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Negotia tio n c a n b e d efin e d a s ” a p ro ce ss w here b y tw o o r m ore p artie s –

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pote ntia l a gre em ents to p ro vid e g uid ance , a nd r e g ula tio n o f th eir fu tu re

beha vio rs .”

Negotia tio n is th e p ro ce ss o f c o nfe rrin g to a rriv e a t a n a gre e m en t

betw een d if fe re nt p a rtie s,e ach w it h th eir o w n in te re st a nd p re fe re nce s.It

is a g iv e a nd ta ke d ecis io n m akin g p ro ce ss in vo lv in g in te rd ependent

partie s w it h d if fe re nt p re fe re n ce s.

It is a jo in t p ro ce ss o f fin d in g a m utu ally a cce pta ble s o lu tio n to a c o m ple x

co nflic t.

There a re fo ur s ta ges o f N egotia tio n a s s h ow n b elo w :

Negotiations are useful under these conditions:

1.T w o o r m ore p artie s a re in vo lv e d

2.C onflic t o f in te re st b etw ee n th e p artie s

3.P artie s a re w illin g to n eg otia te

4.P artie s p re fe r to w ork to geth er r a th er th an to fig ht o penly ,g iv e in , b re ak

off c o nta ct o r ta ke th e d is p u te t o a h ig her a uth orit y

Global Negotiations

? Tw o m ajo r a re a s o f c o nte xt m ust b e d efin ed p rio r to e xa m in in g th e

co untr ie s a nd c u lt u re s.

? Wheneve r tw o p artie s n eg otia te , th e w hole p ro ce ss o ccu rs u nder

tw o u m bre lla c o nte xts , e nvir o nm enta l a nd im m edia te .

? T he e nvir o nm enta l c o nte xt r e fe rs to fo rc e s in th e e nvir o nm ent

th at a re b eyo nd th e c o n tr o l o f e it h er p arty in vo lv e d in th e

negotia tio ns.

? S eco nd, th e im media te c o nte xt in clu des s u ch a sp ects a s th e

re la tiv e p ow er o f th e n eg otia to rs a nd th e n atu re o f th eir

in te rd ependence – fa cto rs o ve r w hic h th e n egotia to rs h ave

in flu ence a nd s o m e m easu re o f c o ntr o l.

? B elo w is a b u lle te d lis t o f e ach :

Im med ia te C onte xt
? –
?fa cto rs u nder th e d ir e ct in flu en ce o r c o ntr o l o f t h e

partie s

?
?In te rd ep en den ce/B arg ain in g P ow er
?: d epe nden ce o n e a ch

oth er to a tta in r e sp e ctiv e g oals

?
?Im med ia te S ta keh o ld ers
?: g o als o f m an agers , e m plo ye e s, b oard

of d ir e cto rs , a nd c o n stit u ents a ffe ct s tr a te gie s, o ffe rs a nd

co unte ro ffe rs .

?
?Desir e d O utc o m es
?: T w o ty p es – ta ngib le (p ro fit – s h a rin g,

te ch nolo gy tr a n sfe r) a nd in ta n gib le – ( g o odw ill, d esir e fo r w in -w in

outc o m e). G enera ll y m ore c o m pro m is e o n ta ngib le o utc o m es

when lo ng te rm r e la tio n sh ip is d e sir e d .

?
?Rela tio nsh ip
? ? betw een p artie s
?: h a rm onio us p re vio u s

re la tio nsh ip s e nco ura ge fa vo ra ble fu tu re n egotia tio ns.

? ?Conflic t b etw een p artie s
?: L e ve l o f a gre em ent o n k e y is su e s

in flu ence s le ve l o f s u pport f o r e ach o th er.

?Envir o nm en ta l C on te x t
? –
? f o rc e s b eyo nd th e c o ntr o l o f e it h er p arty

? ?Polit ic al P lu ra lis m
?: C onflic tin g f o re ig n p oli c ie s o f d if fe re n t n atio ns

?
?Leg al P lu ra lis m
?: tr a nsa ctio n m ust c o m ply w it h th e a pplic a ble

la w s o f th e n atio ns in vo lv e d.

?
?Exte rn al S ta k eh old ers
?: in te re sts o f p artie s n ot d ir e ctly in vo lv e d

in th e n egotia tio n .

?
?In sta b ilit y a n d C han ge
?: n e ed to a ccu ra te ly a sse ss e co nom ic

and p olit ic a l r is k in th e ta rg et c o untr y .

?
?Fore ig n G overn m en t C ontr o l
?: g o ve rn m en ta l in te rfe re n ce o n

te ch nolo gy tr a n sfe rs , c rit ic a l in du str ie s, a nd p ro d uctio n c a pacit y .

?
?Curre n cy F lu ctu atio n s
?: in clu de c o ntin ge ncy c la u se s o r

cu rre ncy h edgin g c o ntr a cts to h ed ge a gain st w id e s w in gs in

exch ange r a te s.

?
?Id eo lo gic al D if fe re n ce s
?: a ttit u de s t o w ard p oli t ic a l fr e e dom ,

pro perty o w ners h ip , g en der e qualit y , a nd fo re ig n in ve stm ent.

?
?Cult u ra l D if fe re n ces
?: fo cu s o f th e a tta ch ed m atr ix .

? The a bove m od el s h o uld h e lp in d efin in g th e c o nte xt o f e ach

negotia tio ns. A ls o , th is s h o uld s e rv e a s a c h eck lis t p rio r to

ente rin g in to in te rn atio na l n ego tia tio ns.

? T he te xt N egotia tio n
? ?pro vid es th e fo ll o w in g a dvic e :

? “T he m odel s h ou ld b e a p plie d fr o m th e o uts id e in . N egotia to rs

sh ould s ta rt w it h th e e nvir o n m en ta l c o nte xt a nd s tu dy it s im pact o n

th e im media te c o nte xt a nd o n t h e n egotia tio n p ro ce ss a nd

outc o m e. T he n th e d ir e ct im pact o f th e im media te c o nte xt o n

negotia tio ns s h o uld b e s tu d ie d.

? The m odel s h o uld b e tr e ate d d yn am ic a lly . A ny c h anges in th e

envir o nm ent a nd im media te c o nte xts w ill b rin g s u bse quent

ch anges in th e n eg otia tio n p ro ce ss a nd o utc o m e. A s th e

negotia tio n m ove s fr o m o ne s ta ge to th e n ext, n egotia to rs m ust

re eva lu ate th eir in it ia l n e eds, m otiv a tio ns, p osit io ns a nd s tr a te gie s

under c h angin g c o nte xtu al c ir c u m sta nce s.”

? To p ara phra se , w hen o ne c o nducts n egotia tio ns in th e

in te rn atio nal a re na, th e fir s t q ue stio ns to a nsw er w ould c e rta in ly

have to d o w it h t h o se is su es th at lie o uts id e th e c o ntr o l o f e it h er

party . O nce is su es w ere a d dre ss in th e e nvir o nm enta l a re a , o ne

would lo ok to th e a ctu al p eople , a nd is su es d escrib ed in th e

im media te c o nte xt. A ft e r r e se arc h in g n egotia tio n g lo bally , th e

above r e pre se n t th e b e st s e t o f q uestio ns o ne c o uld c o ve r p rio r to

sit tin g a ro und t h e t a b le .

