Chapter 13

International Negotiation and

Cross-Cultural Communication

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives (1 of 2)
Understand
Understand the
the basics
basics ofof verbal
verbal and
and nonverbal
nonverbal
communication
communication that
that may
may influence
influence cross-cultural
cross-cultural
management
management and
and negotiation.
negotiation.
Describe
Describe the
the basic
basic international
international negotiation
negotiation processes
processes
from
from preparation
preparation toto closing
closing the
the deal.
deal.
Explain
Explain the
the basic
basic tactics
tactics ofof international
international negotiations.
negotiations.
Recognize
Recognize and
and respond
respond toto dirty
dirty tricks
tricks inin international
international
negotiations.
negotiations.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives (2 of 2)
Know
Know the
the differences
differences between
between the
the problem-solving
problem-solving and
and
competitive
competitive approaches
approaches toto international
international negotiation.
negotiation.
Identify
Identify the
the personal
personal characteristics
characteristics ofof the
the successful
successful
international
international negotiator.
negotiator.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

International Negotiation
International
International Negotiation:
Negotiation: the
the process
process ofof making
making
business
business deals
deals across
across cultures;
cultures; itit precedes
precedes any
any
multinational
multinational project
project
Without
Without successful
successful negotiation
negotiation and
and the
the accompanying
accompanying
cross-cultural
cross-cultural communication,
communication, there
there are
are seldom
seldom
successful
successful business
business transactions.
transactions.
As
As the
the world
world becomes
becomes increasingly
increasingly global,
global, companies
companies
will
will need
need toto become
become adept
adept atat such
such negotiations.
negotiations.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Basics of Cross-Cultural

Communication (1 of 2)
Successful
Successful international
international negotiation
negotiation requires
requires
successful
successful cross-cultural
cross-cultural communication.
communication.
Negotiators
Negotiators must
must understand
understand all
all components
components ofof
culturally
culturally different
different communication
communication styles,
styles, both
both verbal
verbal
and
and nonverbal,
nonverbal, including:
including:
Subtle
Subtle gestures
gestures ofof hand
hand and
and face
face
The
The use
use ofof silence
silence
What
What isis said
said or
or not
not said
said
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Basics of Cross-Cultural

Communication (2 of 2)
Mistakes
Mistakes often
often go
go unnoticed
unnoticed by
by the
the communicator,
communicator, but
but
they
they can
can do
do damage
damage toto international
international relationships
relationships and
and
negotiations.
negotiations.
Avoid
Avoid attribution
attribution errors
errors
Attribution:
Attribution: the
the process
process by
by which
which we
we interpret
interpret the
the
meaning
meaning ofof spoken
spoken words
words or
or nonverbal
nonverbal exchanges
exchanges

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Language and Culture

Language
Language isis so
so essential
essential toto culture
culture that
that many
many consider
consider
linguistic
linguisticgroups
groups synonymous
synonymous with
with cultural
cultural groups.
groups.
Whorf
Whorf hypothesis:
hypothesis:the
the theory
theorythat
thataa societys
societys language
language
determines
determines the
the nature
natureofofits
itsculture
culture
Words
Wordsprovide
provide the
the concepts
concepts ofofunderstanding
understanding the
the world;
world;
language
language structures
structures the
the way
way we
we think
think about
aboutit.it.
All
Alllanguages
languageshave
have limited
limited sets
sets ofof words.
words.
Restricted
Restricted word
word sets
sets constrain
constrain the
the ability
ability toto conceptualize
conceptualize
the
the world.
world.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

High- and Low-Context

Languages
Low-context
Low-context Language:
Language: people
people state
state things
things directly
directly and
and
explicitly,
explicitly, and
and you
you need
need not
not understand
understand the
the context.
context.
Examples:
Examples:Most
Mostnorthern
northernEuropean
Europeanlanguages
languagesincluding
including
German,
German,English,
English,and
andthe
theScandinavian
Scandinavianlanguages
languages

High-context
High-context Language:
Language: people
people state
state things
things indirectly
indirectly
and
and implicitly.
implicitly.
Asian
Asianand
andArabic
Arabiclanguages
languages
Communications
Communicationsmay
mayhave
havemultiple
multiplemeanings
meanings
depending
dependingon
onthe
thecontext
context
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.1:
Country Differences in High-Context
and Low-Context Communication

