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Cultural Barriers to Business Negotiation- continue page 9(a)
Negotiate with the Europeans
When negotiating with the Germans, pay attention to their characteristics of the stick to principles, their concept of time is very strong, their high work efficiency, we should make preparation in advance before negotiation, negotiation should be going in accordance with the agreed-upon standards and rules, normally they will not make change in the midway [13]. Once the contract is signed it cannot be changed. If you want to change it, it is likely to cause trade disputes.
When negotiating with the British, pay attention to their conservative and reserved personality, we should not easily talk about personal feelings with each other, we must do official business according to official principle. At the same time, pay attention to that the British often go back on their words, we should actively do a backup work in case of breach of promise, which will lead to huge losses.
Negotiate with the Arabians
Especially need to respect their teachings and customs, don't make irresponsible comments on their teachings. When shaking hands with them, bringing food for them, you shouldn’t use your left hand which they think is unclean. Because it is influenced by the patriarchal culture, gossip chatting shouldn’t relate to women's issues, you cannot send women as representatives of the business. There cannot has chess games when arranging entertainment activities, because if you will it means to attack their king, it is a misdemeanor. According to their social habits, before the start of negotiation, firstly invite them to drink a cup of coffee, passionately communicate with them on their favorite topics. By doing so you will gain trust and respect from them and you also can learn related information from it.
Conclusion
The influence of cultural barriers to international business negotiation is the most direct, the most far-reaching. As the arrival of global economic integration, the economic and trade activities is becoming more and more frequent, international business negotiation ability directly affects the result of the trade negotiations. To realize the differences between Chinese and western culture, and find out the cultural barriers affecting business negotiation which is caused by cultural differences. Only by this way can we know the real reason leading to misunderstanding or conflict with each other, finally we can find an effective communication method and grasp the direction and progress of the negotiation.
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Cultural Barriers to Business Negotiation- continue page 9
Flexibly change business negotiation skills in different countries
In the process of business cooperation between the east and the west, differences in cultural background, different cultural psychology, customs and habits, etc., are often overlooked by many people, and the influences of cultural factors, often determine the success or failure of business activities. Therefore, in order to achieve the goal of the international business negotiation, we need to realize the negotiation style of our opponents, suit the remedy to the case, put the international business negotiation forward the direction of our expectation. Following is some main negotiation styles in some major countries in the world and put forward some effective methods and techniques accordingly.
Negotiate with the Americans
First of all, we need to understand the outgoing personalities of Americans, they are passionate, frank sincere and simple. We should reduce the distance with each other by our enthusiasm. Americans like a package of business negotiations, they are keen on equal and fair competition, and are willing to bargain, corresponding countermeasures we should take is agilely handle affairs with a positive attitude, take advantages of their strength to decrease the difficulty of negotiation and promoted a more bigger deal. In addition, American’s concept of time is strong, we in the business negotiation, to obey the time [12]. At the same time, we can also base on this characteristic of American-: sometimes lack of patient. In order to achieve our expected trade price, take a protracted war forever bargaining, reach a deal until the other party lose patience and agree with our terms to conclude the deal. Finally, in order to ensure the result of successful negotiation and prevent dispute occurrence, we should have a lawyer in our side when having business negotiation with them, because American respect contract, keep promise, so we should strictly carefully observe and sign the contract.
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Cultural Barriers to Business Negotiation- page 9
Countermeasures to overcome cultural barriers in business negotiation
Building correct idea of international business negotiations
Cultural differences objectively exist in international business negotiations, only by holding a tolerance attitude can negotiator obtain success in the negotiations. Therefore, in cross-culture negotiations we should try to respect the cultural differences between each other. On this base, through a way of empathy, think problem from each other's point of view. Agreement concluded on this base will not only have mutual benefit between each other but also may establish a long-term relation of cooperation between two companies with different cultural backgrounds [11]. International business negotiators must set up the consciousness of cross-cultural negotiation, in the face of different negotiation styles, use corresponding negotiation skills, look at problems from the other party's perspective, adapt yourself to different negotiation styles.
Preparation well before negotiation
If negotiator wants to be in an active position during the negotiation, negotiator must make full preparations. Only after that can he flexibly response to the opponent, adapt himself to the changing circumstances and avoid big conflict during negotiation. Due to the international business negotiation involves a wide range, preparation work is so much, usually includes negotiator’s own situation analysis and his opponent’s; the members of the negotiation; the setting of negotiation target; simulating negotiation practicing when necessary. In the preparation process of negotiation, negotiator not only need to fully understand his own situation but also need a comprehensive understanding of his opponent. Know the enemy and know yourself and you can fight a hundred battles with no danger of defeat. Negotiator’s own circumstance analysis refers to the feasibility study of negotiate project. Understanding of opponent’s situation includes his ability, the policies, rules and regulations of his country, his ways of thinking, his customs and his personal background conditions, etc.
