International Meeting and Negotiation Styles
Special Focus:
United Kingdom
Mediterranean Countries
Arabic Countries
China
Japan
Russia and Eastern Europe
Hayes Forsten
eforsten@mindspring.com
IB8180
4/8/99
Executive Summary
As the world’s business climate shrinks to a smaller and more connected community of business
people, understanding how to conduct a meeting is imperative to success. Success means a great
deal more when considering long term objectives. The goal of this analysis is to first understand
several important current trends in the international business climate. Several articles will be
examined to uncover the findings of those researching, struggling, and engaging in international
business. Next, a focus of negotiation and meeting styles of several countries and types of
cultures will be discussed. Finally, a summary of key points should give business people
navigational guides for undertaking business in the international arena. Individuals who deny the
need for a solid tool box of tactics in dealing with general cultural and business differences will
perhaps find that their ventures outside comfortable boarders may be less than effective.
Introduction
In an attempt to set the ground work for the importance of keeping cultural differences in mind,
the following situation surpasses words.
“An eagerly awaited plane lands in Brazil. A high-ranking passenger makes his descent to the
tarmac and, eager to make a good impression on the new Latin American contacts, raises his
fingers in an unmistakable vulgar salute to the male anatomy.”
Don’t laugh - it happened. (The late President Richard Nixon was the culprit.)1
The unfortunate “hello” President Nixon gave is just the type of mistake we should strive to
avoid in doing business overseas. The following analysis will be a multicultural approach to the
importance of knowing the territory prior to engaging in business. One would not venture into an
unknown territory of land without a map, if one were available. Thus, throughout this analysis
we will be drafting a map for business exploration. This analysis will by no means be the only
road map for the future that the business person should rely on, but rather the goal will be to
heighten the need for cultural research to be conducted prior to engaging in negotiation, or
business travel to a foreign country.
We will begin by exploring business ethics, and where business students fit into the spectrum.
Also, the importance of actually developing an employee to monitor good ethical behavior during
meetings, negotiations, and day to day activities will be explained. Finally, the discussion will
end with perhaps more interesting findings regarding the meeting and negotiation styles of
several cultures. Hopefully, the conclusions will reinforce the need for diversity in the work
place, and the fact that simply having diversity and not understanding it does not always equate
to success.
Business Ethics
1
Moline, Julie. 1998. Behavior modification; tips in doing business abroad. Reed Travel Group - Meetings
and Conventions , 33:38.
Conducting business overseas provides companies with a great deal of opportunities. New
markets and the possibility of expanding profit margins are perhaps the most obvious, but
corporations can gain even more from expanding overseas. Companies can gain international
presence and increase their name recognition in other corners of the globe. Although the
opportunities are great, international commerce comes with some challenges. Local customs and
practices may be at odds with laws in the corporate home country.2
In his article “Don’t do as the Romans do”, Brian Hollister examines the need for a company
official to monitor the ethical code of conduct of the organization conducting business overseas.
A company should develop a position within the company to monitor such issues on a local level.
Developing this employee is perhaps a good spring board to future discussions on conducting
meetings and negotiations in foreign countries. In addition, the analysis works for countries
other than the U.S. Below is a brief job description of a Security Manager:



Work with company attorneys in drafting the company’s code of conduct.
Develop an ethics statement that will cover the companies position on such issues as
environmental pollution, bribery, wages, work hours, factory conditions, and child labor.
Work with an ethics committee and compliance officers to ensure that management is not
inadvertently sending employees mixed messages.3
The concept of mixed messages is a topic that may need further explanation. Below is a quote
regarding a hypothetical situation that leads to a new line of analysis:
“It’s costing us thousands of dollars per day while our product sits on the docks - do what needs
to be done to get it out of customs.”
Quotes such as these from company officials may seem very innocent, or simply frustration
verbalized. However, the ambitious employee may misinterpret the message to imply that
unethical behavior may be acceptable to the company. Also, this may be interpreted as an
informal demand by management to act in an unethical manner. 4
On a personal note, I worked for a company several years ago that engaged in the importation of
fabrics from overseas. An import embargo was enacted due to the negligence of a competitor
which affected all imports of flannel from China. As a result, our order was held in customs for
over six months. In brief, the president of our company sent a memo to all employees explaining
the situation, and the final note on the message was a very committed plea to remember that we
should only consider the most ethical and legal avenues to rectify the situation.
In retrospect, I did not realize at the time how important that sentence was to the ethical health of
the company. Although frustrations ran rather high over the next 6 months, I never recall hearing
a plea such as the one above. We all knew the costs were mounting, and our customers were
Hollstein, Brian. 1998. Don’t Do as the Romans do. Security Management, 42:56-57.
