international negotiation f more complex than domestic negotiations f differences in national...
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INTERNATIONAL NEGOTIATIONINTERNATIONAL NEGOTIATION
More complex than domestic More complex than domestic negotiations negotiations
Differences in national cultures and Differences in national cultures and differences in political, legal, and differences in political, legal, and economic systems often separate economic systems often separate potential business partners potential business partners
EXHIBIT 3-1: STEPS IN THE EXHIBIT 3-1: STEPS IN THE INTERNATIONAL NEGOTIATION INTERNATIONAL NEGOTIATION
PROCESSPROCESS
STEP 1: PREPARATION
STEP 2: BUILDING THERELATIONSHIP
STEP 3: EXCHANGINGINFORMATION/FIRST OFFER
STEP 5: CONCESSIONS
STEP 6: AGREEMENT
STEP 4: PERSUASION
STEP 1: PREPARATIONSTEP 1: PREPARATION
Is the negotiation possible?Is the negotiation possible?Know what your company wants Know what your company wants Know the other side Know the other side Send the proper teamSend the proper teamAgendaAgendaPrepare for a long negotiation Prepare for a long negotiation EnvironmentEnvironmentStrategyStrategy
DIFFERENCES IN CULTURES IN DIFFERENCES IN CULTURES IN KEY NEGOTIATING PROCESSESKEY NEGOTIATING PROCESSESCommunication styles—direct or Communication styles—direct or
indirect indirect Sensitivity to time—low or highSensitivity to time—low or highForms of agreement—specific or Forms of agreement—specific or
generalgeneralTeam organization—a team or one Team organization—a team or one
leaderleader
STEP 2: BUILDING THE STEP 2: BUILDING THE RELATIONSHIPRELATIONSHIP
No focus on businessNo focus on businessPartners get to know each otherPartners get to know each otherSocial and interpersonal mattersSocial and interpersonal mattersDuration and importance vary by cultureDuration and importance vary by culture
STEP 3: EXCHANGING STEP 3: EXCHANGING INFORMATION AND THE FIRST INFORMATION AND THE FIRST
OFFEROFFER
Task-related information is Task-related information is exchanged exchanged
First offerFirst offer
STEP 4: PERSUASIONSTEP 4: PERSUASION
Heart of the negotiation processHeart of the negotiation processAttempting to get other side to Attempting to get other side to
agree to a positionagree to a positionNumerous tactics can be usedNumerous tactics can be used
VERBAL AND NONVERBAL VERBAL AND NONVERBAL NEGOTIATION TACTICSNEGOTIATION TACTICSPromisePromiseThreatThreatRecommendationRecommendationWarningWarningRewardRewardPunishmentPunishmentNormative appealNormative appeal
OTHER NEGOTIATION TACTICSOTHER NEGOTIATION TACTICS
CommitmentCommitmentSelf disclosureSelf disclosureQuestionQuestionCommandCommandNoNoInterruptingInterrupting
EXHIBIT 3-4: FREQUENCIES OF VERBAL NEGOTIATION EXHIBIT 3-4: FREQUENCIES OF VERBAL NEGOTIATION BEHAVIORSBEHAVIORS
0 20 40 60 80 100
Interrupt
NO
Promise
Recommend
Command
CommitmentBrazilian
U.S.
Japanese
““DIRTY TRICKS” IN DIRTY TRICKS” IN INTERNATIONAL INTERNATIONAL NEGOTIATIONSNEGOTIATIONS
Dirty tricks are negotiation tactics Dirty tricks are negotiation tactics that pressure opponents to accept that pressure opponents to accept unfair or undesirable agreements or unfair or undesirable agreements or concessionsconcessions
PLOYS/DIRTY TRICKS - PLOYS/DIRTY TRICKS - POSSIBLE RESPONSESPOSSIBLE RESPONSES
Deliberate deception - point out what is Deliberate deception - point out what is happening happening
Stalling - do not reveal when you plan Stalling - do not reveal when you plan to leave to leave
Escalating authority - clarify decision Escalating authority - clarify decision making authoritymaking authority
Good guy, bad buy routine - do not Good guy, bad buy routine - do not make any concessionsmake any concessions
You are wealthy and we are poor - You are wealthy and we are poor - ignore the ploy ignore the ploy
Old friends - keep a psychological Old friends - keep a psychological distancedistance
STEPS 5 AND 6: STEPS 5 AND 6: CONCESSIONS AND CONCESSIONS AND
AGREEMENTAGREEMENTFinal agreement: The signed Final agreement: The signed
contract, agreeable to all sides contract, agreeable to all sides Concession making requires that Concession making requires that
each side relax some of its each side relax some of its demandsdemands
STYLES OF CONCESSIONSTYLES OF CONCESSIONSequential approach - consider each Sequential approach - consider each
issue as a separate point issue as a separate point Each side reciprocates concessionsEach side reciprocates concessionsHolistic approach - more common in Holistic approach - more common in