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Basic Communication Styles

(1 of 2)

Other
Other cultural
cultural differences
differences inin communication
communication can
can
influence
influence cross-cultural
cross-cultural interactions
interactions && negotiations.
negotiations.
Direct
Direct Communication:
Communication: communication
communication that
that asks
asks
questions,
questions, states
states opinions,
opinions, comes
comes toto the
the point
point and
and
lacks
lacks ambiguity
ambiguity
Indirect
Indirect Communication:
Communication: people
people attempt
attempt toto state
state their
their
opinions
opinions or
or ask
ask questions
questions by
by implied
implied meaning,
meaning,
believing
believing direct
direct communication
communication isis impolite
impolite
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Basic Communication Styles

(2 of 2)

Formal
Formal Communication:
Communication: communication
communication that
that
acknowledges
acknowledges rank,
rank, titles,
titles, and
and ceremony
ceremony inin prescribed
prescribed
social
social interaction
interaction
People
People inin the
the U.S.
U.S. are
are among
among the
the least
least formal
formal inin
communication,
communication, casually
casually using
using first
first names,
names, and
and
dispensing
dispensing with
with titles.
titles.
Most
Most other
other cultures
cultures communicate
communicate with
with more
more formality,
formality,
especially
especially inin business
business settings,
settings, taking
taking care
care toto
acknowledge
acknowledge rank
rank and
and titles
titles when
when addressing
addressing others.
others.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.2:
Cultural Differences in
Communication Styles

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Nonverbal Communication
Nonverbal
Nonverbal Communication
Communication means
means communicating
communicating
without
without words.
words.
One
One may
may communicate
communicate without
without speaking;
speaking; people
people
gesture,
gesture, smile,
smile, hug,
hug, and
and engage
engage inin other
other behaviors
behaviors
that
that supplement
supplement or
or enhance
enhance spoken
spoken communication.
communication.
Such
Such nonverbal
nonverbal communication
communication includes:
includes:
Kinesics,
Kinesics, proxemics,
proxemics, haptics,
haptics, oculesics,
oculesics, and
and
olfactics
olfactics
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Kinesics
Kinesics
Kinesics means
means communication
communication through
through body
body
movements.
movements.
Every
Every culture
culture uses
uses posture,
posture, facial
facial expressions,
expressions, hand
hand
gestures
gestures and
and movement
movement toto communicate
communicate non-verbally.
non-verbally.
Most
MostAsian
Asian cultures
cultures use
use bowing
bowing toto show
show respect.
respect.
Its
Its easy
easy toto misinterpret
misinterpret the
the meaning
meaning ofof body
body
movements
movements inin another
another culture.
culture.
The
The safest
safest strategy
strategy isis toto minimize
minimize their
their use.
use.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Proxemics
Proxemics
Proxemics focuses
focuses on
on how
how people
people use
use space
space toto
communicate.
communicate.
Each
Each culture
culture has
has an
an appropriate
appropriate distance
distance for
for various
various
levels
levels ofof communication;
communication; violations
violations ofof space
space may
may be
be
uncomfortable
uncomfortable or
or even
even offensive.
offensive.
The
The personal
personal bubble
bubble ofof space
space may
may range
range from
from 99
inches
inches toto over
over 20
20 inches.
inches.
North
NorthAmericans
Americans prefer
prefer 20
20 inches,
inches, while
while Latin
Latin and
and
Middle
Middle East
East cultures
cultures prefer
prefer less.
less.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Haptics or Touching
Haptics
Haptics or
or touching
touching isis communication
communication through
through body
body
contact,
contact, and
and isis related
related toto proxemics.
proxemics.
The
The type
type ofof touching
touching deemed
deemed appropriate
appropriate isis deeply
deeply
rooted
rooted inin cultural
cultural values.
values. Generally:
Generally:

