...Lessons Learned: International Negotiating: Planning and Conducting International Commercial Negotiations In this paper I will cover three important points that go into international negotiations. Here I will cover the importance of who is on your negotiating team, the importance of hosting a negotiation and when to determine what is important to determining what is considered a successful negotiation. Selection of members of your negotiation team that will be the most effective is not always based on size. Choosing members of your negotiating team is the first step in leading a successful negotiation. Keeping the negotiation team small has many advantages. The costs of travel that include airfare, hotel stay and transportation should all be considered when you are selecting your negotiation team. Often times it easier to present a unified front with a smaller team, which should be of paramount importance with your team. The chief negotiator should be able to direct the team when new issues come to the table. With a smaller team reaching a consensus is more achievable for the chief negotiator; with a large negotiation team this can prove to be a cumbersome task. Members of a negotiation team have other duties that still require their attention; the smaller teams don’t have to deal with this roadblock as much as there are less of them that could get sidetracked with these distractions. Technical experts in these matters can be used as an asset, but sometimes having them...
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...NEGOTIATING INTERNATIONAL BUSINESS – CHINA vs. USA CHINA | USA | The People’s Republic of China is in the midst of a major transition from rigid communist country to free-market society. For instance, significant cultural differences exist between rural and urban areas as well as between old people and younger ones. Generally, young people in major urban areas are more aggressive and willing to move faster than older ones in rural areas may be. Nevertheless, the country’s culture is quite homogeneous overall. While most Chinese businesspeople and officials have only limited exposure to other cultures, some are very perceptive in doing international business and may appear quite ‘westernized. However, it is crucial to show respect for the country’s history and importance. While there is no problem with calling China a developing country, do not refer to it as a third-world country. After all, China’s importance as a powerful nation reaches back some 5,000 years. | The US, the world’s third largest country both in size and in population, is a multicultural mosaic of 300 million people of mixed race and heritage. Yet, despite this ethnic and cultural diversity, the US still exhibits a distinct business culture. An important aspect of US culture is the American Dream: the widespread belief that every individual can succeed and prosper financially by working hard. This idea contributes to a strong work ethic and to a system that is merit based. The repercussions of...
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...Cultural Differences in International Business Negotiations Nonverbal Behaviours Cultural Differences in International Business Negotiations Globalization embraces the free-market system which is driven by policies to allow the integration of markets in the global economy. By reducing trade barriers, it has promoted free trade - encouraging competition to spread globally. As a consequence, the global environment of business has become exceedingly challenging as the number of corporations competing in the world marketplace rise. The unprecedented growth of international business has become increasingly dependent on effective face-to-face negotiations between business partners from different countries which often have unique cultural nuances. Culture influences how people think, communicate and behave, which ultimately affects the way they negotiate. For example, many countries which utilize northern European, German, English, and Scandinavian languages are categorized as low context cultures, and rely on spoken words in order to communicate. Conversely, high context cultures, often pertaining to Asian and Arabic languages, are heavily dependent on nonverbal and situational cues. These differences in culture can lead to misunderstandings during international business negotiations, so it is imperative that all members involved are familiar and sensitive to the culture of the other party. A key component of successful international negotiation is effective cross-cultural...
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...Rania Harb International Negotiations As the world becomes more globalized, this has put increasing pressure on companies and employees to become proficient in conducting business within their culture and more importantly, with other cultures as well. Indeed, cultural differences pose difficult challenges to international negotiations, however, these may present instrumental opportunities for both parties if conducted properly. There are various elements that impact international communication and decision-making such as Hofstede’s dimensions of culture, cultural intelligence, leadership and negotiation. This paper will discuss these characteristics in relation to how an employee should prepare when joining a team of international negotiators. Leadership is an essential ingredient in effective international agreements. Leadership makes a difference by establishing a “relationship of influence in which one actor guides or directs the behavior of others toward a certain goal” (Underdal, 1994). Leadership provides a model to others and removes uncertainty about whether the leader is actually devoted to meaningful action. It is important for any employee entering an international agreement to exercise leadership skills. Some universal skills include having charisma and being autonomous and a team player. It is important to enter a business agreement with some authority to ensure seriousness and portray a vision. Hofstede`s cultural dimensions have been extensively used...
