Negotiating with International Customers, Partners, and Regulators Chapter 19 McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

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Negotiating with International Customers, Partners, and Regulators Chapter 19 McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Cultural differences cause four kinds of problems in international business negotiations, at the levels of: (1)Language (2)Nonverbal behaviors (3)Values (4)Thinking and decision-making processes The Pervasive Impact of Culture on Negotiation Behavior Companies and countries do not negotiate—people do

Verbal Negotiation Tactics

Linguistic Aspects of Language and Nonverbal Behaviors

Objectivity Competitiveness Equality Time American Values That Most Frequently Cause Misunderstanding and Bad Feelings

Cultural Differences in Competitiveness & Equality

Implications for Managers and Negotiators 1.selection of the appropriate negotiation team; 2.management of preliminaries, including training, preparations, and manipulation of negotiation settings; 3.management of the process of negotiations, that is, what happens at the negotiation table; 4.appropriate follow-up procedures and practices; Four steps lead to more efficient and effective international business negotiations, which include:

Negotiation Teams 1.Maturity 2.Emotional stability 3.Breadth of knowledge 4.Optimism 5.Flexibility 6.Empathy 7.Stamina 8.Willingness to use team assistance 9.Listening 10.Influence at headquarters Criteria for selecting successful negotiators include:

Negotiation Preliminaries 1.Language skills 2.Social and diplomatic skills 3.Knowledge specific to the diplomatic profession 4.Including diplomatic history and international relations 5.Law 6.Economic 7.Politics 8.International organizations 9.Foreign policies Many companies in the United States provide employees with negotiations training on:

Planning For International Negotiations 1.Assessment of the situation and the people 2.Facts to confirm during the negotiation 3.Agenda 4.Best alternative to a negotiated agreement 5.Concession strategies 6.Team assignments The following checklist ensures proper preparation and planning for international negotiations:

Negotiation Setting 1.Location 2.Physical arrangements 3.Number of parties 4.Number of participants 5.Audiences (news media, competitors, fellow vendors, etc.) 6.Communications channels 7.Time limits There are at least seven aspects of the negotiation setting that should be manipulated ahead of time if possible:

At the Negotiation Table Nontask sounding Task-related exchange of information Persuasion Concessions and agreement Differences in the expectations held by parties from different cultures are one of the major difficulties in any international business negotiation. Generally, everywhere around the world business negotiations proceed through four stages:

Japanese and American Business Negotiation Styles