? Next, th e fo cu s w ill b e o n th e a ctu al s ty le s o f n egotia tio n a nd

org aniz a tio nal s tr u ctu re o f th e fo llo w in g c o untr ie s a nd c u lt u re s:

? The U nit e d K in gdo m

? Medit e rra nean C ou ntr ie s

? Ara bic C ountr ie s

? Chin a

? Ja pan

? Russia a nd E aste rn E uro pe

? A tta ch ed is th e m atr ix fo r e ach c o untr y a nd c u lt u re :

? Seve ra l in te re stin g in fe re nce s a nd o bse rv a tio ns c a n b e d ra w n fr o m

th e c u lt u ra l m atr ix .

Different Negotiation Styles and Cultures of 6
Countries

Unit e d

Kin gdom
Med it e rr a ne an /

Centr a l a nd

Sou th A m eric a
Ara b
Chin a
Ja pan
Sovie t

Unio n/E aste rn

Euro pe

Busin ess C lim ate a nd

Pers o nal R ela tio ns
Very k in d,

fr ie ndly

and

hum oro u s
Very im porta n t
Very

hosp it a ble . B e

re sp ectfu l o f

re lig io us a nd

cu lt u ra l

cu sto m s
Gre at

Im porta nce
Gre at Im po rta n ce .

Nee d to b u ild

str o ng

in te rc o nne ctio ns in

esta blis h in g lo ng

te rm r e la tio nsh ip s
Bure au cra tic .

Tru st a nd

ch oic e o f

partn er a re

esse ntia l

Tim e C onstr a in ts

Open
Rela xe d
Rela xe d
Kee p tim e

open
Kee p tim e o p en
Slo w m ovin g.

Tim e w aste d

due t o

bure aucra cy

Str u ctu re

Easy

goin g.

Ensu re t o

use p ro per

tit le s ( L ord ,

Dr.)
Socia liz e f ir s t,

work la te r
Busin ess

tr a nsa ctio ns

are c o nsid e re d

a s o cia l e ve nt
Pro fe ssio n al.

Make u se o f

fo rm al c a ll in g

ca rd s
Pro fe ssio n al. M ake

use o f fo rm al

ca ll in g c a rd s
Lit tle s tr u ctu re

Pre para tio n

More

under-p re p
are d
Focu s m ore o n

th e p ers o n th an

th e p osit io n
Pers o na l

im pre ssio ns

are

su pple m ente d

by fa ct
Metic u lo us
Metic u lo u s
Lack

pre para tio n a nd

unde rs ta n din g

of b usin ess

pro ble m s

Fle xib ilit y

Fle xib le
Open to

ch ang es
May c h a nge

agre em ent

afte r

co m m it tin g to

it
Need t o fo cu s

on e qu alit y ,

mutu a l b ene fit

or r e cip ro cit y
Open. M ay c h ange

agre em ent a fte r

co m m it tin g to it
Nee d to b e v e ry

patie n t

Com munic a tio n

No

co nce rn
Avo id te le ph one

fo r im porta nt

is su es a n d tr y to

ach ie ve

fa ce -to -fa ce
Very r e lu cta nt

to s a y n o
Very d if fic u lt .

Esta blis h

in fo rm al

co m m unic a tio
ns d ue to

poli t ic a l

pre ssu re s
Very r e lu cta nt to

sa y n o
Nee d to e xp la in

ce rta in

eco no m ic a n d

co m m erc ia l

mech anis m s

Ja pan
Sovie t

Unio n/E aste rn

Euro pe

Busin ess C lim ate a nd

Pers o nal R ela tio ns
Very k in d,

fr ie ndly

and

hum oro u s
Very im porta n t
Very

hosp it a ble . B e

re sp ectfu l o f

re lig io us a nd

cu lt u ra l

cu sto m s
Gre at

Im porta nce
Gre at

Im porta nce .

Unit
ed

Kin
gdo
m Medit e rr a n e
/ C entr a l a n
Sou th

Am eric a

Nee d to b u ild

str o ng

in te rc o nne ctio ns

in e sta b lis h in g

lo n g te rm

re la tio n sh ip s
Bure au cra tic .

Tru st a nd

ch oic e o f

partn er a re

esse ntia l

Tim e C onstr a in ts

Open
Rela xe d
Rela xe d
Kee p tim e o p en
Kee p tim e o p en
Slo w m ovin g.

Tim e w aste d

due t o

bure aucra cy

Str u ctu re

Easy

goin g.

Ensu re t o

use p ro per

tit le s ( L ord ,

Dr.)
Socia liz e f ir s t,

work la te r
Busin ess

tr a nsa ctio ns

are c o nsid e re d

a s o cia l e ve nt
Pro fe ssio n al.

Make u se o f

fo rm al c a ll in g

ca rd s
Pro fe ssio n al.

Make u se o f

fo rm al c a ll in g

ca rd s
Lit tle s tr u ctu re

Pre para tio n

More

under-p re p
are d
Focu s m ore o n

th e p ers o n th an

th e p osit io n
Pers o na l

im pre ssio ns

are

su pple m ente d

by fa ct
Metic u lo us
Metic u lo u s
Lack

pre para tio n a nd

unde rs ta n din g

of b usin ess

pro ble m s

Fle xib ilit y

Fle xib le
Open to

ch ang es
May c h a nge

agre em ent

afte r

co m m it tin g to

it
Need t o fo cu s o n

equa lit y , m utu al

bene fit o r

re cip ro cit y
Open. M ay

ch ang e

agre em ent a fte r

co m m it tin g to it
Nee d to b e v e ry

patie n t

Com munic a tio n

No

co nce rn
Avo id te le ph one

fo r im porta nt

is su es a n d tr y to

ach ie ve

fa ce -to -fa ce
Very r e lu cta nt

to s a y n o
Very d if fic u lt .

Esta blis h

in fo rm al

co m m unic a tio ns

due to p olit ic a l

pre ssu re s
Very r e lu cta nt to

sa y n o
Nee d to e xp la in

ce rta in

eco no m ic a n d

co m m erc ia l

mech anis m s

Negotiaion Rules of Arab Countries ?:

? The d ecis io n-m akin g p ro ce ss is c e ntr a liz e d in S au di A ra bia a nd

co nfin ed to v e ry s p ecif ic le ve ls . C ontr o l r e sts w it h m em bers o f th e

House o f S aud, s e nio r g o ve rn m en t o ffic ia ls , a nd th e c o m m erc ia l

elit e . O ld er d ecis io n m ake rs a re la rg e ly in flu ence d b y h ig hly

pers o nal fa cto rs , s u ch a s tr u st a nd th eir im pre ssio ns o f y o u.

? They d o n ot h a ve a s m uch e duca tio n a nd te ch nic a l k n ow le dge a s

th e y o unger m em bers o f th e e li t e , a lt h ough th e S au di g ove rn m ent

bure aucra cy is g ettin g b ig ge r, o nly a fe w k e y o ffic ia ls a re

sig nif ic a nt in te rm s o f d ecis io n-m akin g. M in is te rs a nd le sse r

te ch nocra ts a re v it a lly im porta nt to th e k in g a nd h is a dvis e rs .

? In o rd er to s ta rt t h e n egotia tio ns p ro ce ss e ffic ie ntly , o ne m ust

enlis t th e s u pp ort o f o ne 's a gen t to id entif y w ho h old s th e

decis io n-m akin g p ow er in m atte rs th at c o nce rn o ne's b usin ess.