No
Notouching
touchingcultures
culturesare
areJapan,
Japan,U.S.,
U.S.,England,
England,and
andmany
many
Northern
NorthernEuropean
Europeancountries;
countries;
Moderate
Moderatetouching
touchingcultures
culturesare
areAustralia,
Australia,China,
China,Ireland,
Ireland,
and
andIndia.
India.
Touching
Touchingcultures
culturesare
areLatin
LatinAmerican
Americancountries,
countries,Italy
Italyand
and
Greece.
Greece.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Oculesics
Oculesics
Oculesics refers
refers toto communication
communication through
through eye
eye contact
contact
or
or gazing;
gazing; the
the degree
degree ofof comfort
comfort with
with eye
eye contact
contact
varies
varies widely:
widely:
U.S.
U.S. and
and Canada:
Canada: People
People are
are very
very comfortable
comfortable and
and
expect
expect eye
eye contact
contact toto be
be maintained
maintained for
for aa short
short
moment
moment during
during conversations.
conversations.
China
China and
and Japan:
Japan: Eye
Eye contact
contact isis considered
considered very
very
rude
rude and
and disrespectful;
disrespectful; respect
respect isis shown
shown by
by avoiding
avoiding
eye
eye contact.
contact.
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Olfactics
Olfactics
Olfactics isis the
the use
use ofof smells
smells as
as means
means ofof nonverbal
nonverbal
communication.
communication.
U.S.
U.S. and
and U.K:
U.K:These
These cultures
cultures are
are uncomfortable
uncomfortable
with
with body
body odors,
odors, and
and may
may find
find itit offensive.
offensive.
Arabs
Arabs are
are much
much more
more accepting
accepting ofof body
body odors,
odors, and
and
consider
consider them
them natural.
natural.
Negotiators
Negotiators must
must be
be aware
aware ofof these
these perspectives
perspectives and
and
accept
accept and
and adapt
adapt toto them.
them.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Using Interpreters
The
The role
role ofof an
an Interpreter
Interpreter isis toto provide
provide aa simultaneous
simultaneous
translation
translation ofof aa foreign
foreign language.
language.
This
This requires
requires greater
greater linguistic
linguistic skills
skills than
than speaking
speaking aa
language
language or
or translating
translating written
written documents.
documents.
The
The Interpreter
Interpreter must
must have
have the
the technical
technical knowledge
knowledge
and
and vocabulary
vocabulary toto deal
deal with
with technical
technical details
details common
common
inin business
business transactions.
transactions.
Even
Even ifif aa negotiator
negotiator understands
understands both
both languages,
languages, its
its
best
best toto have
have an
an interpreter
interpreter toto ensure
ensure the
the accuracy
accuracy
and
and common
common understanding
understanding ofof agreements.
agreements.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Tips for the

Successful Use of Interpreters
(1 of 2)

Spend
Spend time
time with
with the
the interpreter,
interpreter, so
so s/he
s/he gets
gets toto know
know
your
your accent
accent and
and general
general approach
approach toto conversation.
conversation.
Go
Go over
over technical
technical and
and other
other issues
issues with
with the
the interpreter
interpreter
toto make
make sure
sure they
they are
are properly
properly understood.
understood.
Insist
Insist on
on frequent
frequent interruptions
interruptions for
for translations
translations rather
rather
than
than translations
translations atat the
the end
end ofof statements.
statements.
Learn
Learn about
about appropriate
appropriate communication
communication styles
styles and
and
etiquette
etiquette from
from the
the interpreter.
interpreter.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Tips for the

Successful Use of Interpreters
(2 of 2)