Hollstein, Brian. 1998. Don’t Do as the Romans do. Security Management, 42:56-57.
4 Hollstein, Brian. 1998. Don’t Do as the Romans do. Security Management, 42:56-57.
2
3
looking elsewhere for order fulfillment, but we did follow the proper channels and eventually the
product was released.
One can only imagine the costs involved with a lawsuit resulting from an illegal bribe or payment
overseas. The larger a company grows, and the larger the overseas operation develops, the
greater the need for a compliance officer and security manager.
Since the immediate readers of this analysis will be those attending an American business school,
a brief examination of the ethical teaching will be done. The tendency of American business
schools is to teach a “universal” set of ethical standards and managerial perspectives that can
have a serious impact on the business practices of new graduates. In addition, this perspective
can have a disparate impact on those companies desiring to do business globally. A business
manager should not make decisions based on a situation out of context. Each decision should
become “situational” and contingent upon both cultural factors and moral norms. 5
An establishment called the Caux Round Table was developed in 1993, and the findings were
quite interesting. A study of MBA students found that “80% of the study participants distanced
themselves from their own description of the average MBA student. ‘The students stressed that
they were less selfish or materialistic or that they had more resistance to selling out their
principles for a higher salary’”6
These findings were impressive and surprising. One explanation given was that students were
responding to the so-called “Decade of Greed” in the 1980’s. The scandals during the 80’s were
very dominant in the media, and perhaps students of today are distancing themselves from such
activities. 7
International Meeting and Negotiation Styles
By exploring the importance of sound ethical behavior and the recent research of the future
business people of the world, a good foundation has been established to finally analyze
negotiations. Attention will now be placed on current trends in international meetings and actual
cultural styles.
The Asian crisis took its toll on the tourism trade in many of the countries affected. However,
one segment that may be overlooked is the meeting and convention sector of these countries.
Incentives for companies to have their meetings in East Asian nations are increasing. Hotel and
conference center construction blossomed in the early 1990’s, and the desire to book in advance
is very evident. Business travelers to countries such as Singapore and Malaysia spend a great
deal of money while on the road which boosts local economies. 8
The article entitled “Taming the Tiger” by Robert Carey put an interesting twist on the concept
of international negotiation. The article focused on meeting and negotiating with different
5
Vega, Gina. 1997. Caveat emptor: Ethical chauvinism in the global economy. Journal of Business Ethics,
16n12/13:1353-1362.
6
Vega, Gina. 1997. Caveat emptor: Ethical chauvinism in the global economy. Journal of Business Ethics,
16n12/13:1353-1362.
7
Vega, Gina. 1997. Caveat emptor: Ethical chauvinism in the global economy. Journal of Business Ethics,
16n12/13:1353-1362.
8
Carey, Robert. 1998. Taming the Tiger. Successful Meetings, v47n6:71-82.
cultures on the topic of having and securing contracts for holding company meetings and
conventions in several Asian countries.
The article states that “Malaysia and Thailand, to name just two, have massive hotel over
construction that was based on the ability of the region’s economy to keep its pace. With the
region’s economic slowdown, ‘it’s simple: the Koreans aren’t going to Malaysia anymore, the
Indonesians aren’t going to Singapore, and so on. Their best markets have dried up, so the
hospitality sector is looking outside the region to pick up the slack.’”9
Thus, the environment is set for international negotiations to emerge. How neat. Meeting on the
topic of having meetings! At any rate, research has shown that companies all over the world are
being targeted for new business by the Asian countries. Hong Kong hotels are already sending
out mailings offering discounts on rooms and entertainment to lock in deals now. Also, sales
directors have made promises such as those by Won Soh of Pan Pacific Hotels and Resorts that
“Depending on the time of year, we would host a meeting group in 1999 and again in 2000
without a rate increase.”10
With the desire of the Asian countries in mind, the first level of negotiation styles emerge. U.S.
and other international company planners should keep in mind the findings of the author that
“Asians are very pragmatic - they’re deal makers. So I’m sure that most hotels would be
amenable to freezing rates or accepting marginal increases each year for repeat meeting
business.”11
Greater detail will be given to each countries negotiation style, however the comments of the
author of “Taming the Tiger” regarding Asian negotiation style will be interesting later in the
analysis. Now the focus will be turned to trends in the international meeting arena. One may ask
“why is it so important moving forward for business people to be well versed in the local
customs of countries they may never have to travel to for meetings”?
Corporate meeting planners have encountered a frequent situation recently. Currently, the
following statement is usually voiced by upper level executives, but the pretext and mindset is
the is the important feature to this analysis.
