International Negotiation / Cross –Cultural Negotiations

International negotiation is often a process of power-based dialogue intended to achieve certain goals or ends, and which may or may not thoroughly resolve a particular dispute or disputes to the satisfaction of all parties. International negotiation can be bilateral or multilateral, public or secret, and can involve different forms of negotiation among states and non-state civilian actors, as well as with anti-state actors, such as individual terrorists and terrorist organizations. In addition, different cultures may engage in negotiations with different styles and for different purposes, with different expectations. Negotiation aimed at conflict management seeks to limit or minimize tensions and disputes as much as possible, without necessarily changing the status quo or the relations of power, values, and interests between the disputing parties. Negotiation aimed at conflict transformation seeks to go beyond the status quo to transform relations of disputed power, values, and interests in a more “positive” and less controversial direction although largely expecting a number of disputes and differences to remain. Conflict resolution is generally seen as an even longer-term process that attempts to find a common and complete agreement among the different parties despite their different values, interests, and power relationships.

Negotiation is an unavoidable part of any international business and an important instrument of international business communication. International business negotiations have many characteristics that distinguish them from negotiations in the domestic markets mainly due to cross-cultural factors. A lot of studies conducted are focusing on the effect of culture in specific countries. John Graham (2003) has done studies in the negotiation styles of business people in 16 countries. Graham found that there were significant differences in the negotiation process in the countries that he studied. Although negotiators from different countries obtained the same outcome, the way they negotiated was different. National culture programming leads to patterns of thinking, feeling and acting. The behavior of the negotiators is strongly influenced by their cultural background, which defines the range of strategies negotiators develop as well as tactics and communication styles they implement. Successful negotiations require understanding of each party's culture and may also require adaptation of the negotiation strategy so it is consistent with the other party's culture (Hollensen 2001).

Cultural differences in negotiations tend to occur for two main reasons. First, when confronting cultural differences, people tend to rely on stereotypes. Stereotypes are often pejorative (for example: Italians always run late), and they can lead to distorted expectations about your counterpart’s behavior as well as potentially costly misinterpretations.

Instead of relying on stereotypes, try to focus on prototypes—cultural averages on dimensions of behavior or values.

A second common reason for cross-cultural misunderstandings is that we tend to interpret others’ behaviors, values, and beliefs through the lens of our own culture. To overcome this tendency, we need to learn about the other party’s culture.

Culture is a major element of international business negotiations. It is often compared to an iceberg; there is more to it than meets the eye. These hidden elements, if not understood, can make or break an international business transaction. It is thus important to be aware of cultural influences on negotiations.

Salacuse, a leading expert on negotiations, has identified the ten most important cultural factors that affect business negotiations. These “top ten” elements of negotiating behaviour constitute a basic framework for identifying cultural differences that may arise during the negotiation process. Applying this framework in your international business negotiations may enable you to understand your counterpart better and to anticipate possible misunderstandings.

Source: Salacuse, J.W., Negotiating: The Top Ten Ways That Culture Can Affect Your Negotiation, IBJ (2004)

The ten negotiating traits can be placed on a spectrum or continuum, as illustrated in the chart below.