CHAPTER 3

INTERNATIONAL
NEGOTIATION
AND CROSS-
CULTURAL
COMMUNICATION
BASICS OF CROSS-CULTURAL
COMMUNICATION
LANGUAGE AND CULTURE
The Whorf hypothesis
HIGH CONTEXT
Communications have multiple
meanings interpreted by reading the
situation
Asian and Arabic languages are
among the most high context in the
world
LOW CONTEXT
The words provide most of the
meaning
Most northern European languages
including German, English, and the
Scandinavian languages are low
context
Swiss
Germans
Scandinavians
North Americans
Arabs
French
Italians
Latin Americans
British
Japanese
High Context: Meaning
Implicit Languages
Low Context: Meaning
Explicit in Language
Surrounding
Information
Necessary for
Understanding
EX 3.1 High Context and
Low Context Countries
Exhibit 3.2 Cultural
Differences in
Communication Styles
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NONVERBAL
COMMUNICATION -
COMMUNICATING
WITHOUT WORDS
KINESICS
Communicating through body
movements
Facial expressions
Body posture
PROXEMICS
The use space to communicate
The personal bubble of space - nine
inches to over twenty inches
North Americans prefer more
distance than from Latin and Arab
cultures
TOUCH
Basic human interaction
In greeting - shake hands,
embrace, or kiss
Latin European and Latin
American cultures-more touching
than Germanic, Anglo, or
Scandinavian cultures
PRACTICAL ISSUES IN CROSS-
CULTURAL VERBAL
COMMUNICATION
INTERPRETERS
Provide simultaneous translation
of a foreign language
Require greater linguistic skills
than speaking a language or
translating written documents
Insure the accuracy and common
understanding of agreements
COMMUNICATION WITH
NONNATIVE SPEAKERS
Use the most common words with most
common meanings
Select words with few alternative
meanings
Follow rules of grammar strictly
Speak with clear breaks between
words
Communication with nonnative
speakers, continued
Avoid sports words or words borrowed
from literature
Avoid words that represent pictures
Mimic the cultural flavor of nonnative
speakers language
Summarize
Test your communication success
AVOIDING
ATTRIBUTION ERRORS
Attribution - process by which we
interpret the meaning and intent of
spoken words or nonverbal exchanges
Attribution errors
INTERNATIONAL
NEGOTIATION
More complex than domestic
negotiations
Differences in national cultures and
differences in political, legal, and
economic systems often separate
potential business partners
EXHIBIT 3.4: STEPS IN THE
INTERNATIONAL
NEGOTIATION PROCESS
STEP 1: PREPARATION
STEP 2: BUILDING THE
RELATIONSHIP
STEP 3: EXCHANGING
INFORMATION/FIRST OFFER
STEP 5: CONCESSIONS
STEP 6: AGREEMENT
STEP 4: PERSUASION
STEP 1: PREPARATION
Is the negotiation possible?
Know what your company wants
Know the other side
Send the proper team
Agenda
Prepare for a long negotiation
Environment
Strategy
DIFFERENCES IN
CULTURES IN KEY
NEGOTIATING
PROCESSES (EXAMPLES)
Communication stylesdirect or
indirect
Sensitivity to timelow or high
Cultural Differences in Key
Negotiating Processes,
Continued
Forms of agreementspecific or broad
(EX 3.5)
Team organizationa team or one leader
Exhibit 3.5 Preferences for
Broad Agreements
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% Preference for Broad Agreements
STEP 2: BUILDING THE
RELATIONSHIP



No focus on business
Partners get to know each other
Social and interpersonal exchange
Duration and importance vary by culture
STEP 3: EXCHANGING
INFORMATION AND THE
FIRST OFFER
Task-related information is
exchanged
First offer
STEP 4: PERSUASION
Heart of the negotiation process
Attempting to get other side to agree
to a position
Numerous tactics used
VERBAL AND NONVERBAL
NEGOTIATION TACTICS
Promise
Threat
Recommendation
Warning
Reward
Punishment
Normative appeal
Negotiation Tactics, Continued
Commitment
Self disclosure
Question
Command
No
Interrupting
DIRTY TRICKS IN
INTERNATIONAL
NEGOTIATIONS
Dirty tricks are negotiation tactics
that pressure opponents to accept
unfair or undesirable agreements or
concessions
PLOYS/DIRTY TRICKS -
POSSIBLE RESPONSES
Deliberate deception - point out
what is happening
Stalling - do not reveal when you plan
to leave
Escalating authority - clarify
decision making authority
Good guy, bad buy routine - do not
make any concessions
You are wealthy and we are poor -
ignore the ploy
Old friends - keep a psychological
distance
Ploys/Dirty Tricks, Continued
STEPS 5 AND 6:
CONCESSIONS AND
AGREEMENT
Final agreement: The signed
contract, agreeable to all sides
Concession making: requires that
each side relax some of its demands
STYLES OF
CONCESSION
Sequential approach
Each side reciprocates
concessions
Holistic approach
Concession making begins after
all issues are discussed
BASIC NEGOTIATION
STRATEGIES
Competitive
The negotiation as a win-lose game
Problem solving
Search for possible win-win situations
COMPETITIVE OR
PROBLEM SOLVING
INTERNATIONAL
NEGOTIATION
Cultural norms and values may
predispose some negotiators to
one approach (EX 3.10)
Most experts recommend a
problem solving negotiation
strategy

EX 3.10 Preferences for
Problem-Solving
Negotiation
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% Win-Win
THE SUCCESSFUL
INTERNATIONAL
NEGOTIATOR: PERSONAL
CHARACTERISTICS
Tolerance of ambiguous situations
Flexibility and creativity
Humor
Stamina
Empathy
Curiosity
Bilingual
Personal Characteristics,
Continued
CONCLUSIONS
Successful negotiators:
Understand the negotiation steps
Build cross-cultural communication skills
Understand nonverbal communication
Avoid attribution errors