“What, again in Singapore?”12
Personally, I find it hard to believe that I would ever make a comment like “What, again in
Singapore?” since I have never been there, however, business planners world wide are finding
that companies do not want to repeat trips for meetings. Some planners are even reluctant to plan
meetings in the same locations within a three to four year window.13 Thus, the ground is set once
again for international negotiations.
Globalization continues to march forward inevitably and doing business with people from
different cultures has become as common in many cases as filling out expense reports. However,
doing business with people from other cultures is not as straight forward. Business styles and
9
Carey, Robert. 1998. Taming the Tiger. Successful Meetings, v47n6:71-82.
Carey, Robert. 1998. Taming the Tiger. Successful Meetings, v47n6:71-82.
11
Carey, Robert. 1998. Taming the Tiger. Successful Meetings, v47n6:71-82.
12
Carey, Robert. 1998. Taming the Tiger. Successful Meetings, v47n6:71-82
13
Carey, Robert. 1998. Taming the Tiger. Successful Meetings, v47n6:71-82
10
organizational structure can vary greatly from country to country, even among those who share
boarders and languages. Just as humor doesn’t translate well (as evident in the opening
situation) neither do a great deal of attitudes, assumptions and behaviors. Many of these
characteristics may even seem normal or innocent in one’s home country.14
Global Negotiations
Negotiation can be defined as “a process whereby two or more parties - be they individuals,
groups, or large social units - interact in developing potential agreements to provide guidance,
and regulation of their future behaviors.”15
Two major areas of context must be defined prior to examining the countries and cultures.
Whenever two parties negotiate, the whole process occurs under two umbrella contexts,
environmental and immediate. The environmental context refers to forces in the environment
that are beyond the control of either party involved in the negotiations. Second, the immediate
context includes such aspects as the relative power of the negotiators and the nature of their
interdependence - factors over which the negotiators have influence and some measure of
control. Below is a bulleted list of each:16
Immediate Context - factors under the direct influence or control of the parties
 Interdependence/Bargaining Power: dependence on each other to attain respective goals
 Immediate Stakeholders: goals of managers, employees, board of directors, and
constituents affect strategies, offers and counteroffers.
 Desired Outcomes: Two types - tangible(profit-sharing, technology transfer) and intangible
- (goodwill, desire for win-win outcome). Generally more compromise on tangible outcomes
when long term relationship is desired.
 Relationship between parties: harmonious previous relationships encourage favorable
future negotiations.
 Conflict between parties: Level of agreement on key issues influences level of support for
each other.
Environmental Context - forces beyond the control of either party
 Political Pluralism: Conflicting foreign policies of different nations
 Legal Pluralism: transaction must comply with the applicable laws of the nations involved.
 External Stakeholders: interests of parties not directly involved in the negotiation.
 Instability and Change: need to accurately assess economic and political risk in the target
country.
 Foreign Government Control: governmental interference on technology transfers, critical
industries, and production capacity.
 Currency Fluctuations: include contingency clauses or currency hedging contracts to
hedge against wide swings in exchange rates.
 Ideological Differences: attitudes toward political freedom, property ownership, gender
equality, and foreign investment.
 Cultural Differences: focus of the attached matrix.
14
Moline, Julie. 1998. Behavior modification; tips in doing business abroad. Reed Travel Group Meetings and Conventions , 33:38.
15
Lewicki, Roy, Minton, John, Saunders, David. 1999 Negotiation. Boston, MA. Irwin McGraw-Hill.
16
Lewicki, Roy, Minton, John, Saunders, David. 1999 Negotiation. Boston, MA. Irwin McGraw-Hill.
The above model should help in defining the context of each negotiations. Also, this should
serve as a check list prior to entering into international negotiations. The text Negotiation
provides the following advice:
“The model should be applied from the outside in. Negotiators should start with the
environmental context and study its impact on the immediate context and on the negotiation
process and outcome. Then the direct impact of the immediate context on negotiations should be
studied.
The model should be treated dynamically. Any changes in the environment and immediate
contexts will bring subsequent changes in the negotiation process and outcome. As the
negotiation moves from one stage to the next, negotiators must reevaluate their initial needs,
motivations, positions and strategies under changing contextual circumstances.”17
To paraphrase, when one conducts negotiations in the international arena, the first questions to
answer would certainly have to do with those issues that lie outside the control of either party.
Once issues were address in the environmental area, one would look to the actual people, and
issues described in the immediate context. After researching negotiation globally, the above
represent the best set of questions one could cover prior to sitting around the table.