? One o f th e d if fic u lt ie s o f d oin g b usin ess in S au di A ra bia is fin din g

th e p re cis e p eo ple w ho m ake t h e se d ecis io ns. A lt h ough th ere is a

gro w in g n um be r o f te ch no cra ts w ho o ccu py m anagem ent p osit io ns

in b oth th e g ove rn m en t a n d p riv a te s e cto r, o ne w ill h ave to m ake

su re th at th eir a ctu al a uth orit y c o rre sp onds w it h th eir tit le o r

fu nctio n in th e c o m pa ny. I t m ay o r m ay n ot.

? S audi A ra bia ns in d ic a te th at a fir m a gre e m ent h as b een r e ach ed

wit h a h andsh ake o r o ra l c o m mit m en t. A s a r u le , th ey d o n ot lik e

le ngth y a nd te dio us c o ntr a cts , w hic h th ey fe el o nly , im ply m is tr u st.

This d oes n ot m ea n, t h o ugh, th at th ey w ill n ot b e v e ry c a re fu l in

dra ftin g a tig ht c o ntr a ct w it h d eta ile d, s p ecif ic te rm s.

? T he le gal c o nsu lt a nts o f b oth s id es u su ally d ra ft th e a ctu al

co ntr a ct. O nce th e c o ntr a ct is s ig ned a nd b usin ess a ctiv it ie s b egin ,

th e fo re ig n p arty m ust r e g is te r w it h th e M in is tr y o f C om merc e .

? ?One s h ould b e a w are o f th e u n iq ue s o cia l s e nsit iv it ie s o ne w ill fin d

in S audi A ra bia . D o n ot p ut th e o th er s id e o n th e s p ot b y p ush in g

fo r a nsw ers , c la rif ic a tio ns, a nd d ecis io ns w hen th ey a re n ot r e ady.

? S how d efe re n ce a nd r e sp e ct, a nd r e sp ond p osit iv e ly to th eir n eed

to p re se rv e a g o od s o cia l im age

? Saudi A ra bia ns v a lu e d oin g b usin ess th ro u gh p eople th ey k n ow

and r e sp ect. T heir c u lt u re r e vo lv e s a ro u nd fa m ily tie s a nd

exte nded fa m il y c o nnectio ns.

? Saudis a ppre cia te th e v a lu e o f in ve stin g in fr ie ndsh ip s to fa cilit a te

th eir b usin ess t r a nsa ctio ns.S ucce ss in b usin ess d epends a lo t o n

th e c o nnectio ns th ey m ake w it h in th eir o w n fa m ily a nd in stit u tio nal

netw ork s.

? When it c o m es t o g o ve rn m en t c o n tr a ct p ro je cts , th e S au dis a re

to ugh n egotia to rs . T he g ove rn m ent p re fe rs to fix th e p ric e o f th e

co ntr a ct e ve n fo r p ro je cts th at w ill ta ke y e ars to c o m ple te .

? Gove rn m ent n e gotia to rs , w ho a re e xp erie nce d p ro je ct m anagers

and e stim ato rs , m ake s u re th at th e c o ntr a ct is tig htly w rit te n w it h

ve ry e xa ct s p ecif ic a tio n s a nd th at th e m arg in fo r in fla tio n a llo w s fo r

about th re e to fiv e p erc e nta ge p oin ts b elo w th e a ctu al in fla tio n

ra te .

? Make s u re th at a ll w rit te n m ate ria ls a nd d ocu m en ts a re tr a n sla te d

in to b oth A ra bic a nd E ngli s h .T his c a n b e d one to day w it h c o m pute r

gra phic s, s o ftw are , a nd th e la te st a udio -v is u al e quip m en t. T he

Saudis r e sp ond b ette r to ta ngib le v is u al m ate ria ls r a th er th an to

abstr a ct w ord s.

Negotiation Rules of Japan:

? The J a panese a re w orld c la ss n egotia to rs a nd d o b usin ess v e ry

dif fe re ntly th a n th eir o th er c o unte rp a rts .

? The fir s t th in g to n ote a bou t th e J a panese is th eir fo cu s o n th e

welf a re o f th e g ro up o r o rg a niz a tio n. A lt h ough th ey a re v e ry

min dfu l o f h ie ra rc h y, t h e y r e co g niz e th e in te rd e pendence th at e ach

in div id ual h as w it h a n oth er.

? When n egotia tin g , th ese c o re d if fe re n ce s a re d em on str a te d b y th e

Ja panese p utt in g g ro u p g oals a bove in div id ual w ants a nd n eeds.

? T he J a panese p a y g re a t h o m ag e to s ta tu s a nd tit le , b oth fo r th eir

sid e a nd th e o ppo sin g s id e.

? At a ll tim es, th e y a re r e sp ectfu l a n d p olit e to a fa ult . C ult u ra lly ,

“s a vin g fa ce ” is o f u tm ost im po rta nce . O ne w ho lo se s fa ce in fr o nt

of h is o r h er p ee rs is p olit ic a ll y in ju re d o r d estr o ye d. It is n eve r

pro per to c rit ic iz e o r h um ilia te a noth er in p ublic . C onflic t is a vo id ed

at a ll c o sts . T he p riv a cy o f a n o ffic e is th e o nly p la ce fo r s u ch a

dis cu ssio n.

? Rela tio nsh ip s a re c h eris h ed a n d a re r e q uir e d to b egin a b usin ess

re la tio nsh ip . T he le gend s o f la te n ig hts a t th e K ara o ke b ar a re a ll

tr u e; if y o u w an t to d o b u sin ess w it h th em , y o u m ust g et to k n ow

so cia lly . It is u nde rs to od t h a t th is is ju st a b usin ess r e la tio nsh ip , b ut

it is a n ece ssit y n on eth ele ss.

? Sile nce a t a n eg otia tio n is c o m mon a nd a ppre cia te d b y th e

Ja panese . S ile nce is a tim e fo r th ought a nd r e fle ctio n. A s

negotia to rs , th e J a pa nese s p e ak le ss th an m ost c u lt u re s a nd in th e

fo rm o f q uestio ns to g et th e o th er p arty to r e ve al in fo rm atio n. T his

appro ach is a ls o w hy it s o h ard to n egotia te w it h th em ; it is n early

im possib le to g et t h e m to d is clo se th eir in te re sts o r e sp ecia lly le ss

th an th e A m eric a ns, w ho t h e y v ie w h as b la bberm outh s,

unpre dic ta ble , a nd s e lf is h .

? W hen th e J a pan ese d o s p e ak in a n egotia tio n, it is a lm ost a lw ays

motiv a tio ns.

? Ja pan is a v e ry b ure au cra tic s o cie ty w it h m an y p ro ce dure s,

re gula tio ns, a n d r u le s. D ecis io ns d on’t c o m e q uic kly a nd d eals a re

alm ost n eve r c o m ple te d in th e in it ia l m ee tin gs.

? Conse nsu s is p ara m ount a nd w ill r e q uir e th e n egotia to rs to s e ek

appro va l fr o m m anag em ent, s o n egotia tio n w ill ta ke tim e. T his

need fo r a ppro va l is a n orm al p ra ctic e , b ut s ta llin g is a ls o a

co m mon n egotia tio n ta ctic b y t h e J a panese .

Business with the Japanese:

? Very fe w J a pan ese p eo ple s p e ak E ng lis h ; I h ave s e en e stim ate s

as lo w a s o nly 3 -5 % o f th e p op ula tio n s p eaks E ng lis h . It is lik e ly

th at a n in te rp re te r w il l b e n ee ded.

? Seatin g a t d in n ers a n d in m eetin gs is v e ry im porta nt in J a pan. T he

se atin g p ro to co l d epe nds o n s e n io rit y , r e la tio nsh ip , th e lo ca tio n o f

th e d oor, a nd o bje cts in th e r o o m . It is b est to d efe r to th e lo ca l

cu sto m .

