EFFECTS OF CULTURE IN

INTERNATIONAL NEGOTIATIONS

Week 7
 LEARNING OUTCOMES

• Assess cultural differences in business negotiations

• Discuss the importance of “face” in cross-cultural
negotiations
• Apply effective listening skills in negotiations
• Evaluate different negotiating styles across various cultural
contexts
Regarding international relations, negotiation has been
described as: ‘Getting to “yes” without going to war’.
 INTERNATIONAL NEGOTIATIONS

International negotiating is the process whereby people of

different nationalities resolve actual or potential conflicts or
disputes by considered dialogue on an approved agenda.
Cohen 1999 refers to negotiations in international relations as:
‘Diplomatic negotiations in its strictest sense consist of a
process of communication between states seeking to arrive at a
mutually acceptable outcome on some issue or issues of shared
concern’.
Negotiators need to be aware of the negotiating style of people
of other cultures, while at the same time developing a style
appropriate to their own personal strengths and those of their
own cult.
LET’S WATCH :

Negotiations as a win-win situations:

https://youtu.be/HMOFLH96SP0
ESSENTIAL FACTORS FOR SUCCESSFUL MEETING AND
NEGOTIATION ACROSS DIFFERENT CULTURES

Protocols Use of
Interpreter Importance
Humour
and of Face
Translator

Cultural
Listening Patience and Relationship
values and
skill flexibility Building
beliefs

Clear
Preparation
Communicati
and Planning
on
ESSENTIAL FACTORS FOR SUCCESSFUL MEETING AND NEGOTIATION ACROSS DIFFERENT CULTURES

Protocol: Understanding and respecting the cultural norms, traditions,

and etiquette of the other party is crucial. This includes appropriate
greetings, dress code, punctuality, and gift-giving customs.

Humour: Humour can be a useful tool to break the ice and build rapport,
but it's important to be aware that what's considered funny can vary
greatly between cultures. Avoid jokes that could be misunderstood or
offensive.

Use of Interpreter and Translator: If there's a language barrier,

professional interpreters and translators can be invaluable. They can
ensure clear communication and help avoid misunderstandings. It's
important to brief them thoroughly before the meeting or negotiation.
ESSENTIAL FACTORS FOR SUCCESSFUL MEETING AND
NEGOTIATION ACROSS DIFFERENT CULTURES
Importance of face: In many cultures, maintaining dignity and
respect ('face') is crucial. avoid causing embarrassment or loss of face.
be aware that direct criticism or confrontation can be seen as
disrespectful in some cultures.

Listening skills: Active listening shows respect and interest. it helps

to understand the other party's perspective and to build trust. pay
attention to non-verbal cues, as they can provide valuable information.

Patience and Flexibility: Negotiations can take longer in some

cultures. Be prepared to be patient and flexible. Don't rush the process.
 ESSENTIAL FACTORS FOR SUCCESSFUL MEETING AND
NEGOTIATION ACROSS DIFFERENT CULTURES

• Relationship Building: In many cultures, building a personal relationship is a prerequisite

for successful business dealings. This might involve social activities outside of formal
meetings.
• Understanding of Cultural Values and Beliefs: Deep understanding of the other
party's cultural values and beliefs can help to avoid misunderstandings and to build mutual
respect.
• Preparation and Planning: Research the other party's business practices, negotiation
style, and cultural norms before the meeting or negotiation. Plan your strategy accordingly.
• Clear Communication: Be clear and explicit about your expectations and objectives.
However, be aware that directness can be seen as rude in some cultures. Adjust your
communication style accordingly.
 THE IMPORTANCE OF 'FACE'

Face means maintaining one's reputation and social standing

is crucial.
‘ Face- saving reflects a person’s need to reconcile the stand
he takes on a negotiation or agreement with his principles
and with his past words and deeds’ (Fisher and Ury 2003)
To maintain 'face' in negotiations:
• Avoid confrontational or aggressive tactics,
• Focus on building a relationship with the other party.
• Showing respect for their culture and customs and being
open to compromise and creative solutions.
 EXAMPLES OF ‘FACE’

In Eastern Cultures- Thai, Chinese and Japanese cultures, ‘face’

is the way in which one is regarded by others.

It assumes central importance in Asian cultures and has a

major effect on behaviour.

In the case of the Chinese, ‘face’ (‘mianzi’) relates to a

person’s image and status within the social structure.

