Lecture Three

Negotiation Culture

Japanese Negotiation Style1. Collectivism is above individualism2. Interpersonal relation is very important so the Japanese negotiators pay

much attention to harmonious negotiation atmosphere. Trust and friendship are of great significance to them.

3. For Japanese, decision-making process is long because the negotiators must have discussions with their team members and seek approval from their superiors. If the contents of negotiation divert from the original goals of the Japanese negotiators, then the Japanese may go through the negotiation process again and again.

4. After they make decisions, the Japanese move quickly. 5. Japanese don’t like bargaining on contracts. A contract will lose effect if

environment changes and the interests of the company are hurt. 6. To gain trust of Japanese is very important and a proper way to do so is

to find an intermediary, who is, best of all, a man and has a good reputation. Generally speaking, the intermediary’s status should be equal to the representatives of the Japanese company involved in negotiation. In general, the intermediary should start his contact with a medium-level managers because decision-making process in Japanese company starts from medium management and follows a down-up process. The first meeting between an intermediary and the representatives of a Japanese company should take a face-to-face way and the place should be in a third country.

Japanese Negotiation Style7. Sending presents is a way used by Japanese to show

their good intention and politeness. The presents may not be expensive but appropriate.

8. Japanese often receive visitors in meeting room or reception office instead of their office, which is different from Chinese.

9. Japanese hold an attitude of tolerance towards society, which determines that they try to silently bear everything given by society. Think about the nuclear leakage in Fukushima (福岛 )

10. A strong sense of belonging to a company and sharing of common fate with the company.

11. “哈伊” , a word meaning “Yes” in Japanese, doesn’t mean Japanese aggree with you. Instead, it only indicates the fact that Japanese understand what you have said.

Japanese Negotiation Style12. The number four and nine are taboos for Japanese f

or four represents death and nine indicates bitterness. 13. Risk of ruining negotiation atmosphere because of to

o much silence in negotiation Because Japanese don’t like showing themselves, mo

st of them always keep silent during negotiation. This is completely different from we Chinese, who hold the idea of “Friendship should be created and kept even though no deal is made” and who thus llike creating a hospitable and friendly atmosphere. This mentality of Japanese often leads to a tense atmosphere.

14. Don’t dare to stare at the others and often keep smile in serious situations.

Japanese Negotiation Style15. Risk of dragging negotiation into a deadlock the reasons are as follows: 1> sometimes, Japanese’s treating of their negotiation rival

includes measures more than enough. They often hold a cocktail party at first and then karaoke, taking photos, having a drink, having a dinner and sending presents. During the whole treating process, nothing on negotiation is mentioned. To make things worse, Japanese lack sense of humor, which makes the whole process boring and meaningless. Although Japanese do this out of kindness, Chinese and people from other countries may falsely think they are utilizing the fatigue strategy.

2> Japanese like making collective decisions, which means they have patience more than enough and their decision-making process is very slow and long. Sometimes, they may ask the same question several times and different people may ask the same question. This may make their negotiation rival think Japanese are playing tricks, resulting in a possible deadlock.

Japanese Negotiation Style

16. Risk of break of negotiation

Japanese don’t pay attention to the binding power of social norms, which means there is always discrepancy between their words and actions. Honesty and integrity emphasized in our culture are nothing to them. For example, they may make a promise, which they may never fulfill. This may jeopardize people’s trust in Japanese and make the contract a piece of waste paper.

Japanese Negotiation Style17. Countermeasures to deal with Japanese:1> In light of the fact that Japanese pay a great attention to hierarchy, our

negotiation team should not include females and too young people. 2> In the face of Japanese’s tendency of slow decision and paying too much

attention to details, Chinese negotiators should adopt a policy of standing and make preparations for long-term negotiation. Remember, more haste, less speed. In case of suspending decision by Japanese, we may adopt the deadline policy to force them to make decisions.

3> Considering Japanese’s emphasis on hierarchy, we can replace our negotiator with another negotiator with a higher rank or with an older age.

4> To deal with the complex details held by Japanese in negotiation, it’s a good way to set the negotiation venue in the negotiation rival’s homeland or a third country, which may help to gain an upper hand.

5> To solve the depressive atmosphere created by Japanese in formal negotiation, informal negotiations can be held to relax and seek after more information and solutions to problems.

6> To do with Japanese’s discrepancy between words and actions as well as their tendency of not keeping their promises, negotiators should make their contract as detailed as possible and flexible. Any possible issue which may cause problem requires a detailed explanation of rights and obligations.

7> Facing Japanese negotiators who emphasize etiquettes, negotiators from other country should pay attention to etiquettes for this can earn Japanese’s trust and respect.

American Negotiation Style1. Confident and decisive2. Individualism and direct to the topic3. Pay attention to real effects4. Americans like discussing contract item after item to shorten time of

negotiation5. Americans like bargaining and are good at using tactics to persuade their

negotiation rivals.6. Americans pay little attention to interpersonal relations so they are not

accustomed to the importance attached to interpersonal relation by Japanese and Chinese. They don’t ask price at random and don’t expect others to do so.

