Summary
Technology has provided companies the opportunity to expand into areas of the world that were nearly inaccessible several decades ago. These markets have seen an increase in goods sold to them, more of their natural resources being purchased from them, and more employment opportunities at multi-national firms.
These emerging markets are usually categorized as countries with low–to-middle per capita income and often considered the world’s fastest growing economies. Countries in Asia, Latin America, Africa and Eastern Europe are seeing a growth in local business activities as well as international business activities, both of which are stemming from multinational firms primarly located in North America or Europe.
Understanding the best ways to work with individuals from these emerging markets can be valuable during negotiations. There are five cultural factors that most often affect negotiations among cultures: 1. use of time; 2. individualism versus collectivism; 3. role orderliness and conformity 4. patterns of communication; (Acuff, 2008) and 5. corruption. The goal of this research paper is to discuss cultural factors that affect negotiation and find examples from different regions on how those factors affected business negotiations and to conclude by providing ideas to deal with those challenges faced during negotiations.
Use of time
Individuals in different countries perceive time and use time in different ways. There are two major ways that cultures understand time: monochronic perception and polychronic perception of time. Monochronic countries conceive of time as inflexible. In monochronic cultures, time can be divided easily and schedules are adhered to closely. Polychronic countries conceive of time as flexible. In polychronic cultures, time cannot easily be divided and schedules are not closely followed. (Silkenat, Aresty & Klosek, 2009)