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1、The Impact of Cultural Differences on International Business Negotiation1. IntroductionInternational business negotiations are far more complex than domestic ones. The difficulties are due to the big differences between the two parties in a negotiation in language, value, behavior patterns, moral st
2、andards and so on. All those factors are playing crucial roles in negotiations. The key to effective cross-cultural communication is knowledge. So we must learn and know as much knowledge as we can. Knowing these cultural differences can help us solve the problems and reduce the misunderstandings in
3、 International business negotiations. Due to these cultural differences, negotiators who come from different part of the world can form different negotiation styles. The relation between culture and negotiation styles has been the topic of much investigation and research in recent times. Being famil
4、iar with different cultural differences can help us get a close view of different negotiation styles, and all these previous efforts can make the International business negotiation smooth. The thesis will elaborate on the cultural factors and their influences on negotiation styles in different count
5、ries.2. Cultural Influences and Types2.1 Cultural InfluencesWhen two groups from the same country are doing business, it is often possible to expedite the whole negotiation procedure. Because they have the same cultural background, the mutual communications are easy to understand. This does not mean
6、 they have no obstacle during the whole negotiation procedure, but compare with people who do business from different cultures, they do not have the impact of cultural differences, so the contradictions seem to be easy solved.If two different cultures are involved, one party without a real knowledge
7、 of another culture, it may lead to misunderstandings. The international negotiators must be careful when handle these cultural differences and do not use the same way like negotiate with local businesspersons.A great number of real cases show that due to misunderstandings, many businesses were lost
8、. For example, an American businessman once presented a clock to the daughter of his Chinese counterpart on the occasion of her marriage, not knowing that clocks are inappropriate gifts in China because they are associated with death. His insult led to the termination of the business relationship. I
9、t is also bad form to give the gifts of great value to the Japanese than those received.As an international business negotiator, he or she must try his best to learn and know the culture differences in order to avoid some mistakes and through the cultural exchange to establish a good cooperation rel
10、ationship with his partners. 2.2 Cultural TypesBeliefs and behaviors are different from different cultures, because each develops its own means of explaining and coping with life. Four cultural dimensions can help to explain the differences between cultures. Though the distinctions between them seem
11、 clear, the dimension should be regarded as a general guide. The four dimensions are gender, uncertainty avoidance, power distance and individualism.Gender cultures can be divided into masculine and feminine types. Masculine cultures typically value assertiveness, independence, task orientation and
12、self-achievement. Masculine societies tend to have a rigid division of sex roles. The competitiveness and assertiveness embedded in masculine societies may result in individuals perceiving the negotiation situation in win-or-lose terms. In masculine cultures, the party with the most competitive beha
13、vior is likely to gain more.Feminine cultures value modesty, cooperation, nurturing and solidarity with the less fortunate. Femininity is related to empathy and social relations.Uncertainty avoidance This term refers to how uncomfortable a person feel in risky or ambiguous situations. In high uncert
14、ainty avoidance cultures, people tend to avoid tense situations. These cultures tend to observe formal bureaucratic rules, rely on rituals and standards, and trust only family and friends.In low uncertainty avoidance cultures, people are generally more comfortable with ambiguous situations and are m
15、ore accepting of risk. Low risk avoiders require much less information, have fewer people involved in the decision-making, and can act quickly. Such cultures dislike hierarchy and typically find it inefficient and destructive. Deviance and new ideas are more highly tolerated. Cultures characterized
16、by low uncertainty avoidance are likely to pursue problem-solving solutions rather than maintain the status quo.Power distance Power distance refers to the acceptance of authority differences between peoplethe disparity between those who hold power and those affected by power. High power-distance cu
17、ltures are status conscious and respectful of age and seniority. In high power-distance cultures, outward forms of status such as protocol, formality, and hierarchy are considered important. Decisions regarding rewards and redress of grievances are usually based on personal judgments made by power h
18、olders. When someone from a high-masculinity culture attempts to work with someone from a high power-distance culture without either party recognizing the variations in their respective behaviors, clashes are likely to disrupt negotiations. In low power-distance cultures, people strive for power equ
19、alization and justice. A low power-distance cultural values competence over seniority with a resulting consultative management style. Low masculinity and low power distance may be related to the sharing of information and the offering of multiple proposals as well as more cooperative and creative be
20、havior.Individualism In individualism cultures, people tend to put tasks before relationships and to value independence highly. People in these cultures are expected to take care of themselves and to value the needs of the individual over those of the group, community, or society. Individualistic cu
21、ltures prefer liner logic and tend to value open conflict. Members from individualistic societies expect the other sides negotiation to have the ability to make decision unilaterally.By contrast, cultures that value collectivism emphasize solidarity, loyalty, and strong interdependence among individ
22、uals. Relationships are based on mutual self-interest and are dependent on the success of the group. Collectivist cultures define themselves in terms of their membership within groups. Maintaining the integrity of groups is stressed so that cooperation, conflict avoidance, and conformity dominate th
23、e culture. Collectivist societies tend to stress abstract, general agreements over concrete, specific issues.Collectivist negotiators tend to assume that details can be worked out if the negotiators can agree on generalities. Collectivist societies show more concern for the needs of the other party
24、and focus more on group goals than individualistic societies do. Members of collectivist societies chafe when members from individualistic societies promote their own positions and ideas during negotiations.3. The Relevant Cultural FactorsIn terms of international business negotiation, the following
25、 elements of culture are generally believed to have an important impact on international business negotiation. Knowing much relevant knowledge of different cultures can make the international business negotiation smooth. 3.1 Language and CommunicationThe ways in which people communicate, including u
