The Influence of Cultural Differences on SinoUS Business Negotiations1.doc

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1、文化差异对中美商务谈判的影响 The Influence of Cultural Differences on Sino-US Business NegotiationsAbstract: After entering into the World Trade Organization, China has established many economic relations with other nations, meanwhile, business contacts among nations get increasingly close, which has brought more

2、 and more opportunities to do business. US, serve as the biggest economic country, is our main trade partner. However, the huge cultural differences between the two countries may give rise to potential cultural conflicts and unnecessary misunderstandings. Thus, in order to negotiate effectively, neg

3、otiators should have a good understanding of culture and cultural differences. More importantly, they should know how negotiation is affected by culture. In doing so, negotiators can predict the process and adjust strategies in order to reach a satisfactory agreement. The thesis presents an in-depth

4、 analysis of the cultural difference in the process of business negotiation. It then put forward some tentative suggestions and strategies for successful negotiations.Key Words: cultural differences; Sino-US business negotiations; influence 文化差异对中美商务谈判的影响摘 要:中国加入世界贸易组织以后,与世界的融合越来越密切,对外贸易往来也与日俱增.美国,作

5、为世界上最大的经济实体,是我国最大的贸易伙伴。两国之间经济与文化往来的日趋频繁使两国之间的商务谈判也随着增多。然而,由于中美两国存在着巨大的文化差异,因而两国的谈判者之间很可能出现文化冲突,甚至是不必要的误解。因此,要想取得有效的谈判,谈判者不仅要了解对方的文化及与己的文化差异,更重要的是应该了解文化因素如何影响谈判。这样,有助于谈判者预见谈判的进程,及时调整谈判策略,最终达成圆满的协议。本文通过研究中美两国存在的文化差异,进而分析了文化差异在商务谈判中的具体体现,提出了进行有效沟通的策略和技巧。关键词: 文化差异;中美商务谈判;影响CONTENTS1.Culture and Business

6、 Negotiations51.1 Culture51.1.1 What is Culture?51.1.2 The characteristics of culture51.2 Business Negotiations.61.2.1 What is Business Negotiations?61.2.2 General Process of Negotiations62. Core Values of Chinese Culture72.1 High Context72.2 Collectivism73. Core Values of US culture83.1 Low Context

7、83.2 Individualism84. The Influence of Cultural Difference on Sino-US Negotiations94.1 The member of Negotiation Team94.2 Forms of Agreement104.3 Pace of Negotiation Process125. How to reach a desired agreement?135.1 Awareness of cultural difference135.2 Try to be well prepared145.3 Improving commun

8、ication competence145.4 Be patient166. Conclusion17Bibliography20Introduction In todays world, due to the global boom of economy, international business contacts and activities are increasing rapidly. As to China, it has been undergoing tremendous changes since its entering into WTO. China and the U

9、nited States, serve as the two typical countries in the East and the West. The culture of the two countries is totally different from each other in terms of beliefs, values, lifestyles and world perspective. That resulted in the unsuccessful and unfruitful negotiations, so we should take a close loo

10、k at the cultural differences.The purpose of this thesis is to identify the differences between China and the United States in terms of cultural values, help Sino-U.S. negotiators reduce unnecessary misunderstandings and achieve a satisfactory agreement. And it would be helpful for the member countr

11、ies in dealing with cross-cultural negotiation in a more flexible way.1. Culture and Business Negotiations1.1 Culture1.1.1 What is Culture? As far as we all know, the definition of culture is numerous, Culture can be viewed as consisting of everything that is human made (Herskovits 1955);collective

12、programming of the mind which distinguishes members of one human group from another(Hofstede 1980); a set of shared and enduring meanings, values, and beliefs that characterize national, ethnic, or other groups and orient their behavior( Faure and Rubin 2001).Thus, we can say that culture can includ

13、e language, arts, morals, beliefs, custom and even everything in our life. 1.1.2 The characteristics of cultureThe characteristics of culture are as follows:1) Culture is learned.2) Culture is transmitted from generation to generation.3) Culture is based on symbols.4) Culture is subject to change.5)

