Economic And Economic Focus On Asia

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Slide 1 – Introduction 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…show more content…
The same desire for social order also permeates the business culture in Japan. Therefore, the vertical structure of society is pivotal in shaping the business relationships of the buyer and the seller, and the Keiretsu companies (Oikawa and Tanner, 1992). This is diametrically opposed to Australia where we pride ourselves on our egalitarian society (Katz, 2007). Slide 3 – Relationships in Japanese Negotiation The vertical structure of society governs the two parties’ social rank in relation to each other and hence, informs both the role of the super (buyer) and the subordinate (seller) throughout the negotiation (Oikawa and Tanner, 1992). This structure is also commonly manifested in other business relationships like those of a Keiretsu, with Keiretsu being a closely formed group (or family) of companies. Business Relationships - Buyers and Sellers In business, buyers are culturally honoured and have the privilege of being less polite in their communication than the seller (Zhang and Kuroda, 1989). The cultural value of Amae (interdependency) between the both parties creates a business environment where the reciprocity of both parties is both expected and highly valued. Sellers place their faith in the buyers to agree to a fair price on a proposal and in turn, buyers expect and receive loyalty from the sellers for price considerations
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