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NEGOTIATION

Effecting strategy depends on management's ability to negotiate productively: a skill widely considered one of the most important in international business. In the global arena, cultural differences produce great difficulties in the negotiation process. In fact, ignorance of native bargaining rituals, more than any other single factor, accounts for our unimpressive sales efforts with the Japanese and others.1 Important differences in the negotiation process from country to country include (1. the amount and type of preparation for a negotiation, (2. the relative emphasis on tasks versus interpersonal relationships, (3. the reliance on general principles rather than specific issues, and (4. the number of people present and the extent of their influence.2 In every instance, managers need to familiarize themselves with the cultural background and underlying motivations of the negotiators-and the tactics and procedures they use-to control the process, make progress, and therefore maximize company goals.

The word negotiation describes the process of discussion between two or more parties aimed at reaching a mutually acceptable agreement. For long-term positive relations, the goal should be to set up a win-win situation: that is, to bring about a settlement beneficial to all parties concerned. This process, difficult enough when it takes place among people of similar backgrounds, is even more complex in international negotiations because of differences in cultural values, lifestyles, expectations, verbal and nonverbal language, approaches to formal procedures, and problem-solving techniques. The complexity is heightened when negotiating across borders because of the greater number of stakeholders involved. These stakeholders are illustrated in Exhibit 5-1. In preparing for negotiations, it is critical to avoid projective cognitive similarity-that is, the assumption that others

perceive, judge, think, and reason in the same way when, in fact, they do not, because of differential cultural and practical influences. Instead, astute negotiators empathetically enter into the private world or cultural space of their counterparts while willingly sharing their own view of the situation.


Market Negotiation : Chinese

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