7. Americans are outspoken and outgoing. They will directly express their views and are not accustomed to implications made by Chinese often.

8. A people emphasizing law rule, Americans like resorting to laws whenever any dispute arises. As a result, they pay great attention to contract.

9. Business is business. 10. High efficiency and time saving. They take time as money.

American Negotiation Style11. In terms of negotiation target, Americans are different from Chine

se. In their mind, number one task in a negotiation is to reach an agreement and sign a contract. The realization of predicted economic benefits is their main purpose. Compared with this, Chinese often puts a long-term partnership as a plus target. This is because we are a society of blood ties and relations.

12. In terms of arranging for negotiation procedures, Americans like talking about specific issues from the beginning. They think the final result is a total of results of specific issues. While Chinese like firstly talking about general principles and then specific issues in the guidance of this principle. This is because we Chinese like cognizing things from the whole to the part and consider the strategies as a whole.

13. American negotiators have been entrusted with enough power to make decisions while Chinese negotiators may not have decision-making power. Sometimes, they are only talkers rather than decision-makers.

14. Americans often use offensive words and are often argumentive. While Chinese like using polite and reserved words to express their desires.

American Negotiation Style

15. Americans are punctual. If one can not arrive on time, one should phone the Americans and show his apology for Americans believe time is money.

16. Americans don’t often send presents but they pay much attention to packaging for packaging is of great importance to the sale of goods in the US. When sending presents to Americans, one should avoid sending presents of odd number because Americans believe even number is unlucky.

17. When negotiating and doing business with Americans, one must give a definite answer of yes or no rather than give an ambiguous answer.

Russian Negotiation Style1. Russians pay great attention to technical terms because they

wish to buy high techniques with low pay. Hence, there should be technical experts in a negotiation with Russians.

2. Russians attach great importance to terms of claim. Therefore, be careful about contract language and do not make any infeasible mistakes.

3. Lack flexibility. It is hard for Russians to make any concessions. For Russians, if there is any difference between the reality and the negotiation targets and plans, the negotiation will be likely to be a failure for the Russians will not make concessions.

4. Russians are experts in bargaining. No matter what the quotation is, Russians will think there is still space to negotiate. A proper way to deal with this is to add a certain premium(溢价 ) to the quotation. Ask Russians to shorten time of quotation for inflation in Russia is serious.

Russian Negotiation Style5. A headache in negotiation with Russians is that what way sho

uld be used to pay money. If Russians are sellers, they will ask the buyers to make advance payment and use hard money to conclude the deal. If they are buyers, they will ask to pay money with rouble and ask for delayed payment.

6. Like Chinese, Russians need to go through a series of complex bureaucratic procedures to conclude a deal.

7. Russians like collective activities. They may invite you to their home. But remember, they don’t mix up business with social activities and interpersonal feeling.

8. Russians are stubborn and unyielding negotiators who like depressing negotiation rivals by delaying negotiation process and dragging negotiation into a deadlock.

9. Russians try their best to reduce their smile and leave on the others an impression of being calm.

10. Russians don’t pay much attention to time limit for sake of delaying negotiation.

Russian Negotiation Style

11. Russians do hope others to send them money because they think it an insult. They like foreign goods instead, like sweets, cigarettes, wine, clothes, etc.

12. Send Russians odd number of flowers because they believe even number is unlucky.

13. In terms of color, Russians like red but hate black, which is similar to the eastern people. In terms of number, Russians hate 13 but like 7, which is similar to the western people.

14. Seeing eating dog meat as a taboo.15. Russians are generous and hate the fact that others say the

y are mean.16. Russians are clean and regard littering as something disgra

ceful. 17. Russians like sunflower and often make them the trademark.18. Don’t like talking about controversial historical figures and pr

esent reforms.

German Negotiation Style

1. High efficiency

2. Highly responsible

3. Prudent

4. They emphasize their own negotiation plans and rarely make any concessions.

Arabian Negotiation Style

1. Emphasis on family and friends2. Alcoholic drink as a taboo3. Fast customs4. Your talk with Arabians may be interrupted by

their meeting with a sudden visitor. In such a case, do not feel unhappy and anxious, just waiting for them to come back.

5. Arabians like spending 15 minutes or more time or even hours talking about other issues before they start negotiation.

6. While dealing with Arabians, finding an agent is very necessary.

Arabian Negotiation Style

7. Middle East is a region full of sensitive issues. While dealing with them, avoid political issue and issue on female. Pay much attention to their religion and customs.

8. Arabians are friendly and hospitable, but this doesn’t mean you should take interest in their privacy because their religious belief is easily hurt.

9. Arabians like making long-term friends and partners with their negotiation rivals and thus are more likely to make concessions.