‘Face’ is also closely associated with trust, loyalty, reputation,

competence and obligation issues.
To avoid cultural problems that involve ‘face’, the
skilled international negotiator should follow these
guidelines:
• check the importance of hierarchy and status in the other
culture;
• use correct names, titles and formal greetings;
• remember one’s obligations if acting as the host;
• always show pride in one’s company and nationality, and
extend this respect to one’s counterpart;
IMPORTANCE OF LISTENING IN NEGOTIATIONS

Effective Listening Skills in Negotiations

Effective listening is a crucial skill in cross-cultural negotiations. It
involves not only hearing what the other party is saying but also
understanding their perspective and underlying interests.
Active Listening
Active listening involves paying attention to the speaker, asking
clarifying questions, and summarizing what was said. This helps to
ensure that both parties have a mutual understanding of the issues
at hand.
IMPORTANCE OF LISTENING IN NEGOTIATIONS

• Nonverbal Communication
In many cultures, nonverbal communication is just as important as
what is said verbally. Paying attention to nonverbal cues such as body
language, tone of voice, and facial expressions can provide valuable
insights into the other party's thoughts and feelings.
• Avoiding Assumptions
If you understand the other party's perspective without listening to
them can lead to misunderstandings and a breakdown in negotiations.
It is important to avoid making assumptions and instead ask questions
to clarify any uncertainties.
CASE STUDIES IN CROSS-CULTURAL NEGOTIATIONS

Case Study 1: The American and Japanese Business Deal

An American company was looking to expand its business into Japan.
They sent a team of negotiators to meet with a Japanese company to
discuss a potential partnership. The American team was direct and to
the point, while the Japanese team was more focused on building a
relationship and establishing trust before discussing business matters.
The American team quickly realized that their approach was not
effective in the Japanese culture. They adjusted their strategy to focus
on building a relationship and showing respect for the Japanese
company's culture. By doing so, they were able to establish trust and
ultimately close the deal.
NEGOTIATIONS STYLES ACROSS CULTURES

 British Negotiating styles

 French Negotiating styles
 German Negotiating styles
 Russian Negotiating styles
 Indian Negotiating styles
 Chinese Negotiating styles
 Arab Negotiating styles

https://hbr.org/2015/12/getting-to-si-ja-oui-hai-and-da?referral=
00060
 BRITISH NEGOTIATING STYLE

• Individualistic, masculine, and competitive

• Preference for English language

• Willingness to compromise for mutually acceptable agreement

• Use of humor as a social lubricant

• Dislike for excessive regulations and bureaucracy

• English is the preferred working language, and many British
managers may not try to learn other languages.
• Verbal subtlety and flexibility in English have high social value in
business communication.
• British express willingness to be flexible and make compromises in
negotiations.
• British tend to show little emotion, but experience in the global
economy has made them more expressive.
• Humor is widely used as a business and social lubricant, often
including self-deprecation.
• Meetings are seen as a process for decision-making, and all
participants can express opinions.
• British dislike excessive regulations, central control, and bureaucracy,
advocating for free trade.
• Business titles are often not used, and first names are frequently used in
conversation.
• Business meetings begin and end with light conversation, conducted in a
relatively relaxed manner.
• Women in British business have equal opportunities, but a "glass ceiling" still
exists in some professions.
• Socializing in British business includes informal lunches, formal dinners, and
corporate hospitality at sporting events.
• British tend to work longer hours and prioritize separation between work and
private family life.
 FRENCH NEGOTIATION STYLE
• High regard for intellectual discourse and debate
• Preference for direct and explicit communication
• Emphasis on hierarchy and respect for authority
• Willingness to take time for thorough discussion and
deliberation
• Use of logic and rational argumentation
• The French negotiating style is rooted in a strong Cartesian tradition that
values rational and logical thinking.
• French negotiators often take a deductive approach, starting with abstract
concepts and principles before focusing on specific facts and interests.
• French culture is individualistic, with a tendency to create hierarchies and
systems to avoid uncertainty.
• The French education system places great importance on higher education and
elite institutions, which provide authority and advantage in bureaucratic
hierarchies.
• French negotiators are well-prepared and prefer decision-making to be
concentrated in the hands of competent individuals within a recognized
hierarchy.
• French negotiators strive to adopt the best idea and uphold their views,
making major concessions unlikely.
• Language is important to the French, and while many negotiators speak
English well, conducting part of the proceedings in French is appreciated and
may provide an advantage.
• French business meetings are formal, with strict rules of procedure and an
established chairperson. Less formal meetings may involve interruptions and
side conversations.
• Business socializing in France often involves meals in high-quality restaurants,
and reciprocation is expected.
• There is a clear distinction between personal and professional relationships, and
employees generally do not socialize after work.
 GERMAN NEGOTIATING STYLE

• Direct, detail-oriented, and punctual

• Preference for clear, explicit communication

• Focus on facts and logic

• High regard for rules and structure

• Emphasis on efficiency and productivity

• The German negotiating style emphasizes meticulous preparation,
clear objectives, and a structured approach.
• Germans value order, supported by rules and procedures, and
require detailed information and facts for decision-making.
• Germans have a direct communication style, sometimes appearing
blunt, and place more emphasis on written communication.
• Punctuality is highly valued in German culture, and Germans tend to
separate their social life from work.
• Germans have a high regard for privacy and personal space, and
while they have a sense of humor, it is less frequently used as an
ice-breaker in business settings.
• German culture is masculine and individualist, with high uncertainty
avoidance and a focus on reliability, dependability, and quality
 RUSSIAN NEGOTIATING STYLE

