Intercultural Ne-gotiation Process

20112283 Mac20112295 Brian

20112284 Christina20112309 James

What is Intercul-tural Negotia-

tion?

Steps in the Negotiation Process

O Preparation and Site Selection

O Team Selection

O Relationship Building

O Opening Talks

O Discussions

O Agreement

Mistakes commonly made during Negotiations

O Failing to listen and talking too much

O Using unfamiliar and slang words

O Interrupting the speaker

O Failing to read the nonverbal cues

Intercultural Negotiation Models

O Better to know the people you are going to negotiate.

O ProtocolO Two main negotiating styles

O Problem-solving approach: consider cul-tural differences.

O Competitive approach: more individualis-tic and persuasion oriented.

… Compromising, Forcing, and Legalism.

Intercultural Negotiation Models

O Compromise agreementO Common groundO Lower benefit

O Integrative agree-mentO Higher benefit

Negotiation StrategiesO Negotiation strategies: plans orga-

nized to achieve a desired objective.O Negotiation strategies are based on:

O Faith: if religious or political ideology matches theirs.

O Fact: gives the contract to the lowest bidder.

O Feeling: build relationship over time and don’t buy from someone else just because they can get a lower price.

PreparationO Choosing where the meet-

ing will be held.O Meeting held on your

place.O Meeting held on your

counterpart’s place.O Meeting held on neutral

location.O It is important to be pre-

pared for questions.O Also, It is important to

safeguard strategic infor-mation that you do not want to share.

TacticsO Maneuvers used for gain-

ing advantage or suc-cess.

O The attributes that the receiver attaches to the tactic can be so distract-ing if receiver has a dis-torted perception of the tactic.

Ex) “Break the ice”O Distracting tactics can

be harmful to the nego-tiation.

Conflict ResolutionO Need to learn the social

system and cultural values of the other negotiators.

O These are Essential to suc-cessful conflict resolution.O Knowing whether to culti-

vate a personal relation-ship.

O Being conscious of rank and position.

O Understanding the thought pattern of other negotia-tors.

O Knowing how to establish trust.

MediationO Mediation is the use of a

third party to settle down differences between ne-gotiators to bring them in to common agreement.

1. Stabilize the setting.2. Get a commitment from

the participants to pro-ceed in a businesslike manner.

3. Help parties to solve their disagreements.

4. Clarify the agreement.

Observation, Analysis, and Evaluation

O Need to observe changes from your initial expectations.

O Analyze the differences and adapt your negotiation strategy accordingly.

O Constant evaluationO For negotiations to be successful, the

people who are involved in the nego-tiation need to be analyzed and eval-uated.

TRADE AGREEMENTO LICENSE

O FTZ

O WTO

LICENSEO General License

O Validated License

F T Z

NAFTA

1993 To eliminate barriers to trade and facilitate cross-border movement of goods and services

To promote fair competitionTo increase investment op-portunities

To expand cooperation and increase benefits to the three countries

APEC

1989

As a long-term plan

As a short-term plan

EU

1993

World War

Euro

WTO

1994

Monitor

Mediate

NEGOTIATION STYLES

FRANCE

FRENCH SELF-ESTEEM

CARTESIAN

GERMANY

EXPLICIT CONTRACTS AND REGULATION

USING HANDSHAKE AT THE BEGINNING AND

THE END OF MEETINGS

USING “ THANK YOU” AND “PLEASE” FREELY.

JAPAN

KEIRETSU SYSTEM

SUBTLE AND COMPLEX VERBAL AND NONVERBAL

CUES

THE NETHER-LANDS

ADMIRING EDUCATION, HUMOR, HONESTY AND

MODESTY

DECISIONS BASED ON CONSENSUS

NIGERIA

Consider age, gender, cul-tural background, and ed-

ucational credentials.

Building relationships are important when negotiat-

ing.

RUSSIAN FED-ERATION

REGARDING COMPROMISE AS WEAKNESS

VERY ANIMATED AT THEIR DISCUSSIONS

MAXIMIZING THEIR PROFITS

SOUTH KOREA/ TAI-WAN

SOUTH KOREA TAIWAN

UNITED KING-DOM

REFLECTING THEIR CUL-TURAL CHARACTERISTICS-

FORMAL, POLITE AND PROPER PROTOCOL

DISTINGUSHING FOUR PART- WELSH, SCOTTISH ,

IRISH AND ENGLISH

Summary O Steps of negotiation process

-Preparation, Team selection, Relationship building, Opening talks, Discus-sions, Agreement

O Two main negotiating styles

-Problem-Solving Approach

-Competitive Approach

O Negotiating Strategies

-Compromise or Integrative agreement

-Preparation, Tactics, Conflict resolution, Mediation, Observation and Evaluation

Summary cont.O Trade Agreement

-License (General, Validated)

O Free Trade Zones (Trade blocs)

O WTO (World Trade Organization)