14、 Culture is integrated.6) Culture is ethnocentric.7) Culture is adaptive(Samovar and Porter and Stefani 1998).1.2 Business Negotiations.1.2.1 What is Business Negotiations?Negotiation has not been a strange concept since antiquity. In a broad sense, negotiation is a basic human activity and people t

15、ake on it every day to manage the relationships between children and parents, a husband and wife, and a vendor and purchaser. It occurs because of the following two reasons: (1) to create something new and realize the full potential benefits of the relationship;(2) to resolve a problem or dispute be

16、tween the two parties. The word “negotiation” is from “negotiar” used by Romans, meaning “to carry on business or to trade.” Negotiari derives from the Latin root words neg(not)and otium(ease or leisure), meaning “not leisure.”(Moran and Stripp 1991)Obviously, the ancient Roman businesspersons would

17、 not regard negotiation as leisure until the deal had been settled. Negotiation and business involved hard work. There are a great number of books related to negotiation. Although there is no agreed conceptualization of negotiation, two elements of negotiation are widely accepted: Business negotiati

18、on refers to the negotiation that takes place within business fields, such as commerce, economic cooperation, international trade, etc. Naturally, business negotiations occurring in different fields and different settings have different characteristics. For the sake of convenience of conducting this

19、 research, this paper is not devoted to the discrepancies of negotiation in different fields, but focuses on the differences of cultural values reflected by the intercultural communication behavior in Sino-U.S. business negotiation.1.2.2 General Process of NegotiationsBusiness negotiation is the pro

20、cess whereby interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and attempt to craft outcomes, which serve their mutual business interests. It is usually regarded as a form of alternative dispute resolution. In the international busines

21、s negotiation studies, many scholars have defined the negotiation process model, such as pre-negotiation, negotiation, post-negotiation.(Ghauri 1996) 2. Core Values of Chinese Culture2.1 High Context“High context refers to societies or groups where people have close connections over a long period of

22、 time”(Beer 1995).In the culture of high context, people pay much attention to how to keep a long-term relationship with other ones. Most families in our nation are probably the cases with a high context culture.People in high-context cultures prefer to communicate indirectly. Meaning is embedded in

23、 the context of the message and must be inferred to be understood. In general, high-context cultures are those in which people have extensive information networks among family, friends, colleagues, and clients and are involved in close personal relationships.2.2 CollectivismCollectivism holds that t

24、he group-the nation, the community, the proletariat, the race, etc.-is the primary unit of reality and the ultimate standard of value (Stata 1992).It doesnt deny the individual reality. But eventually, collectivism considers that each one in a group has his identity relative to the group. People are

25、 seen to deal primarily with other people by Collectivists; reality is dealt with through the intermediary of the group; and the group, not the individual, is what confronts reality. Collectivism holds that the benefit of individual is subordinate to that of group. On the other hand, it also holds t

26、hat achievement is a product of society. In this point of view, one individual is a temporary spokesman for the progress of the potential, collective process.Collectivism emphasizes common interests, cooperation and interdependence. The duty to ones family, company, society is paramount. Relationshi

27、ps are based on mutual self-interests. Maintaining harmony within groups is obtained at all cost Society rewards individual as a member of a group rather than an individual. Law supports collective interests above individual rights.Collectivistic negotiators emphasize relationship rather than task.

28、They do business with you but not your company. Long-term interests are the most important. Face must be preserved at all costs. Collectivistic negotiators are very uncomfortable with the open conflict and try to avoid it. Due to the group-oriented culture, collectivistic negotiators make decisions

29、by a consensus method rather than individual decision-making. “The nail that sticks out will be pounded down”, so they are reluctant to take risk, for risk-taking is much discouraged and responsibility is taken by the group. All the actions and decisions taken during negotiation should be agreed thr

30、ough the whole group.3. Core Values of US culture3.1 Low Context “Low context refers to societies where people tend to have many connections but of shorter duration or for some specific reason”(Beer 1995).In the societies with this culture, members know explicitly what to do to deal with the present

31、 matters.3.2 Individualism In individualistic culture, individuals are expected to take care of themselves and to value their needs over that of the collectivethe group, community and society rights and duties are defined by laws. Society regards individual achievements and legal institutions protec