10. Arabians don’t pay sufficient attention to time and often don’t have enough power to fulfill a deal.

Arabian Negotiation Style

11. Avoid shaking hands with Arabians with left hand.

12. Women are not allowed to meet guests in Arabian countries. So it’s better not to ask anything about female.

British Negotiation Style1. traditional, prudent and introvert2. They are not easy to build interpersonal relation with others,

even their fellow countryman. But once they take you as friends, they will greatly value this friendship.

3. British value hierarchy. So they pay attention to the status, experience and achievements of the counter part.

4. In negotiation, British often keep silent, calm, confident and prudent instead of being excited, risky and talkative. Their desire for material interests is not as strong as Japanese and not as straightforward as Americans. They prefer doing small business with relatively smaller profits.

5. A common feature of British is they are often unable to guarantee the due implementation of contract and often delay the delivery of goods. This may be because the British have long enjoyed the status of higher class and thus don’t like following the rule of modern trade.

Argentine Negotiation Style1. In Argentina, English is business language. But it’s better to

write Spanish translation at the back of the name card. 2. Argentines are a little traditional. 3. Argentina is a country full of bureaucratic style and appeals.

Any decision is made by a group of people. Hence, try to be patient.

4. Argentines are hard to express disagreement towards others. So when you see an active feedback from Argentines, do not take that they agree with you.

5. Attach great importance to interpersonal relations. So do not replace your representatives for negotiation because that may mean a restart of negotiation.

6. In negotiation with Argentines, negotiation on any part of contract may restart unless the whole contract has be signed.

French Negotiation Style1. Pay much attention to individual ability. They lack team spirit

and rarely make collective decisions. 2. Pay great attention to interpersonal relation.3. French like using French even though they know English. 4. French are good at debate and relevant skills. As a result,

one should prepare a very logical and complete plan for negotiation. French like asking questions directly and to the end. They like pointing out any illogical places in a plan.

5. French like reaching an agreement on general principles which are a core to them because in their mind, these principles are guideline and prerequisite for any negotiation.

6. French business etiquette requires one to be reserved in negotiation. Therefore, any relaxing means or forceful selling is not allowed.

Brazilian Negotiation Style

1. Pay much attention to hierarchy in Brazilian society. 2. Brazilians are enthusiastic, friendly but one

must be careful when dealing with them for their culture is a complex one.

3. talkative, passionate and like saying “No”. (Within half an hour, they can say no for over 40 times, while Americans use 4.7 times and Japanese only 1.9 times)

4. Brazilians like using contracts with more casual forms.

Mexican Negotiation Style

1. Enthusiastic and friendly. 2. Not strict with time and often late3. Much attention to interpersonal relation4. Pay attention to social status and family background

and see these are the symbols of success.5. Reserved and often to show friendliness by making

a promise, which is rarely kept.6. In Mexicans’ eyes, the value of a person lies in the

friendship one has and the interpersonal relation he possesses rather than promotion or good work performance. They only trust their friends.

7. Mexican court is favorable to domestic enterprises8. A male-chauvinism society

Negotiation Style in South-eastern Asian Countries

1. Singaporean 1> Singaporeans like red, green and blue. They consider black to be

unlucky. 2> image of Buddha and religious wording are not forbidden in busin

ess. 3> prudent, do not do business without confidence. 4> trust worthy and strict adherence to contracts 5> considering “wish you to be rich” as a taboo because they believe

“to be rich” means “to be rich immorally” and thus is an insulting wording.

6> men with long hair in Singapore are unpopular.2. In some south-eastern countries, the soles (鞋底 ) shouldn’t face the

negotiation rival. 3. In India, cow is sacred and phoenix is highly respected as the bird of state. Indians like red, yellow, blue and purple. They don’t like black and white.

Negotiation Style in South-eastern Asian Countries

4. Indonesians 1> The best time to negotiate on business with

Indonesians is between September to June the next year because July and August are time for Indonesians to go on holiday.

2> It’s not easy to make good friends with Indonesians. Once you become a good friend with an Indonesian, business will be much easier.

3> Indonesians are happy with the fact that there are visitors to their house. Therefore, home visit is an effective way to advance negotiation with Indonesians.

Negotiation Style in South-eastern Asian Countries

5. Vietnam 1> Titles like Mr. , Miss., Master, elder sister and brother

should not be employed when referring to a Vietnamese with a similar age. Instead, titles like “the second elder sister/brother” should be used.

2> Visitors are not allowed to enter a village or household with green branches at the gate.

6. Burma 1> One must take off his shoes before entering a temple

or some households because Burma is a country famous as a Buddha Land.

2> Cattle are regarded as loyal friends and eating beef is seen as ingratitude.

3> Burmese consider right to be superior to left. 4> Gift giving is not allowed on Sunday. 5> Head should be towards the east when sleeping

because Burmese think the east means lighting.

Negotiation Style in South-eastern Asian Countries

7. Malaysia 1> The best time to do business with

Malaysians is between March and August because the time between November and February next year is a time for rest.

2> Malaysians like green but hate yellow. 3> Numbers like 0, 4, 13 are taboos 4> Animals including pigs and dogs are

taboos while they like cats very much