1. Intercultural Negotiation Process
Lecture 8

2. “In business, you don’t get what you deserve; You get what you negotiate (Chester Karass) .”

3. Related Vocabulary Negotiations/talks (noun) Negotiate (verb)
Deal (noun)
Concession (noun) make a concession
Concede (verb)
Firms- business term for companies

4. Related Vocabulary Mutual (like mutually profitable)
Interpreter/translator
Flexible
Agreement
Contract
Long-term/Short-term

5. Negotiating
When?
- When two sides would like to cooperate, but it is not clear what each side should give or do
Why?
- To come to an agreement that is satisfying for both sides

6. Before the Negotiation
Come up with clear goals
-should be flexible to a degree
Study needed manners and culture
Study other sides situation, goals, and team

7. Selecting the location
Disadvantages of negotiating in the other’s company
- Guests are polite
May miss families
May be reliant on host company for things
The fairest way (both must wish for talks)
-neither side is at home

8. What makes a good intercultural negotiator?
Patient
Understanding
A Good listener
Polite, inoffensive
Flexible-be willing to change with the unexpected
Aware of culture’s influence on one’s actions

9. The Right Negotiating Team…
Depends on the culture
-Who would have the most influence?
-Who would be least likely to offend but most likely to succeed?
Depends on character
-Previous slide

10. For a successful negotiation we need…
Trust
A good persuasive argument
Direct honesty
Credibility
Time

11. During the Negotiation
Keep cultural differences in mind
Communicate goals clearly
Emphasis shared goals
Understand limits of other side

12. During the Negotiation
Slowly decrease differences to reach agreement
Be ready to concede a little if necessary
Don’t focus on win-lose, but on win-win
Be willing to change your original plans given new information

13. During the Negotiation
Have flexible goals and a time plan, but do not tell the other side
Have good relations with other side’s members informally
Be ready to leave if the other side is unwilling to give you a good deal
Never become negatively emotional

14. Soon before Agreement…
Are both sides really capable of doing this in the long-term?
Do not expect that a contract means the same thing in both cultures.
-strong in US, Britain, Germany, France
-not as strong in China, Japan, other European countries

15. Common “Problems” in Talks between Chinese and Americans
Americans tend to focus on making the deal
-limited focus on building trust/relationships
-may view business more simply than
- often in a hurry to go home

16. Common “Problems” in Talks between Chinese and Americans
Chinese- tend to be in less of a hurry
-probably most talks take place in China
-usually they do not negotiate on a time schedule
Common Result
- Relations between companies worse than they could be
- Americans concede more than they must (Chinese have power of time)

17. Common “Problems” in Talks between Chinese and Americans
Americans tend to focus on legal issues
-may overestimate the meaning of some legal agreements and laws in China
Chinese focus on other forms of protection
-trust, relationships between companies, relationships between governments

18. Common Result
-Chinese focus on relationship protections
-Americans focus on legal protections
-Neither is well-protected

19. Common “Problems” in Talks between Chinese and Americans
American lack of knowledge of China’s high concern for “face”
Informality vs. formality
In America, you are trustworthy until you are shown to be untrustworthy
In China, you are untrustworthy until you are shown to be trustworthy

20. Americans may not understand Chinese indirect ways of saying “no” or “don’t know”
Americans are not used to haggling
-may seem inflexible
-may offer best price at beginning
Americans often know less details about the other sides company

21. Solving these problems
US companies often send Chinese-Americans
Both sides should work to understand the other’s cultural situation
Both sides must be flexible with their beliefs and behavior

22. Homework Think about cultural differences
Review chapter 5 on Question and Answer Sessions