Cross cultural negotiations

Intercultural Management is one of many specialized areas within the wider field of cross cultural communications. Taking Cross Cultural negotiation training, negotiators and sales personnel give themselves an advantage over competitors.

There is an argument that proposes that culture is inconsequential to cross cultural negotiation. It argues that until a proposal is financially attractive it will succeed. However, this is a naive approach to international trade.

We see a brief example of how cross cultural negotiation training can benefit from the international business person:

There are two negotiators dealing with the same potential client in the Middle East. Both have identical proposals and packages. It ignores the importance of cross cultural negotiation training believing the proposal will speak for itself. The other undertakes some 'cross-cultural training. He / she learns to know the culture, values, beliefs, etiquette and approaches to business meetings and negotiations. Nine times out of ten the latter will succeed over the rival.

This is because 1) it is likely they would be more expensive than the visiting team of negotiation and 2) would have been able to adapt their approach to negotiations in order to maximize the potential of a positive result.

Cross cultural negotiations is about more than foreigners close deals. It is looking at all the factors that may influence the proceedings. By way of emphasizing this, brief examples of topics covered in cross cultural negotiation training is offered.

Eye contact: In the U.S., UK and much of Northern Europe, strong, direct eye contact creates confidence and sincerity. In South America is a sign of reliability. However, in some cultures, such as Japanese, prolonged eye contact is considered rude and is generally avoided.

Personal space and Touch: In Europe and North America, business people who usually leave a certain amount of distance between them when interacting. The contact is only between friends. In South America or the Middle East, business people are tactile and like to follow more closely. In Japan or China, it is not uncommon for people to leave a space of four feet when conversing. The contact takes place only among close friends and family.

Time: Western societies are very 'clock conscious'. Time is money and punctuality is essential. This is also the case in countries like Japan or China, where the delay would be taken as an insult. However, in South America, Southern Europe and the Middle East, being on time for a meeting does not bring the same sense of urgency.

Meeting & Greeting: most international business people meet with a handshake. In some countries this is not appropriate between the sexes. Some may see a weak handshake as a sign of weakness, while others see a handshake as aggressive. How should people be addressed? And 'by name, surname or title? Talk is part of the procedure or not?

Gifts: In Japan and China gifts is an integral part of business protocol however in the U.S. or the UK, has a negative connotation. Where gifts are exchanged lavish gifts should be done? I have always reciprocated? They should be wrapped? Are there numbers or colors that should be avoided?

All this in one way or another will impact cross cultural negotiation and can be learned through cross cultural training. Do or say the wrong thing at the wrong time, poor communication and cross-cultural misunderstandings can have harmful consequences.

Cross cultural negotiation training builds its foundations on labels of understanding and approaches to business abroad before focusing on cross-cultural differences in negotiation styles and techniques.

There are three interconnected aspects that must be considered before entering into cross cultural negotiation.

The basis of the relationship: in most of Europe and North America, business is contractual. Personal relationships are seen as unhealthy as it can cloud objectivity and lead to complications. In South America and much of Asia, business is personal. Partnerships to be made only with those who know, trust and feel comfortable. And 'therefore need to invest in relationship building before conducting business.

Information from: The emphasis on Western culture talks business clearly presented and rationally argued business proposals using statistics and facts. Other business cultures rely on similar information but with differences. For example, visual and oral communicators such as the South Americans may prefer information presented through speech or using maps, graphs and tables.

Styles of negotiation: the way in which we approach negotiation differs across cultures. For example, in the Middle East, rather than approaching topics sequentially negotiators may discuss simultaneously.

South Americans can become very vocal and animated. The Japanese will negotiate in teams and decisions will be based on consensual agreement. In Asia, decisions are usually made from one of the most senior figure or head of a family. In China, negotiators are highly trained in the art to obtain concessions. In Germany, decisions can take a long time because of the need to analyze information and statistics in great depth. In the UK, pressure tactics and imposing deadlines are ways of closing deals whilst in Greece this would backfire.

Clearly there are many factors that must be considered when approaching cross cultural negotiation. Through the formation of cross-cultural negotiation, company personnel are given the appropriate knowledge that can help prepare their presentations and sales pitches effectively. To adapt your behavior and the way you approach the negotiation you will succeed in maximizing your potential .......