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...policies that impact on the global economics. Businesses have the power to influence policies adopted that relate to engaging in trading around the globe ( Fusch, p2). The discursive power enables businesses to exert influence both in the public and in private sectors. Businesses can tailor their discursive powers to achieve diverse objectives relating to policy formulation (Fusch, p26) There are enormous changes in the global intellectual property regime that give the businesses a leeway to actively engage in international economics negotiations. The liberalization of knowledge through relaxed protection of the intellectual property works to the advantage of the businesses (Morin p3). The economic and political changes taking place around the world occasioned changes in the political roles. There is an evident decline in the roles of states in the international policing. The business enterprises are increasing taking over from governments in participating in the international economic policing (Fusch, p5). 2. A classic instance of collaboration among businesses was the formation of Basel II. Several bankers from different countries came together to influence the policies formulated around that time. The bankers came from the states that formed G10 at the time (Young, 2012, p665) The rise of academic communities successfully managed to advocate for the scrapping of the monopoly initially exhibited practitioners possessing the IP expertise. Through instilling scepticism relating...
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...In an international business there has to be at least 2 parties, from different countries, negotiating a business deal. There are 2 factors in the international negotiation. The environmental context – this Includes environmental forces that neither negotiator controls that influence the negotiation The immediate context – this Includes factors over which negotiators appear to have some control The following diagram below shows the context of international negotiations. According to the above diagram, the 6 factors in the environmental context that makes international negotiation different from the national are: (1) Political and legal pluralism Firms from different countries work with different legal and political systems. There are large concerns about the political risks. (2) International economics The value of foreign currencies which fluctuates from time to time; this factor needs to be negotiated. (3) Foreign governments and bureaucracies The level of governmental meddling in business in many nations is wide-ranging. In countries firms are free from government regulations while in others they are not. Parties need to know whether the governments should be included in their negotiations or not. (4) Instability Instability can be caused due to lack of resources (electricity/computers), shortages of other goods and services (water, transportation and proper food) and political instability (government policies). (5) Ideology & Culture ...
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...Running Head: NEGOTIATION STRATEGY ARTICLE ANALYSIS Negotiation Strategy Article Analysis Tony Robinson University of Phoenix MGT 445 August 15, 2012 Negotiation Strategy Article Analysis Introduction One experiences the act of negotiating at least once in a lifetime. It happens even in the smallest form of determining what is for dinner and can be as large as buying a home. The importance of understanding negotiation strategies will affect ones competitiveness within the market. Negotiations are made anywhere at any time for the most minute reasons. A negotiation strategy evaluates and analyzes two articles dealing with negotiating. The negotiating strategy also compares and contrast the strategies utilized and how those strategies can be apply within a work environment and the levels of its effectiveness. Article One The title of the first article is “Selling Water for China.” This article documents the actions of Acqua International. Aqua International is a company that sells drinkable water and is seeking to gain higher investments in China and wants to be the leading drinkable water supply in the Chinese market. In preparations of becoming the leading drinkable water supplier, Acqua International has to resolve some standing issues and negotiations. These issues include establishing water rates, consumer demands, annual water prices in regard to foreign exchanges, and revising the structure of the company. Determining water charges are inclusive on the last...
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...Cultural impacts in international negotiation negotiating with Norwegians Simen Moen Nordbo Recommended Citation Nordbo, Simen Moen (2010) "Cultural impacts in international negotiation - negotiating with Norwegians," ADR Bulletin: Vol. 12: No. 2, Article 2. Available at: http://epublications.bond.edu.au/adr/vol12/iss2/2 This Article is brought to you by ePublications@bond. It has been accepted for inclusion in ADR Bulletin by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Nordbo: Cultural impacts in international negotiation ADR Bulletin of Bond University DRC Cross-cultural dispute resolution dynamics Cultural impacts in international negotiation — negotiating with Norwegians Simen Moen Nordbo Introduction The global community and the interdependent relationships amongst its citizens is ever-growing, causing increased communication and trade across cultures. For Norway international organisations like the WTO (the World Trade Organisation), EU (European Union) and EFTA (the European Free Trade Organisation) and improvements in communication and transport contribute to constant cross-border developments. As an industrialised country Norway takes part in these forms of globalisation. International connections and relationships are established while negotiation is used as a dominant factor in the intercultural legal and business systems. Moreover negotiation as a dispute resolution...
