International Business Negotiation

4734 Words Jun 4th, 2010 19 Pages
NEGOTIATIONS IN INTERNATIONAL TRADING
- Cultural aspects -

Summary

1. Introduction in the negotiation process

2. Factors that influence the international negotiations

3. Cultural aspects of International Business Negotiations 3.1. Hofstede’s cultural dimensions 3.2. The influence of culture on negotiations

4. Negotiation patterns in cross- cultural negotiations

5. Analysis of cultural differences in international negotiations – A study case upon the American and Chinese culture 5.1. Negotiating with China 5.2. The study case

6. Conclusions

1. Introduction in the negotiation process

Negotiation is a basic human activity. It is a process we undertake in everyday activities to manage our relationships,
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The negotiators facing unstable circumstances should include in their contracts clauses that allow neutral arbitration, and consider purchasing insurance policies to guarantee contract provisions.

Ideology: Negotiators from United States believe strongly in individual rights and the superiority of private investment. Negotiators from China and France believe that group rights are more important that individual ones and public investment are seen as a better allocation of resources than private investment. Ideological differences increase the communication challenges in international negotiations because the parties may disagree at the most fundamental levels about what is being negotiated.

Culture: People from different countries appear to negotiate differently and may also interpret the fundamental processes of negotiations differently. People in some cultures approach negotiations deductively (they move from general to the specific) whereas people from other cultures are more inductive (they settle on a series of specific issues that become the area of general agreement).

Besides environmental context, the immediate context should also be analyzed.

Relative Bargaining Power: One aspect on international negotiations that has received considerable attention in the relative bargaining power of the two parties involved. Joint ventures have been the subject of a great deal of research on international negotiation, and relative