• Direct and straightforward communication

• High regard for power and authority

• Willingness to take risks and push boundaries

• Emphasis on personal relationships and trust

• Use of silence as a negotiation tactic

• Russia has a business culture that differs from the Western pattern
and has been influenced by its historical past and diverse population.
• Personal relationships and mutual trust are central to successful
business in Russia, with the concept of "dusha" or "soul" playing a
significant role.
• Russia's economic advantage, particularly in energy resources, has
contributed to a tough negotiating stance aimed at gaining
concessions.
• Russian business practices reflect a relatively collectivist culture, with
a hierarchical structure and decision-making often made at a high
level.
• Informality is valued in negotiations, and small talk about family, personal
matters, and sport is customary before getting down to business.
• Russians prefer good eye contact and may use physical contact, such as a
hand on the arm, as a positive sign.
• Russian communication style can be blunt and direct, and they value
counterparts who are well-prepared and show professional experience.
• Meetings in Russia can be protracted, subject to interruptions, and may not
strictly adhere to time schedules. Patience is important as Russians may vary
their tactics to win concessions before considering compromise.
 INDIAN NEGOTIATION STYLE
• Focus on building long-term relationships

• Value mutual respect and understanding

• Indirect communication style

• Bargaining is a common part of the negotiation process

• Decisions may take time due to emphasis on consensus

• Regionalism, religion, language, and caste are factors to consider in Indian business
culture.
• English is widely used as the main working language, but Hindi is the official language
recognized by the government.
• Translators are seldom required, but having an intermediary can help navigate local
and government bureaucracy.
• Educated Indians mostly speak good English, but there may be a mixture of English
and Hindi known as "Hinglish."
• India is a multicultural, multiethnic, and multilingual society, with large cities being
melting pots of cultures.
• Building relationships is vital in Indian business culture, as Indians prefer to work with
those they know and trust.
• Hierarchy plays a key role in Indian society, and deference is given to those in
authority.
• Punctuality is expected, but last-minute changes may occur due to family
responsibilities.
• Indians dislike high-pressure negotiating tactics and seek outcomes that please
all parties.
• Criticism and disagreement should be expressed diplomatically.
• Indians have a dislike for saying "no" directly, so it's important to listen carefully
to their responses.
• Indian negotiators control their outward emotions and show respect for the other
party.
• Etiquette at meetings includes handshakes or the use of "namaste" as a sign of
understanding Indian customs.
• Business cards should be exchanged and translating them into Hindi is a sign of
respect.
 CHINESE NEGOTIATION STYLES
• Formal and highly structured nature of Chinese negotiations
• Emphasis on detailed technical aspects in Chinese negotiations
• Preference for commitment over rigid contracts in Chinese negotiations
• Avoidance of confrontation and flexibility in Chinese negotiations
• Reluctance to say "no" directly and delegation of authority in Chinese
negotiations
• Lengthy negotiations and the importance of connections in Chinese
negotiations
 ARAB NEGOTIATING STYLE
• High regard for personal relationships and trust

• Indirect and circular communication style

• Emphasis on honor and respect

• Decisions often made by the highest authority

• Negotiations often involve hospitality and socializing

• Arab world encompasses a vast region from Mauritania to Oman, with Islam
as the dominant culture.
• Arab culture is deeply rooted in Islamic teachings, providing an ethical
framework for business and influencing negotiations.
• Being an Arab is more about language, thought systems, values, and pride in
Arab history rather than ethnic origins.
• Personal relationships and meeting the "right people" are crucial in Arab
business negotiations, emphasizing trust and working personal relationships.
• Arab communication style is high-context, less direct, and less adversarial,
focusing on harmony and avoiding confrontation.
• Politeness is valued in Arab culture, and it is advisable to avoid discussing
religion or politics unless encouraged.
• Verbal interruptions are common in Arab negotiations, indicating the
interaction of ideas, while silence is seen as a breakdown in
communication.
• Emphasizing common ground and shared experiences helps build trust
and establish rapport in Arab negotiations.
• Arab management style is paternalistic, and visiting businesspeople need
to demonstrate appropriate authority for credibility.
• Cultural considerations such as prayer times, Ramadan, and gift-giving
customs should be respected in Arab business interactions.
 CONCLUSION

International negotiators need to attempt to

establish personal relationships before negotiations
begin; appreciate the importance of building
mutual trust; prepare well in advance and study the
culture and history of the other nationality. Training
for the cross- cultural aspects of international
negotiations should follow much of that suggested
for building and sustaining multicultural teams. It
should include cultural sensitivity training and
briefing as part of the preparation phase.