Business Negotiations Between Different Cultures

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

Negotiation is a fundamental form of dispute resolution involving two or more parties (Michelle, M.2003). Negotiations can also take place in order to avoid any future disputes. It can be either an interpersonal or inter-group process. Negotiations can occur at international or corporate level and also at a personal level. Negotiations often involve give and take acknowledging that there is interdependence between the disputants to some extent to achieve the goal. This means that negotiations only arise when the goals cannot be achieved independently (Lewicki and Saunders et al., 1997). Interdependence means the both parties can influence the outcome for the other party and vice versa. The negotiations can be win-lose or win-win in nature.

In order for our company to establish a strategic plan to use when negotiating with the Chinese company, China’s Vehicle Company (CVC), it is important to look at failed negotiations, like Mr. Jones and Mr. Wang, and learn from their mistakes. While Jones had research heavily into the company, he had researched the wrong ideas, and made crucial mistakes, which lead to the desolation of the deal. Jones had strong generalizations about the Chinese; was uneducated on cultural differences and how to interact with their Chinese counterparts; and was uneducated on Chinese negotiation and business strategy and how to behave while negotiating.

The territoriality principle holds that governments have the right to rule themselves as they see fit.

Therefore, it is important to increase our knowledge of Asian cultures, languages, negotiation styles, and business practices to further develop business relations that are favorable to the continued growth and development of our own country and the global marketplace. The Asia countries make a massive impact on global economics and trade relations which also affects the political aspects related to international relationships.

The business world has changed greatly over the years. Many business owners who previously were restricted to their geographical region or continent now find they are doing business in the far corners of the globe. While this is a good thing, individuals need to take care to ensure they do not offend a person they are doing business with. Often, offences are unintentional, but they can do a great deal of harm in a short period of time. For this reason, every individual doing business in another country must be aware of the culture and cultural habits for the optimal results. This is especially true when it comes to the Differences between Eastern and Western Business Culture.

In today’s world, it is hard to find a company that is not involved in international business. Within this involvement are these businesses building relationships and negotiating amongst themselves. This negotiation is taking place because they feel they can influence the process in a way that can get them a better deal than settling for what was initially proposed. However, cultural differences between countries are a key factor and create challenges for these businesses. There is more to negotiating that meets the eye and these hidden cultural elements, if not understood, will make or break the negotiation. Therefore it is important to be aware of cultural influences on negotiations. The purpose of this paper is to use different elements and Hofstede’s Value Dimension framework to identify the cultural differences between China and the United States.

In this negotiation, we learned that it is important to research your opponent, to understand their culture, not only of their country or backgrounds, but also their company culture. When we are able to understand our opponent’s way of thinking about business and doing business we can then understand how to approach a negotiation situation with them. In this exercise, we learned that it is difficult for us to adjust when it involves breaking or acting in a way opposite of what we are accustomed to. We also learned that although my classmates live in the same country as we do, their upbringings may have similarities to their origin country and will therefore help them to communicate and adjust to that country’s norms and standards. We were surprised how we were able to stay in character although it was hard and it was surprising how people responded when they were unaware of your intentions and strategies. If we had to do this exercise again, what we can do is do more research on our opponents so that we would have an idea of what to expect in the negotiation table.

Carnevale PJ (1995) Property, culture and negotiation. In: Kramer R, Messick DM (eds) Negotiation as a social process, pp 309–323 1

Communication styles in negotiation are probably one of the most important skills or characteristics one will develop over a lifetime. From the point a human being begins to develop cognitive skills, the process of learning and understanding situations become more apparent. One will learn from a very young age the dynamics and characteristics of communication and its role in negotiation. To better understand the communication process, one must be able to recognize how they communicate, whether it is on an assertive, aggressive, passive, or passive-aggressive level of communication. The manner in which one conveys his/her message is critical, and the many methods in which they do it is

Conducting business in China necessitates a large amount of respect, patience, humility, timing, cunning, knowledge, and a certain amount of aggression. The knowledge that these are needed and that are to be used for success in negotiating is virtually worthless unless you are aware of when and how to use them. The missing of cue to change from being patient to aggressive, or being humble instead of cunning, can make or break a negotiation instantaneously. Americans that aspire to obtain a sector of the Chinese market must invest the time in understanding the sources of Chinese culture and not just the culture itself. Within the adoption of today 's Chinese business practices, is insight into the ancient history of a culture that has not just survived. This society has flourished longer than any other civilization in the history mankind. The knowledge of only what we want to achieve from an individual negotiation with a Chinese business person is very near-sided and will most certainly end in a poor relationship. Instead, there must be a firm understanding of what the Chinese counterpart seeking from the partnership as well and be able to anticipate their needs and wants. This is necessary because it is the very tactic that will be used by one’s Chinese counterpart.

negotiation, but also they should be able to handle both outcomes and factors relevant to the

Outside the primary cities, companies can take advantage of Chinese-style negotiation skills, even as a novice in China. Negotiation is a constant for global companies in China, when acquiring new business, managing existing companies’ ventures, or dealing with the fluctuating business environment. The ability to negotiate in Chinese, creates a competitive advantage.

Explain each stage of the negotiation process and the role that culture plays in each stage. Give example to support your answer

Despite our geographical and economic focus on Asia, Australia’s culture is heavily influenced by its’ British colonial past and the close friendship we enjoy with the United States. The cultural gap between Australia and the rest of the Indo-Pacific region, therefore, leaves our businesses in a weaker position to negotiate with our Asian neighbours. However, the businesses that both understand and are able to adopt the expected Japanese protocols of negotiation will most likely succeed in not only signing a deal, but also, in establishing a long-term mutually beneficial business relationship for the future. All aspects of negotiation in Japan are firmly rooted in the traditional hierarchical structure of Japanese