then opponents’ preparation ~111
be used agamst them
Planning IS critical One should know sufficiently the
country and the culture of those with whom one is going
to negotiate One should also carefully plan the tactics
Certain behaviors by Americans may insult or irritate
members m other cultures Know, beware of, respect,
and accept the customs and culture of the other side It
~111 greatly smooth the negotiation process Understand
and avord those special meanmgs and nuances that are
mhibmons, turnoffs, or taboos in the other culture On
the other hand, some items will hkely facihtate the pro-
cess, know them, too, and use them Just understand,
accept, respect, and practice them during your stay, your
hosts will appreciate it and respect you for it
Company representatives should prepare for a long
negotiatmg period, cross-cultural negotiations often re-
qurre two to SIX times as long to reach an agreement as
do domestic negotiations It IS appropriate to take the
time to learn about the culture and language of the people
you are to meet with Set aside at least a week for such
a study or even a month if it IS a maJor commitment
Another reason for preparedness IS to learn about and be
able to counter negotiating tactics that may be peculiar
to the country you intend to visit that may harm your
efforts Forewarned IS forearmed
2 Extensive prehmmary work by subordmutes or
cross-cultural brokers (go-betweens) IS o&en net essary
for a successful outcome It usually pays to spend what
you consider an excessively large amount of time upfront
with the other side’s subordinates and aides to get them
on board and m agreement before the CEOs get together
This IS especially true-and necessary-if one IS working
with the Japanese, then rmgi system demands this de-
cision from middle management upwards Know who are
the key gatekeepers and decision-makers, where they are
located m the orgamzation, and what then authority, im-
pact on, and mvolvement in the upcommg negotiations
will be In many cultures, behind-the-scenes actions are
more important than the actual meeting, which may be-
come a mere formality
In the case of a large company, it IS not recommended
to send the president or CEO to the first meeting or tir\t
mternational contact If the CEO comes over first, the
subordmates may be at a severe disadvantage for com-
295
 pletmg the work on a favorable and equatable agreement
It IS best to use top executives only for the sigmng at the
end In many societies, subordinates work out the details
of an agreement and corporate directors arrive only at
the end for the actual signing However, the company
should send high-level managers who have sufficient cre-
dentials and access to relevant top-level managers at
headquarters so as to have the capacity to talk as equals
to top people of both sides Understand what IS customary
m the culture you are negotiatmg with and have a clear
plan of how you intend to use the CEO’s presence m
your negotiating
3 Know the language ofthe other team Even if you
decide not to use it at the conference, knowing tt will be
handy A foreign language can be an awesome barrier,
though Words have different or multiple meamngs Per-
ceptions and concepts starkly differ across cultures If
any doubt whatsoever exists regardmg the meaning of a
word or action, ask questions For your part, paraphrase
your response, go slow, and recap your position often
If possible, ehmmate the use of Jargon, idioms, or slang
Speak clearly, loudly, and slowly Explam each major
pomt m several different ways, but don’t be condescend-
mg Expressions and gestures may be useful m making
a point with foreigners and bridging the gap between two
foreign languages In most cultures it IS advisable always
to mamtam a pleasant dtspositton and not show sign\ of
anger
Negotiators typically-and naively-treat translation
as a problem of lmgutstics rather than cross-cultural com-
mumcatton Meanings may be further modified by ges-
tures, tone of voice, and cadence, which are important
to the message sent but are not found m straight trans-
lations A truly bicultural interpreter offers multiple ben-
efits If you do know the language, such an interpreter
can offer you more time to think and prepare your re-
sponse and next statement Even if you do know the
language, chances are you may not fully understand the
culture and the particular nuances and tmphed meanings
involved Often, equivalent concepts do not exist between
cultures Detailed probing and Illustrations, example\,
and explanations must be given to ensure complete un-
derstanding The interpreter may be skilled m lmguistics
but untamihar with the nuances of negotiation If you
