1. INTERNATIONAL NEGOTIATION AND CROSS-CULTURAL COMMUNICATION
CHAPTER 3
INTERNATIONAL NEGOTIATION
AND CROSS-CULTURAL COMMUNICATION

2. BASICS OF CROSS-CULTURAL COMMUNICATION

3. LANGUAGE AND CULTURE
The Whorf hypothesis

4. HIGH CONTEXT
Communications have multiple meanings interpreted by reading the situation
Asian and Arabic languages are among the most high context in the world

5. LOW CONTEXT
The words provide most of the meaning
Most northern European languages including German, English, and the Scandinavian languages are low context

7. Exhibit 3.2 Cultural Differences in Communication Styles

8. NONVERBAL COMMUNICATION - COMMUNICATING WITHOUT WORDS

9. KINESICS Communicating through body movements Facial expressions
Body posture

10. PROXEMICS The use space to communicate
The personal bubble of space - nine inches to over twenty inches
North Americans prefer more distance than from Latin and Arab cultures

11. TOUCH Basic human interaction
In greeting - shake hands, embrace, or kiss
Latin European and Latin American cultures-more touching than Germanic, Anglo, or Scandinavian cultures

12. PRACTICAL ISSUES IN CROSS-CULTURAL VERBAL COMMUNICATION

13. INTERPRETERS Provide simultaneous translation of a foreign language
Require greater linguistic skills than speaking a language or translating written documents
Insure the accuracy and common understanding of agreements

14. COMMUNICATION WITH NONNATIVE SPEAKERS
Use the most common words with most common meanings
Select words with few alternative meanings
Follow rules of grammar strictly
Speak with clear breaks between words

15. Communication with nonnative speakers, continued
Avoid “sports” words or words borrowed from literature
Avoid words that represent pictures
Mimic the cultural flavor of nonnative speaker’s language
Summarize
Test your communication success

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

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

18. EXHIBIT 3.4: STEPS IN THE INTERNATIONAL NEGOTIATION PROCESS

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

20. STEP 1: PREPARATION Is the negotiation possible?
Know what your company wants
Know the other side
Send the proper team
Agenda
Prepare for a long negotiation
Environment
Strategy

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

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

23. Exhibit 3.5 Preferences for Broad Agreements

24. STEP 2: BUILDING THE RELATIONSHIP
No focus on business
Partners get to know each other
Social and interpersonal exchange
Duration and importance vary by culture

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

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

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

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

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

30. PLOYS/DIRTY TRICKS - POSSIBLE RESPONSES
Deliberate deception - point out what is happening
Stalling - do not reveal when you plan to leave
Escalating authority - clarify decision making authority

31. Ploys/Dirty Tricks, Continued
Good guy, bad buy routine - do not make any concessions
You are wealthy and we are poor - ignore the ploy
Old friends - keep a psychological distance

32. STEPS 5 AND 6: CONCESSIONS AND AGREEMENT
Final agreement: The signed contract, agreeable to all sides
Concession making: requires that each side relax some of its demands

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

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

35. COMPETITIVE OR PROBLEM SOLVING INTERNATIONAL NEGOTIATION
Cultural norms and values may predispose some negotiators to one approach (EX 3.10)
Most experts recommend a problem solving negotiation strategy

36. EX 3.10 Preferences for Problem-Solving Negotiation

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

38. Personal Characteristics, Continued
Curiosity
Bilingual

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