? No k is sin g o r h u ggin g. T his c a n b e v e ry e m ba rr a ssin g to th e

Ja panese r e cip ie nt.

? Neve r b lo w y o u r n o se in p ub lic ; y o u c a n s n if fle a nd s n ort, b ut

neve r b lo w .

? Busin ess c a rd s a re p re se nte d a nd r e ce iv e d w it h tw o h ands.

Alw ays p ause a nd r e fle ct o n th e b usin ess c a rd ; lo ok a t th e b ack o f

th e c a rd .

? Dre ss fo rm ally d re sse d w it h d ark b lu e b usin ess s u it s , w hit e s h ir ts ,

dark tie , a nd p oli s h ed b la ck s h oes.

?
? Don’t b ow s in ce y o u w on’t d o it r ig ht.

Negotiation Rules of China:

? Befo re in it ia tin g b u sin ess n e gotia tio ns in C hin a, it is a dva nta geous

to id entif y a nd e ngag e a lo ca l in te rm edia ry . T his p ers o n w ill h elp

brid ge th e c u lt u ra l a nd c o m mun ic a tio ns g ap, a llo w in g y o u to

co nduct b usin ess w it h g re a te r e
? e ctiv e ness.

? The p ers o n m ay b e a b le to le ve ra g e e xis tin g r e la tio nsh ip s, w hic h

co uld s ig ni? ca n tly s h orte n th e tim e it ta ke s u ntil y o ur p ote ntia l

partn er is r e ady to d o b u sin ess w it h y o u.

? It is m uch b ette r to c o ndu ct n e gotia tio ns in C hin a w it h a te am o f

negotia to rs th an t o r e ly o n a s in gle in div id ual. T his s ig nals

im porta nce , fa cilit a te s s tr o n ger r e la tio nsh ip b uild in g, a nd m ay

sp eed u p th e o ve ra ll p ro ce ss.

? C hin ese te am s u su ally in clu de h ig hly s kille d n egotia to rs w ho k n ow

how to o utm aneu ve r e ve n w ell p re p are d in div id ual c o unte rp arts .

? Facin g th em a s a te am w ill s ig ni? ca ntly s tr e n gth en y o ur p osit io n. It

is v it a l th at te a m s b e w ell a lig ne d, w it h r o le s c le arly a ssig ned to

each m em ber.

? The C hin ese c a n b e v e ry g ood a t e xp lo it in g d is a gre e m en ts

betw een m em bers o f t h e o th er te am to th eir a dva nta ge.

? Changin g a te a m m em be r m ay r e q uir e th e r e la tio nsh ip b uild in g

pro ce ss to s ta rt o ve r a n d s h ould b e a vo id ed. W ors t c a se , s u ch a

ch ange c a n b rin g n e gotia tio ns to a c o m ple te h alt .

? Giv e n th e s tr o n g e m phasis o n h ie ra rc h y in th e c o untr y ‘s b usin ess

cu lt u re , a s e n io r e xe cu tiv e s h ould le ad m ajo r n egotia tio ns fo r y o ur

co m pany a nd y o ur n e gotia tin g te am s h ould in clu de s e nio r le aders

who k n ow y o ur c o m pa ny w ell .

? In a cco rd ance w it h b usin e ss p ro to co l, p eople s h ould e nte r th e

meetin g r o om in h ie ra rc h ic a l o rd er. T he C hin ese m ay a ssu m e th at

th e ? rs t fo re ig ner to e nte r th e r o om is th e h ead o f y o ur d ele gatio n.

? Main ta in in g b ala nce a n d h arm on y is a n im po rta nt a sp ect o f

Chin ese th ough t. C hin ese d o n ot w ant to ” lo se fa ce ,” a nd th ey a ls o

do n ot w ant to c a use y o u to ” lo se fa ce .” T here fo re , th ey w ill r a re ly

dis a gre e w it h y o u in p u blic , a nd w ill in ste ad e m ph asiz e fr ie ndly

re la tio ns a nd c o ope ra tio n.

? Chin a is a m ara th on , n o t a s p rin t, a nd y o ur n egotia tio ns a re lik e ly

to ta ke p la ce o ve r a lo n ger p erio d o f tim e th an in th e W est. M an y

negotia tio ns m ay b e c a rrie d o ut o ve r th e te le phone in p la ce s lik e

th e U nit e d S ta te s, b ut t h is is v ir tu ally u nheard o f in C hin a.

? T he r e quir e m ent fo r fa ce to fa ce m ee tin gs a lo ne e xte nds th e tim e

fo r n egotia tio ns, th e n e ed fo r tr a nsla tio n, a s w ell a s th e tim e

nece ssa ry to g et to k n ow y o ur p ote ntia l p artn er a re o th er fa cto rs

th at m ake th em lo ng er.

Business with China

? Busin esse s
are
ro u tin ely
exch ange d
at
th e
fir s t
meetin g.
Be
su re

th at
one
sid e
of
yo u r
ca rd
ha s
been
tr a nsla te d
in to
Chin ese .

In clu de
yo ur
co m pany's
nam e,
yo ur
jo b
tit le
and
any
sp ecia l

qualif ic a tio ns y o u h ave .

? When
re ce iv in g
a ca rd
fr o m
a Chin ese
bu sin e ssm an ,
ta ke
it
wit h

both
hands
and
su re
to
ke ep
it
on
th e
ta ble
in
fr o nt
of
yo u
fo r
th e

whole m eetin g.

? Chin ese
nam e
are
"re ve rs e d"
fr o m
Weste rn
nam es.
The
su rn am e

is
sa id
fir s t
and
th en
th e
giv e n
nam e.
For
exa m ple ,
Bru ce
Lee 's

nam e
in
Canto ne se
is
Le e
Siu
Lung .
Lee
is
his
su rn am e
and

sp oke n
fir s t,
and
th en
giv e n
nam e
(L it t le
Dra gon )
. Pro fe ssio n ,

so cia l,
and
fa m ily
tit le s
alw ays
fo llo w
th e
nam e
as
well
Dr.
Wong

would
be
Huang
Yi
She ng
(H uang
mea ns
Docto r).
Lik e w is e ,

Xia nsh eng
(M r.)
and
Tait a i
(M rs .)
are
sa id
afte r
th e
su rn am e.

Neve r
ca ll
so m eone
by
only
his
la st
nam e,
and
unle ss
ow n
aske d,

do
not
ca ll
so m eon e
by
his
fir s t
nam e;
alw ays
add re ss
yo ur

Chin ese
asso cia te s
by
th eir
su rn am e
fo llo w ed
by
th eir
tit le .
Als o ,

neve r a ddre ss a nyo ne a s " c o m ra d e."

? The
Chin ese
will
ofte n
avo id
eye
co nta ct
durin g
co nve rs a tio n s,

esp ecia lly ta lk in g to th e o ppo sit e s e x o r to s tr a ngers .

? Tra dit io nally ,
it
was
co nsid ere d
im polit e
and
agg re ssiv e
to
lo o k

dir e ctly
in to
an oth er's
eye s
whil e
ta lk in g ,
and
as
a sig n
of
re sp ect,

th e
Chin ese
so m etim es
lo w er
th eir
eye s
sli g htly
or
have
a "b la nk"

fa cia l
exp re ssio n
durin g
in tr o du ctio ns.
This
is
not
a sig n
of

unhappin ess,
dis sa tis fa ctio n,
or
unfr ie ndlin ess,
but
sh ow
th e
belie f

th at th ere is v ir tu e in c o n ce ali n g e m otio ns.

