Cultural Differences in International Business
International business negotiation is playing a more and more important role in modem society. We can see clear that there are great differences in international business negotiation. Specially, culture can influence negotiating styles in numerous ways, because negotiator who may come from another nation is different from us, in language, beliefs, and behaviors. Different cultures employ different ways of doing business. Nowadays, the world is developing quickly in the age of economic globalization. Under this circumstance, opportunities for international business negotiation are on the dramatic increase. Negotiators from different countries conduct business in different ways, which are influenced by their given cultures. Thus, international negotiators tend to act according to their own values shaped by culture.
Negotiators from different cultures prefer different approaches to negotiate. So, there is a closed link between negotiation and culture. Negotiating in domestic culture is easier because the two sides are relatively familiar with each other's cultural background, but it is not the case for international negotiations. When the two parties at the negotiating table pursue their own interests respectively, problems often crop up and the potential for misunderstanding each other is great. Discussions are frequently hindered because of different communication styles.
Even though negotiators are technologically well prepared, it is not so easy to reach a satisfactory agreement between negotiators across cultures. Negotiations can be easily broken down due to a lack of mutual understanding of the cultures. Culture affects negotiation even before negotiators meet with face to face. It conditions how they view the negotiation, a human activity based on communication. For instance, negotiation is viewed as a competitive game full of power confrontations while in another culture as a cooperative exercise in which harmonious relationships come first. Understandings of negotiation vary from culture to culture. According to Moran (1991, p. 94), there are two basic concepts of negotiation: strategic and synergistic. Americans tend to be strategic while Japanese is a reflection of the latter. They are quite different from each other.
So even in the beginning, there may be difference in the feeling the parties have about negotiation. Culture forces people to view and value differently when meeting in negotiation. Aggressive implication of negotiation still remains in Japanese perception; while in the United States, it is quite agreeable method of solving conflicts Americans see negotiation as a competitive process while a collaborative exercise for Japanese. Americans negotiate a contract; Japanese negotiate a personal relationship. By understanding your counterpart's viewpoints of negotiations, negotiators can make appropriate strategies to arrive at an early agreement.
During negotiation, culture difference is one of the factors that have important impacts on business negotiations. Therefore, learning the opponent's culture and having a good understanding of how cultural differences affect negotiation will be critically important if one wants to succeed in cross-cultural negotiations.
Impacts of Cultural Differences on International Business Negotiation ABSTRACT: This article analyzes the impacts of cultural differences on international business negotiation. As we all know, different countries have different cultures. 'Culture is the collective programming of the mind which distinguishes the members of one category of people from another.' (Hofstede, 1991), Nowadays, the world is developing quickly in the age of economic globalization. Business contacts among nations get increasingly close, which has brought more and more opportunities to deal with businesses. actually, international business Negotiation is the best important part on international business, meantime, we...
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