Look
Look for
for feedback
feedback and
and comprehension
comprehension by
by watching
watching the
the
listeners
listeners eyes.
eyes.
Discuss
Discuss the
the message
message beforehand
beforehand with
with the
the interpreter
interpreter ifif
itit isis complex.
complex.
Request
Request that
that your
your interpreter
interpreter apologize
apologize for
for your
your inability
inability
toto speak
speak inin the
the local
local language.
language.
Confirm
Confirm through
through aa concluding
concluding session
session with
with the
the
interpreter
interpreter that
that all
all key
key components
components ofof the
the message
message
have
have been
been properly
properly comprehended.
comprehended.
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Communication with
Nonnative Speakers (1 of 2)
Use
Use the
the most
most common
common words
words with
with their
their most
most common
common
meanings.
meanings.
Select
Select words
words with
with few
few alternative
alternative meanings.
meanings.
Strictly
Strictly follow
follow the
the rules
rules ofof grammar.
grammar.
Speak
Speak with
with clear
clear breaks
breaks between
between words.
words.
Avoid
Avoid sports
sports words
words or
or words
words borrowed
borrowed from
from literature.
literature.
Avoid
Avoid words
words or
or expressions
expressions that
that are
are pictures.
pictures.
Avoid
Avoid slang.
slang.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Communication with
Nonnative Speakers (1 of 2)
Mimic
Mimic the
the cultural
cultural flavor
flavor ofof the
the nonnative
nonnative speakers
speakers
language.
language.
Summarize.
Summarize.
Test
Test your
your communication
communication success.
success.
Repeat
Repeat basic
basic ideas
ideas using
using different
different words
words when
when your
your
counterpart
counterpart does
does not
not understand.
understand.
Confirm
Confirm important
important aspects
aspects inin writing.
writing.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

International Negotiation
International
International Negotiation
Negotiation isis more
more complex
complex than
than
domestic
domestic negotiation.
negotiation.
Differences
Differences inin national
national cultures,
cultures, && political,
political, legal,
legal, and
and
economic
economic systems
systems can
can separate
separate business
business partners.
partners.
Steps
Steps inin international
international negotiation:
negotiation:
Preparation,
Preparation, building
building the
the relationship,
relationship, exchanging
exchanging
information,
information, first
first offer,
offer, persuasion,
persuasion, concessions,
concessions,
agreement,
agreement, and
and post
post agreement.
agreement.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.3:
Steps in International Negotiations

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Step 1:
Preparation

Determine
Determine ifif the
the negotiation
negotiation isis possible.
possible.
Know
Know exactly
exactly what
what your
your company
company wants.
wants.
Be
Be aware
aware ofof what
what can
can be
be compromised.
compromised.
Know
Know the
the other
other side.
side.
Send
Send the
the proper
proper team.
team.
Understand
Understand the
the agenda.
agenda.
Prepare
Prepare for
for aa long
long negotiation.
negotiation.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Cultural Differences in
Negotiating Processes (1 of 2)
What
What isis the
the Negotiation
Negotiation goal
goal -- signing
signing the
the contract
contract or
or
forming
forming aa relationship?
relationship?
Should
Should you
you use
use aa formal
formal or
or informal
informal personal
personal
communication
communication style?
style?
Should
Should you
you use
use aa direct
direct or
or indirect
indirect communication
communication
style?
style?
IsIs sensitivity
sensitivity toto time
time low
low or
or high?
high?
What
What form
form ofof agreement
agreement -- specific
specific or
or general?
general?
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Cultural Differences in
Negotiating Processes (2 of 2)

What
What isis the
the team
team organization
organization -- aa team
team or
or one
one leader?
leader?
What
What isis the
the attitude
attitude towards
towards negotiation
negotiation -- win-lose
win-lose or
or
win-win?
win-win?
What
What isis the
the appropriate
appropriate emotional
emotional display
display -- high
high or
or low
low
emotions?
emotions?
Latin
LatinAmericans
Americans and
and the
the Spanish
Spanish show
show their
their
emotions
emotions through
through negotiations.
negotiations.
Japanese
Japanese and
and Germans
Germans tend
tend toto be
be more
more reserved.
reserved.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.4:
Cultural Differences in
Preference for Broad Agreements

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.5:
Understanding Negotiators
from Other Countries

