www.wsiz.rzeszow.pl
UNIVERSITY OF INFORMATION TECHNOLOGY
AND MANAGEMENT IN RZESZOW
MARKETS AND BUSINESS
TRADING
INTERNATIONAL
NEGOTIATIONS
BEATA KINGA ADAMCZYK 
INTERNATIONAL NEGOTIATIONS
The processes of globalization, regional integration, military conflicts
cause that commercial, financial or investment negotiations (mediation)
are increasingly being conducted between representatives of different
countries and also are a natural element of large transnational
corporations.
International negotiations are conducted under different conditions and
social situations. Sometimes, during the negotiations, meeting a group
of people from different backgrounds, religions, political systems and
with different cultures. It is easier to make contact with a partner, who
understands the mentality and adapts to the situation, than with a
partner who nervously and emotionally reacts to behavior which in a
given country are normal.
BARRIERS OF INTERNATIONAL
NEGOTIATIONS
Potential negotiators are separated by geographical space, differences
in socio-economic, political, level and nature of education. Negotiations
in the world today are determined by many factors:
time,
language - even the accent
choice of negotiators,
choice of the conversation place,
legal and political system,
bureaucracy,
instability,
multiplicity of currencies and monetary systems,
ideological differences,
cultural differences
CULTURE
“It is a conscious, socially transmitted heritage of creations,
knowledge, beliefs, values
and normative expectations. The
heritage which helps the members of society overcome their
present and future problems”.
Cultural differences interfere with widely understood communication
process, that concerns the purpose, methods and behavior in the
negotiation process. They also affect of the nature of the
negotiations and the way of their implementation.
CULTURAL DIFFERENCES IN NEGOTIATIONS
Personality of the negotiator and his cultural environment:
Personality features and cultural influences which over the years shaped
the development of socio-professional and individualistic of negotiator.
Cautious in issue of the cultural stereotypes:
Stereotypes affect the interaction between partners, which is evident in
the way of negotiation and mutual trust of the partners, both during the
negotiations and implementation of transactions.
Cultural differences significantly affect the following aspects of
the negotiation process:
the way of take decision by the negotiators
range of confidence between the negotiation partners
range of tolerance for ambiguity occurring in the communication
process
emotional needs of negotiators - the dominance or regression.
NEGOTIATIONS ON THE INTERNATIONAL
MARKET
In negotiations on the international markets must be complied two
rigid rules.
Rule 1:
In the international business seller should adjust to buyer.
Rule 2:
In the international business newcomer should abide by
local customs.
DIFFERENT CULTURAL GROUPS IN THE
NEGOTIATIONS
In negotiations with the partners representing a higher level of power
distance the final decisions must be taken by representatives of the
highest authority in the organization.
Negotiators representing the collectivist cultures tend to form more
lasting relationships with partners, which are continued even after the
negotiations.
The attitude of male in the negotiations is expressed through of
assertiveness and the win-lose relation. The attitude of female may
manifest in greater readiness to make concessions and through of
empathy.
The attitude of male: Japan, Austria, Italy, Switzerland, Germany,
Mexico.
The attitude of female: Sweden, Norway, Denmark, Netherlands,
Finland.
Representatives of cultures, whose objective is to minimize the
uncertainty tend to create a better-organized situation through the
introduction of rules governing behavior.
CULTURAL DIFFERENCES AND THE
COURSE OF NEGOTIATIONS
Pro-transaction cultures
Focus on achieving a goal. They draw little attention
to the relationships linking them with partners.
Pro-partner cultures
Representatives of the pro-partner attitude, attach
great importance to the way in which mutual
contacts are maintained.
The conflict may lie in the fact that
representatives of pro-transaction
culture will be perceived by the propartner negotiators as over-confident,
aggressive and arrogant.
Non-ceremonial cultures
Focus on achieving a goal. They draw little
attention to the relationships linking them with
partners.
Ceremonial cultures
Representatives of the pro-partner attitude,
attach great importance to the way in which
mutual contacts are maintained
The conflict usually occurs when
representatives of non-ceremonial
culture perceive the behavior of
ceremonial partners as artificial or even
offensive.
Monochronic cultures
Negotiators from monochronic cultures treat
time as linear and as one of the most important
non-renewable resources.
Polychronic cultures
Representatives polychronic cultures treat time
as a renewable resource, which runs on a multithreaded way, sometimes cyclical.
Conflicts between the negotiators of the
two cultures arise because monochronic
partners treat their polychronic partners
as undisciplined, unorganized, and even
lazy.
