Conducting business negotiations within domestic markets isn’t exactly an easy process. While some see it a game between two sides trying to ‘beat’ each other, it’s often a process of striking a compromise that benefits both parties. But if you’re in the process of an international business negotiation, it can become even more challenging.The language barrier may be an obvious issue for international negotiations, but ignoring cultural differences can make or break the deal. Show
There’s potential for things to go wrong if two parties don’t get off on the right foot. Understanding the cultural nuances of a potential business partner can range from differences in body language and the softening of particular words, to how you meet-and-greet a client and how you deliver feedback. READ MORE: How to Give Feedback in Different Parts of the World When entering into international negotiations, it’s essential that you take the time to prepare beforehand to understand cultural differences in order to manage expectations of a potential client or business partner to land a deal. CommunicationMethods of communication vary among cultures and delicate negotiations rely on precise cultural understanding. One of the cornerstones of mastering the art of negotiations is adapting your personal style of communicating to fit the cultural expectations of the local market. For example, Germans have a more formal style of communicating than in the UK. The norm in the German market is to address people by their title and surname, like Herr Schmidt or Frau Weber, until you’re considered friends and invited to address them on a first-name basis.
If you’re involved in negotiations in China, understanding concepts such as ‘saving face’ will be a vital addition to your communicative repertoire to ensure you engage with Chinese partners in a culturally sensitive way. Never underestimate the importance of saving face in Chinese culture. Causing public embarrassment has been the root of many conflicts in China. Insulting someone or openly criticising their ideas is considered a major faux pas in this market. Furthermore, you should always respect someone’s status and ensure you respect their level of seniority. READ MORE: The Art of Negotiating and Dealing with Chinese Business Partners One useful tactic many senior executives use when navigating conversations with international partners is whether to adopt a direct or indirect approach to communication.
For example, a response to your questions or proposals may come in the form of vague comments or physical gestures of approval or dismissal, and you’re likely not to receive a commitment or rejection of your business proposal in your first meeting.
Even simple physical cues such as rolling up sleeves and loosening of a tie can be considered unprofessional and unflattering in some European countries such as France. In Japan, China, India and Korea, where you sit in a meeting is considered hierarchical – often defining the status of individuals. Misread these signals and both parties could be set up for embarrassment. InterpretersInterpreters are used to bridge the linguistic divide when both parties don’t speak the same language. Business interpreters that assist in cross-cultural communication will often participate in video conferences and interviews, as well as face-to-face business meetings.
As a result, an interpreter’s role requires a huge amount of focus in order to listen carefully and accurately convey the spoken words and physical cues between their client and their clients’ business partners. For example, in Japan where direct forms of communication to express a negative response is considered rude, it’s common to use the word ‘maybe’ instead of the word ‘no’. Whereas, in the US and the UK, the word ‘maybe’ indicates the possibility a request could be considered in the future. It’s these subtle nuances that interpreters are looking out for, as well as translating both languages.
Implementing a thorough briefing process and hiring the right interpreter with specialist knowledge of your industry will be vital to the success of your multilingual meetings. The more time and effort you invest during the briefing process, in terms of providing the relevant reference materials in advance, the better prepared your interpreter will be. Understanding industry terminologies and regulations, company procedures and background information on previous negotiations will be essential elements to the briefing framework, as well as how you, as the client, wish to conduct the meeting and overall objectives of the negotiations. Forms of agreementDefining the purpose of a negotiation and how to form an agreement differs across cultures. For some, it could be getting a contract signed to formally agree to a partnership. For others cultures, nurturing a relationship through extensive preliminary meetings is considered the appropriate way of reaching a mutual understanding before signing a formal agreement. This can certainly be said of Asian cultures, such as the Chinese, who value taking the time to get to know potential business partners before confirming a partnership and finalising the details of a proposal. RELATED: How to Work Successfully with International Vendors
Preliminary negotiations not only allow you to establish and build long-term relationships, it can also help both parties learn how each business operates and identify additional needs. Information gathered during these stages is critical if you wish to preempt unforeseen challenges in the future due to cultural needs or develop a more efficient, bespoke onboarding process for your client. In some markets, for a contract to be valid, both parties have to go through formalities that might seem almost ritualistic to those familiar with the relatively informal UK process. When it comes to confirming the finer details of a business agreement such as delivery dates, pricing structures and quality assurance procedures, it would be wise to err on the side of caution as some cultures tend to prioritise some aspects over others.
That’s pretty logical when you consider the French tend to clarify their own thoughts during business meetings through extensive discussions before making solid decisions or taking direct actions. Be prepared for vigorous, logical debate when negotiating in this market.
Business owners in the UK and US tend to lay all their cards on the table and draft lengthy and detailed contracts to mitigate the impact of any unexpected circumstances. Whereas Chinese negotiators prefer to build contractual agreements on general principles and rest on the foundations of the relationship to solve any issues that may arise in the future. The trade-off is to be open-minded when you encounter unfamiliar value systems during business negotiations. Working with business partners from different cultures often requires the adaptation of your products, services or internal management processes in order to secure and maintain rewarding, long-term international business relationships. What is the first step toward initiating efficient and effective international business negotiations quizlet?Which of the following is the first step towards initiating efficient and effective international business negotiations? C. Selecting an appropriate negotiation team.
What are the steps in international negotiation?Stages of the Negotiation Process
The process of international business nego- tiations can be divided into five different stages: 1) The offer 2) Informal Meetings 3) Strategy formulation 4) Negotiations (face-to- face) and 5) Implementation (Ghauri 1983).
What are the 3 steps that should be taken to prepare for international negotiations?These three guidelines should help you strike the right balance in cross-cultural communication and negotiation:. Consider the individual. ... . Broaden your scope. ... . Reduce stress.. What is the first step in negotiation quizlet?PREPARATION AND PLANNING is the first step in the negotiation process. Here, both parties will organize and accumulate the information necessary to have an effective negotiation. 2. DEFINITION OF GROUND RULES: In this step, rules and procedures will be established for the planned negotiation.
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