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Step 2:
Building the Relationship
At
At this
this stage,
stage, negotiators
negotiators do
do not
not focus
focus on
on the
the business
business
issues,
issues, but
but on
on social
social and
and interpersonal
interpersonal matters.
matters.
Negotiation
Negotiation partners
partners get
get toto know
know one
one another.
another.
They
They develop
develop opinions
opinions regarding
regarding the
the personalities
personalities ofof
the
the negotiators,
negotiators, including
including whether
whether they
they can
can be
be trusted.
trusted.
The
The duration,
duration, importance
importance ofof this
this stage
stage vary
vary by
by culture.
culture.
U.S.
U.S. negotiators
negotiators are
are notorious
notorious inin their
their attempts
attempts toto get
get
down
down toto business
business after
after brief
brief socializing.
socializing.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Step 3:
Exchanging Information
and the First Offer
Parties
Parties exchange
exchange task-related
task-related information
information on
on their
their
needs
needs for
for the
the agreement,
agreement, which
which pertains
pertains toto the
the actual
actual
details
details ofof the
the proposed
proposed agreement.
agreement.
Typically,
Typically, both
both sides
sides make
make aa formal
formal presentation
presentation ofof
what
what they
they desire
desire out
out ofof the
the relationship.
relationship.
Then,
Then, both
both sides
sides usually
usually present
present their
their first
first offer,
offer, which
which
isis their
their first
first proposal
proposal ofof what
what they
they expect
expect from
from the
the
agreement.
agreement.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.6:
Information Exchange
and First-Offer Strategies

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Step 4:
Persuasion
InIn the
the persuasion
persuasion stage,
stage, each
each side
side inin the
the negotiation
negotiation
attempts
attempts toto get
get the
the other
other side
side toto agree
agree toto its
its position.
position.
This
This isis the
the heart
heart ofof the
the negotiation
negotiation process.
process.
Numerous
Numerous tactics
tactics are
are used,
used, but
but two
two general
general types:
types:
Standard
Standard verbal
verbal and
and nonverbal
nonverbal negotiation
negotiation tactics,
tactics,
and
and
Some
Some dirty
dirty tricks
tricks
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Verbal and Nonverbal

Negotiation Tactics (1 of 2)

Promise
Promise
Threat
Threat
Recommendation
Recommendation
Warning
Warning
Reward
Reward
Punishment
Punishment

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Verbal and Nonverbal

Negotiation Tactics (2 of 2)

Normative
Normative appeal
appeal
Commitment
Commitment
Self
Self disclosure
disclosure
Question
Question
Command
Command
Refusal
Refusal
Interruption
Interruption
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.7:
Comparison of Brazilian, U.S.,
and Japanese Negotiators

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Dirty Tricks
All
All negotiators
negotiators want
want toto get
get the
the best
best deal
deal for
for their
their
company,
company, and
and they
they use
use aa range
range ofof tactics
tactics toto do
do that.
that.
However,
However, people
people from
from different
different cultures
cultures consider
consider some
some
negotiating
negotiating tactics
tactics dirty
dirty tricks:
tricks: negotiation
negotiation tactics
tactics that
that
pressure
pressure opponents
opponents toto accept
accept unfair
unfair or
or undesirable
undesirable
agreements
agreements or
or concessions.
concessions.
Cultures
Cultures differ
differ on
on the
the norms
norms and
and values
values that
that determine
determine
acceptable
acceptable strategies
strategies for
for negotiation;
negotiation; some
some examples
examples
follow.
follow.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Dirty Tricks
and Possible Responses
Deliberate
Deliberatedeception
deceptionor
or bluffing
bluffing-- Point
Pointout
outwhat
whatyou
you
believe
believeisishappening.
happening.
Stalling
StallingDont
Dontreveal
reveal when
whenyou
youplan
plantotoleave.
leave.
Escalating
Escalatingauthority
authority --Clarify
Clarifydecision
decisionmaking
makingauthority.
authority.
Good-guy,
Good-guy,bad-guy
bad-guyroutine
routine Dont
Dontmake
makeany
anyconcessions.
concessions.
You
Youare
arewealthy,
wealthy,we
weare
arepoor
poor Ignore
Ignorethe
theploy
ployand
andfocus
focus
on
onthe
themutual
mutualbenefits
benefitsofofpotential
potentialagreement.
agreement.
Old
Oldfriends
friends Keep
Keepaapsychological
psychologicaldistance.
distance.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Step 5
Concessions
Concession
Concession Making
Making requires
requires that
that each
each side
side relax
relax some
some
ofof its
its demands
demands toto meet
meet the
the other
other partys
partys needs.
needs.
Styles
Styles ofof concession
concession making
making differ
differ among
among cultures:
cultures:
Sequential
Sequential approach:
approach: Each
Each side
side reciprocates
reciprocates
concessions
concessions made
made by
by the
the other
other side.
side.
Common
CommonininNorth
NorthAmerica
America

