International negotiations & Cross culture Communication

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International negotiations & Cross culture Communication

  1. 1. INTERNATIONAL NEGOTIATION AND CROSS- CULTURAL COMMUNICATION
  2. 2. BASICS OF CROSS-CULTURALBASICS OF CROSS-CULTURAL COMMUNICATIONCOMMUNICATION
  3. 3. LANGUAGE AND CULTURELANGUAGE AND CULTURE • The Whorf hypothesis
  4. 4. HIGH CONTEXTHIGH CONTEXT • Communications have multiple meanings interpreted by reading the situation • Asian and Arabic languages are among the most high context in the world
  5. 5. LOW CONTEXTLOW CONTEXT • The words provide most of the meaning • Most northern European languages including German, English, and the Scandinavian languages are low context
  6. 6. Swiss Germans Scandinavians NorthAmericans Arabs French Italians LatinAmericans British Japanese HighContext:Meaning Implicit Languages Low Context:Meaning ExplicitinLanguage Surrounding Information Necessaryfor Understanding EX3.1HighContextand Low ContextCountries
  7. 7. Exhibit 3.2 Cultural Differences in Communication Styles 0 20 40 60 80 100 N igeria M exico Spain A rgentianU SA G erm anyIndia B razil U K C hina France Japan % Direct % Formal
  8. 8. NONVERBALNONVERBAL COMMUNICATION -COMMUNICATION - COMMUNICATINGCOMMUNICATING WITHOUT WORDSWITHOUT WORDS
  9. 9. KINESICSKINESICS • Communicating through body movements • Facial expressions • Body posture
  10. 10. PROXEMICSPROXEMICS • 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. 11. TOUCHTOUCH • 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. 12. PRACTICAL ISSUES IN CROSS-PRACTICAL ISSUES IN CROSS- CULTURAL VERBALCULTURAL VERBAL COMMUNICATIONCOMMUNICATION
  13. 13. INTERPRETERSINTERPRETERS • 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. 14. COMMUNICATION WITHCOMMUNICATION WITH NONNATIVE SPEAKERSNONNATIVE 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. 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. 16. AVOIDINGAVOIDING ATTRIBUTION ERRORSATTRIBUTION ERRORS • Attribution - process by which we interpret the meaning and intent of spoken words or nonverbal exchanges • Attribution errors
  17. 17. INTERNATIONALINTERNATIONAL NEGOTIATIONNEGOTIATION • More complex than domestic negotiations • Differences in national cultures and differences in political, legal, and economic systems often separate potential business partners
  18. 18. EXHIBIT 3.4: STEPS IN THEEXHIBIT 3.4: STEPS IN THE INTERNATIONALINTERNATIONAL NEGOTIATION PROCESSNEGOTIATION PROCESS
  19. 19. STEP 1: PREPARATION STEP 2: BUILDING THE RELATIONSHIP STEP 3: EXCHANGING INFORMATION/FIRST OFFER STEP 5: CONCESSIONS STEP 6: AGREEMENT STEP 4: PERSUASION
  20. 20. STEP 1: PREPARATIONSTEP 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. 21. DIFFERENCES INDIFFERENCES IN CULTURES IN KEYCULTURES IN KEY NEGOTIATINGNEGOTIATING PROCESSES (EXAMPLES)PROCESSES (EXAMPLES) • Communication styles—direct or indirect • Sensitivity to time—low or high
  22. 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. 23. Exhibit 3.5 Preferences for Broad Agreements 0 10 20 30 40 50 Japan G erm anyIndia France C hina A rgentinaB razil U SA N igeria M exico Spain U K % Preference for Broad Agreements
  24. 24. STEP 2: BUILDING THESTEP 2: BUILDING THE RELATIONSHIPRELATIONSHIP • No focus on business • Partners get to know each other • Social and interpersonal exchange • Duration and importance vary by culture
  25. 25. STEP 3: EXCHANGINGSTEP 3: EXCHANGING INFORMATION AND THEINFORMATION AND THE FIRST OFFERFIRST OFFER • Task-related information is exchanged • First offer
  26. 26. STEP 4: PERSUASIONSTEP 4: PERSUASION • Heart of the negotiation process • Attempting to get other side to agree to a position • Numerous tactics used
  27. 27. VERBAL AND NONVERBALVERBAL AND NONVERBAL NEGOTIATION TACTICSNEGOTIATION TACTICS • Promise • Threat • Recommendation • Warning • Reward • Punishment • Normative appeal
  28. 28. Negotiation Tactics, ContinuedNegotiation Tactics, Continued • Commitment • Self disclosure • Question • Command • No • Interrupting
  29. 29. ““DIRTY TRICKS” INDIRTY TRICKS” IN INTERNATIONALINTERNATIONAL NEGOTIATIONSNEGOTIATIONS Dirty tricks are negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions
  30. 30. PLOYS/DIRTY TRICKS -PLOYS/DIRTY TRICKS - POSSIBLE RESPONSESPOSSIBLE RESPONSES • Deliberate deception - point out what is happening • Stalling - do not reveal when you plan to leave • Escalating authority - clarify decision making authority
  31. 31. • 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 Ploys/Dirty Tricks, Continued
  32. 32. STEPS 5 AND 6:STEPS 5 AND 6: CONCESSIONS ANDCONCESSIONS AND AGREEMENTAGREEMENT • Final agreement: The signed contract, agreeable to all sides • Concession making: requires that each side relax some of its demands
  33. 33. STYLES OFSTYLES OF CONCESSIONCONCESSION • Sequential approach – Each side reciprocates concessions • Holistic approach – Concession making begins after all issues are discussed
  34. 34. BASIC NEGOTIATIONBASIC NEGOTIATION STRATEGIESSTRATEGIES • Competitive – The negotiation as a win-lose game • Problem solving – Search for possible win-win situations
  35. 35. COMPETITIVE ORCOMPETITIVE OR PROBLEM SOLVINGPROBLEM SOLVING INTERNATIONALINTERNATIONAL NEGOTIATIONNEGOTIATION • Cultural norms and values may predispose some negotiators to one approach (EX 3.10) • Most experts recommend a problem solving negotiation strategy
  36. 36. EX 3.10 Preferences for Problem-Solving Negotiation 0 20 40 60 80 100 Japan C hina A rgentinaFrance India U SA U K M exico G erm anyN igeria B razil Spain % Win-Win
  37. 37. THE SUCCESSFULTHE SUCCESSFUL INTERNATIONALINTERNATIONAL NEGOTIATOR: PERSONALNEGOTIATOR: PERSONAL CHARACTERISTICSCHARACTERISTICS • Tolerance of ambiguous situations • Flexibility and creativity • Humor • Stamina • Empathy
  38. 38. • Curiosity • Bilingual Personal Characteristics, Continued
  39. 39. CONCLUSIONSCONCLUSIONS • Successful negotiators: – Understand the negotiation steps – Build cross-cultural communication skills – Understand nonverbal communication – Avoid attribution errors

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