? Chin ese
co m munic a tio n
is
am big uous,
in d ir e ct
and
hig hly

co nte xtu al.
In
co nve rs a tio n ,
th e
re a l
mea nin g,
esp e cia lly
if
it 's

negativ e ,
is
ofte n
im pli e d
ra th er
th an
sta te d.
What
is
not
sa id
is

ofte n m ore im porta nt t h a t w hat is s a id .

? When
meetin g
so m eone
fo r
th e
fir s t
tim e
fo r
a busin ess
mee tin g,

yo u
sh ould
en gag e
in
gene ra l
co nve rs a tio n
befo re
tu rn in g
to

busin ess.

? Casu al
co nve rs a tio n
to pic s
in
Chin a
dif fe r
fr o m
th at
of
Englis h

sp eake rs .
It
is
not
im polit e
to
ask
abou t
a pers o n's
jo b
or
ann ual

sa la ry ,
tr y in g
to
avo id
answ erin g
will
only
in vit e
su sp ic io n
and

mis u nders ta ndin g.

? The
sp ecif ic s
of
yo u r
an sw ers
are
not
as
im porta nt
as
yo ur

re sp onse . In c o ntr a st, q ue stio ns a bout fa m il y te nd to b e d efle cte d.

? Lavis h
gif t- g iv in g
was
once
an
im porta nt
part
of
Chin ese
cu lt u re .

Today,
offic ia l
po lic y
fo rb id s
gif t- g iv in g
as
it
ca n
be
co nsid ere d

brib ery .
Though
th e
po lic y
is
so fte nin g ,
th ere
may
be
tim es
whe n
a
gif t
will
be
abso lu te ly
not
be
acce pte d .
In
th is
sit u atio n,
gra cio usly

sa y
yo u
unders ta nd
and
wit h dra w
th e
gif t.
Sm alle r,
le ss
exp en siv e

it e m s
will
not
be
se e n
as
a brib e,
but
in
an y
ca se ,
yo u
will
have
to

appro ach g if t- g iv in g w it h d is cre tio n.

? The
Chin ese
do
not
usu ally
acce pt
a gif t,
in vit a tio n
or
fa vo r
whe n
it

is
fir s t
pre se nte d,
but
will
poli t e ly
re fu se
tw o
or
th re e
tim es
to

re fle ct
modest
and
hu m il it y .
Acce p tin g
so m eth in g
in
haste
make s
a
pers o n
lo ok
agg re ssiv e
and
gre edy,
and
don 't
open
in
fr o nt
of
th e

giv e r.

? Six ,
eig ht
and
nin e
are
co nsid ere d
lu cky
num bers ,
sin ce
th eir

hom ophones
ha ve
ausp ic io us
mea nin g s.
Six ,
liu
in
Chin ese ,

im plie s
th at
eve ry th in g
ab out
yo u
will
go
sm ooth .
Eig ht
was

orig in ally
exp e cte d
lu cky
by
th e
Canto nese ,
sin ce
in
Can to n ese ,

th e
word
fo r
eig h t
is
fa ,
whic h
mea ns
to
make
a gre at
fo rtu n e
in
th e

fu tu re .
Late r,
th e
au sp ic io usn ess
of
eig h t
was
ta ke n
by
all
Chin ese .

Nin e,
jiu ,
meanin g
eve rla stin g ,
esp ecia lly
in
fr ie ndsh ip
and

marria ge.
Fou r
and
se ve n
are
unlu cky
num bers ;
th e
fo rm er
im plie s

death a nd th e la tte r m eans g o ne.

? Colo r
is
ve ry
im porta nt
in
Chin a.
Red
is
lu cky
and
use d
in

ce le bra tio ns,
but
neve r
use
re d
in k
to
writ e
ca rd s
or
le tte rs ,
as
it

sym boliz e s
th e
end
of
a re la tio nsh ip .
Yello w
is
asso cia te d
wit h

pro sp erit y , a nd g old is e sp ecia lly fe lic it o us. W hit e s ig nif ie s d eath .

Negotiation Rules of Russia and Eastern Europe

? The R ussia n n e gotia tio n s ty le is c o nte xtu al . W here th e R ussia ns

are in a d epen den t p o sit io n, th ey w ill b e m ore a cco m m odativ e ,

where as in a n in de pend ent p osit io n, th ey w ill b e c o m pe tit iv e .

? They tr y to a vo id th ose is su e s t h a t c a nnot b e d ealt w it h

im media te ly a nd t h re ate n t h e s e cu rit y o f th e s ta te .

? Com pro m is e w ill o n ly b e m ade if a ny o th er s tr a te gy c a nnot b e

effe ctiv e .

? C olla bora tio n, o r a w in /w in in te gra tiv e r e la tio nsh ip , is p ro b ably th e

EU ‘s p re fe rre d o utc o m e o f a n ew P artn ers h ip a nd C oopera tio n

Agre em ent w it h th e R ussia ns. H ow eve r, th is p oin t c a n o nly b e

re ach ed if th e E U a ppro ach e s R ussia , a nd R ussia a ppro a ch es th e

EU , p acka gin g t h e m ain in te rd ependencie s o n a b ro a d fr o n t.

? A s R ussia ‘s h is to ric s tr a te gy s e em s to b e a s a uta rc h ic a s

possib le – g iv e n tr a um as fr o m th e p ast – th e n egotia tio n r o ad

ahead w ill b e b um py a t le ast. F or th e E U it is th ere fo re a dvis a ble to

ta ke a c o m pe tit iv e s ta nce a t th e s ta rt o f th ese n egotia tio ns a nd

work it s w ay to w ard s c o lla b ora tiv e b ehavio ur, th ough c o m pro m is e

will p ro bably b e t h e f in al o utc o m e.

? In a ny c a se , R ussia w ill h ave t o b e m ore o f a p rio rit y in E U

polic y-m akin g t h a n b efo re , a nd a vo id ance c a nnot p ossib ly b e th e

answ er. A cco m mod atio n is n o t th e a nsw er e it h er, a s th e R ussia ns

will s e e th is a s w eakn ess a nd th ey w ill th ere fo re d is re sp ect th e

Euro pean U nio n.

? To b e r e sp ecte d b y t h e R ussia n s is , g iv e n th eir e xp erie nce s in th e

past, a n a bso lu te p re co ndit io n fo r fr u it fu l n egotia tio ns in th e fu tu re .

One m ig ht h o pe th at th ese n e gotia tio n p ro ce sse s w ill, in th e e nd,

so cia lis e R ussia in to ‘E uro pean ‘ n egotia tio n c u lt u re : in te gra tiv e

in ste ad o f d is tr ib u tiv e b arg ain in g. B ut it is im po rta nt fo r E U

negotia to rs to s h ow s tr e ngth a t th e s a m e tim e a s ” n egotia to rs w ho

are p erc e iv e d a s c o n fu se d, w eak, v a cilla tin g, o r u nce rta in w ill b e

both e xp lo it e d a n d s co rn ed”.

?

Business with Russia:

?

? ?Russia th e ty p e o f b u sin ess y o u a re d ealin g w it h c a n u su ally

ra nge fr o m a n ew -s ty le e ntr e pre neur to a n o ld -s ch ool S ovie t

bure aucra t.