Holistic
Holistic approach:
approach: Each
Each side
side makes
makes very
very few,
few, ifif any,
any,
concessions
concessions until
until the
the end
end ofof the
the negotiation
negotiation
Common
CommonininAsia
Asia
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Step 6:
Agreement
Successful
Successful negotiations
negotiations result
result inin the
the Final
Final agreement:
agreement:
the
the signed
signed contract,
contract, agreeable
agreeable toto all
all sides.
sides.
The
The agreement
agreement must
must be
be consistent
consistent with
with the
the chosen
chosen
legal
legal system
system or
or systems.
systems.
The
The safest
safest contracts
contracts are
are legally
legally binding
binding inin the
the legal
legal
systems
systems ofof all
all the
the signers.
signers.
Most
Most important,
important, people
people from
from different
different national
national and
and
business
business cultures
cultures must
must understand
understand the
the contract
contract inin
principle,
principle, and
and have
have aa true
true commitment
commitment beyond
beyond legal.
legal.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Basic Negotiating Strategies

There
There are
are two
two basic
basic negotiating
negotiating strategies:
strategies:
Competitive
CompetitiveNegotiation:
Negotiation:Each
Eachside
sidetries
triestotogive
giveas
aslittle
little
as
aspossible
possibleand
andwin
winthe
themaximum
maximumfor
forits
itsside.
side.
Seeks
Seekswin-lose
win-loseresolution;
resolution;uses
usesdirty
dirtytricks.
tricks.
Seldom
Seldomleads
leadstotolong-term
long-termrelationships
relationshipsor
ortrust.
trust.

Problem
Problemsolving:
solving:Negotiators
Negotiatorsseek
seekmutually
mutuallysatisfactory
satisfactory
ground
groundbeneficial
beneficialtotoboth
bothparties.
parties.
Search
Searchfor
forpossible
possiblewin-win
win-winsituations;
situations;no
nodirty
dirtytricks.
tricks.
Builds
Buildslong
longterm
termrelationships;
relationships;more
moresuccessful
successfulstrategy.
strategy.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.8:
Competitive and
Problem-Solving Negotiation

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 13.9:
Cultural Differences in Preference for a
Problem-Solving Negotiation Strategy

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Step 7:
Post Agreement
AAcommonly
commonly ignored
ignored step
step by
by U.S.
U.S. negotiators
negotiators isis the
the
postagreement
postagreement phase,
phase, which
which consists
consists ofof an
an evaluation
evaluation
ofof the
the success
success ofof aa completed
completed negotiation.
negotiation.
Postagreement
Postagreement analysis
analysis can
can be
be beneficial
beneficial because
because itit
allows
allows the
the garnering
garnering ofof insights
insights into
into the
the strengths
strengths and
and
weaknesses
weaknesses ofof the
the approach
approach used
used during
during negotiation.
negotiation.
Postagreement
Postagreement analysis
analysis can
can also
also enable
enable members
members of
of
the
the negotiating
negotiating team
team toto develop
develop aa closer
closer relationship
relationship
with
with their
their counterparts.
counterparts.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The
Successful International Negotiator:
Personal Characteristics

Tolerance
Tolerance ofof ambiguity
ambiguity
Flexibility
Flexibility and
and creativity
creativity
Humor
Humor
Stamina
Stamina
Empathy
Empathy
Curiosity
Curiosity
Bilingualism
Bilingualism
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Summary
Chapter
Chapter 13
13 examined
examined the
the negotiating
negotiating process
process and
and
other
other elements
elements ofof cross-cultural
cross-cultural communication.
communication.
International
International negotiation
negotiation involves
involves several
several steps,
steps,
including
including preparation,
preparation, building
building the
the relationship,
relationship,
persuasion,
persuasion, making
making concessions
concessions and
and reaching
reaching
agreement.
agreement.
Successful
Successful negotiators
negotiators prepare
prepare and
and understand
understand these
these
steps
steps and
and adapt
adapt them
them toto local
local host
host countries.
countries.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.