Many factors influence cross-cultural negations and should be considered before entering into negotiations with another culture. Negotiators who understand certain aspects of cross-culture negotiations have the advantage over the negotiator who is not well prepared to negotiate with their foreign counterpart.
According to Salacuse, 1991, negotiators should consider the following seven factors when conducting business internationally: the negotiating environment, cultural and sub-cultural differences, ideological differences, foreign bureaucracy, foreign laws and governments, financial insecurity due to international monetary factors, and political instability and economic changes. To avoid pitfalls during negotiations, here are some very helpful components negotiators can apply when dealing in cross-cultural negotiations: negotiating goal and basic concept; protocol; communications; risk-taking propensity - uncertainty avoidance; view of time; decision-making system; form of agreement; power distance; and personal style. More in-depth information is provided on a few of the components to cross-cultural negotiations.
Cultures have different views and reasons for setting their goals in negotiations for instance, “the goal of business negotiation may be a substantive outcome (Americans) or a long-lasting relationship (Japanese)” (Zieba, n.d). Protocol deals with the many aspects of business etiquette, for example, negotiators may consider at a minimum, “dress codes, number of negotiators, entertainment, degree of formality, gift giving, meeting and greeting, etc” (Zieba, n.d). Communication, verbal and non-verbal, plays a very important part of the negotiation process and can hinder the progress of a successful negotiation if one or both parties do not know or understand things such as a simple gesture because the gesture may have a different meaning to each culture.
Understanding the components of... [continues]
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