Next, the focus will be on the actual styles of negotiation and organizational structure of the
following countries and cultures:
The United Kingdom
Mediterranean Countries
Arabic Countries
China
Japan
Russia and Eastern Europe
Attached is the matrix for each country and culture.
Several interesting inferences and observations can be drawn from the cultural matrix.
Discussions of this nature will be examined during the presentation period.
17
Lewicki, Roy, Minton, John, Saunders, David. 1999 Negotiation. Boston, MA. Irwin McGraw-Hill.
One characteristic or quality a good international negotiator must posses is patience. Usually,
negotiations will take a great deal of time because of the complexities. To reduce the time,
negotiators must be well versed in the differences between cultures. Also, patience is vital
because it sends a signal of the negotiator’s commitment to the project, and it helps build a longterm relationship with the other party. Finally, patience ensures that possible contingencies
resulting from changing contexts, as discussed previously, are planned and taken into
consideration.18
Summary and Conclusion
In tying the nature of international negotiation, business style, and overall organization together,
one must pay close attention to several key factors. First, organizations must address the issue of
ethics within its current format, and most definitely on the international front. Ethics vary from
country to country throughout the world. Understanding the differences is the first step in
formalizing ethical standards for your organization, and protecting the organization’s interest
globally.
The international business climate is shrinking everyday. Knowing how to respond if placed
across the table from an individual with whom you must negotiate will not always be simple, but
it will most likely occur in future. As mentioned above, patience is vital during negotiations.
Hopefully, the words of Raymond C. Floyd will also come to mind while a business person’s
patience is growing thin “Differences among people of diverse cultural backgrounds can either
draw them together or hold them apart”.19
Using the matrix of cultures and context analysis as page one of the map to successful
negotiations, perhaps business people will be able to bring ideas and goals together. The overall
goal in negotiating and conducting meetings successfully overseas, regardless of what
background a person has, should ultimately be to understand the other individuals background,
needs, individual style, and macro agenda. This level of understanding will no doubt lead to a
clear understanding of the responsibilities and obligations of each party’s future behaviors.
Problems will arise inevitably, however the prepared, informed, and patient international
business person will most likely be the successful business person.
References
18
19
Lewicki, Roy, Minton, John, Saunders, David. 1999 Negotiation. Boston, MA. Irwin McGraw-Hill
Sheridan, John 1994. Dividends from Diversity. Industry Week, v243n17:23-26.
Cary, Robert. 1998. Taming the Tiger. Successful Meetings, v47n6:71-82.
Hanaoka, Masao, Mroczkowski, Tomasz. 1997. Effective right-sizing strategies in Japan and
America: Is there a convergence of employment practices? Academy of Management Executive.
V11n2: 57-67
Hollstein, Brian. 1998 Don’t do as the Romans do. Security Management, 42:56-57.
Howard, Carole, M. 1998 Going global: How to expand your horizons while avoiding the “ugly
American” syndrome. Executive Speeches, v12n3:29-34.
Lewicki, Roy, Minton, John, Saunders, David. 1999 Negotiation. Boston, MA. Irwin McGrawHill.
Moline, Julie. 1998. Behavior modification; tips in doing business abroad. Reed Travel Group Meetings and Conventions, 33:38-45.
Sheridan, John H. 1994. Dividends from Diversity. Industry Week. V243n17: 23-26.
Vega, Gina. 1997. Caveat emptor: Ethical chauvinism in the global economy. Journal of
Business Ethics, 16n12/13: 1353-1362.
United Kingdom
Mediterranean /
Central and South
America
Arab
China
Japan
Soviet U
Business Climate and Personal
Relations
Very kind, friendly
and humorous
Very important
Very hospitable. Be
respectful of religious
and cultural customs
Great Importance
Great Importance. Need to
Bureaucr
build strong interconnections in choice of
establishing long term
essential
relationships
Time Constraints
Open
Relaxed
Relaxed
Keep time open
Keep time open
Structure
Easy going. Ensure to Socialize first, work
use proper titles
later
(Lord, Dr.)
Business transactions
are considered a social
event
Professional. Make use of Professional. Make use of
formal calling cards
formal calling cards
Little stru
Preparation
More under-prepared Focus more on the
person than the
position
Personal impressions
are supplemented by
fact
Meticulous
Lack pre
understan
business
Meticulous
Slow mo
wasted d
bureaucr
Flexibility
Flexible
Open to changes
May change agreement Need to focus on equality, Open. May change agreement
after committing to it
mutual benefit or
after committing to it
reciprocity
Communication
No concern
Avoid telephone for Very reluctant to say no Very difficult. Establish
important issues and
informal communications
try to achieve facedue to political pressures
to-face
Very reluctant to say no
Need to b
Need to e
economi
commerc