SUMMARY CULTURES
TYPES OF CULTUES
COUNTRIES
Pro-transaction cultures
Scandinavia and other Germanic
countries, Europe, North America
(U.S., Canada), Australia, New Zeland
Pro-partner cultures
Arab countries, most countries in
Africa, Latin America and Asia
Non-ceremonial cultures
U.S., Canada, Australia, New Zeland,
the Scandinavian countries,
Netherlands
Ceremonial cultures
Other European countries,
Mediterranean countries, the Arab
countries, Latin America
Monochronic cultures
The Scandinavian countries and other
Germanic countries, North America,
Japan
Polychronic cultures
Arab countries, most countries in
Africa, Latin America, the countries of
South and South-East of Asia
CHARACTERISTICS OF NEGOTIATION
STYLES IN DIFFERENT COUNTRIES
EUROPE
AMERICA
ASIA
EUROPE
Germany
English
Swedes
Italians
Dutch
French
Danish
GERMANY
represent a rigid style of
negotiation
reliable, precise and
responsible
perfectly prepared
perfect financiers
have certainty in the
negotiations (this involves
with a sense of quality of
their products and offers)
appreciate good work
organization and order
respect the hierarchy of
business
don’t seek to maximize profits
at any cost
don’t tolerate unpunctuality
are restrained in expression
accept an informal part of
negotiations (social meetings,
parties)
ENGLISH
competent negotiators
disciplined, attached to the
traditional etiquette
good time management
(always have time for tea)
part of the negotiation and
sociable part are the two
separate parts
appreciate the game of "fair
play", honesty
oral findings are highly
valued
don’t tolerate incompetence
and dishonesty
carefully examine the
contractor's
serious, diplomatic even boring
restrained, calm and composed
it's difficult to lead them out of
balance
appreciate conversation topics
which concern their culture
(love sport)
don't tolerate aggressive
behavior of partner
DUTCH
a very difficult opponent in
the negotiations
masterfully mastered the
techniques to selling and
negotiation
attach importance to
professional presentation of
the product (tables, charts)
expect from partners details
and seriousness
characterized by practical
approach to each case and
the effectiveness
don't haggle fiercely
don't accept frequent change
of subjects, chaotic speeches
and frivolous way of behaving
don't accept jokes during the
negotiations
DANISH
negotiations with them are
hard
expect a good knowledge
of the facts, the
advantages of the goods,
the current knowledge of
the exchange rate
don't accept the lack of
care in preparing the offer,
sloppy and amateurishness
don't like the talkativeness
and waste of time
hold once set the conditions
for cooperation
value punctuality
open
restrained
expect moderate eye contact
SWEDES
very responsible, punctilious
come in groups
expect a good preparation
of substantive
are stiff in negotiation
situations
immediately strive to heart
of the matter
focus on the merits of the
case
do not tolerate conflicts
and do everything to avoid
this
respect the value of the
words
“no" is not definitive - you
can continue to negotiate
initial agreement is oral,
final contract is written
FRENCH
competent and professional
there is no separation
between the negotiation
situations and the sociable
situations
French negotiations are a
real spectacle(this is not
conversation only about
business)
are convinced to do
business just with you
developed "body
language" - intense
expression
appreciate the knowledge
of their culture e.g. cuisine
richly etiquette, which
conceals a good
preparation for
negotiations
often haggle over the price
(it makes them feel good)
ITALIANS
impulsive negotiators "hot
blood", change the mood
under the influence of time
high expression
interpersonal distance is very
small (is going about the
distance between the
negotiators)
rarely fulfill the oral promises
if you are able to
introduce discipline, the
effects of cooperation will
may be positive
do not insult for the
enforcement of discipline
work in large teams
are inventive, creative,
(often crazy)
are sexist against women
ITALIAN GESTURES AND BEHAVIOR
One of the most famous of gestures is “le corna”.
Many Italians even don't know where comes from this
gesture,but it doesn't bother them in frequent use of this
gesture to insult or humiliate someone who is subverted by
partner.
In Italy 7 years ago, for this gesture you could go to prison.
Now you can get only a fine.
THE MOST POPULAR ITALIAN GESTURES:
Yes
no?
Canor
Indecision
you
give
me a ride?
todoesn't
me!
Someone
ICome
am hungry.
have luck.
I have
Goodan
Ok!
body!
idea!
Come
What?
Excellent!
here,
listen!
EXAMPLE OF BAD/GOOD
NEGOTIATION BETWEEN
ITALIAN AND GERMAN
AMERICA
Americans
Latinos
AMERICANS
typical individualists
have a sense of power, are
aware of the power of his
country and reflect this in their
behavior
are seen as quick and
consistent negotiators
for Americans is important to
sign a contract and therefore
they are willing to make
mistakes
arrive with the lawyers
don't like to renegotiate
strongly reflect their goals
and interests by using the
words
their offers (e.g. price) are
very close to the proposals
which they agree
don't tolerate the lack of
response, delay
appreciate persuasion,
substantive preparation,
listen to the arguments
LATINOS
time isn't a strict concept
(rigor associated with the
concept of time is seen
badly)
business affairs are mixed
with outside business
long time of the preliminary
talks
in the negotiations chaired by
a person who has high status
contract is not exactly
obliging - is an expression of
good will
are honorary only in words
require dependability, rely on
their partner
don't want to be seen badly in
matters outside of business
communicate and respond
very quickly
don't talk about business
during lunch
should pander to them in the
topic of their ethics
ASIA
Arabs
Russians
Chinese
Japanese
JAPANESE
very seriously perceive the
partner
respect teamwork
for them is important the
location of the negotiator in the
hierarchy of the company, have
special esteem and respect for
older people
contract with them is the
beginning of a long and good
cooperation
don't like formal contracts which poses the danger of
renegotiation
more importantly is the "how“
something was said than
"what“ was said
there is no explicit refusal
if the Japanese say that the
case is difficult, it means that
it's impracticable
very polite, appreciate yours
advantages
check the partner
check proxy Japanese negotiators
deep courtesy
celebration the common meals
together with the Japanese
willing to exchange souvenirs and
gadgets
it's worth remembering that the
prepared gift isn't consisted of four
elements, for example, a pitcher
with four cups (bad omen)
SENTENCES WHICH MEANS "NO“
It will be hard to do.