? It is d if fic u lt to d o b usin ess in R ussia w it h out th e h elp fr o m a
? lo cal

"c o nnectio n"
?. T o h elp w it h t h is , s m all g if t s a re o fte n a g ood id ea

when d oin g b u sin e ss in R ussia . P re se nts – In s ym bolis in g th e

sta tu re o f y o ur c o m pany a nd t h e im po rta nce o f th e im pe ndin g

busin ess d eal, p re fe ra bly a n it e m c h ara cte ris tic o f y o ur lo ca l a re a

or o ne th at d is p la ys t h e c o m pa ny lo go.

? P atie nce is im porta n t w it h R ussia ns, n egotia tio ns c a n o fte n b e

slo w . A s th e R ussia n p ro ve rb s ta te s, d o n ot ‘h urr y to r e ply ‘, b ut

‘h urry to lis te n’.

? Avo id h ard s e lli n g te ch niq ues
? ? an d a ny s o rt o f c o n fli c t o r

co nfr o nta tio n.

? R ussia ns d on't u su a lly m ake a n im media te d ecis io n in a m ee tin g;

usu ally a c e rta in a m ount o f d elib era tio n is d one in p riv a te

afte rw ard s.

? For g re etin gs – s h ake h ands fir m ly a nd m ain ta in d ir e ct e ye

co nta ct. A vo id s h akin g h ands a n d g iv in g th in gs a cro ss a th re sh old

a h ouse o r r o o m . It is b e st to c ro ss th e th re sh old c o m ple te ly b efo re

sh akin g a h ost's h an d w hen a rriv in g a nd le avin g.

? Russia ns a ppre cia te a n in te re st fr o m fo re ig ners in th e R ussia n

la nguage, s o a n a tt e m pt to le arn o r a t le ast p artia lly s p eak w it h

th em in th eir la n gua ge is a g oo d id ea.

? M any R ussia ns s p e ak E ng lis h a s it is o fte n ta ught a t s ch ool.

? R ussia ns te nd n ot to s p eak to o lo udly in p ublic .

? A g ood to pic o f c o nve rs a tio n is u su ally th e c h anges ta kin g p la ce in

Russia – fe el w elc o m e t o e xp re ss y o ur v ie w s, d o n ot r e m ain ju st a

lis te ner. B rin gin g u p th e s u b je ct o f R ussia n c u lt u re a nd h is to ry w ill

be a n a ppre cia te d g e stu re . R ussia ns a re v e ry a ffe ctio nate to w ard s

ch ild re n, s o if y o u a re a p are nt, d o n ot h esit a te to s h ow

photo gra phs o f y o ur c h ild re n.

Negotiation Rules of Central and South America

? ?When L atin A m eric a ns e nte r in to n egotia tio ns, th ey o fte n s e em to

fo cu s o n m axim iz in g th eir o w n s h ort- te rm g ain s a t th e e xp ense o f

build in g lo ng-te rm r e la tio nsh ip s.

? A v e ry c o m mon n eg otia tio n t a ctic in L atin A m eric a is to a ct a s

th ough th ey a re d o in g y o u a f a vo r b y ta lk in g to y o u. L atin os w ill

ofte n s ta rt n ego tia tio ns b y s a yin g, ” I d on’t n eed th e m on ey, b ut I’ll

help y o u o ut,” o r e ve n o utr ig ht, ” Y ou u nders ta nd th at I a m d oin g

yo u a fa vo r, r ig ht? ”

? Try g ettin g a w ay w it h t h a t in a n egotia tio n in th e U SSA — it ‘s a

good w ay to e n d th e m eetin g e ve n b efo re it s ta rts !

? It is a ls o fa ir ly c o m mon to t r y t o p re ssu re th e o th er s id e to r u sh in to

a d is a dva nta ge ous a gre em ent. W hen y o u a re h anded a c o ntr a ct,

ig nore th e a nn oye d s ig hs a nd w atc h – ta ppin g c o m in g fr o m y o ur

Latin o c o unte rp art a s y o u r e ad o ve r it .

? A L atin s e lle r w ill a lw ays m entio n th at th ere ‘s s o m e ( m yste rio usly

anonym ous) o th er b uye r w ho is a ls o in te re ste d in th e p ro p erty ( b ut

he is w illin g s e ll to y o u in ste a d, if y o u b uy n ow … a t a bove -m ark e t

pric e s, o f c o urs e ).

? At fir s t, y o u m ay fe el v e ry fr u str a te d b y th ese s e em in gly

sh ort- s ig hte d m an euve rs a nd w onder if e ve ry o n e in L atin A m eric a

is d is h onest a nd g re ed y. B ut k e ep in m in d th at L atin c u lt u re is v e ry

mach o a nd p la ce s a lo t o f im porta nce o n d is p la ys o f to ughness.

? In o th er w ord s, y o u’r e n o t b e in g c h eate d; y o u’r e b ein g te ste d.

? When y o u e nco unte r th ese ta ctic s, d on’t g et o ffe nded — b e

fla tte re d th at t h e L a tin o s it tin g a cro ss fr o m y o u th in ks th at y o u

mig ht b e w orth d oin g b usin e ss w it h ; h e’s ju st c h eckin g to s e e if h is

hyp oth esis is c o rr e ct. I t’s a ll p art o f n egotia tin g in L atin A m eric a .

? Spanis h is a v e ry c o m ple x la n guage, a nd m an y w ord s a nd

co nce pts c a n o nly r e ally b e u nders to od in c o nte xt. T his is

esp ecia lly tr u e w hen y o u c o nsid er s la ng a nd o th er c u lt u ra l

in flu ence s.

? That’s w hen n o o n e w ill t e ll y o u ” n o ” w hile y o u a re n egotia tin g in

Latin A m eric a .

? One o f th e m ost fa m ou s e xa m ple s o f th is p henom enon is th e

Chile an w ord
?weón
?, w hic h c a n m ea n… w ell , ju st a bout a nyth in g,

re ally . D ependin g o n th e s it u atio n a nd th e w ay it is s a id , it m ig ht

re fe r to a g ood fr ie nd, a c o m ple te je rk , a m an ner o f d oin g th in gs, o r

ju st a w ay to s a y, ” C oo l! ”

? For p eople w ho h a ve g ro w n u p im mers e d in C hile an c u lt u re , th is

is n ‘t v e ry c o nfu sin g ; y o u ju st g et u se d to it a nd le arn h ow to

unders ta nd w hat th e s p eake r m eans — e ve n if it d oesn ‘t a lw ays

matc h w hat h e s a ys!

? Unfo rtu nate ly f o r p eople w ho a re n’t in tim ate ly fa m il ia r w it h th e

cu lt u re , th is c a n c a use a lo t o f fr u str a tio n, e sp ecia lly w hen tr y in g to

fig ure o ut w hy a L atin o w ho e n th usia stic a lly a gre ed to a p ro posa l

la st w eek is n ow a bse n t fr o m fo llo w -u p m ee tin gs a nd ig norin g

em ails a nd p h one c a lls .

? It is v e ry c o m mon fo r L a tin b usin essp eople to g o to g re a t le ngth s

to a vo id h avin g to s a y ” n o”. T he y m ay p re te nd to a gre e w it h y o u, o r

th ey m ig ht th ro w u p e ndle ss o bje ctio ns, o r s o m etim es th ey w ill a sk

fo r a fo llo w -u p m ee tin g th at th ey h ave n o in te ntio n o f s h ow in g u p

fo r.

? In s o m e c u lt u re s, it ‘s e ve n c o nsid ere d a cce pta ble to lie o utr ig ht to

avo id a ppearin g n ega tiv e o r u n in fo rm ed!