Asia Asia Concession making begins after all Concession making begins after all
issues are discussedissues are discussed
BASIC NEGOTIATION BASIC NEGOTIATION STRATEGIESSTRATEGIES
CompetitiveCompetitive
–The negotiation as a win-lose gameThe negotiation as a win-lose gameProblem solvingProblem solving
–Search for possible win-win situationsSearch for possible win-win situations
COMPETITIVE OR PROBLEM SOLVING COMPETITIVE OR PROBLEM SOLVING INTERNATIONAL NEGOTIATIONINTERNATIONAL NEGOTIATION
Cultural norms and values may Cultural norms and values may predispose some negotiators to predispose some negotiators to one approach one approach
Most experts recommend a Most experts recommend a problem solving negotiation problem solving negotiation strategystrategy
THE SUCCESSFUL INTERNATIONAL THE SUCCESSFUL INTERNATIONAL NEGOTIATOR: PERSONAL NEGOTIATOR: PERSONAL
CHARACTERISTICSCHARACTERISTICSTolerance of ambiguous Tolerance of ambiguous
situations situations Flexibility and creativity Flexibility and creativity HumorHumorStamina Stamina EmpathyEmpathy
LOW CONTEXTLOW CONTEXT
The words provide most of the The words provide most of the meaningmeaning
Most northern European languages Most northern European languages including German, English, and the including German, English, and the Scandinavian languages are low Scandinavian languages are low contextcontext
HIGH CONTEXTHIGH CONTEXT
Communications have multiple Communications have multiple meanings interpreted by reading meanings interpreted by reading the situationthe situation
Asian and Arabic languages are Asian and Arabic languages are among the most high context in the among the most high context in the worldworld
PRACTICAL ISSUES IN CROSS-PRACTICAL ISSUES IN CROSS-CULTURAL VERBAL CULTURAL VERBAL COMMUNICATIONCOMMUNICATION
INTERPRETERSINTERPRETERSProvide simultaneous translation Provide simultaneous translation
of a foreign languageof a foreign languageRequires greater linguistic skills Requires greater linguistic skills
than speaking a language or than speaking a language or translating written documentstranslating written documents
Insure the accuracy and common Insure the accuracy and common understanding of agreementsunderstanding of agreements
COMMUNICATION WITH NONNATIVE COMMUNICATION WITH NONNATIVE SPEAKERSSPEAKERS
Use the most common words with most Use the most common words with most common meaningscommon meanings
Select words with few alternative Select words with few alternative meaningsmeanings
Follow rules of grammar strictlyFollow rules of grammar strictlySpeak with clear breaks between wordsSpeak with clear breaks between words
Avoid “sports” words or words Avoid “sports” words or words borrowed from literatureborrowed from literature
Avoid slang/words that represent Avoid slang/words that represent pictures pictures
Mimic the cultural flavor nonnative Mimic the cultural flavor nonnative speaker’s languagespeaker’s language
SummarizeSummarizeTest your communication successTest your communication success
NONVERBAL COMMUNICATION -NONVERBAL COMMUNICATION - COMMUNICATING WITHOUT WORDSCOMMUNICATING WITHOUT WORDS
KINESICSKINESICS
Communicating through body Communicating through body movementsmovements
Facial expressionsFacial expressionsBody postureBody posture
PROXEMICSPROXEMICS
The use space to communicateThe use space to communicateThe personal bubble of space - nine The personal bubble of space - nine
inches to over twenty inches inches to over twenty inches North Americans prefer more North Americans prefer more
distance than from Latin and Arab distance than from Latin and Arab culturescultures
TOUCHTOUCHA basic form of human interaction A basic form of human interaction In greeting - shake hands, embrace, In greeting - shake hands, embrace,
or kiss or kiss Latin European and Latin American Latin European and Latin American
cultures-more touching than cultures-more touching than Germanic, Anglo, or Scandinavian Germanic, Anglo, or Scandinavian culturescultures
AVOIDING ATTRIBUTION ERRORSAVOIDING ATTRIBUTION ERRORSAttribution - process by which we Attribution - process by which we
interpret the meaning and intent of interpret the meaning and intent of spoken words or nonverbal exchanges spoken words or nonverbal exchanges
Attribution errors Attribution errors
CONCLUSIONSCONCLUSIONS
Successful negotiators Successful negotiators
–Understand the negotiation stepsUnderstand the negotiation steps
–Build cross-cultural communication Build cross-cultural communication skillsskills
–Understand nonverbal communicationUnderstand nonverbal communication
–Avoid attribution errorsAvoid attribution errors