Cross-Cultural Negotiation

CROSS-CULTURAL NEGOTIATIONS Course: Negotiation & Diplomacy in International Business

By
Minhaz Ahmed
MBA in International Business
University of Dhaka

November 2010

Table of Content

Title | Page No. | Introduction | 1 | Definition: Negotiation & Business Negotiation | 2 | Concept of Cross-cultural Negotiation | 3-4 | Influence of Culture on Cross-cultural Negotiation | 5 | 1. Cultural Influence on Negotiation Outcome | 6 | 2. Cultural Influence on the Behavior of Negotiator | 7 | 3. Cultural Influence on Negotiation Strategy | 7-8 | Why Culture affects Negotiation: Cultural Dimensions | 9-11 | Cross-cultural Negotiation Process | 12 | Problems in Cross-cultural Negotiation | 13 | Managing Cross-cultural Negotiation successfully | 14-15 | Cross-cultural Negotiation Styles: Comparative Analysis | 15-16 | Recommendations & Conclusion | 17 | Bibliography | 18 |

* Introduction
Home (HQ)
Country

Host Country
Firm Negotiations Stakeholders in Cross Cultural Negotiations HQ Employees Investors Host Govt. Suppliers Alliance Partners Distributors Home Govt. Contractors Expatriate Employee

Home Consumers All Citizens Host Local Employee Special Interest Groups Host Consumers Today, stakeholders of any organization in any country of the world could be from another culture. Stakeholders include customers, competitors, shareholders and employees. If a company understands its stakeholders, it is easier to server them and to make the organization more successful. Cross-cultural encounters have become more frequent where both people and governments are being pushed to confront and accommodate cultural & ethnic diversity. In other words, countries can no longer maintain independence from an ever growing economy. Francesco & Gold (1998) say that due to improved communication

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