International negotiations & Cross culture Communication
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This document discusses cross-cultural communication and international negotiation. It covers key topics such as high and low context cultures, nonverbal communication cues like kinesics and proxemics, practical issues when communicating with non-native English speakers, the steps in an international negotiation process including relationship building and concession making, and styles of negotiation between competitive and problem-solving approaches. Cultural differences that can impact negotiation processes are also examined, such as preferences for directness, formality, and broad agreements. Personal characteristics of successful international negotiators include flexibility, empathy, and understanding different cultural perspectives.
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International negotiations & Cross culture Communication
- 2. BASICS OF CROSS-CULTURALBASICS OF CROSS-CULTURAL COMMUNICATIONCOMMUNICATION
- 3. LANGUAGE AND CULTURELANGUAGE AND CULTURE • The Whorf hypothesis
- 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. LOW CONTEXTLOW 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 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. NONVERBALNONVERBAL COMMUNICATION -COMMUNICATION - COMMUNICATINGCOMMUNICATING WITHOUT WORDSWITHOUT WORDS
- 9. KINESICSKINESICS • Communicating through body movements • Facial expressions • Body posture
- 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. 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. PRACTICAL ISSUES IN CROSS-PRACTICAL ISSUES IN CROSS- CULTURAL VERBALCULTURAL VERBAL COMMUNICATIONCOMMUNICATION
- 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. 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. 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. AVOIDINGAVOIDING ATTRIBUTION ERRORSATTRIBUTION ERRORS • Attribution - process by which we interpret the meaning and intent of spoken words or nonverbal exchanges • Attribution errors
- 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. EXHIBIT 3.4: STEPS IN THEEXHIBIT 3.4: STEPS IN THE INTERNATIONALINTERNATIONAL NEGOTIATION PROCESSNEGOTIATION PROCESS
- 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. 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. 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. 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 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. 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. STEP 3: EXCHANGINGSTEP 3: EXCHANGING INFORMATION AND THEINFORMATION AND THE FIRST OFFERFIRST OFFER • Task-related information is exchanged • First offer
- 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. VERBAL AND NONVERBALVERBAL AND NONVERBAL NEGOTIATION TACTICSNEGOTIATION TACTICS • Promise • Threat • Recommendation • Warning • Reward • Punishment • Normative appeal
- 28. Negotiation Tactics, ContinuedNegotiation Tactics, Continued • Commitment • Self disclosure • Question • Command • No • Interrupting
- 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. 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. • 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. 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. STYLES OFSTYLES OF CONCESSIONCONCESSION • Sequential approach – Each side reciprocates concessions • Holistic approach – Concession making begins after all issues are discussed
- 34. BASIC NEGOTIATIONBASIC NEGOTIATION STRATEGIESSTRATEGIES • Competitive – The negotiation as a win-lose game • Problem solving – Search for possible win-win situations
- 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. 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. THE SUCCESSFULTHE SUCCESSFUL INTERNATIONALINTERNATIONAL NEGOTIATOR: PERSONALNEGOTIATOR: PERSONAL CHARACTERISTICSCHARACTERISTICS • Tolerance of ambiguous situations • Flexibility and creativity • Humor • Stamina • Empathy
- 38. • Curiosity • Bilingual Personal Characteristics, Continued
- 39. CONCLUSIONSCONCLUSIONS • Successful negotiators: – Understand the negotiation steps – Build cross-cultural communication skills – Understand nonverbal communication – Avoid attribution errors