International Business Negotiation

Topics: Culture, Negotiation Pages: 12 (3911 words) Published: November 17, 2012
International business negotiation

1 Introduction

Sensitivity to cultural differences is very important in today’s international business arena. Culture profoundly influences how people thinking, communication and behave. Nowadays, business executives are finding themselves in precarious situations due to culturally rooted differences in business protocol, language and value system. Therefore, being aware of the influence of culture on international business negotiations and the proper ways to deal with problems encountered in international dealings is badly needed for persons involved in cross-cultural transactions. The remainder of this paper is divided into seven parts. First, the concept and principles of business negotiations are presented. Second, the concept of culture is explained in details. Next, the relationship between culture and international business negotiations is discussed. Fourth, the influence of culture on international business negotiations, especially the negotiating styles, which involve ten factors each consisted of two extremities is described. Fifth, points worth noting for cross-cultural negotiations are listed. To make the whole argumentation more rigorous, a section for discussion is added. The last part is the conclusion.

2 Concept and Principles of Business Negotiation

1. 2.1 Concept of Business Negotiation
Negotiation is a basic human activity and it is also a process through which people exchange information and experience everyday to manage their relationship. Because of mutual contact, conflict and divergence in viewpoints, needs, interests, both sides try to persuade the other party to understand and accept their viewpoints and to satisfy their own needs. Business negotiation refers to the negotiating activities over the issues of transaction conditions for both parties to accomplish the exchange of commodities or services. As a useful means for the enterprises to achieve their economic goals, as an important channel to acquire market information, and as a strong power to explore the sales markets, business negotiation is some kind of complicated and comprehensive business activity, which often involves the knowledge in the fields of politics, economics, laws, literature, psychology and so on. Though it is one part of the operation and management of an enterprise, business negotiation distinguishes itself from the common production, operation and management. And these differences are as follows: (1) The objects for exchange in business negotiations have the property of uncertainty and variability. (2) Business negotiation is the unity of magnetism and persuasion. (3) It is also the unity of concession and aggression.

(4) It requires the consistency between your verbal expression and your true ideas 1. 2.2 Characteristics of Business Negotiation
Having a correct understanding of what it is, we conclude some of the characteristics of business negotiation. Negotiation is a cooperate enterprise; common interests must be sought. Negotiation is a behavioral process

In a good negotiation, everybody wins something.
(4) The size of the play field may vary from venture to venture. One must bear in mind that success isn’t winning everything but winning enough. 1. 2.3 The Basic Principles of Negotiation

According to the characteristics of negotiation and the correct understanding of what it is, we can figure out the following basic principles of a successful negotiation. (1) Equality principle----Both parties are equal in law status. They have equal rights and obligations. They do business for their own needs and they enjoy mutual benefits. (2) Sincere cooperation----Both parties are making concessions. The purpose of this is to seek a win-win situation. It is through sincere cooperation that this win-win result can be made....
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