3. BASICS OF CROSS-CULTURAL COMMUNICATION Communication definedCommunication defined Communication processCommunication process Cross-cultural communicationCross-cultural communication

4. LANGUAGE AND CULTURE The Whorf hypothesis

5. HIGH CONTEXT Communications have multiple meanings interpreted by reading the situation Asian and Arabic languages are among the most high context in the world

6. LOW CONTEXT The words provide most of the meaning Most northern European languages including German, English, and the Scandinavian languages are low context

8. Exhibit 3.2 Cultural Differences in Communication Styles

9. NONVERBAL COMMUNICATION - COMMUNICATING WITHOUT WORDS

10. KINESICS Communicating through body movements Facial expressions Body posture

11. PROXEMICS The use space to communicate The personal bubble of space - nine inches to over twenty inches North Americans prefer more distance than from Latin and Arab cultures

12. TOUCH Basic human interaction In greeting - shake hands, embrace, or kiss Latin European and Latin American cultures-more touching than Germanic, Anglo, or Scandinavian cultures

13. Cross-cultural Communication Miscommunication Misperception –Perception is selective –Perceptual patterns are learned –Perception is culturally determined –Perception is consistent –Perception is inaccurate

14. FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY WITH THE EXPERIENCE OF YEARS

15. Cross-cultural Communication Miscommunication Misperception Misinterpretation –Assumptions –Categories –Stereotypes

16. TOUCH Basic human interaction In greeting - shake hands, embrace, or kiss Latin European and Latin American cultures-more touching than Germanic, Anglo, or Scandinavian cultures

17. PRACTICAL ISSUES IN CROSS- CULTURAL VERBAL COMMUNICATION

18. INTERPRETERS Provide simultaneous translation of a foreign language Require greater linguistic skills than speaking a language or translating written documents Insure the accuracy and common understanding of agreements

19. COMMUNICATION WITH NONNATIVE SPEAKERS Use the most common words with most common meanings Select words with few alternative meanings Follow rules of grammar strictly Speak with clear breaks between words

20. Communication with nonnative speakers, continued Avoid “sports” words or words borrowed from literature Avoid words that represent pictures Mimic the cultural flavor of nonnative speaker’s language Summarize Test your communication success

21. AVOIDING ATTRIBUTION ERRORS Attribution - process by which we interpret the meaning and intent of spoken words or nonverbal exchanges Attribution errors

22. INTERNATIONAL NEGOTIATION More complex than domestic negotiations Why is cross-cultural negotiation so difficult? –Differences in national cultures and differences in political, legal, and economic systems often separate potential business partners Why is it beneficial to negotiate? –Mutual gain

23. EXHIBIT 3.4: STEPS IN THE INTERNATIONAL NEGOTIATION PROCESS

24. STEP 1: PREPARATION STEP 2: BUILDING THE RELATIONSHIP STEP 3: EXCHANGING INFORMATION/FIRST OFFER STEP 5: CONCESSIONS STEP 6: AGREEMENT STEP 4: PERSUASION

25. STEP 1: PREPARATION Is the negotiation possible? Know what your company wants Know the other side Send the proper team Agenda Prepare for a long negotiation Environment Strategy

26. DIFFERENCES IN CULTURES IN KEY NEGOTIATING PROCESSES (EXAMPLES) Negotiation goals Personal style (formal or informal) Communication styles—direct or indirect Sensitivity to time—low or high

27. Cultural Differences in Key Negotiating Processes, Continued Forms of agreement—specific or broad (EX 3.5) Team organization—a team or one leader

28. Exhibit 3.5 Preferences for Broad Agreements

29. STEP 2: BUILDING THE RELATIONSHIP No focus on business Partners get to know each other Social and interpersonal exchange Duration and importance vary by culture

30. STEP 3: EXCHANGING INFORMATION AND THE FIRST OFFER Task-related information is exchanged Focus on your interests, not position First offer

31. STEP 4: PERSUASION Heart of the negotiation process Attempting to get other side to agree to a position Numerous tactics used

32. VERBAL AND NONVERBAL NEGOTIATION TACTICS Promise Threat Recommendation Warning Reward Punishment Normative appeal

33. Negotiation Tactics, Continued Commitment Self disclosure Question Command No Interrupting

34. “DIRTY TRICKS” IN INTERNATIONAL NEGOTIATIONS Dirty tricks are negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions

35. PLOYS/DIRTY TRICKS - POSSIBLE RESPONSES Deliberate deception - point out what is happening Stalling-do not reveal when you plan to leave Escalating authority - clarify decision making authority Good guy, bad buy routine - do not make any concessions You are wealthy and we are poor - ignore the ploy Old friends - keep a psychological distance

36. Also, –Avoid using dirty tricks –Be prepared to walk out on the negotiation if the other side doesn’t play fairly –Realize that ethical systems differ by cultures and they may not feel they are doing anything unacceptable or wrong Ploys/Dirty Tricks, Continued

37. STEPS 5 AND 6: CONCESSIONS AND AGREEMENT Final agreement: The signed contract, agreeable to all sides Concession making: requires that each side relax some of its demands

38. STYLES OF CONCESSION Sequential approach –Each side reciprocates concessions Holistic approach –Concession making begins after all issues are discussed

39. Conflict Resolution Model

40. BASIC NEGOTIATION STRATEGIES Competitive –The negotiation as a win-lose game Problem solving –Search for possible win-win situations

41. COMPETITIVE OR PROBLEM SOLVING INTERNATIONAL NEGOTIATION Cultural norms and values may predispose some negotiators to one approach (EX 3.10) Most experts recommend a problem solving negotiation strategy

42. A Culturally Synergistic Approach Separate the people from the problem Focus on interests not positions Insisting on objective criteria (and never yielding to pressure Inventing options for mutual gain

43. EX 3.10 Preferences for Problem-Solving Negotiation

44. Whose style to use?

45. THE SUCCESSFUL INTERNATIONAL NEGOTIATOR: PERSONAL CHARACTERISTICS Tolerance of ambiguous situations Flexibility and creativity Humor Stamina Empathy

46. Curiosity Bilingual Personal Characteristics, Continued

47. CONCLUSIONS Successful negotiators: –Understand the negotiation steps –Build cross-cultural communication skills –Understand nonverbal communication –Avoid attribution errors