Preview

Impacts of Culture Differences on International Business Negotiations Essay Example

Powerful Essays
Open Document
Open Document
3026 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Impacts of Culture Differences on International Business Negotiations Essay Example
Abstract

With the economic globalization and the frequent business contacts, culture differences seem to be very important,otherwise they could cause unnecessary misunderstanding, even affect the result of the business negotiation. This means it is very important to know the different culture in different countries and the ways to avoid the culture conflicts in the international business negotiations. The article will analyses the causes of culture differences, then from the various aspects explain the impacts of culture differences on international business negotiations. Finally it analyses how to deal with the problem of the cultural differences correctly in negotiation process.

Key words: Culture Culture differences Business negotiation impacts Strategies

Outline

I. Introduction..............................................................................................................................1
II. Culture differences in business negotiation............................................................................1
2.1 The definition of culture.................................................................................................1
2.2 The causes of culture differences...................................................................................1
2.2.1 Regional differences.............................................................................................1
2.2.2 Ethnic differences.................................................................................................2 2.2.3 Political differences...............................................................................................2 2.2.4 Economic differences............................................................................................2 2.2.5 Religious differences.............................................................................................2 2.3 The impacts of culture differences on

You May Also Find These Documents Helpful

  • Powerful Essays

    Nt1310 Unit 1 Assignment

    • 4237 Words
    • 17 Pages

    As culture plays an important role in framing the pirorities of the negotiators, negotiating skills are not value free and expectations for outcome differ at the negotiating table. Therefore, international business negotiations, which involve parties from two widely dissimilar cultures can be problematic. According to the US Department of Commerce, for example, for every successful Japanese- American negotiation there are 25 failures. In this context the…

    • 4237 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    References: Lieh-Ching Chang (2003, March). An examination of cross-cultural negotiation: Using Hofstede framework. Journal of American Academy of Business, Cambridge, 2(2), 567-570. Retrieved March 1, 2008, from ABI/INFORM Global database. (Document ID: 288015351).…

    • 895 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Case 8 - Sick Leave

    • 3739 Words
    • 13 Pages

    Sujin, L. et al. 2013. “Cultural Perspective Taking in Cross-Cultural Negotiation”. Group Decision and Negotiation Vol.22, (No.3): pp 389 – 405.…

    • 3739 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    Article Analysis Paper

    • 340 Words
    • 2 Pages

    This article is about a study conducted to determine if cultural influence is identified during the negotiations that take place using the Internet. This new technological trend allows people and corporations from diverse cultures to negotiate with no knowledge of the other party’s culture or nationality. The data was collected over the course of five years using an experimental Internet-based system called Inspire. The participants are allowed to use the Inspire system from their corporate office, to avoid the possibility of bias.…

    • 340 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Cell Phone Negotiations

    • 1108 Words
    • 5 Pages

    Conflicts and disputes in negotiations arise because of a number of reasons. Opposing interests, cultural, gender, personality, and emotional differences are contributing factors as well. Culture is an important dimension of international negotiations. According to Vochita (2008), it is an ingrained behavioral influence which affects the way collective groups approach, evaluate, and negotiate opportunities for international business. This paper will evaluate how the influence of the aforementioned differences will play in cell phone price negotiations between Chinese and American negotiating teams.…

    • 1108 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; "increased sales, operational efficiencies, exposure to new technologies and broader consumer choices" (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum utility.…

    • 676 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Adair, W., Brett, J., Lempereur, A., Okumura, T., Shikhirev, P., Tinsley, C. and Lytle, A. (2004), Culture and Negotiation Strategy. Negotiation Journal, 20: 87–111. doi: 10.1111/j.1571-9979.2004.00008.x…

    • 555 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    There is an argument that proposes that culture is inconsequential to cross cultural negotiation. It maintains that as long as a proposal is financially attractive it will succeed. However, this is a naïve way of approaching international business.…

