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HOW TO DEAL WITH CROSS CULTURAL PROBLEMS IN INTERNATIONAL BUSINESS NEGOTIATION.

EMEM UDOBONG*

ABSTRACT: Businesses all over the world today are extending their frontiers beyond domestic markets. In this global business environment, cross cultural negotiation becomes a common field of research. This is primarily due to the fact that the negotiating parties are often from different countries, with different cultural values and beliefs which they usually bring with them to the negotiating table. What is communicated, how it is communicated, how people think and behave during negotiations can differ across cultures. The purpose of this paper is to examine the effect of culture on negotiation and suggest ways to deal with cross cultural problems in international business negotiations. An analytical approach is applied in this research. The conclusion reached is that effective international negotiators need to know not only the fundamentals of negotiation, but also how culture can influence the negotiator’s behavior and the negotiation agreement. Understanding, accepting and respecting the cultural values of the other parties is very important as it will lead to a more successful outcome.

*

The Author is a legal practitioner and holds an LL.B (Hons) from the Igbinedion University, Okada. She is currently a postgraduate student of CEPMLP University of Dundee, Scotland, where she is pursuing an LL.M Degree in Energy Law and Policy.

TABLE OF CONTENTS Page ABBREVIATIONS INTRODUCTION………………………………………………………………… CHAPTER ONE 1.0. 1.1. 1.2 1.3 . Negotiation – An Overview……………………………….……………… Negotiation Strategies…………………………………….………………. Stages of Negotiation……………………………………….……………... Principled Negotiation……………………………………….…………… 5 5 7 8 4

CHAPTER TWO 2.0. 2.1 Culture……………………………………………....................................... Cultural Dimensions…………………………………….………………… 9 10

CHAPTER THREE 3.0. 3.1. Cross Cultural Negotiation……………………………………………..… Factors that affect Cross Cultural Negotiation………….…..………..…. 12 12

CHAPTER FOUR 4.0. How to Deal with of Cross Cultural Problems………………………….. 4.1. Conclusion…………………………………………………………………. BIBILIOGRAPHY

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TABLE OF ABBREVIATIONS

ARB. J. I. J. P. N. J. USA

ARBITRATION JOURNAL INTERNATIONAL JOURNAL OF PSYCHOLOGY NEGOTIATION JOURNAL UNITED STATES OF AMERICA

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INTRODUCTION

Negotiation can be basically said to be a means of conflict resolution where two or more parties attempt to resolve their dispute in a mutually agreed manner. With the globalization of product markets, where a growing number of business transactions involve foreign customers, suppliers or joint venturers, cross cultural negotiations take place daily all over the world. In these kinds of settings, misunderstandings may easily arise during communication. For a negotiation to be successful, the parties must have not only a good knowledge of the business at hand, but also a good grasp of the cultural and economic background of each other. Negotiating across cultures is not about reaching a consensus or maximizing one’s position. It is about respect for the norms of the negotiating partners and establishing a long term cordial relationship for business.†

The purpose of this paper is to critically examine the effect of culture on international business negotiations. This is very important because even though both parties may fully understand the facts of the business, other factors like words spoken or actions may adversely affect the outcome of the negotiation. An analytical approach is applied in this research. It is pertinent to state at this point that this research does not provide guidance on how to negotiate with people of different cultures on a country by country basis. It however focuses on the skills necessary to negotiate globally. This is to avoid stereotypes which are often untrue, and also due to the fact that individuals within the same country may have unique characteristics. Chapter...
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