3.02 Exemplify the importance of understanding the values of other cultures, and what a negotiator must consider in international meetings

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• 3.02 Exemplify the importance of understanding
  the values of other cultures, and what a
  negotiator must consider in international
  meetings
• http//www.youtube.com/watch?vFOFZvcu0E4s
  YouTube clip on cultural mistakes

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Importance of business culture-

• Involves trying to avoid losing face, or creating
  embarrassing or uncomfortable situations.
• Saving face allows someone to get out of
  situation without harming his/ her dignity.
• Being effective negotiator involves understanding
  business customs traditions.
• Both sides typically have to make compromises.

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Values -

• Shared beliefs held by members of culture, help
  define what is right, wrong, good bad.
• Values can be related to Hofstedes measures
• US executives typically believe innovation,
  strong competition free markets are social
  good.
• US executives believe they personally benefit
  from negotiating positive business outcome for
  their company.
• Collectivist business cultures may believe they
  are negotiating only for good of their
  company/country.
• Individual success less important in collective
  business culture.

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Values (cont)

• Customs - common practices among group of people
  passed from one generation to next
• Acceptable topics of conversation.
• Local table manners when dining
• Understanding appropriate interaction with those
  of opposite gender.
• Ex) In Arab countries, considered insult to show
  someone bottom of your feet.
• Ex) In Japan many Scandinavian countries,
  customary to take shoes off when entering home.

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Gift giving

• Is expected in some cultures reinforcing business
  relations
• Important to research so appropriate gifts given
  to each culture visited, but not viewed as
  bribes.
• Gifts for Chinese individuals should be small
  personal
• Gifts between businesses should not be given
  until after negotiations finished.
• Gifts should not include products made in Taiwan.

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Gift giving (cont)

• In Japan give receive gifts with both hands as
  gesture of respect humility
• Never give 4 of anything because the number 4 is
  associated with word for death.
• Try not to get caught empty-handed wise
  travelers to Japan typically carry assortment of
  gifts just in case

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Bribe -

• Money or something of value given to persuade
  someone else to violate ethics or laws.
• Bribery common in underdeveloped countries, but
  China, Mexico, India Russia considered high
  bribery states
• Belgium, Canada, Netherlands Switzerland
  considered low bribery states
• http//www.youtube.com/watch?vHVbSQYhgFlg
• According to Transparency International
• http//www.transparency.org/research/cpi/overview
• http//www.ringoffireradio.com/2013/08/sex-bribes-
  and-big-pharma-video/ Glaxo Smith Klien bribes

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Foreign Corrupt Practices Act of 1977

• Outlaws US companies from bribing foreign
  governments.
• Some countries have structured civil employment
  system around concept of paying for services
  rendered.
• Underpaid civil employees may be expected to
  supplement their incomes by accepting bribes.
• Siemans AG DaimlerChrysler AG examples of
  companies levied fines by US Justice Department
  for violation of FCPA
• http//www.justice.gov/criminal/fraud/fcpa/
• Bribe activitynow

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International marketing meetings

• May vary according to business culture of
  country.
• Cultures vary on issue of time
• Chinese, Japanese, Americans many northern
  Europeans begin on time.
• Latin American, Middle Eastern, warmer climate
  countries do not hold to same tight schedule for
  starting times.
• http//www.youtube.com/watch?v-ZiApcvyLl0feature
  related silly clip on business hours in Germany

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International marketing meetings (cont)

• Even though English considered global business
  language, appropriate to arrange for translator
  to participate.
• Individuals who do not know foreign language
  should still be familiar with key phrases
• http//www.youtube.com/watch?vxZ9nvYCDUUw
• YouTube clip commercial for Berlitz
• http//www.berlitz.com/
• http//www.rosettastone.com/

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International marketing meetings (cont)

• Greetings vary by culture
• In many Arab Muslim countries, women should
  only be greeted verbally.
• Men should not kiss women on cheeks or shake
  hands unless their hands are offered.
• In France, kissing French woman on cheeks may be
  expected.
• http//www.youtube.com/watch?vyDhXD25fmMofeature
  related Columbia Business School YouTube clip on
  American handshake

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International marketing meetings (cont)

• Business cards most always exchanged at meetings
• One side should be printed in English other
  side in language of negotiation partner.
• In Asian cultures, business card should be handed
  over with 2 hands turned over so receiver can
  read it.
• Cards should be studied for few moments as sign
  of respect to other person.
• In China, cards may be lined up on negotiation
  table so all names can be recognized.
• http//www.youtube.com/watch?vDcuDT48_0qU
  YouTube clip on exchanging business cards in Japan

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Culture impact on business negotiations

• Often negotiations conducted over meal, -
  important to understand observe meal customs.
• In Japan, noodles should be eaten with loud
  slurping sound.
• In China, important to try each item brought to
  table buffet
• In Asia, important to use chopsticks
• In Europe, meals can be based on regional food
  drink, so good idea to study prior to be able to
  talk about meal.
• http//www.youtube.com/watch?v0ZTRIblyUdw

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Culture impact on business negotiations (cont)

• All sides of negotiation process will try to make
  most of their position, but must be able to trust
  each other.
• US, Canada EU have strong contract laws, so
  legal action may be taken if contracts are
  broken.
• In other countries, typically less developed,
  people distrust contracts believe signify lack
  of trust.
• Trust important in countries with weak contract
  laws or weak enforcement of contract laws.
• Negotiation process may start by developing
  trusted relationships

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Culture impact on business negotiations (cont)

• Negotiation is an art.
• Each culture may employ tactics based on how they
  view other party.
• Japanese negotiators view Americans as being
  impatient may remain silent to pressure
  Americans into making compromises.
• In high power distance cultures, real authority
  resides with top manager, which may be oldest
  person
• In Japan, likely to be oldest person on
  negotiating team.

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Culture impact on business negotiations (cont)

• Important to identify where real negotiating
  power lies.
• Successful negotiators study culture tactics
  used in cultures where negotiating.