Investigation of Mexican and Chinese Negotiations: Culture’s Effect on Negotiating with Chinese and Mexican Negotiators

Furthermore, Jones lacked research and were not properly informed on the cultural differences between the Chinese and Americans and their way of business. The Chinese believe it is important to create a relationship first, then start business ventures and negotiation, known as “Guanxi”. Jones lack of research on the importance of “Guanxi” led to his first mistake. CVC set up a lavish banquet in order

The Chinese negotiation style is based on building relationships with people in the negotiation rather then to hammer out details of an agreement. They feel the beginning stages of the negotiation is the time establish a human relationship and to create the bonding of friendship with the goal to become “old friends” by the

There are many differences in values between United States and China. Of those many differences, the two most crucial are the importance of relationships and styles of communication. According to the Houston Chronicle, Chinese like to develop and establish relationships with their business partners, while Americans value transactions first. Chinese prefer face-to-face interactions since trust is “premium” in their business culture. Chinese even send gifts, ask about your personal life as an

2.      Using the cross-cultural criteria defined in class, list the expected discrepancies in the behavior of the Korean and US negotiators.

North America’s culture certainly affect international business activities, the same happen among all countries and continents in the world. Culture and tradition have a particular role in person’s critical thinking, communication barriers and behavior. In the business environment negotiation is an important skill in where all parties needs to be pleased, at the end you have to give for you to be able to receive, either is entering into a contract or building a

Addressing cultural conflicts begins by mastering the story behind the problem (Patterson, Grenny, Maxfield, McMillan, & Switzler, 2013). Hauk and Mueller (2015) suggest three variables common to such stories; the cultural leaders, the cultural perspectives, and the incentives that compel each group to engage or disengage in negotiation. Understanding these components offers insights to open potential doors to negotiate an acceptable resolution.

“Guanxi” derives from Confucianism which greatly values interpersonal relations, but is utilized in business negotiations, particularly with foreigners. Due to China’s history of betrayal by other countries, the Chinese have a fear of being taken advantage of by untrustworthy foreigners. To prevent any future betrayal, the Chinese use the negotiating tactic “guanxi” to ensure a superior status versus the dependent in their business or political relationship.

Different cultures have different negotiation styles. Americans tend to make decisions impersonally and straightforwardly, rely a lot on documentation or evidential proof, and not put a lot of value on emotional sensitivity. Americans typically have a lack of commitment to the employer and either will break ties if it is deemed necessary (Deresky, 2014).

However, beneath the iceberg, we have value, beliefs, norms and assumptions. These are all important factors of the negotiator that a negotiator who is unfamiliar with the culture would not be aware of if they simply showed up to the negotiation without first conducting research (Thompson, 2014).

     On the other hand, Chinese worker are centered on relationship. Chinese focus on relationship with others and live in the world of trust. Chinese trust people around them in their work place. Often, Chinese did not require signing contract in every agreement unlike American where all agreement must be in contract. By trusting others credibility, it helps create a friendly working environment and promotes intimate relationship among the workers. However, their main weakness is their business culture, where they are quiet and reserved which will reduce their credibility when dealing with American. They weakness also made them a weak immediate decision maker. As for interpersonal problem, Chinese are very concern about the good relationship, and hold it as their top priorities. Chinese would not do any agreement or trade that could harm their relationship with others. Lastly, Chinese are very polite and indirect. They try as hard to prevent the relationship from

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.

Chinese workers believe that close personal relationships are imperative to effective communication. American companies don’t share the same views and some organizations have even related this to workplace fraternization, which can result in disciplinary action. Since we don’t believe that these relationships are necessary, or even appropriate, we don’t form them and this could affect a bi-national workplace and possibly even carry over to business dealings outside of the company. The Chinese believe that, when conducting business with other people, a relationship must first be formed to gain the trust of business partners.

Another value that is very important in Chinese culture is trust. Trust lies at the heart of successful long-term intercultural business relationships. Therefore, Oldtown employee must be prepared in gaining the Chinese Manager in China trust to deal with business. In China, the cross-cultural business relationships, trust plays an indispensable role since partners from different cultures don’t always have the same values or assumptions about how business works. When trust is developed, partners can navigate difficult issues over time by fostering a candid exchange of ideas, issues and agendas. Developing trust can significantly reduce what Westerners often complain of in their dealings with Chinese counterparts: unpredictable behavior and a lack of transparency. As a Chinese executive at Google put it, “In China, your success depends on how well a person trusts you.”

Confucianism is strong in its support of obedience to authority and the importance of good family relationships so that the principle of whom you know in China has a philosophical basis and is not associated with club membership which is what the term refers to in the West. Chinese 'Guanxi' or 'connections' represents a system of cultivations of personal relationships. 'Whom you know3 in social, political and economic life is important since help or a favour given carries with it an implicit recognition that the person assisted might have to return the help given in the future if it is within his or her ability and jurisdiction to do so. Guanxi ties are those of implicit assurances, obligations and understanding between individuals. For example, the value of strong family ties and a social system of getting things done according to 'who one knows' has meant that the building of long-term relationships and trust are central to the way in which people conduct relationships. Also, the costs in management can be lower since there is already an acceptance of the fundamental importance of building trust in relationships and co-operation between people.

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