32、t individual rights. Task is put before relationship. Individualism holds that every person is his own master and that no person should be sacrificed for another one. And it also holds that the individual is the unit of achievement. Without denying that one person can build on the achievements of ot

33、hers, individualism holds that individual achievement is very important for it is an individual creation. Individualistic negotiators tend to pay much attention to the task rather than relationship building. They emphasize short-term interests.“A deal is a deal”. Sometimes they even think that perso

34、nal relationship can complicate or damage the negotiation. Individualistic negotiators usually have personal rights to make decisions. They often take risks and burden responsibility personally. 4. The Influence of Cultural Difference on Sino-US Negotiations4.1 The member of Negotiation Team The mem

35、ber of negotiation team considerably depend on the parties cultural background.(Berger 1996)Due to the collective culture and preference for teamwork, Chinese teams are usually large, including experts in relevant fields. Tasks are divided among team members who take respective responsibilities duri

36、ng negotiation. Besides, negotiators do not have the authority to make decisions independently. In collectivistic cultures, consensus decision-making must be adhered to and the team leader should listen to the feedbacks from team members. While in Americans, small negotiating teams are typically pre

37、ferred. Negotiating teams are usually assembled at the number of two or more. Why? Because personal accomplishments are highly valued. The main negotiator may refuse to the offer of additional help because he wants all the credit for himself. Thus, team members cannot coordinate well as a cohesive u

38、nit as Chinese counterparts do. In addition, negotiators are entitled the power to make decisions without concern for consensus or consulting superior at home.On the other hand, culture also affects the selection of negotiators. Some cultures emphasize age and status when choosing team negotiators w

39、hile other cultures dependmore on knowledge and competence. For instance, American culture is low power distant and value egalitarianism. So American team usually selects its negotiators on the basis of substantive knowledge of the issue at the table. Gender, age, and status areoften ignored. While

40、for the status-conscious culture, such as Chinese, they prefer to choose their negotiators on the basis of status and age. Great status is provided to seniority. The Confucian value of respect for age and hierarchy helps explain much the composition of the negotiating team in Asian cultures. Japanes

41、e and Chinese teams are likely to be led by a senior old person with a desired social status. They expect the other side to do likewise. Otherwise, they may feel insulted and doubt your sincerity to do business. If you send lower-level executives to negotiate with them, the negotiating process will

42、be slower because it is difficult for them to believe that a young negotiator has the authority to make decisions. To do business with Chinese, the most senior negotiator usually sits in the middle of the team and he should be greeted first. The angle and duration of the bow vary according to the st

43、atus and age of the negotiator.Thus, if two cultures that use different standards to build up their negotiating team, a clash of expectation certainly will occur when meeting at the table. A talented young American representative of a consumer products company ran into just such a situation in China

44、. Keen to make his mark, the American was sent to Shanghai by his company to begin talks about setting up a sales and manufacturing distribution network in China. The investment was worth hundreds of millions of dollars. In their initial correspondence, the Chinese appeared eager to participate. A g

45、roup of high-level executives visited the American companys headquarters and were warmly feted by the CEO and senior management. The mistake came when they assigned the young executive to travel to China to hammer out the details.“I could tell by their written correspondence that they were eager to

46、do business and when I arrived I was treated like royalty,” the American said, “but a few days later their attitude seemed to turn cold. I didnt understand it.”Then the concerned Chinese middle manager told him that despite his qualification, the senior management of the Chinese firm believed he was

47、 simply too young to do such important business. They said, “Because I was the one chosen to come to Chinasomeone so youngthat our home office somehow had devalued the deal and relationship.”The damage was repaired and the deal salvaged when headquarters flew a more seniorand older executive to Chin

48、a to act as a front for the business. In fact, the young executive still ran the show on basis but kept a lower profile.(Mitchell 2000) 4.2 Forms of Agreement The ultimate purpose of business negotiations is to reach an agreement with a contract signed. Due to the cultural factors involved in negoti

49、ating internationally, form of agreement is preferred differently from culture to culture. Classified broadly, two forms of agreements exist: one is an explicit, detailed, written contract that covers all contingencies and requires no future cooperation and binds the parties through an outside enforcement mechanis

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