1. Conflict Management & Alternative Dispute Resolution www.adrcenter.it Page 1 Making and Saving Deals in the Global Business Environment Negotiating International Business Transacations Giuseppe De Palo Vice-president, ADR Center University of Rome “La Sapienza” – Interdepartmental Center “EuroSapienza”

2. Conflict Management & Alternative Dispute Resolution www.adrcenter.it Page 2 Business Across Cultures Learning Objectives Describe the skills that global managers must learn, practice, and refine to deal with foreign business cultures Describe the skills that global managers must learn, practice, and refine to deal with foreign business cultures Compare how the characteristics of culture can influence the behavior and attitudes of managers Compare how the characteristics of culture can influence the behavior and attitudes of managers Identify the Hofstede’s original cultural dimensions Identify the Hofstede’s original cultural dimensions

3. Conflict Management & Alternative Dispute Resolution www.adrcenter.it Page 3 Cross-Cultural Skills International managers are now not only expected to be familiar with country marketing reports but should also conduct research on their business partners’ culture and regional etiquette. Stereotypes are the first source of information about cultures, but every negotiator is still an individual.

4. Conflict Management & Alternative Dispute Resolution www.adrcenter.it Page 4 Cross-Cultural Skills Negotiators should accept the fact, that the members of the opposite party behave in different ways: it is not right or wrong, it is only different. A lack of knowledge about foreign cultures can lead to misunderstanding, frustration and even loss of business.

5. Conflict Management & Alternative Dispute Resolution www.adrcenter.it Page 5 Some examples In the People’s Republic of China, don’t write notes using red ink. This suggests that the writer will die soon. Avoid using the number four at all costs because this, too, signifies death. In India, the significance of a business arrangement is often determined by the amount of time spent in negotiations.

6. Conflict Management & Alternative Dispute Resolution www.adrcenter.it Page 6 DIMENSIONS THAT DIFFERENTIATE CULTURES - People’s relationship to nature - Individualism vs. collectivism - Time orientation - Decision making process - Informality - Language - Religion

7. Conflict Management & Alternative Dispute Resolution www.adrcenter.it Page 7 HOFSTEDE’SCULTURALDIMENSIONS HOFSTEDE’S CULTURAL DIMENSIONS Uncertainty avoidance Masculinity- femininity Individualism- collectivism Power distance Degree to which people are comfortable with ambiguity & uncertainty. Dominance, independence vs. compassion, interdependence, & openness. Emphasis on individual goals, needs, & success vs. group needs, satisfaction, & performance. Degree to which people accept power & status differences in society.