can, hire a btcultural advisor who will, besides translat-
mg, serve as a go-between and cultural broker on how
to best prepare yourself and conduct the negotiations A
truly btlmgual and bicultural interpreter can help you
296
phrase responses with Just the correct shades of meaning
and so decistvely influence the entire negotiation process
It IS rare indeed to find a btcultural interpreter who IS
thoroughly familiar with the busmess cultures of both
sides It may be an expensive service but it ~111 yield
dtvtdends many times over
Many American busmess travelers feel it is unneces-
sary to learn a foreign language or to employ an mter-
preter when doing business overseas This 1s penny-wise
and pound-foolish Usmg the opponent’s interpreter may
be unwise as his or her level of expertise is suspect and
loyalty will be not to you but to your opponents It is
clearly a much better strategy to employ your own bt-
cultural advisor/mterpreter, who can alert you on the pe-
culiarities of the foreign culture before you commit a
faux pas on a seemingly innocent matter The interpreter
can act as coach and should be briefed on all items m
advance This mcludes gtvmg htm or her a copy of your
proposed presentation and any media to study ahead of
time so the interpreter can alert you to any problems
Ask the interpreter’s advice when stuck on what to do
next or If you do not completely understand the other’s
response
Do not talk more than a minute or two without glvmg
the interpreter a chance to speak Allow the interpreter
to take notes or even use a dlctlonary, no one can be
expected to be perfectly fluent m two or more languages
Permit the translator to spend as much time as needed to
clarify pomts whose meanings may be obscure Do not
interrupt a translation If there IS heavy work, night ses-
sions, or long sessions with no break, consider using two
interpreters so they can alternately perform the translation
task
4 Smce language barriers will always exut rn cross-
cultural negotlatmnr, pictures ure worth more than a
thousand words Support presentations with mstructlve
visuals whenever possible Photographs, drawings, dla-
grams, copies of key documents, catalogs, books, even
samples of products should be brought If they will help
state your case Brmgmg an Enghsh copy to the meeting
I\ fine If that IS all that IS available Many members of
other cultures can read English better than they can speak
it But beware certain colors, subjects, or models may
be taboo or distasteful to members of the other culture,
using them may Jeopardize the agreement Check out
your visuals with your blcultural interpreter or an ethnic
member of your company’s local office to check for any
faux pas You can always redo them ahead of time, but
once presented, they may have caused u-revocable dam-
age to the negotiating effort
5 The side that uses time most effectively usuully
wins 4mencans are, m the eyes of foreigners, noto-
riously impatient, always m a hurry, and usually must
go home with a signed agreement to show the boss the
trip was worthwhile They can be driven mto an agree-
ment they really don’t want Just to take home a signed
document Therefore, It is a good strategy not to let the
other side know your return plans, to prepare for the long
term, and to be patlent The Chinese value patience and
~111freely use all sorts of stalling tactics and delays This
behavior can also stem from lack of experience, sluggish
bureaucracy, subordinates fearmg crltlclsm from above,
or Just plam slowness in declslons coming down from
above In any case, negotiations can’t be rushed, nor
should they
Be prepared for the long term Make certain everyone
m your organization (including the CEO, the other ex-
ecutives, and the board) IS aware of the Increased time
demands of cross-cultural negotlatlon, especially with
developing countries Get them all committed to the long
term Do not create any self-imposed deadlines, they ~111
only come back to haunt you later If you think you can
fly m, negotiate, sign, and fly out the same day or next,
you are m for conslderable dlsappomtment and frustra-
tion, and an agreement-if any-that 1s not m your or-
gamzatlon’s best Interest Know what to expect and make
certain everyone m your organization does, too
6. The use of Americans of the other country’s ethmc
orlgm (I e , Chmese or Hlspamc Amencans) when ne-
gotzatmg m an mternatlonal settmg 1s currently a hot
trend It IS of questionable value m cross-cultural set-
tings Many cultures put first allegiance to ethnic back-
ground and second allegiance to citizenship For instance,
most Chinese m China believe once a Chinese, always
a Chinese, and one’s loyalty 1s (or should be) to China