? It v a rie s a lit tle fr o m c o un tr y to c o untr y , b ut y o u w ill n eed to b e

re ady to d eal w it h it in y o ur n e gotia tio ns.

? Unfo rtu nate ly , th e s u re st w ay to o ve rc o m e th is c h alle nge is to g et

accu sto m ed to it — o r in vo lv e a tr u ste d c o nta ct w ho is . A fte r

yo u’v e b een d o in g b u sin ess in a c o untr y fo r s e ve ra l y e ars , y o u w ill

sta rt to g et a h a ndle o n w he n a ” y e s” is r e a lly a ” n o ” a nd v ic e

ve rs a . M ost o f th e tim e, a nyw ay.

? Until th en, a pp ro ach y o ur n ego tia tio ns w it h p atie nce a nd

pers is te nce , a nd a bove a ll, t r y r e ally h ard n ot to ta ke th in gs

pers o nally .

Business with Central and South America

? South A m eric a : g re at w ea th er, e ve n b ette r fo od, fa nta stic m usic ,

and a th riv in g b usin e ss c u lt u re .

? The B ra zilia n
? p eople
? a re w arm , p e rs o n al, a nd p assio n ate

in div id uals w ho p rid e t h e m se lv e s o n lo okin g p ut to geth er a nd

havin g im pecc a ble m an ners . N atu ra lly , fir s t im pre ssio ns a nd d re ss

are v e ry im porta nt.

? They a re c re a tiv e , in te ll ig en t r is k ta ke rs w ho p ut fa m ily fir s t a nd

belie ve s tr o ng ly in e d uca tio n .

? S panis h is th e o ffic ia l la ngu age o f m ost o f S ou th A m eric a .

How eve r, in B ra zil, t h e n atio na l la nguage is P ortu guese .

? T ouch in g, b ack s la p pin g , a n d o th er p hysic a l c o nta ct is c o nsid ere d

th e n orm , a nd th e B ra zilia n p eople h ave a te ndency to s ta nd c lo se

to geth er.

? B ra zilia ns a re a ls o k n ow n fo r th eir a nim ate d g estic u la tio n.

? W hen it c o m es to b usin ess c u lt u re , m ee tin gs a re fa vo re d to o th er

in te ra ctio n, a nd u su all y p ro ce ed a t a le is u re ly p ace . T here fo re , it ‘s

best to le t th e c o nve rs a tio n tu rn to b usin ess n atu ra lly .

? They a re s o cia lly p ro gre ssiv e , s o phis tic a te d, a nd c o sm op olit a n.

Arg entin ia ns a re
? k n ow n fo r
? th eir to ugh n e gotia tio n s ty le , s o b e

pre pare d to a rg ue y o ur c a se . B usin ess d eals c a n b e lo ng a nd

re quir e m ult ip le m eetin g s.

? L atin A m eric a ns a re v e ry p ro u d o f th eir c u lt u re a nd lo ve to s h are

it . M ake a n e ff o rt to b e c u lt u ra lly d iv e rs e , b eca use fo r th em it

means a lo t.

? Goin g s tr a ig ht in to b u sin ess ta lk m ake s th e jo b d ull a nd b orin g.

They p re fe r to m ake th e a tm osp here lig ht a nd c a su al b efo re

offic ia lly s ta rtin g, s o m ake s m all ta lk .

? Latin A m eric a n s t e n d to s p end m ore tim e o n le is u re a ctiv it ie s. In

oth er w ord s, w hen th ey’r e n ot in th e o ffic e o r n ot in a m eetin g, th ey

lik e to e njo y th e ir t im e w it h o th e rs , s o w hen y o u’r e o ffe re d c o ffe e,

alw ays s a y y e s. T his is c a lle d ” s o b re m esa ” w here y o u a re

exp ecte d to s ta y a nd c h at t o y o u r fe llo w b usin ess m en a nd

wom en.

Negotiation Styles of United Kingdom

? We c a n s a y th a t t h e B rit is h te nd to s p eak fa st, in a s o ft to ne o f

vo ic e , a nd p re fe r to h in t to g et t h e ir m essa ge a cro ss.

? In n egotia tin g te rm s, t h is c a n h ave s e ve ra l im plic a tio ns. F ir s tly , it is

so m etim es d if f ic u lt f o r o th er p artie s to k n ow e xa ctly w hat th e B rit s

want.

? Esp ecia lly if th ey’r e in a w eake r p osit io n, th e B rit s w ill n ot c o m e o ut

dir e ctly w it h th eir n eed s if th ey a re a fr a id o f b ein g r e fu se d o utr ig ht.

They w ill h in t a n d m ake a llu sio ns a nd h ope th at th e o th er s id e w ill

get th e m essa g e.

? Sim ila rly , w hen m akin g th eir o pen in g p osit io n a t th e o uts e t o f th e

negotia tio ns, th e fa st/s o ft /h in tin g d eliv e ry c a n m ake it v e ry d if fic u lt

fo r s e co nd-la ngu age E ngli s h s p eake rs to g et a c le ar h andle o n th e

Brit is h p osit io n.

? W e a dvis e o ur fr ie n ds a cro ss t h e w ate rs to q uestio n fo r

cla rif ic a tio n a t a ll tim es, s u m maris e fo r

? unders ta ndin g o n e ve ry m ajo r p oin t, a nd tr y , tr y , tr y to p in th em

dow n! G et it o n p aper – R ea d y o ur o w n n ote s b ack to c o nfir m

unders ta ndin g. T his is v it a l w hen c o nce ssio ns a re b ein g m ade.

? T he ” h in tin g” m eans th at o fte n th e lin ka ges b etw een c o nce ssio ns

and c o ndit io ns a re n o t m ade e xp lic it b y th e B rit is h .

? B y c o ntr a st, fo re ig n v il la in s a re p ortr a ye d w it h a p ro pensit y to

sw eepin g s ta te m ents a nd w ild g en era lis a tio ns. It s e em s th at w e

Brit s a vo id g en era lis a tio ns. S in ce m ost c o ntin enta l v e rb a l

in te ra ctio n is b a se d o n e xch angin g g enera lis a tio ns to m ake

co nve rs a tio n, t h e m eetin g b etw een B rit is h a nd o th er E uro pean

negotia to rs c a n q uic kly b e co m e a w kw ard .

Business with United Kingdom

? In tr o ductio ns d ep end u p on th e c ir c u m sta nce s o f a p artic u la r

sit u atio n. G ene ra lly , t h e b est p ra ctic e is to b e in tr o duce d b y a th ir d

party , a lt h ough th is m ay n ot a lw ays b e p ossib le . A h andsh ake is

th e ty p ic a l g re etin g fo r a n ew in tr o d uctio n a nd s h ould n ot b e

exp ecte d a t s u b se que nt m eetin gs. F or e xa m ple , c o lle agues d on’t

sh ake h ands e ve ry d ay a t w ork .

? In o rd er to c re a te g ood b u sin ess r e la tio ns, y o u s h ould a llo w

co nve rs a tio ns t o d e ve lo p o rg a nic a lly , fo llo w in g th e le ad o f th e

pers o n y o u a re ta lk in g y o u, a skin g p erm is sio n if y o u’d lik e to ta lk

about p ote ntia ll y s e nsit iv e s u b je cts a nd n ot b ein g o ve rly n egativ e

or s a rc a stic .

