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Negotiating in the Global Marketplace

Successful business negotiation is tough enough when the person sitting across the table is another American. But when you are trying to hammer out a deal with someone from another culture-from Japan or Latin America, from Australia or the middle East; the process becomes infinitely more complex. In Chapter four of "International Business Law and its Environment" Richard Schaffer discusses several methods of resolution, including mediation and arbitration. In this critical analysis, I shall discuss different negotiating styles that can help avoid some of the difficulty and uncertainty when dealing with individuals from different countries.

Recent research into the processes of negotiation has revealed key aspects of negotiation in which cultures tend to differ. Among others, Geert Hofstede has done much research into culture's effects on business attitudes, for example (which has important implications for negotiations), while Stephen Weiss has done significant studies on culture's effects on the negotiation process proper. Mr. Hofstede discusses four areas of critical importance when negotiating with people from different cultures: Power distance, individualism verses Collectivism, Uncertainty avoidance, and masculine verses


Individualism and collectivism are terms of culture, not economic, and they refer to the orientation that people in different cultures have toward their work. Do we work for our own individual benefit, or do we work for the benefit of the greater group, the family, the clan, the company, the country? Those cultures that are more individualistic subscribe to self-interest oriented theories of work and economics. Individuals in these cultures tend to be self actualized and self-motivated, and their relationships with colleagues are based on self interest. They are generally task oriented, have a high comfort level with anonymity, and seek individual reward and appraisal. In contrast, those cultures that are more collectivist subscribe to group oriented theories of work and economics. People there are motivated by the desire to advance the interests of the group. Their relationships with colleagues are based on mutual self-interest, they are emotionally dependent on the success of the group, and they seek reward for the group. At the negotiating table, differences in this dimension can clearly cause serious conflict. Individual responsibility for making decisions is easy in individualist cultures; in group oriented cultures this can be difficult. Americans for instance expect their Japanese counterparts to make decisions right at the negotiating table, and the Japanese are constantly surprised to find individual members of the American team promoting their own positions, decisions, and ideas, sometimes openly contradicting one another. Americans, subscribing in general to the value of individualism, are often unaware of how powerful and extreme a value it is here, and of how much it permeates all aspects of our work.

Ellen Raider. "The Art of Negotiating globally". Bellevue Public Library, Bellevue, Washington.

Power distance as a dimension measures the way individuals relate to authorities at work in different cultures. What the Author discovered was that in some cultures, those who hold power and those who are affected by power at work are significantly far apart (high Power distance). In other cultures, the power holders and those affected by the power holders are significantly closer (low power-distance). High power distance, for example, usually mandates respect for age and seniority. The style of management by the powerholder can be paternalistic. Status is often ascribed, and outward forms of status, such as protocol, formality, and rigid hierarchy, are regarded as important. I addition, decisions regarding appraisal, reward, and redress of grievances are usually based on personal judgments made powerholders or those connected to powerholders. Relative to many other cultures in the

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Approximate Word count = 1828
Approximate Pages = 7 (250 words per page double spaced)


  

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