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...Article Analysis By Edward Ryan MGT/445 In the world of negotiations there is no one decision that does not affect the lives of others in some way. Some groups of people may believe that our decisions are interdependent on each other. In a negotiation there never may be a best outcome for just one person, but if each side of the negotiation puts their best efforts forward then the entire process is usually always better for both sides because each side can usually succeed in getting more if they work together. Many cultures such as the Chinese culture believe in working together so that both sides of the negotiations more of what they need. According to Jehn, K. & Weigelt, K. this belief is not new, but just the method of how it is applied is new. Game theory is the process where each party in the process attempts to maximize their outcome with highest payoffs possible. Each side also accepts the situation that are at with their resistance points and each side plays by the known rules and that there is a level of trust between the two in that each side is offering the best that they can offer,(oregonstate.edu). The part of the process that is not new is how the Chinese have an emphasis on how they should know the situation that they are going in to. In other words it’s best to prepare because it is those that prepare by not only knowing how they will act but also how will the other side will act. The issue is that if you know only how you...
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...complex global economy, conducting international business in the twenty first century has brought many cultural difference issues to the forefront of today’s business strategies. Culture in international negotiations has frequently been compared to an iceberg, although there is an appearance of an obstacle above the surface, the depth of understanding required to conduct successful international negotiations goes far beyond what is immediately transparent. Since culture has a substantial influence on how people deliberate, converse and act, it has significant effect on many aspects of business negotiations, and therefore must be considered when conducting business internationally. All too often companies try to operate using the same business structure and strategies in multiple different countries and are unsuccessful or have extreme difficulty due to the differences in culture. This paper will discuss several cultural differences which consistently cause difficulties in international negotiations specifically during the conduct of business between America and China. These differences are broken up into several different categories including: purpose of negotiation, cultural compatibility, governmental compatibility, communication barriers, risk aversion, formalities and negotiating speed, emotional response, and successful negotiating tactics. Purpose Understanding why both business parties are negotiating as well as cultural negotiation processes are important in obtaining...
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...Culture influences negotiation through its effects on communications and through their conceptualizations of the process, the means they use, and the expectations they hold of counterparts' behavior. Culture provides the context for negotiation because it takes place within the framework of a culture's institutions and is influenced by its norms and values. Culture is a key factor affecting negotiation processes and outcomes. Negotiation practices differ from culture to culture. Culture provides the "negotiating style" the way persons from different cultures conduct themselves in negotiating activities. Culture determines the way people perceive and approach the negotiating process. They have specific perspectives on power, time, risk, communication, and complexity. Thus cross-cultural negotiators bring into contact unfamiliar and potentially conflicting sets of categories, rules, plans, and behaviors. The cross-cultural negotiator cannot take common knowledge and practices for granted. Difficulties sometimes arise from the different expectations negotiators have regarding the social setting of the negotiation. The cultural differences consistently influence international business negotiations. This indicates that even though some universal characteristics of international business negotiation are generally recognized, negotiators from specific cultures view negotiations as a particular style. They emphasize different priorities of goals, the negotiation process, and expected...
