UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
INTERNATIONAL NEGOTIATION –
UCL – JANUARY, 2014
lecturer Milan Oresky
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
7. International Business Negotiations
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
1.
Culture and cross-cultural risk
2.
Interpretations of culture
3.
Overcoming cross-cultural risk: Managerial guidelines
4.
Ethics in international business
5.
Corporate social responsibility
6.
A framework for making ethical decisions
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
Key Concepts
Culture: Enduring patterns of learned behavior that are generally
shared in a society. Tough to observe, but demonstrated through
values, ideas, attitudes, behaviors, & symbols
Cross-cultural risk: A situation cultural mistake that puts some
human value at risk. It arises in environments with unfamiliar
languages & unique value systems, beliefs, & behaviors
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
Managerial Orientations

Ethnocentric orientation: Using one’s own culture as the
standard for judging other cultures

Polycentric orientation: A mindset in which the manager
develops a greater affinity for the country in which he or she
works

Geocentric orientation: A global mind-set in which the manager
is able to understand a business or market without regard to
national boundaries
Managers should strive for a geocentric orientation
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
Culture Is…

Not right or wrong: It is relative. There is no cultural absolute.
People of different nationalities sometimes just see the world
differently

Not about individual behavior: It is about groups. It is a
collective phenomenon of shared values and meanings

Not inherited: It derives from the social environment. We are
not born with a shared set of values and beliefs; we learn them
as we grow up
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
Culture is Learned
Socialization:
The
process
of
learning
the
and behavioral patterns appropriate to one's society
rules
Acculturation: The process of adjusting and adapting to a culture
other than one's own; commonly experienced by expatriate
workers
Culture is like an iceberg - what is visible above the surface is only a
small part of culture; below the surface is a massive base of
assumptions, attitudes, & values that strongly influence decision
making, relationships, and other actions at work
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
Interpretations of Culture
Cultural Metaphors refer to distinctive traditions or institutions
strongly associated with a society; a guide to deciphering
attitudes, values, and behaviors
American football represents systematic planning, strategy,
leadership, and struggling against rivals
The Swedish stuga (summer cottage) represents the love of nature
and desire for individualism in Sweden
The Spanish bullfight reflects the importance of ritual, style, courage,
and pride in Spain
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
Examples of Where Culture can Impact the Conduct of
Business

Developing products and services

In ads and promotional materials

Preparing for trade fairs overseas

Screening & selecting foreign distributors

In communicating with foreign partners

When negotiating various business ventures

In interactions with current & potential customers in different
countries
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
Specifics of International Negotiations
In international negotiations your skills to identify and understand
cultural differences are essential for choosing the right strategy
There are more then 200 different national cultures in the world
Some experts separated them into 3 main cultural types:
 Multi active
 Linear active
 Reactive
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
In International Negotiations very important to understand
the other side:
Language
Behaviour
Values
Mentality
Decision making process
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
“The World’s Business Cultures. How to Unlock Them” by
Barry Tomalin, Mike Nicks
Analysis of main countries/economies of the world (China, USA, Germany,
UK, Russia, India, Brazil, France, Italy and Japan) by their business
cultures in 10 main features:
1. Communication style
2. Work style
3. Discussion style
4. Attitude to Business
5. Management style
6. Business relations
7. Decision making
8. Basis for Decision making
9. Attitude to time
10.Work – Life balance
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014
It is said, that in modern business world , when it comes to big
contracts of significant value what matters most is TRUST and
RELATIONS between parties.
Respect to the culture of the opponent is the key to success.
INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014