? As a g enera l o bse rv a tio n , p e ople te nd to b e m ore o pen a nd

fr ie ndly o uts id e o f L ondo n a nd in th e N orth in p artic u la r; in fa ct,

th ere is s till a n orth -s o u th d iv id e in te rm s o f c u lt u ra l o penness in

th e U K. S om e e xce ptio ns e xis t, fo r e xa m ple S co ttis h H ig hla nders

or W els h fa rm ers w il l h ard ly s a y a w ord u ntil y o u g et to k n ow e ach

oth er. D is cu ss io n s t e n d to b e e m otio nle ss a nd m ay b eco m e te nse ,

wit h th e p artie s p olit e ly e xcu sin g th em se lv e s a nd w it h dra w in g.

? Anoth er d if fic u lt y in v e rb al c o m mun ic a tio n m ay c o m e fr o m th e

Brit is h p ench ant fo r u n ders ta te m en t. T his s o m etim es s h ow s it s e lf

in s e em in g s e lf – d e pre ca tio n a n d p re se nts a c h alle nge in

unders ta ndin g h o w th in gs, p eo ple a nd s it u atio ns a re r e a lly

perc e iv e d b y th e B rit is h .

? The B rit is h , in p artic u la r t h e E nglis h , a re r e n ow ned fo r th eir

polit e ness a nd c o urte sy. T his is a k e y e le m en t o f B rit is h c u lt u re

and is a fu nda m enta l a sp e ct o f B rit is h c o m munic a tio n s ty le .

? When d oin g b usin ess in th e U K, d ir e ct q uestio ns o fte n r e ce iv e

eva siv e r e sp on se s a nd c o nve rs a tio ns m ay b e a m big uous a nd fu ll

of s u btle tie s. C on se que ntly , it is im po rta nt to p ay a tte ntio n to to ne

of v o ic e a nd fa cia l e xp re ssio n, a s th is m ay b e a n in dic a tio n o f w hat

is r e ally m eant.

? In B rit is h c u lt u re , o p en d is p la ys o f e m otio n, p osit iv e o r n egativ e ,

are r a re a nd s h o uld b e a vo id e d. D urin g m ee tin gs, th is m eans y o ur

Brit is h c o lle agu es w ill a ppro ach b usin ess w it h a n a ir o f fo rm alit y

and d eta ch m en t.

? A v it a l e le m ent in a ll a sp e cts o f B rit is h lif e a nd c u lt u re is th e

re now ned B rit is h s e nse o f h u m ou r. T he im po rta nce o f h um our in

all s it u atio ns, in clu din g b usin e ss c o nte xts , c a nnot b e

ove re stim ate d . H um ou r is fr e q uently u se d a s a d efe nce

mech anis m , o ft e n in th e fo rm o f s e lf – d e pre cia tio n o r ir o ny. It c a n

be h ig hly im plic it a n d in th is s e nse is r e la te d to th e B rit is h in dir e ct

co m munic a tio n s ty le .

Negotiation Outcomes

Win-Win

? In a W in -W in s ce n ario , b oth p artie s e nd u p, a t m in im um , w it h in

th eir ta rg et r a n ges. T his c o uld s im ply b e r e a ch in g a fa ir m id dle

gro und th at b oth p a rtie s b e nefit fr o m , o r it c o uld m ea n fin din g a

cre ativ e n ew s o lu tio n th at im pro ve s th e p osit io n o f b oth p artie s.

? If b oth p artie s c o m e to th e ta ble w it h g oals th at a re m utu ally

co m patib le , th ere is a g oo d c h ance th at th e n egotia tio n c a n r e su lt

in a w in fo r b oth s id e s. O f c o urs e , th ere is n oth in g th at p re ve nts a

negotia to r fr o m tr y in g to p re ss a n a dva nta ge a nd p ush th e o th er

sid e in to a lo sin g p osit io n , b u t

? th ere is a r is k in th at c a se th at th e o th er s id e w ill w alk a w ay fr o m

th e n egotia tio n.

? Win -w in r e su lt s a re t h e m ost s ta ble o utc o m es o f n egotia tio ns;

sin ce b oth p artie s a re h a ppy w it h th e r e su lt , th ey h ave lit tle r e aso n

to b ack o ut a t a la te r tim e. B oth p artie s h ave a n in ce ntiv e to

negotia te w it h e ach o th er a g ain , la yin g th e fo undatio n fo r a

mutu ally b ene fic ia l w ork in g r e la tio nsh ip .

Win-Lose

? Fre quently in a w in -lo se s ce nario s, b oth s id es h ave a tte m pte d to

win , w it h out m uch r e gard fo r th e o utc o m e o f th e o th er p arty .

? Both p artie s m ay h ave c o m e in to th e th e n egotia tio n w it h a d esir e d

goal a nd a " w alk a w ay" p oin t. In a w in -lo se s ce nario , o ne p arty

fa lls w it h in th is ta rg e t r a nge ( o r e ve n e xce eds it ) a nd th e o th er

party fa lls b elo w t h e ir ta rg et r a n ge.

? Notic e th at w in -lo se o utc o m es o ccu r w hen th e lo sin g s id e c a n b e

push ed b elo w th eir ” w alk a w ay” p oin t. T his c a n h appen w hen th e

lo sin g s id e d oe sn ‘t k n ow w hat th eir b est a lt e rn ativ e is to r e a ch in g

an o utc o m e in th e n e gotia tio n, o r w here th ey k e ep n egotia tin g

again st th eir o w n in te re st. M any o th er fa cto rs , lik e c o erc io n a nd

asym metr ic in fo rm atio n c a n a ls o le ad to w in -lo se o utc o m es.

Lose-Lose

In a L ose -L ose s ce na rio e it h er b oth p artie s c o nce de b arg a in in g p osit io ns

outs id e th eir ta rg et r a n ges. If th e n egotia to rs fa il to r e ach a n a gre em ent,

both p artie s m ay e n d u p in w ors e p osit io ns th an w hen th ey s ta rte d th e

negotia tio ns, th is is o fte n in clu ded a s a lo se -lo se o utc o m e.

If o ne o r b oth p artie s c a n ‘t w alk a w ay fr o m a n egotia tio n, b ut a re

unw illin g to m ake c o n ce ssio n s, b oth w ill b e fo rc e d to d eal w it h th e p oor

co nse quence s o f n ot r e ach in g a n a gre e m en t.

Alt e rn ativ e ly , b oth p artie s c o uld b e to o q uic k to m ake c o nce ssio ns,

re ach in g a c o m pro m is e th at is fa ir , b ut d etr im en ta l to b oth s id es.

Lik e w is e , if b oth p artie s a re m is ta ke n a bout th e b enefit s o f w hat th e

oth er s id e is o ffe rin g, th ey m ay r e ach a n a gre e m en t th ey la te r c o m e to

re gre t.

Negotiation Conclusion

? In e ve ry n egotia tio n, t h e re a re th re e im po rta nt to pic s th at s h ould

be ta ke n s u ch a s t h e c u lt u re o f b o th p artie s,te am s a nd th e n atu re

of n egotia tio ns to e nga ge,k n ow in g s te ps to b e u nderta ke n a nd

pro ce sse s b ase d o n th e c u lt u re .

? It is a ls o im porta nt to fr a m e a nd r e fr a m e s o th at s ta te m en ts m ake

se nse .

? Negotia tio n is a c o m munic a tio n r e a ch a gre e m ent

? Constr u ctiv e b eh avio u r is b ase d u pon y o ur o pin io n ,lis te nin g,a ctiv e

questio nin g a n d e xch a nge o f o pin io ns

? Destr u ctiv e b eha vio ur is b ase d o n y o ur m an ip ula tio n,p re ssin g a nd

agre ssio n.

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