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Cultural Barriers to Business Negotiation- continue page 8
In this case, Xiao Li started learning some knowledge about western culture when he know he need to entertain them. He try his best to follow the western country's customs. But the negotiators do the same also, they also follow the Chinese customs. That is why a new difference occurred, i.e. exchange of cultural differences [10]. In China, we promote a harmonious society nation widely, starting form a small family to a whole society. However, the meaning of harmony in China is quite broad. An important feature of the Chinese people we can found is in communication both sides should keep a harmonious and friendly atmosphere and a good interpersonal relationship. Therefore, in order to avoid conflict, Chinese people will concern the feelings of customers. In contrast, westerners are more straightforward. But as Chinese and westerners have more and more business contacts, to avoid cultural conflict, westerners also begin to learn and understand Chinese culture. Both sides are considering to the feelings of others, thus led to the exchange of cultural differences.
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Cultural Barriers to Business Negotiation- page 8
The effect of cultural barriers on the negotiation process
Cultural barriers affecting negotiation process is firstly reflected in the process of language communication between two parties. Especially in international business negotiations, firstly both parties should have a good knowledge of the language of other party, language differences are obvious in international business negotiations [9]. But language problem is not a big problem, you can hire a qualified translator who has a good knowledge of the cultures of the two parties to solve this problem, secondly, in the process of nonverbal communication due to cultural differences between different countries, negotiators’ body languages showing very much different meaning, which will generate barriers during the communication.
For example, a Beijing company are going to have an international business negotiation. Seven foreign negotiators are coming, two are from Germany, two are from the United States and the rest three are Chinese translators. Time is very tight, only having two weeks before assessment. Negotiation time has been booked at the morning 8:30. It costs only 10 minutes from negotiators’ hotel. If there is a little traffic jam, they may arrive after 15 minutes. According to western habit, when going to attend meeting or negotiation and so on, they always will be present 5 minutes in advance. In the first two days, Xiao Li feel everything is going smoothly. On the third day, when Xiao Li enter into the hotel lobby, they all are already there, she can obviously feel that they are unhappy for her late arrival. Everything is arranged according to western customs, in order to avoid unnecessary misunderstanding, Xiao Li has to communicate with one of the translators. The translator told her that four experts have been waiting a long time in the lobby, because according to Chinese customs, Chinese people like early arrival, especially for negotiation or important meeting, Chinese people will always be present 20 or 30 minutes in advance. After hearing the explanation, Xiao Li suddenly understand, obviously they respect the habits and customs of Chinese people, do in Rome as Rome does. It also shows that they are aware of the cultural differences, both sides respect to each other's habits, but at the end difference stil happens due to mismatching of time.
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Cultural Barriers to Business Negotiation- continue page 7
Mr. Hawker Rove said: “ I don’t really understand why Chinese people always like to cling to such an agreement and they don’t see the external objective conditions are changing?” Whether a paper is important or objective conditions, they are also wasting of time to think about such silly question.”
In the example above, after signing the “Jinbi agreement” start of a new round of negotiations, Sino-US were divided in understanding the problem of the negotiation at the beginning that lead to difficult to talk later. In addition, both sides treat “ Jinbi protocol were different. In Chinese negotiators who have collectivism thought background, “Jinbi protocol” is more important than the technology reform, market change and other issues. It is an immutable principle agreement, so the Chinese negotiators will emphasize both sides must stick to the principle agreement repeatedly. On the other hand, the U.S don’t do any commitment to sign such an agreement that believed that lack of any detailed rules, much less to perform any obligation and responsibilities. Business is business and should not pulled together with any subjective factors, so they will puzzled why the agreement plays so important role which is only a ceremonial that brings much trouble, even making the talks broke down even burst.
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Cultural Barriers to Business Negotiation- page 7
The effect of cultural barriers on negotiation way
Chinese and western way of thinking is different, Chinese way of thinking is a subjective on which more emphasis humanity; Western thinking is objective that they like state of nature, doing things have their own principle, paying attention to the subjective law and science technology, claims to rational and effectively to deal with problems and they don’t like to build relationship before doing things. In the negotiations, if the Chinese and western don’t realize that, the Chinese may think westerners callous and too seriously, while the westerners may think Chinese are too loose and not seriously enough to matter. Finally both sides will think no sincerity each other.
