Intercultural Negotiation Process Mac Brian Christina James

What is Intercultural Negotiation?

Steps in the Negotiation Process O Preparation and Site Selection O Team Selection O Relationship Building O Opening Talks O Discussions O Agreement

Mistakes commonly made during Negotiations O Failing to listen and talking too much O Using unfamiliar and slang words O Interrupting the speaker O Failing to read the nonverbal cues

Intercultural Negotiation Models OBOBetter to know the people you are going to negotiate. OPOProtocol OTOTwo main negotiating styles OPOProblem-solving approach: consider cultural differences. OCOCompetitive approach: more individualistic and persuasion oriented. … Compromising, Forcing, and Legalism.

OCOCompromise agreement OCOCommon ground OLOLower benefit OIOIntegrative agreement OHOHigher benefit

Negotiation Strategies ONONegotiation strategies: plans organized to achieve a desired objective. ONONegotiation strategies are based on: OFOFaith: if religious or political ideology matches theirs. OFOFact: gives the contract to the lowest bidder. OFOFeeling: build relationship over time and don’t buy from someone else just because they can get a lower price.

Preparation O Choosing where the meeting will be held. O Meeting held on your place. O Meeting held on your counterpart’s place. O Meeting held on neutral location. O It is important to be prepared for questions. O Also, It is important to safeguard strategic information that you do not want to share.

Tactics O Maneuvers used for gaining advantage or success. O The attributes that the receiver attaches to the tactic can be so distracting if receiver has a distorted perception of the tactic. Ex) “Break the ice” O Distracting tactics can be harmful to the negotiation.

Conflict Resolution O Need to learn the social system and cultural values of the other negotiators. O These are Essential to successful conflict resolution. O Knowing whether to cultivate a personal relationship. O Being conscious of rank and position. O Understanding the thought pattern of other negotiators. O Knowing how to establish trust.

Mediation O Mediation is the use of a third party to settle down differences between negotiators to bring them in to common agreement. 1. Stabilize the setting. 2. Get a commitment from the participants to proceed in a businesslike manner. 3. Help parties to solve their disagreements. 4. Clarify the agreement.

Observation, Analysis, and Evaluation O Need to observe changes from your initial expectations. O Analyze the differences and adapt your negotiation strategy accordingly. O Constant evaluation O For negotiations to be successful, the people who are involved in the negotiation need to be analyzed and evaluated.

TRADE AGREEMENT O LICENSE O FTZ O WTO

LICENSE O General License O Validated License

F T Z

NAFTA 1993 To eliminate barriers to trade and facilitate cross-border movement of goods and services To promote fair competition To increase investment opportunit ies To expand cooperation and increa se benefits to the three countries

APEC 1989 As a long-term plan As a short-term plan

EU 1993 World War Euro

WTO 1994 Monitor Mediate

NEGOTIATION STYLES

FRANCE FRENCH SELF-ESTEEM CARTESIAN

GERMANY EXPLICIT CONTRACTS AND REGULATION USING HANDSHAKE AT THE BEGINNING AND THE END OF MEETINGS USING “ THANK YOU” AND “PLEASE” FREELY.

JAPAN KEIRETSU SYSTEM SUBTLE AND COMPLEX VERBAL AND NONVERBAL CUES

THE NETHERLANDS ADMIRING EDUCATION, HUMOR, HONESTY AND MODESTY DECISIONS BASED ON CONSENSUS

NIGERIA Consider age, gender, cultural background, and educational credentials. Building relationships are important when negotiating.

RUSSIAN FEDERATION REGARDING COMPROMISE AS WEAKNESS VERY ANIMATED AT THEIR DISCUSSIONS MAXIMIZING THEIR PROFITS

SOUTH KOREA/ TAIWAN SOUTH KOREA TAIWAN

UNITED KINGDOM REFLECTING THEIR CULTURAL CHARACTERISTICS-FORMAL, POLITE AND PROPER PROTOCOL DISTINGUSHING FOUR PART- WELSH, SCOTTISH, IRISH AND ENGLISH

Summary O Steps of negotiation process -Preparation, Team selection, Relationship building, Opening talks, Discussions, Agreement O Two main negotiating styles -Problem-Solving Approach -Competitive Approach O Negotiating Strategies -Compromise or Integrative agreement -Preparation, Tactics, Conflict resolution, Mediation, Observation and Evaluation

Summary cont. O Trade Agreement -License (General, Validated) O Free Trade Zones (Trade blocs) O WTO (World Trade Organization)