...our company is qualified to enter China are as follows; the size of the firm my play a significant role in the organization’s entry into the country. The profitability of the company would indicate experience and target a dimension of competition within the country. (Culture Distance) Our firm will enter the country with a licensing agreement that is wholly owned by its affiliates. (Market Knowledge) The organizations will have an advantage by using the wholly owned entry mode as we gain knowledge and get a better understanding about the environment. Having high-control entry modes will allow the company to establish manufacturing plants that will supply their tires to dominant automotive companies due to the company’s experience. (Value of firm-specific assets) The company will also enter the country having full control of the venture by utilizing specific technology giving the business...
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...Please fill with the following terms into an Irrevocable Documentary Credit Form to issue usance credit payable at sight. (1) Credit is available with the advising bank by acceptance of beneficiary’s draft at 90 days sight on the advising bank. (2) Drawer bank’s discount and/or interest charges and acceptance commission are for the account of applicant and therefore the beneficiary is to receive value for the term drafts as if drawn at sight. (3) We are authorized to pay claim in respect of your discount amount relating to this credit in excess of the credit amount. (4) Upon receipt of full set of documents in conformity with credit terms, we shall credit draft amount as indicated on BP Advice plus discount and other charges at maturity to the credit of your Beijing Office DEM account with us. |Name of Issuing Bank: |Irrevocable | |COMMERZE BANK AG. |Documentary Credit Number329485 | |Place and Date of Issue: |Expiry date and Place for Presentation of documents | |Hamburg, 2 March, 200X |Expiry Date: | | |Place for Presentation: | |Applicant: | ...
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...the slower the negotiations, the better and more trust in the other side. This author’s advice will help negotiators bridge the cultural differences in international negotiation. (This article first ran in the September/October 2004 issue of Ivey Business Journal). International business deals not only cross borders, they also cross cultures. Culture profoundly influences how people think, communicate, and behave. It also affects the kinds of transactions they make and the way they negotiate them. Differences in culture between business executives—for example, between a Chinese public sector plant manager in Shanghai and a Canadian division head of a family company in Toronto– can create barriers that impede or completely stymie the negotiating process. The great diversity of the world’s cultures makes it impossible for any negotiator, no matter how skilled and experienced, to understand fully all the cultures that may be encountered. How then should an executive prepare to cope with culture in making deals in Singapore this week and Seoul the next? In researching my book The Global Negotiator: Making, Managing, and Mending Deals Around the World in the Twenty-First Century (Palgrave Macmillan, 2003), I found that ten particular elements consistently arise to...
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...organization’s best interest to hire you for fair market value for several reasons. First, the hiring process can be long and expensive. It would be inefficient for an organization to make low offers only to be rejected and have to begin the recruiting process all over again. Second, organizations want to hire and retain good employees. It is unproductive to pay you less than other employees. The What, Why, and When of Salary Negotiation What is it? Salary negotiation is the process of reaching an agreement on what an organization will pay for your skills, knowledge, and experience. Contrary to popular belief, this is not an adversarial process. It is both the organization’s and your best interest to come to a mutually beneficial agreement. Why or Why Not Negotiate? The only reason is to get fair market value for your skills, experience, and knowledge. The process is important for future earning because most raises will be based on your starting salary. However, it is unwise to negotiate for negotiation’s sake. For example, sometimes job seekers think a hiring manager expects them to negotiate, or that salaries should be negotiated as a general principle. Although organizations respect employees who can articulate the value they add, recent grads (or anyone else) can quickly alienate potential hiring managers if they are inappropriate and over zealous in their approach to negotiating their salary to “get a fair deal.” When Should...
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...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 when dealing with different cultures. In preparation for a negotiation with an international team, an employee must understand how that culture operates on power distance, collectivism, masculinity, uncertainty avoidance and long-term orientation. An employee negotiating with a team in a country that scores high on power distance should be prepared to acknowledge the leader's power. This means...
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...business is in. My management team from the United States will be in charge of hiring employees for the restaurants. There will be a big meeting at the headquarters located in the United States to provide and explain the project and to help everyone become acquainted with one another. While attending the meeting the members in the group are staying with their own culture and not communicating with anyone outside their group. Because these different cultures are not mingling, the cultural phenomenon in this situation is the language, ethnocentricity, beliefs etc. This is because each of the groups has their own values and standards. Each of the cultures ethnocentricity is different and they use their own standards based on their culture to judge the behavior and beliefs of other individuals of a different culture. Each of the cultures has their own behaviors, values, customs, and beliefs that are taught from generation to generation, which is known as enculturation. Some of the other cultural phenomenons are nationality, race, ethnicity, and socioeconomic class. Each of these terms are used interchangeably and can cause much confusion in an organization. The different groups have a sense of connection with each other and can relate to their own culture. Intercultural communication is very important in the business world and is required when expanding business to other countries. To have a complete understanding of a different...