26、sing verbal and non-verbal language, directly affects international business negotiation. When we communicate with people from other cultures, our body language sometimes helps make the communication easier and more effective, such as by shaking hands when greeting others. This has become such a uni
27、versal gesture that people all over the world know that it is a signal for greeting.Sometimes, body language can be more of a hindrance than a favor. It can lead to misunderstanding since people of different cultures often have different forms of behavior for sending the same message. For example, n
28、odding ones head is generally meant to show agreement, to indicate yes. To the Nepalese and Sri Lankans, however, it meant not yes, but no.So, as a master hand, he must try his best to know as much as information of his counterpart, the proficiency of languages and negotiation techniques are not eno
29、ugh, he also needs to have some mastery of the non-verbal behavior of different cultures. People use body languages more frequently in daily life. Excellent language and communication can help us make success.3.2 ValuesValues are the standards by which a culture evaluates action and their consequenc
30、es. They affect perception and can have a strong emotional impact upon people. In different cultures, values may vary significantly. Ones proper actions in one culture can be seen as wrong in a moral sense in another culture.Thus, it is important to understand the prevailing values in a particular s
31、ociety and the extent to which they are respected in the everyday behavior of individuals. Values affect the willingness to take risks, the leadership style and the superior-subordinate relationships, etc. This is true for the relationships between negotiators within each team. Every culture has def
32、ined priorities for every aspect of social life. The discussion here will focus on values critical for understanding the economic performance of a society, more specifically, and the value that deserve attention in order to develop intercultural communication skills.3.2.1 Value towards TimeValue tow
33、ards time and how they shape the way people structure their actions have a pervasive yet invisible influence on international business negotiation. Differences in punctuality, reflected in everyday negotiation behavior, may probably appear as the most visible consequence. But differences in times or
34、ientations, especially toward the future, are more important as they affect long-range issues such as the strategic framework of decision made when negotiating.3.3.2 Value towards RelationshipsDifferent patterns of relationship affect international business negotiations through the style of interact
35、ion between people, their decision-making process, and the way in which they mix human relationships and business matters, etc. 3.3 Decision-making Process When faced with a complex negotiation task, people in different countries may use different approaches to make a decision. Knowing these differe
36、nces will facilitate anticipating the reactions of the other side in business negotiation. 4. Different Negotiation Styles4.1 The American Negotiation StyleThe United States is among the most advanced countries in economy and technology in the world. Both its language and currency occupy an importan
37、t place in the world economy. English is the most commonly used language in international negotiations and fifty percent of the world trade adopts the U.S. dollars to settle accounts. All of these factors make the American feel very proud of their country and possess very strong national pride and g
38、lory, which are fully put up in their trade activities. They often leave a deep impression of superiority to foreign negotiators.Americans emphasize free competition and individualism. Very often, the emphasis on self-interest and freedom of the individual can run counter to cooperation, commitment
39、and community. The business firm values the person who is mobile, energetic, creative and ambitious.4.1.1 Language and CommunicationFor the Americans, the stage of exchanging task-related information in business negotiations is relatively direct, with clear statements of needs and preferences. They
40、may discuss topics other than business at the negotiation table, such as the weather, sports, etc., but not for long. They tend to spend most time in the stage of negotiation-persuasion. They take it for granted that the two parties of a business transaction shall both have good prospects of profit
41、and they will put forward a they-think-it-most-reasonable plan in accordance with this principle. They prefer to clarify their standpoints at the very beginning of the first touch of the two parties and put out their plan so as to strive after the initiative. If there is a bifurcation, they seldom s
42、uspect their own analysis and calculation and usually ask the other party to consider the possibility of making re-composition. Americans tend to make concession throughout the negotiations, settling one issue, then proceeding to the next. Thus the final agreement is a sequence of several smaller co
43、ncessions.Americans are apt to make censure on the other party of a negotiation, especially when the negotiation is out of their expectation. This is because they always think they are right all the time and doing reasonable things. They are lack of tolerance and understanding of other. They speak l
44、oud and fast. They seldom say sorry to others. They like taking themselves as the center of everything and expecting other people to do things as they wish. Their behavior in negotiations leaves an impression of being rude, arrogant and aggressive to the oriental.4.1.2 ValuesIn the United States, th
45、ere are strong values regarding independence, freedom and individual equality. The sense of personal freedom is very strong. Individuals are not necessarily constrained to a particular social class, location or economic group by birth. As a result, individuals strive to achieve personal goals, seek
46、personal autonomy and often prefer to act as individuals rather than as a member of a group. Individuals are being empowered as decision-makers for their group, division or companies. Their communication pattern tends to be present-oriented, self-oriented and action-oriented.They place great value o
47、n time. Using time efficiently is a critical goal and admired skill. They do not like “meaningless” talk even in very important negotiations. They will tend to be impatient when process of negotiation slows down. If you are wasting their time, they will think you are stealing their money, because in
48、 the American thought, “Time is money.” They cherish time very much and are always punctual. Another manifestation of the American businesspersons cherishing time is that they prefer to do things orderly and set up plans well in advance and they do not like uninvited guests with no appointments befo
49、rehand. It is both impolite to arrive early or late when you come to the appointment with an American. To them, foreigners who do not respect this time orientation are viewed as less professional or less sophisticated than those who do. Americans pay attention to the contracts and rely on law. They take business contracts purely as they are and they cannot bear the mixture of business and friendship. No matter in what good relations, even between a father and a son, it sh