no matter where a Chmese currently resides or of which
nation he or she 1s a citizen When negotlatmg m China,
Chinese-Americans on a negotiating team are frequently
pulled aside to discuss informally and with great mslght
Items of interest on the agenda However, Americans of
foreign ethmclty have usually lost touch with the subtle
cultural nuances that are so critical m cross-cultural set-
tings Unless he or she can take an active role m the
negotlatlons, it 1s probably better not to send such an
mdlvldual for ethmclty’s sake Instead, use a trustworthy
local who 1s skilled blculturally or hire a native go-
between who has been highly recommended. However,
If you are negotiating with a foreign government, a U S
citizen of that or another country’s origin probably be
more effective than usmg a government-supplied mter-
preter or citizen of that country
7 Most agreements have long-lastmg lmpllca-
tzons In many cultures, a wntten agreement 1s consld-
ered not the culmmatlon of the talks but the start of a
longer relationship To the Chinese, for example, the
signing of a contract 1s not the termmatlon of the nego-
tiations but a prologue to a longer, continuous relation-
ship It sets the stage for a growing relationship m which
It ~111 be proper for the Chinese to make increasing de-
mands on the other party You can expect the Chinese
negotiator m the post-agreement lmplementatlon phase
to continue to press to further his or her ObJectives, closure
1s never fully reached In Japan and Greece, a contract
1s considered valid only as long as It serves both parties’
interests
To the Japanese, a negotiated agreement indicates the
direction to be taken, while adJustments and modlfica-
tlons can be made as condltlons and circumstances war-
rant An agreement 1s seen as only the beginning of an
adaptive process rather than the end The American ex-
pectation of contractual finality 1s foreign to the Japanese
way of thmkmg Japanese negotiators may suggest maJor
changes even after a contract 1s signed, to Americans this
15 devious and implies that the agreement was made m
bad faith Russians as well as numerous other cultures
interpret a contract strictly or loosely according to what
1s m their best interest Americans and many Western
busmesspeople beheve the slgmng of an agreement m-
dlcates that all problems under dlscusslon have been re-
solved An agreement m many other cultures IS open to
renegotlatlon by either party at anytime Therefore, be
sure that both partles understand and agree on the exact
purpose of the agreement, what actions must be taken,
and how tasks and responslbdltles are to be dlvlded or
shared, or prepare for contmuous negotiations
Fmally, get the specifics on paper The Japanese and
the Russians prefer generally worded accords that provide
them utmost flexlblhty m actlons Here one must try to
pm down details If you are working with a culture that
likes such general, broadly worded agreements, It would
be useful to agree on the details and get them on paper
Otherwise, the other party may come back to you with
an interpretation of dubious merit that IS advantageous to
their posltlon and not to yours
297
CONCLUSION home with an agreement beneficial to both partles
and the start of a long-term healthy relatlonshlp
In summary, there are three major rules for success m between two compames from two cultures
cross-cultural negotiations
1 Recognize that a foreign negotiator IS different from REFERENCES
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other side’s culture Be prepared to commumcate mgton D C , 1987
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natives to American customs and practice\ Rec- x Cdmpbell. Nlgel C G , Grdhdm. John L , Jllbert, AldIn. dnd Mel\\ner,
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necessary to adopt their value\ as part of your own lnterculturdl Pre\\, Inc Chlcdgo 1980
personal value system All that 15 necessary IS to I0 Ghdurl. Perdef N , dnd Herberger K A , Negotldtor\ Abroad Don t
accept and respect their norms as part of their Shoot horn the Hit, Honors/ Lluww\t Re~wn, 160-16X ( 1983)
culture II Ikle. Fred Chdrle\ Hou Nurrol~s Negorrcrtr Hdrper dnd Row, New York,
I’)82
3 Be sensitive to their cultural norms, do’s, and ta-
boos, try to understand what they are and how your 12 Krdmer, Hugh E , Cro\\-Culturdl Negotldtlon\ The W e \l e r n-J d p d n e w

lnterfdce \rngtr~ore MwXrrr,~g Re\ ,ew 4, I989

behavior may affect them even If it causes you
13 March, Robert M Jtrptrrrcw Nrgotrtrlwrr\ Koddmhd Int , New York
discomfort or emotlonal stress IYX3
Remember, one must accept and proceed with the 14
busmess without showing distress if one IS to come

298