For example, an America company about joint venture issue talks with Chinese company. The both sides signed a series of cooperation letter of intent in Golden Lustre Hotel in Shenzhen after the first round of talking, it is called Jinbi protocol. After three years, due to the needs of development of business, both parties need to sit down to negotiations on relevant issues. The negotiations are not very smoothly that both sides can’t reach a consensus in many aspects. In order to solve the conflict, Chinese negotiators stressed so many time that is both sides should adhere to the principle of “Jinbi protocol”. The U.S representative Mr. Hawker Rove was very angry and queried “shut up”, these things was signed up three years ago, we need to know is current situation. Capital, technology development level and Chinese market must be changed in the past three year. We need to know is the current level, so why don’t stop adhere to the letter of intent so called “Jinbi”? ”Chinese negotiators have heard that were so angry to asked: “so you are ready to betray the agreement?” Mr. Hawker Rove restored: “that is not a contract, that is just a paper statement.”Then both parties talk bogged down that the both do not intend to concessions and face the result was breakdown the negotiation. After considering the basic of cooperation, American accepted Chinese proposal that is to seek a third party to mediate. After the third party of mediation, the two sides back to the negotiation table and finally reached an agreement on cooperation issue, singed the contact.
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Cultural Barriers to Business Negotiation- continue page 6
This case mainly reflects something before the talks, belongs to negotiation stage. Involving the question is that different culture whether to built relationship before negotiation. Chinese tend to build good personal relationship before the talks, and put the harmonious relationship as the guarantee of success between the negotiators. This refers to Chinese collectivism culture that Chinese attach great important to human, people-oriented and traditional are relationship oriented. Everyone is not a single individual that there is always a survival depends on social networking behind(8). Among the members only to maintain internal harmonious relationship that to achieve a maximum collective benefit. While America from individualism culture don’t think so, they usually directly which like to talks the issue immediately in the negotiation and think is waste of time that have nothing to do with the business. In this case, although American are happy with the reception, they are not aware of this reception behavior of deep meaning behind it. In other hand, Chinese don’t comprehensive understanding the American negotiation style is like to discuss issue directly that failure to this negotiation.
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Cultural Barriers to Business Negotiation-page 6
The effect of cultural barriers on negotiation style
Negotiating style refers to negotiators in the negotiations manners, habits and way of doing things(6). In business negotiations, culture determines the ethics of negotiators, also affects the behavior of negotiators, both sides have their own culture characteristics, this different characteristics of the culture makes the negotiators with different cultural backgrounds to form different negotiation styles(7).
For example, America Canwall is a company specializing in manufacturing wallpaper printing equipment, this company has never overseas business before and talks with a wallpaper printing company in Jiangsu about equipment purchase. When Chinese representative arrive at America, coincided with the company’s president Charlie Burton and marketing director Phil Raines both have a holiday, the manager Li of Chinese company just meet the senior sales representative and production manager in Canwall. The U.S negotiation representative came to Chine inspection afterwards, when they arrived, manager Li came to the airport to greet they in person and arranged they lived in local a new hotel, and then held a welcome dinner with a number of senior municipal government leaders to attend. This series of actions make the U.S is full of optimism in the following negotiations. The next day, American guests are accompanied by the Chinese staffs to visit nearby attractions, actually, they urgent want to start the relevant negotiations but still be rest after dinner. The two sides finally sat down to discuss on the third day but the agenda process rather slowly.After the Chinese introduced the irrelevant information such as company history, culture, management concept and sales cooperation step by step, the U.S unbearable and impatient to interrupt the introducer: Why are you always introducing some irrelevant things? Do you think we are so foolish? If we don’t know these information, we couldn’t sitting here with you to negotiation, you just waste our time.”
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Cultural Barriers to Business Negotiation-page 5
Custom differences
The most obvious of culture differences is the dinning atmosphere. In Chinese traditional banquet, everybody sitting and meal, from the form creates a unity, harmony and the atmosphere of sharing, this is so called Chinese nation common mentality of “happy reunion”(5). The western banquet is mainly for companionship, they stress elegant warmth, full of temperament and interest and manners, to achieve the purpose of companionship they through the conversation with guests. Chinese people like to ask such as name, age,unit and income when meeting. Westerners hate somebody else asked private things such as age and income.
International business negotiation is effected by different countries, national political, economy and culture factors, the most difficult grasp is the cultural differences. Different cultural backgrounds bring up negotiators different style, therefore, it is very necessary and important to know two sides cultural differences in international business negotiation, to understand and accept negotiators culture can be achieved to negotiation success.
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