Cross Cultural Negotiation
Cross Cultural Negotiation
Michal Zieba Bookmark Page Download PDF Print This Page
The impact of international business in domestic markets compels us to ask a question: “How can we survive in this global playing field, and what can we do to run our businesses more effectively?” Nowadays, businesses of all sizes search for suppliers and customers on a global level. International competition, foreign clients and suppliers may become a danger, but they may also create huge opportunities to develop our business. The increasingly global business environment requires managers to approach the negotiation process from the global business person’s point of view. This approach includes aspects which are usually unimportant in domestic negotiations. Some of the components of a cross cultural negotiation process are more complex and difficult, but will increase our success in avoiding barriers and failures in the international business arena.
When doing business internationally, we need to consider (Salacuse, 1991):
The negotiating environment
Cultural and sub-cultural differences
Ideological differences
Foreign bureaucracy
Foreign laws and governments
Financial insecurity due to international monetary factors
Political instability and economic changes
If we consider the fact that negotiating with our fellow citizen is not an easy task due to many individual differences, it would be reasonable to suggest that negotiating with foreigners may be even more difficult. The way we perceive and create our own reality may be completely different to our counterpart’s way of thinking, behaving and feeling. Unfortunately, knowledge of any foreign language is not enough to face and solve the problem. Language is a cluster of codes used in communication which, if not shared effectively, can act as a barrier to establish credibility and trust. We need more effective tools, and the most important is knowledge of all factors that can influence the proceedings.
Michal Zieba Bookmark Page Download PDF Print This Page
The impact of international business in domestic markets compels us to ask a question: “How can we survive in this global playing field, and what can we do to run our businesses more effectively?” Nowadays, businesses of all sizes search for suppliers and customers on a global level. International competition, foreign clients and suppliers may become a danger, but they may also create huge opportunities to develop our business. The increasingly global business environment requires managers to approach the negotiation process from the global business person’s point of view. This approach includes aspects which are usually unimportant in domestic negotiations. Some of the components of a cross cultural negotiation process are more complex and difficult, but will increase our success in avoiding barriers and failures in the international business arena.
When doing business internationally, we need to consider (Salacuse, 1991):
The negotiating environment
Cultural and sub-cultural differences
Ideological differences
Foreign bureaucracy
Foreign laws and governments
Financial insecurity due to international monetary factors
Political instability and economic changes
If we consider the fact that negotiating with our fellow citizen is not an easy task due to many individual differences, it would be reasonable to suggest that negotiating with foreigners may be even more difficult. The way we perceive and create our own reality may be completely different to our counterpart’s way of thinking, behaving and feeling. Unfortunately, knowledge of any foreign language is not enough to face and solve the problem. Language is a cluster of codes used in communication which, if not shared effectively, can act as a barrier to establish credibility and trust. We need more effective tools, and the most important is knowledge of all factors that can influence the proceedings.