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Investigation of Mexican and Chinese Negotiations: Culture’s Effect on Negotiating with Chinese and Mexican Negotiators

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Investigation of Mexican and Chinese Negotiations: Culture’s Effect on Negotiating with Chinese and Mexican Negotiators
Investigation of Mexican and Chinese Negotiations: Culture’s effect on negotiating with Chinese and Mexican negotiators
Research Report

By
Richard Ardito

For
BUS 545 – Global Business Management - California Baptist University
Dr. Marc Weniger – Professor
Abstract
The purpose of this paper is to examine the similar driving forces between Chinese and Mexican cultures and how those forces direct the negotiation tactics of Chinese and Mexican nationals. The goal is to determine what the major driving force is for Mexican and Chinese negotiators and to give foreigners an idea of what to expect and how to successfully negotiate among Mexican and Chinese cultures. The research focuses on the similarities in the cultural priorities of the People’s Republic of China and Mexico, and seeks to make connections between these priorities and the negotiating practices of business people in these countries.

Introduction
Mexico and China are both high context cultures that place a high value on power, relationships, and trust, yet their negotiators behave differently in relation to these concepts. The Chinese tend to negotiate with the goal of gaining the most favorable terms for their organization, while Mexicans concentrate on relationship building and attempt to strike a fair deal (Miles, 2003; Elahee & Brooks, 2004; Metcalf, Bird & Shankarmahesh, 2006). What strategies are used and what cultural norms are the driving forces of these strategies? What is it about these two cultures that cause their business negotiations to take quite different paths when dealing with the same primary values?
Negotiation Strategy
Chinese negotiators are greatly influenced by the concept of Ji, or stratagems which were originally documented by Sun-Tzu in The Art of War (Ghauri & Fang, 2001; Miles, 2003; Fang, 2006). They are often described as schemes which the Chinese use to deal with all kinds of situations in order to gain an advantage, either



Cited: Adair, W., Brett, J., Lempereur, A., & Okumura, T. (2004). Culture and Negotiation Strategy. Negotiation Journal , 87-111. Elahee, M., & Brooks, C. M. (2004). Trust and Negotiation Tactics: Perceptions About Business-to-Business Negotiations in Mexico. Journal of Business & Industrial Marketing , 397-404. Fang, T. (2006). Negotiation: the Chinese Style. Journal of Business & Industrial Marketing , 50-60. Ghauri, P., & Fang, T. (2001). Negotiating with the Chinese: A Socio-Cultural Analysis. Journal of World Business , 303-325. Graham, J. L., & Lam, M. N. (2003). THe Chinese Negotiation. Harvard Business Review , 1-11. Hammond, S. C., & Glenn, L. M. (2004). The Ancient Practice of Chinese Social Netowrking: Guanxi and Social Networking Theory. E:Co , 24-31. Metcalf, L., Bird, A., Shankarmahesh, M., Aycan, Z., Larimo, J., & Valdelamar, D. (2006). Cultural Tendencies in Negotiation: A comparison of Finland, India, Mexico, Turkey and the United States. Journal of World Business , 382-394. Miles, M. (2003). Negotiating with the Chinese: Lessons from the Field. The Journal of Applied Behavioral Science , 452-473. Ritchie, G. (1997). Getting Cozy: Negotiating Successfully in Mexico. International Business: Strategies for the Global Marketplace , 10-15. Salacuse, J. (1998). Ten Ways that Culture Affects Negotiating Style: Survey Results. Negotiation Journal , 221-240. Volkema, R. (1998). A Comparison of the Perceptions of Ethical Negotiation Behavior in Mexico and the United States. International Journal of Conflict Management , 218-233.

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