The International Communications

by Lothar Katz

If your goal is to grow your international business, no situation presents greater risks to strategy execution and bottom line than a cross-cultural negotiation. Two factors often amplify this:

- The negotiation partner is not well known; their strategies and objectives (5) are unclear.

- Interacting with the other culture is a first for one or both of the parties involved, and they are not well-prepared for it.

A lack of culture-specific preparation is a deadly sin in any international business negotiation.

(10)In the United States, negotiation objectives are often obvious as the interactions follow a logical, factual approach. Profit and growth are the ultimate motivators, and people will be flexible and creative in finding ways to meet their objectives. Long-term aspects of a business relationship still matter, but play a secondary role. American businessmen may not engage in an agreement if it holds (15) long-term promise but does not offer an advantage in the near term. Foreign negotiations can look quite different in contrast. For starters, long-term aspects of the engagement will weigh more heavily. Also, negotiators may have a less holistic view of the package being discussed.

People around the world are very creative when it comes to negotiating, (20)bargaining, and haggling. Numerous negotiation techniques are used that would be considered unusual or exotic in your country.

Deception, False Demands, and False Concessions

Pretending they are not at all interested in your business proposition is one way for an experienced negotiator to gain an advantage. A false demand, meaning (25)the other negotiator discovered something you want that they don’t value highly, serves as a strong pressure point for you to make a major concession. False concessions, like repeatedly lowering the (overly inflated) price without getting any reciprocal concession from you, may lead you to feeling guilty and giving up something that is valuable to you without getting equivalent value in return. In all of these situations, it is important to recognize the technique. Once you do, you can (30)either call the bluff or carefully outmaneuver it.

Extreme Openings

Starting a negotiation with an extreme demand is common practice is some Asian and Arab countries. There are two ways to counter the technique, the efficiency of which depends on the specific culture: either counter-bid at the (35)extreme other end of the spectrum (if they ask a ridiculously high price, offer a ridiculously low one and smile), or state firmly that if they indeed believe the value of their product or service to be that high, then there is no common ground for any further discussion. Inevitably, you will be asked what you consider a more realistic. Note that in some cultures, people will be irritated and may even be (40)offended by extreme openings. An example is Sweden, where people expect you to start with a close-to-final offer.

Aggression and Strong Emotions

In the U.S., negotiations commonly follow a logical and factual flow. Emotions are being read as an indication of the process going astray. In many other (45)countries, the use of aggression and strong emotions may be viewed a legitimate tactic. It is therefore wise not to let oneself be alarmed. If you continue to stay friendly and focused, the other side will quickly drop the tactic as ineffective.

Silence

(50)In American ‘cultural language’, silence signals a negative response. Extended silence makes the message stronger. In Germany and in numerous other countries, silence doesn’t mean much. Keep in mind that if the conversation takes place in English and if English is a foreign language for the other side, translation also takes time and may occupy the minds.

(55) Best-Offer Pressure

‘This is my best offer’, stated in a negotiation in the U.S., usually means ‘take it or leave it’. When negotiating abroad, it may not mean that. Negotiators in some Asian countries are known to sometimes make a series of ‘best’ offers, each a little better than the previous one. Be careful when using the phrase yourself – (60)rather than understanding that this is your final word, the other side may mistake it for a tactic.

Time Pressure

Most cultures prefer a more relaxed approach to the often-hurried style of life, so they can use your preference for quick and effective interactions against (65)you. It is best to always let the other side knows that you have plenty of time and will be able to change flight bookings if needed, even if that may not really be the case.

When approaching the final stages of an international negotiation, you’ll need to carefully look for clues that the other side is ready to close. Realize that in (70)several cultures (for example Japan), ‘yes’ won’t mean ‘I agree’, but rather only signals ‘I hear what you’re saying’, so it does not convey consent.

Proper preparation for your international negotiation will require studying in depth material about the target culture and/or engaging a coach who commands extensive knowledge of the country and its business practices. Successful international negotiators never engage without careful preparation. It is a pivotal step towards achieving your objectives, and a very risky one to skip.

5. Answer the questions:

1.What is the properpreparation for your international negotiation?

2.What negotiation techniques are common in the Asian and Arab countries?

3.What is the USA negotiation style?

4.What is the Russian negotiation style?

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