Korea has been in a state of chaos for some time. They have survived many times of turmoil, such as the Korean War in 1950 that lasted until 1953. The ending of this war did not settle the civil dispute. There are many contradicting areas in Korea that effect business, for example, communist vs. anti communist, religious and non religious, idealist and collectivist, and those that are willing to work each other. Also Korea has a fear of doing business with Japan. Japans market is considerable larger than their and they worry that if business is done with Japan they would be overshadowed. This lack of interest to do business with Japan is also due to historical influences in Korea’s past
Negotiation is a crucial aspect of all interorganizational relationships. No matter if it is a strategic alliance, joint venture, merger, acquisition, or just a sale of a product and a service, negotiation is a part that one cannot due without. As the section of international to domestic trade increases, so does the occurrence of business negotiations among people from different countries and cultures.
Negotiation is a process in which at least one individual tries to persuade another individual to change his or her ideas or behaviors. And our groups focus is an investigation into negotiating orientations and behaviors of South Korea in comparison to that of the US.
Basic Concept of Negotiation Process
Distributive versus Integrative
In the twelve dimensions of cross-cultural negotiations, we first start off by looking at the general model, in which consists of two components. The first component which is the basic concept of the negotiation process includes two aspects, distributive and integrative. In the distributive perspective, negotiators “believe that there will be one winner and one loser,” and in order to do so, the negotiator needs to establish a kind of dominance in the negotiation process. Negotiators with these characteristics display a strong sense of individual concerns, and they have little interest or concern for others. Negotiators with an integrative perspective on the other hand believe that “mutually beneficial solutions can be generated.” Integrative negotiators tend to take a problem solving approach in order to better exchange information, where they can focus on the different interests of both parties to find a common ground, and effective solution. South Koreans lie on the high end of the integrative perspective. They share their information about their own interests, but also seek to obtain information about the other party’s interests. During a negotiation, both party’s react to each other’s arguments until both negotiators reach an agreement.
Most Significant Type of Issue
Task-Based versus Relationship-Based
Contacts and personal relationships are very important, since South Koreans tend be suspicious of people whom they do not know or those with whom they do not have mutual contact. Koreans want to do business with people whom they have formed a personal connection with or whereby a mutual mediator, friend or acquaintance has made an introduction.
Drinking is often the introduction to any business negotiation done in South Korea. Some South Korean businesspeople often believe that they will get to know a business partner far better after having a few drinks. They also use drinking locations to resolve a sensitive problem or to close a difficult business deal.
In order to establish a more personal relationship, South Koreans may ask extremely personal questions regarding their counterpart’s age, salary, education, religion, and family life. If individuals feel uncomfortable and don’t want to answer, the appropriate course of action would be to remain polite but try to gracefully sidestep the questions asked. In most cases, South Koreans make these inquires because they think that they can establish...