    • 941 Words
    • 4 Pages
    Better Essays
  • Best Essays

    The Effects of cultural differences in International Business; through the analysis manners and customs of a country: Chile.…

    • 2868 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Korea and America

    • 3792 Words
    • 16 Pages

    As a result of technology improving and globalization, the world has become smaller than before. The communication between different cultures has become more frequently as well. In nowadays, businessmen are trying to join the international market because of the pressures from domestic business competition. The global project is not easy case. People or business comes from different culture has its own characteristics. Only by understanding and respect of each other, the international cooperation could be promoted. In this report, two countries have been chosen, South Korea and USA. South Korea is traditional eastern country; however, USA is a modern western country. Firstly, the Hofstede’s cultural dimensions have been discussed. It helps to understand the culture difference. In the second part, Norm, belief and value have focused. Then based on these differences, the business communication, managing business, negotiation style and international marketing have been examined as follow. At the end of this paper, some suggestions have been given.…

    • 3792 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    This film tells the story of Rubin "Hurricane" Carter, an African-American man who rose above his troubled youth to become a top contender for the middle-weight boxing title. However, his dreams are shattered when he is accused of a triple murder, and is convicted to three natural-life terms. Despite becoming a cause celebre and his dogged efforts to prove his innocence through his autobiography, the years of fruitless efforts have left him discouraged. This changes when an African-American boy and his Canadian mentors read his book and are convinced of his innocence enough to work for his exoneration. However, what Hurricane and his friends learn is that this fight puts them against a racist establishment that profited from this travesty and has no intention of seeing it reversed.…

    • 576 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Recent economic globalization has lead to large scale cross cultural contacts and communications. Every group, region and nation has its own distinct cultural characteristic and it is important to be aware and understand cultural differences amongst various groupings so as to ensure success of business relationships and dealings. For the purpose of our study and analysis, nations have been considered as the cultural unit.…

    • 501 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Chinese Business

    • 2070 Words
    • 9 Pages

    It is often argued that when business persons of different cultures negotiate commercial deals, there is bound to be a culture clash. I disagree with this view. It is true that cultural differences influence business negotiations but with the appropriate approach to deal with the differences, culture clash is to be least expected in any business negotiations, especially with the Chinese. As Sun Tzu would advised in his book The Art of War “Know your enemy and know yourself and you will win all battles” (Sun Tzu 1913). According to Newstrom and Davis (2002) there are many striking differences across countries, just as there are some surprising similarities. Clearly, residents of each country have their own preferences for clothes, food, recreation, and housing. In his research about national cultures of sixty countries, Hofstede (1993) revealed that cultures differ in five key factors namely, individualism/collectivism, power distance, uncertainty avoidance, masculinity/femininity, and time orientation. Among these factors, the Chinese have the culture that value clarity and have the kind of orientation that accent values such as necessity of preparing for the future, the value of thrift and savings, and the merits of persistence. Literatures on different cultures also classify China as high-context culture which tends to emphasize personal relations, place value on trust, focus on non-verbal cues, and accent the need to attend to social needs before business matters (Newstrom and Davis 2002). Culture is very important in certain country such as China. Huntinghon (2000) as cited by Fellner (2008) defined culture as the values, attitudes, beliefs, and underlying assumptions prevalent among people in a society. He stressed that culture is dynamic, interactive, and synergistic, and intermixes with all the elements of the society such as business and economic development (Huntinghon 2000; Fellner…

    • 2070 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Hendon, Donald W., Hendon, Rebecca A. & Herbig, P. (1996). Cross-cultural business negotiations. USA : Green Wood Publishing Group.…

    • 1703 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The Chinese are generally recognised to have a tough negotiating style. People from other cultural backgrounds, especially from the West, often find the behaviour of Chinese negotiators strange and unintelligible. This is why much attention has been given to studying the Chinese negotiation style. So far, most research on the topic has focused on successful negotiations and very little has been done to examine the barriers to negotiation.…

    • 3332 Words
    • 11 Pages
    Powerful Essays