Cross Cultural Negotiations I

Cross Cultural Negotiations
    Good morning, everyone. Today we are going to continue our discussion about cross cultural influence on business, particularly on business negotiations. Do you have an international sales negotiation coming up? Are you nervous about how it will go? Most people don’t give much thought to the actual cross cultural communication process prior to their first real cross cultural negotiation. They get obsessed with secondary details.
    Imagine you are in a long line of people waiting for a taxi at the busy Paris airport, with people swarming everywhere. The noise of the street traffic is competing with the noise from the airplanes in the background. And then you hear such a large commotion, right up at the front of your taxi line. You think it is yet another bomb scare and crane your neck to get a closer look with your bags in your hands ready to move. But out of the confusion you hear laughter. What happened? It was only someone who began to try bargaining the price of his ride before he got inside the taxi... with a Parisian taxi driver. The tension breaks as a ripple of laughter mixed with annoyance runs down the taxi line. It is an old story. But it does highlight cultural differences in negotiation very well. Today I am going to address several points about cross culture negotiation.
     First of all, I want you to know that different cultures have different negotiation practices. Negotiation practices differ from country to country. Some cultures expect clients to negotiate over things that would be totally unacceptable in other countries. Some cultures get upset or angry by things that are totally acceptable in other cultures. Different cultures simply have different approaches when it comes to negotiation. This can be intimidating when you travel to a new country to negotiate for business. And even more so if it is your first time. It is important to know what is culturally expected of you when it comes to negotiation.  If you are just starting out in developing your international markets, it is wise to do some homework and identify the standard expected negotiating habits in the country you are travelling to. No matter how much research you do prior to your first cross cultural negotiation communication road blocks can easily come up. This is even more likely if your negotiation is taking place in a foreign environment to what you are used to. So it is even more important to develop skills to ride through communication hurdles.
     Now, let me give you a beginner’s guideline for cross cultural negotiation. Prior to your first cross cultural negotiation give some thought on how you will keep on track. Here is a guideline to help beginners. If you find yourself on your own in a country where negotiation practices are different to your own, there is a strategy to follow. Do your research on what will be expected of you.  Define your schedule, and what you are expected to wear and bring. If you are a woman, be sure to verify standard practices beforehand. Are there any standard culturally specific negotiating practices? Remember to ask for advice prior to cross-cultural negotiations. If you feel you will be in a more different environment than you are used to you have two options to consider:  One, hire local representation. Some large multi-national companies hire local company representatives to facilitate all business procedures in certain countries in the Middle East and the Far East.  Two, arrange for a local third party to accompany you. Look for someone who can tell you if you are making any cultural blunders. This will give you a certain peace of mind.
    We all know prior research helps, but even so, it is not always easy. You will also need to keep your own behavior and attitudes turned towards your negotiation. In the third part of my presentation, I will give you 8 points which are considered best practices during your first cross cultural negotiation.
    1.  Ask and find out what is expected of you.
    2. Explain that you are looking forward to the business opportunities open to both of you.
    3.  Explain that this is your first trip and you have not done business in their country before.
    4.  State your good will and that you do not mean to do anything awkward.
    5. Ask to be told or shown what to do.
    6.  Apologize if you do or say something that seems to be out of place.
    7.  Continue to show your desire to proceed in the negotiations.
    8. Continue to say that you look forward to doing business with them and learning more about their culture.
     Keep this guideline in mind during your negotiations. Remain constantly aware of your environment so you can implement any of these points if needed. Use each point appropriately when needed and do not go overboard. Overly stating your enthusiasm or apologizing incessantly can be des