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...Negotiation Closing Deals, Settling Disputes, and Making Team Decisions David S. Hames University of Nevada, Las Vegas @>SAGE Los Angeles | London | New Delhi Singapore | Washington DC • •-*» •• • i ' w ' t * • * 5s" i- . •> - • • y . » " •• is • Acknowledgments Preface PART I: THE FUNDAMENTALS 1 The Nature of Negotiation: What It Is and Why It Matters Intended Benefits of This Chapter The Essence of Negotiation What Is Negotiation? 5 6 6 When Do People Negotiate? Technology 6 4 3 xvii xix 1 3 Why Has Negotiation Become a More Important Skill? The Workplace 7 8 9 10 11 How People Negotiate: The Dual Concerns Model The Pros and Cons of Negotiating The Shadow Negotiation 10 What Does a Negotiation Look Like? Conclusion and Implications for Practice READING 1.1 - ONLINE DISPUTE RESOLUTION: DO YOU KNOW WHERE YOUR CHILDREN ARE?, 8Y DAVID A . LARSON 1 3 19 READING 1.2 - BALANCING ACT: HOW TO MANAGE NEGOTIATION TENSIONS, BY SUSAN HACKLEY Preparation: Building the Foundation for Negotiating Intended Benefits of This Chapter The Essence of Preparation 23 23 23 The Preparation Process, or How to Make I t All Happen Strategic Planning: Establishing the Framework Defining the Situation Setting Goals 29 30 25 25 25 Determining Your Strategy Strategy Implementation: Operationalizing the Plan 30 The Component Parts of the Situation 30 Best Alternative to a Negotiated Agreement (BATNA) Reservation Prices or...
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...Queensland Barb-b-ques -- Confidential Information You are international marketing manager for Queensland Barb-b-ques (QBBQ), an Australian manufacturer of outdoor cooking equipment. Founded in 1958, QBBQ began with a single product -- a cast iron barb-b-que plate that was sold to be used in brick barb-b-ques that were popular during that era. By the late 1970s, QBBQ had begun to expand its product line as the baby-boomer generation matured and began cooking meals outdoors in a different way and on a more regular basis. During this period, the company experienced rapid growth and diversified into related merchandise such as kettle barb-b-ques and portable barb-b-ques, among other products. In the past 5 years, QBBQ’s growth has slowed. Two years ago, the company re-evaluated its product lines and sold some of the businesses it had acquired over the years, businesses that were not part of the company’s core product line. This included its outdoor weather protection division (portable awnings to protect from wind and sun). The company was on fairly good financial footing until this past year, when sales dipped. Still, QBBQ executives are optimistic about the company’s future. With the opening of new global markets through international trade agreements, there are more opportunities than once existed, including the opportunity for expanding markets in North America and Europe. At this point, however, most QBBQ sales are still concentrated in Australia. One of the products...
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...Negotiating Strategies in Germany Nowadays, with increasingly globalizing tendency, the international business environment has been changing rapidly. It is recommended that the challenges in today’s geopolitical and economic environment are to learn and practice international management effectively. When dealing with the international trade with other countries, the first thing we need to recognize is to master the different negotiating strategies in different areas throughout the world. I would take German’s negotiating strategy as an example to illustrate specifically their cultural background and the most efficient techniques negotiating with them. General view of German trade Germany is located in the western Europe, and the national form of its government is a parliamentary republic. Meantime, Germany is the world’s largest trading partner, with more than 230 countries and regions to maintain trade relations. The country’s export industry known for high quality, good service, delivery on time and world-renowned. The main export products are automotive, mechanical products, chemicals, communications technology, supply and distribution equipment, and medical and chemicals equipment. The main import products are chemicals, automotive, oil and gas, machinery, communications technology and steel products. The main trade partners of Western industrial countries, which import and export half from or sold to EU countries. ...
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...China: Business Do’s and Don’ts Introduction In business, knowing traditions and customs of host countries is paramount when beginning or carrying out negotiations. I find one of our most consistent and influential competitors and business allies to be China. China has for many years been a major contributor in the role of technology. Chinese technology and manufacturers are a huge part of the international trading system in America. In this paper I will discuss cultural differences, negotiation tactics, traditional and non-traditional customs, and attempt to explain effective methods of communication in the business sector of Chinese culture. I will begin by comparing and contrasting the cultures of China and America, and continue, by implementing ideas for effective communication and ways of successfully conducting business with China. China has recently had an economic spike, and was reported in an article in the Huffington Post as doing better now than ever before: “China is still faced with many daunting challenges ranging from corruption to regional income gaps and environmental degradation. But China is indeed better than at any time in its modern history. The country is now the world's largest laboratory for economic, social and political experimentation. There is every reason to believe that China, which has a continuously adaptive political system, will reach its objective of becoming the world's largest economy in a decade's time -- with all the implications...
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