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International Business Negotiation

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International Business Negotiation
NEGOTIATIONS IN INTERNATIONAL TRADING
- Cultural aspects -

Summary

1. Introduction in the negotiation process

2. Factors that influence the international negotiations

3. Cultural aspects of International Business Negotiations 3.1. Hofstede’s cultural dimensions 3.2. The influence of culture on negotiations

4. Negotiation patterns in cross- cultural negotiations

5. Analysis of cultural differences in international negotiations – A study case upon the American and Chinese culture 5.1. Negotiating with China 5.2. The study case

6. Conclusions

1. Introduction in the negotiation process

Negotiation is a basic human activity. It is a process we undertake in everyday activities to manage our relationships, such as between husband and wife, children and parents, employers and employees, buyers and sellers and business associates. In business relationships, parties negotiate because they think they can influence the process in such a way that they can get a better deal than simply accepting or rejecting what the other party is offering.

The negotiation process involves a set of guidelines and decisions through which a company aims to accomplish its objectives and to promote its interests.
In order for a negotiation to end up well the negotiator should be very careful in choosing the appropriate strategies and tactics. The negotiator style expresses his personality, socially (cultural, education) and individually (temper and intellect) determined.
We need to make a clear distinction between strategies and tactics. The strategy represents the overall guideline and it should indicate the direction in which the negotiation should go. In other words it represents the general plan in which are presented the general objectives that lead to the final goal of the negotiation.
Tactics, on the other hand, always follow after strategy flashing it out with a concrete line of action. If strategy is the thought then tactics are its formulation



References: 1. Negotianting Essentials- Theory, Skills and Practices by Michael R. Carrell and Christina Heavrin, J.D. , Prentice Hall; 2. Negocierea comerciala internationala, Ioan Popa, Editura Economica; 3. International business negotiation, Pervez N. Ghauri and Jean-Claude Usunier, Pergamon Publishing House 4. Negotiation, Roy J. Lewicki and David M. Saunders, McCraw-Hill Publishing House 5. The Chinese Negotiator, Robert M. March, Su-Hua Wu, Kodansha Publishing House

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