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...Subject Most people think bargaining and negotiation mean the same thing; however, we will be distinctive about the way we use these two words: Bargaining: describes the competitive, win-lose situation Negotiation: refers to win-win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflict 1-8 Key Principles and Mistakes Achieving a settlement through negotiation is not just a matter of applying a repertory of tactics and techniques in whatever conflict you are involved. You must adapt your strategy and behaviors to fit the needs of the particular case. Key Principles and Mistakes Negotiating is rather like taking a journey you cannot predict the outcome until you have undertaken it. With negotiating you need to prepare your strategy and tactics before entering a discussion, but there are no...
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...during the negotiation process, there are many factors that can determine the negotiation strategies and tactics used in the process. Gender difference, personality, culture, perception, cognition, and emotion are all huge influencers of negotiation. Take the following scenario for instance; there is an all-male negotiating team from the United States that seeks a cell phone price of $6 per unit. Assume the American team embodies the following Hofstede’s cultural dimensions: •Individualistic (negotiators from individualistic cultures may be more likely to swap negotiators. Getting the best deal for self is important.) •Low-power distance (cultures with low power distance are more likely to spread the decision making throughout the organization (utilization of vertical decision making). Options by other members of the organization/team are welcomed and it is possible to question a leader’s decision) •Short-term orientation (building and marinating relationship is only valued during the negotiation process. Once negotiations conclude, so does the relationship. ) •Low-context (XXXX) While on the other hand, there is an all-female negotiating team from China that offers cell phones with a $9 per unit price tag. Yet, the Chinese team embodies the following Hofstede’s cultural dimensions: •Collectivistic (collectivistic societies integrate individuals into cohesive groups, largely compressed of governments, which practices what is best for the...
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...Press • Princeton, New Jersey MANAGING ACROSS CULTURES NEGOTIATING ACROSS CULTURES NEGOTIATING ACROSS CULTURES Published by: PRINCETON TRAINING PRESS Princeton, New Jersey a division of TRAINING MANAGEMENT CORPORATION 600 Alexander Road Princeton, New Jersey 08540-6011 USA Tel: Fax: Web: Email: (609) 951-0525 (609) 951-0395 www.tmcorp.com info@tmcorp.com Editor-in-Chief: Series Manager: Writer: Cover Design: Interior Design: Monique Rinere-Güven, Ph.D. Talia Bloch Robert J. Greenleaf Donna Lukis Bonnie Jacobs © 2000 TRAINING MANAGEMENT CORPORATION. Managing Across Cultures Series: Negotiating Across Cultures All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America ISBN: 1-882390-911 The Cultural Orientations Indicator®, COI® and TMC’s graphical depiction of our Cultural Orientations Model are registered trademarks of Training Management Corporation; Registration: 2,329,085 and 2,361,803. 4 Training Management Corporation TABLE OF Preface OF CONTENTS TABLE CONTENTS iii Introduction 1 Negotiation Defined Negotiating Across Cultures Chapter One: The Impact of Culture on Negotiating Behavior Case Scenario The Ten Dimensions of Culture Cultural...
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...In this paper, I will discuss about the negotiating styles and concepts in context of India and its culture. I will explain the cultural setting and factors influencing negotiating styles in India using the five factors from the framework provided in the article – “Culture and Negotiating Styles: Ten factors in Deal Making” from the book – Negotiations: Readings, Exercises and Cases (Lewincki, R, 2009, Page 344). 1. Negotiating Goal: The Goal of negotiating deal for Indians is to achieve maximum profit close to or beyond their target point through multiple rounds of Bargaining. The Indian lifestyle teaches bargaining techniques as they bargain in every day activities with different businesses ranging from local vegetable vendors to well built shopping outlets. In contrast, Americans are known to buy things at fixed price and rarely involve in bargaining in every day activities. Indians are hard working and good with research for data collection. They come well prepared for the negotiating deals and push the opponent till their target point. When dealing with US or European clients, the Indians tend to be extra careful as the dollar-to-rupee or euro-to-rupee value is too high and any small increase in dollar or euro would greatly increase the rupee revenues. Thus the chances for quickly making-or-breaking a deal is higher with Indian clients. In addition, Indian managers are also subjected to budgetary restrictions and have low-power in decision making to exceed the...
