INTERNATIONAL NEGOTIATION
More
complex than domestic
negotiations
Differences in national cultures and
differences in political, legal, and
economic systems often separate
potential business partners
EXHIBIT 3-1: STEPS IN THE
INTERNATIONAL NEGOTIATION
PROCESS
STEP 1: PREPARATION
STEP 2: BUILDING THE
RELATIONSHIP
STEP 3: EXCHANGING
INFORMATION/FIRST OFFER
STEP 4: PERSUASION
STEP 5: CONCESSIONS
STEP 6: AGREEMENT
STEP 1: PREPARATION
Is the negotiation possible?
Know what your company wants
Know the other side
Send the proper team
Agenda
Prepare for a long negotiation
Environment
Strategy
DIFFERENCES IN CULTURES IN
KEY NEGOTIATING PROCESSES
Communication
styles—direct or
indirect
Sensitivity to time—low or high
Forms of agreement—specific or
general
Team organization—a team or
one leader
STEP 2: BUILDING THE
RELATIONSHIP
No
focus on business
Partners get to know each other
Social and interpersonal matters
Duration and importance vary by
culture
STEP 3: EXCHANGING
INFORMATION AND THE FIRST
OFFER
Task-related
exchanged
First offer
information is
STEP 4: PERSUASION
Heart
of the negotiation process
Attempting to get other side to
agree to a position
Numerous tactics can be used
VERBAL AND NONVERBAL
NEGOTIATION TACTICS
Promise
Threat
Recommendation
Warning
Reward
Punishment
Normative appeal
OTHER NEGOTIATION TACTICS
Commitment
Self
disclosure
Question
Command
No
Interrupting
EXHIBIT 3-4: FREQUENCIES OF VERBAL NEGOTIATION
BEHAVIORS
C o m m itm e n t
B ra z ilia n
Com m and
U .S .
Recom m end
J a p a ne s e
P ro m is e
NO
In te rru p t
0
20
40
60
80
100
“DIRTY TRICKS” IN
INTERNATIONAL
NEGOTIATIONS
Dirty tricks are negotiation tactics
that pressure opponents to accept
unfair or undesirable agreements or
concessions
PLOYS/DIRTY TRICKS POSSIBLE RESPONSES
Deliberate
deception - point out
what is happening
Stalling - do not reveal when you
plan to leave
Escalating authority - clarify
decision making authority
Good
guy, bad buy routine - do not
make any concessions
You are wealthy and we are poor ignore the ploy
Old friends - keep a psychological
distance
STEPS 5 AND 6:
CONCESSIONS AND
AGREEMENT
Final
agreement: The signed
contract, agreeable to all sides
Concession making requires that
each side relax some of its
demands
STYLES OF CONCESSION
Sequential approach - consider
each issue as a separate point
Each side reciprocates
concessions
Holistic approach - more
common in Asia
Concession making begins after
all issues are discussed
BASIC NEGOTIATION
STRATEGIES
Competitive
– The
negotiation as a win-lose
game
Problem solving
– Search for possible win-win
situations
COMPETITIVE OR PROBLEM SOLVING
INTERNATIONAL NEGOTIATION
Cultural
norms and values may
predispose some negotiators to
one approach
Most experts recommend a
problem solving negotiation
strategy
THE SUCCESSFUL INTERNATIONAL
NEGOTIATOR: PERSONAL
CHARACTERISTICS
Tolerance of ambiguous
situations
Flexibility and creativity
Humor
Stamina
Empathy
Curiosity
Bilingual
BASICS OF CROSS-CULTURAL
COMMUNICATION
LANGUAGE AND CULTURE
The
Whorf hypothesis
LOW CONTEXT
The
words provide most of the
meaning
Most northern European languages
including German, English, and the
Scandinavian languages are low
context
HIGH CONTEXT
Communications
have multiple
meanings interpreted by reading the
situation
Asian and Arabic languages are
among the most high context in the
world
PRACTICAL ISSUES IN CROSSCULTURAL VERBAL
COMMUNICATION
INTERPRETERS
Provide simultaneous translation
of a foreign language
Requires greater linguistic skills
than speaking a language or
translating written documents
Insure the accuracy and common
understanding of agreements
COMMUNICATION WITH NONNATIVE
SPEAKERS
Use the most common words with
most common meanings
Select words with few alternative
meanings
Follow rules of grammar strictly
Speak with clear breaks between
words
Avoid
“sports” words or words
borrowed from literature
Avoid slang/words that represent
pictures
Mimic the cultural flavor nonnative
speaker’s language
Summarize
Test your communication success
NONVERBAL COMMUNICATION COMMUNICATING WITHOUT WORDS
KINESICS
Communicating
through body
movements
Facial expressions
Body posture
PROXEMICS
The
use space to communicate
The personal bubble of space - nine
inches to over twenty inches
North Americans prefer more
distance than from Latin and Arab
cultures
TOUCH
A basic form of human
interaction
In greeting - shake hands,
embrace, or kiss
Latin European and Latin
American cultures-more
touching than Germanic, Anglo,
or Scandinavian cultures
AVOIDING ATTRIBUTION ERRORS
Attribution
- process by which we
interpret the meaning and intent of
spoken words or nonverbal exchanges
Attribution errors
CONCLUSIONS
Successful
negotiators
– Understand the negotiation steps
– Build cross-cultural
communication skills
– Understand nonverbal
communication
– Avoid attribution errors
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CHAPTER 3 INTERNATIONAL NEGOTIATION AND CROSS …