Negotiations and
Culture
Why do they do that?
Introduction
 Cultural
Factors Affecting
Negotiation
 Specific Cultural Considerations
– with
– with
– with
– with
Americans
Germans
Japanese
Koreans
Cultural Factors Affecting Negotiation
 Negotiating
 Win-lose
 Formal
 Risk
Goal (One–time or relationship)
or Win-Win
or Informal
Aversion (High or Low)
Cultural Factors Affecting Negotiation
 Direct
 Time
 Open
or Indirect
Consciousness
or Closed Displays of Emotion
Cultural Factors Affecting Negotiation
 General
or Specific Agreement Form
 Bottom
Up or Top Down Agreement
Building
 Team
Organization and Decision Making
Power
Specific Cultural Considerations
 Negotiating
with Americans
 Negotiating
with Germans
 Negotiating
with Japanese
 Negotiating
with Koreans
Negotiating with Americans







very individualistic (cowboy mentality)
prefer informality immediately and try to be very
friendly
like to use humor wherever possible
very direct from the beginning of the negotiation
and then make offers and counter offers
take calculated risks but will not overextend
themselves
consider proposals on a monetary investment
return basis rather than relationship basis
very conscious of time and don’t like silence or
lulls
Negotiating with Germans






prefer formal attire and regimented procedures
strongly favor hierarchy in their order of speaking
and seating
prefer logical argumentations instead of personal
appeals to support their position
like to prepare in advance for disagreement by
having several responses for your possible
counter-arguments
like to look for common ground but do not
concede in arguments easily
each team member has a specialty and will be
the one to address their issue of expertise alone
Negotiating with Germans
like to go over details many times in order
to avoid misunderstanding
 do not like to be rushed
 will negotiate very aggressively on price
but will only provide a token amount of
business initially
 stress formality by using surnames only
and prefer to use academic titles
 jokes or humor are out of place in the
negotiation itself but welcomed in social
settings

Negotiating with Japanese







like to negotiate in teams with individual
specialties
senior staff members will lead but not usually
speak
always refer back to head office before making a
decision
like to go over the same information many times
so there is no misunderstanding
expect quick action once decision is made
will break off negotiations that do not follow
protocol
will cancel a meeting if conditions have changed
Negotiating with Koreans
will focus on difficulties when they want to
withdraw
 prefer to sign exclusive long-term
agreements
 will break a relationship suddenly if they
find a better offer
 more aggressive than most Asians
 emphasize price over durability
 willing to experiment and take risks
 adaptable and accepting of last-minute
changes

Conclusion
In international negotiations culture
has become another factor in
preparation for success. Once you
overcome the hurdle of understanding
your own culture in-depth, it becomes
easier to understand the motivations
and behavior of those from other
cultures.
Bibliography
Cohen,
Raymond Negotiating Across Cultures: International
Communication In An Interdependent World, Revised
(Washington, D.C.: United States Institute of Peace, 1997).
Lewis, C.S. Mere Christianity (London: Collins, 1952; Harper:
San Francisco, 2001).
Lewis, Richard D. When Cultures Collide: Managing
Successfully Across Cultures, Second Edition (London:
Nicholas Brealey Publishing, 2000)
Rosen, Robert et al, Global Literacies: Lessons On Business
Leadership And National Cultures (New York: Simon and
Schuster, 2000).
Salacuse, Jeswald W. "Negotiating: The Top Ten Ways That
Culture Can Affect Your Negotiations," Ivey Business Journal
(University of Western Ontario; London, Ontario) 69, 4
(March/April 2005).
http://www.businessweek.com/1997/08/b351586.htm