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...Orthel Harris FSE-650 December 04, 2010 Edward Smear Claiming Value Mcdowall Rose Value is defined by Malhotra and Bazerman (2007) as, "whatever people find useful or desirable". Negotiation is the vehicle by which parties obtain that which is useful and desirable through a series of tradeoffs with another party. At first glance this exercise would seem to be inward looking. However value is created by exploring alternatives with your opponent. A successful negotiator does not focus on her alternatives. By working with rather than against a negotiating partner she can obtain Pareto or more correctly near-Pareto outcomes. In such circumstances value is created. Both parties can then decide how to divide that value. Successful negotiators consider the preferences of their opponents and do not assume that they implicitly know them, or that their interests are necessarily aligned. An example of the importance of exploring preferences can be seen in McDowall-Rose (2010), "I doubted any of our competition could put together a team as strong as ours with as much industry experience. I also knew the Saudi Airlines old guard wanted more industry insiders onboard." In this example from professional services, knowing a clients preference for specific industry experience provided both cost and differentiation advantages. Fisher (1983) noted that, a more extreme starting position yields better outcomes. However, taking an extreme initial stance may alienate your opponent or damage the...
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...are faced with the differences between various cultures: a longterm attitude towards communication, the power placement, the uncertainties avoiding, emotional differences between the negotiating parties and others. These and other differences in cross-cultural dimensions can influence the process of negotiations between the representatives of different cultures in the negotiations. There may happen in a variety of misunderstandings in negotiations and between the two parties of the same culture, while the process of preparing for the talks with different cultures requires empirical studies in Intercultural Communication. The article discusses cultural dimensions of two contrasting cultures and their effect on negotiations. The Article includes cross cultural studies between an Asian and a European nation’s cultural strengths and weaknesses to anticipate an opposing nation’s possible behaviors in the negotiation process, and to understand the cultural factors that may influence their decision making. It is commonly believed that cross-cultural studies are focused on certain phenomena and discuss the similarities and dissimilarities between different countries. Although this kind of research may be limited in terms of the chosen countries or certain behaviors, it still has great value in terms of helping us understand cultural impacts...
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... compared with 58% of higher earners Consumer Reports, August, 2013 1 10/2/2015 What is a Negotiation? “Broadly defined, negotiation is the process of back-and-forth communication aimed at reaching agreement with others when some of your interests are shared and some are opposed.” (Ury, Getting Past No) “A negotiation is an interactive communication process that may take place whenever we want something from someone else of another person wants something from us” (Shell, Bargaining For Advantage) Why Learn to Negotiate Better? • Personal: Improve your ability to create and claim value for yourself • Getting a “good deal” in business transactions (car, house, sales contracts) • Advancing your career (job offers, promotions) • Resolving interpersonal conflicts (SO, boss, coworkers) • Non‐Personal: Improve your ability to identify value‐creating opportunities and leverage them to the benefit of everyone involved • Done well, ALL parties are better off than they would be otherwise Negotiation in Action: Rick Snyder and Detroit City Council Source:...
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...person’s own cognitive world and cultural conditioning. When negotiating internationally, this translates into anticipating culturally related ideas that are most likely to be understood by a person of a given culture. Discussions are frequently impeded because the two sides seem to be pursuing different paths of logic; in any cross-cultural context, the potential for misunderstanding and talking past each other is great. When one takes the seemingly simple process of negotiations into a cross-cultural context, it becomes even more complex and complications tend to grow exponentially. It is naive indeed to venture into international negotiation with the belief that “after all people are pretty much alike everywhere and behave much as we do.” Even if they wear the same clothes you do, speak English as well as (or even better than) you, and prefer many of the comforts and attributes of American life (food, hotels, sports), it would be foolish to view a member of another culture as a brother in spirit. That negotiation style you use so effectively domestically can be inappropriate and when dealing with people from another cultural background; in fact its use can often result in more harm than gain. Heightened sensitivity, more attention to detail, and perhaps even changes in basic behavioral patterns are required when working in another culture. Different cultural systems can produce divergent negotiating styles—styles shaped by each nation’s culture, geography, history...
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...EXECUTIVE SUMMARY In its basic form, negotiation is a method of conflict resolution. It is a problem-solving process in which two or more parties attempt to resolve their disagreement or conflict in a manner, and through a process, that is mutually agreeable. Whereas the general concept of negotiation is easy enough to understand, in practice it can be an extremely difficult proposition. Opposing views about what is right and wrong, disagreement on what is fair and equitable, understanding each other’s message and form of communication, and even the procedures that will be used to conduct negotiations are but a few of the hurdles that negotiators will encounter. Negotiation is further complicated when the parties find themselves negotiating across dissimilar cultures. Culture is a powerful factor in shaping how people think, communicate and behave. It therefore affects how they negotiate. In business arena, negotiations are crucial aspects of inter-organizational relationships like joint ventures, mergers and acquisitions, licensing and distribution agreements, and sales of products and services. As the proportion of foreign to domestic trade increases, so does the frequency of business negotiations between people from different countries and cultures. To successfully manage these negotiations, businesspeople need to know how to influence and communicate with members of cultures other than their own. This paper investigates the impact of culture on negotiations. It begins...
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