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Negotiating with International Customers, Partners,
and Regulators
Chapter 19
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved.
Learning Objectives
LO1 The problems associated with cultural stereotypes
LO2 How culture influences behaviors at the negotiation table
LO3 Common kinds of problems that crop up during international business negotiations
LO4 The similarities and differences in communication behaviors in several countries
LO5 How differences in values and thinking processes affect international negotiations
LO6 Important factors in selecting a negotiation team LO7 How to prepare for international negotiations LO8 Managing all aspects of the negotiation process
LO9 The importance of follow-up communications and procedures LO10 The basics of inventive international negotiations
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International Negotiations
Face-to-face negotiations are an omnipresent activity in international commerce
Plans are usually implemented through face-to-face negotiations with business partners and customers from foreign countries
Executives must also negotiate with representatives of foreign governments
In many countries, governmental officials may also be joint venture partners and, in some cases, vendors
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The Dangers of Stereotypes
Negotiations are not conducted between national stereotypes ; negotiations are conducted between people, and cultural factors often make huge differences
For example, we might expect substantial differences in negotiation styles between English-speaking and French-speaking Canadians
In addition to the influence of culture, individual personalities and backgrounds and a variety of situational factors also heavily influence behavior at the negotiation table—and it is the manager’s responsibility to consider these factors
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The Pervasive Impact of Culture on Negotiation Behavior
Looking broadly across the several cultures, two important lessons stand out:
• Regional generalizations very often are not correct. For example, Japanese and Korean negotiation styles are quite similar in some ways, but in other ways, they could not be more different.
• Japan is an exceptional place: On almost every dimension of negotiation style considered, the Japanese are on or near the end of the scale (high).
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