Intercultural negotiations

Intercultural negotiation is one of many specialized areas within the broader field of intercultural communications. By receiving training in cross-cultural negotiation, negotiators and sales staff give themselves an advantage over competitors.

There is an argument that proposes that culture is irrelevant for intercultural negotiation. He maintains that as long as a proposal is financially attractive, it will be successful. However, this is a naive way of approaching international business.

Let’s look at a brief example of how intercultural negotiation training can benefit the international entrepreneur:

There are two negotiators dealing with the same potential client in the Middle East. They both have identical proposals and packages. One ignores the importance of intercultural negotiation training believing that the proposal will speak for itself. The other carries out an intercultural training. Learn about the culture, values, beliefs, etiquette, and approaches to business, meetings, and negotiations. Nine times out of ten the latter will triumph over the rival.

This is because 1) they would likely have been liked more by the host negotiating team and 2) they could tailor their approach to negotiations in a way that maximizes the potential for a positive outcome.

Cross-cultural negotiations are more than just how foreigners make deals. It involves looking at all the factors that can influence procedures. To highlight this, some brief examples of topics covered in the intercultural negotiation training will be provided.

Eye Contact – In the US, UK, and much of Northern Europe, strong, direct eye contact conveys trust and sincerity. In South America it is a sign of reliability. However, in some cultures such as Japanese, prolonged eye contact is considered rude and is generally avoided.

Personal space and touch: In Europe and North America, entrepreneurs often leave some distance between them when they interact. Playing only happens between friends. In South America or the Middle East, entrepreneurs are tactile and like to get close. In Japan or China, it is not uncommon for people to leave a space of four feet when conversing. Contact only takes place between close friends and family members.

Time: Western societies are very “clock conscious”. Time is money and punctuality is essential. This is also the case in countries like Japan or China, where being late would be taken as an insult. However, in South America, southern Europe and the Middle East, arriving on time for a meeting does not carry the same sense of urgency.

Meeting and greeting – Most international businessmen are met with a handshake. In some countries, this is not appropriate across genders. Some may view a weak handshake as a sign of weakness, while others perceive a firm handshake as aggressive. How should you address people? Is it by name, surname or title? Are small talk part of the process or not?

Gift giving: In Japan and China, gift giving is an integral part of business protocol; however, in the US or UK, it has negative connotations. When gifts are exchanged, should generous gifts be given? Are they always reciprocal? Should they be wrapped? Are there numbers or colors to avoid?

All of the above, in one way or another, will have an impact on intercultural negotiation and can only be learned through intercultural training. Doing or saying the wrong thing at the wrong time, miscommunication and cross-cultural misunderstandings can have harmful consequences.

Cross-cultural negotiation training builds on understanding foreign business etiquette and approaches before focusing on cross-cultural differences in negotiating styles and techniques.

There are three interconnected aspects that must be considered before starting an intercultural negotiation.

The basis of the relationship: In much of Europe and North America, business is contractual in nature. Personal relationships are considered unhealthy as they can cloud objectivity and lead to complications. In South America and much of Asia, business is personal. Partnerships will only be made with those they know, trust, and are comfortable with. Therefore, you need to invest in relationship building before doing business.

Information in negotiations: Western business culture emphasizes clearly presented and rationally argued business proposals using statistics and facts. Other business cultures are based on similar but different information. For example, visual and oral communicators such as South Americans may prefer information presented through speech or using maps, graphs, and tables.

Negotiation styles: The way we approach negotiation differs between cultures. For example, in the Middle East, instead of addressing issues sequentially, negotiators can discuss issues simultaneously.

South Americans can get quite vocal and lively. The Japanese will negotiate in teams and decisions will be based on a consensual agreement. In Asia, decisions are generally made by the most important figure or the head of the family. In China, negotiators are highly skilled in the art of winning concessions. In Germany, decisions can take a long time due to the need to analyze information and statistics in depth. In the UK, pressure tactics and deadlines are ways to close deals, while in Greece this would be counterproductive.

Clearly, there are many factors to consider when approaching cross-cultural negotiation. Through cross-cultural negotiation training, business personnel receive the proper knowledge that can help them prepare their presentations and sales pitches effectively. By adapting your behavior and the way you approach negotiation, you will be able to maximize your potential.