It’s very difficult.
I will consider it. I will think it.
I need time to think about it.
We will try...
I'll try, but it’s a very delicate
matter.
Yes, but…
EXAMPLE OF NEGOTIATION:
JAPANESE COMPANY IN BRAZIL
TIP: HOW TO EXCHANGE BUSINESS
CARDS IN JAPAN
CHINESE
centralist management system
great respect and worship of
status and hierarchy (need to
know what is your position)
like to have to deal with the snobs
and with the best companies
they appreciate good cooperation,
but also magic of titles (the more
well-known company - the better
partner for them)
cling to details (playing for
time - they have to notify
about everything the
headquarters)
tendency to "lifetime"
renegotiated - even in trivial
matters
if they sign a contract, then
it's binding
the greatest manipulators of
situation
put on fatigue partner
(banquets until late)
operate in a climate of common
interest and sometimes give to
understand that you destroy this
atmosphere
speak softly, don't look in the
eyes and don't expect this
you should emphasize that the
negotiations will be more
profitable for the Chinese
you should check their proxies
is no adopted to show the soles
of shoes
In China there are only 438 names. The most popular of
them are Wang, Zhang and Li. Approximately 10% of the
population bears the name of Zhang. Therefore, very often
during the negotiations, more than one person has the
same name without any family connections between them.
Nothing which is written in the contract is immutable.
If you ask the Chinese: If something is white or black?
The answer will be: It isn't very gray.
For Chinese it is very difficult to remember names and
surnames of negotiators from Europe. Therefore, it’s
recommended that business cards have the names
translated also into Chinese.
Beata 比阿特麗斯
Anna 安娜
Paweł 保羅
Pedro 佩德羅
Andre 安德烈
Maria 瑪麗亞
Leticia 萊蒂西亞
John 約翰
Helena 海倫娜
ARABS
open-door policy, hospitality
are very well educated (often
European universities)
remember to respect their
religion and culture
any Arab gesture isn't accidental
in the case of price negotiations
and the Arabs are tough negotiators,
should expect to reduce the initial price
too long and firmly insist
on own position will be
perceived as an unfriendly
act
avoid direct answer "no“
frequent touching by: pat
on the arm, grasp the
elbow
indicated for eye contact
RUSSIANS
prefer to form a team work
negotiations of large
transactions taking place in
two stages: first is discussed
the technical side, then the
issue of price
present a sense of strength
and peace of mind
stubbornly defend their views,
little willing to change the
decision
don't feel the sentiment
for their fellow Slavs, use
growing interest their
market in Western Europe
to get price reduction
difficult for them to admit
to the error
it's easily to offend them
characterized by
hospitality and generosity
SYSTEMS OF VALUES INSCRIBED IN
CULTURE AND THEIR ROLE IN THE
NEGOTIATIONS
Systems of values inscribed in the culture play a very
important role in the negotiations. They often have an
impact not only on the choice of arguments, but also
on the behavior of the negotiators during the talks.
Therefore, in order to avoid tensions that will might
occur during the negotiations, it is desirable to know
the ideological and worldview differences in individual
cultures.
FEATURES OF THE SYSTEM OF
VALUES DOMINANT IN AMERICAN CULTURE
freedom of speech
freedom and human development
enterprise
the rights and welfare of the individual
prevail over the duties to the homeland or family
membership of a group it depends on the free
choice of individuals rather than birth
status is acquired, not inherited
self confident, emphasize that
the negotiations with them
is pure pleasure
open to persuasion - arguments
are fast and very concretely in
actions
don't like to wait for an answer
high expression of speech
you can talk about business during meals
FEATURES OF THE SYSTEM OF
VALUES DOMINANT IN ASIAN CULTURE
the most important is welfare of the whole
community,welfare of the individual is
subordinated to the society
the most important value of the
individual is belonging to a group
very importance is defending one's
honor, which is also defending of
honor society
strong sense of hierarchy group
permanent assignment of roles acquired as the
result of birth
JAPANESE
lot of politeness in behavior
very seriously treat partner
deep courtesy
during the conversations voice
and gestures are toned down
never hurry up, very punctual
check partner
there is no explicit refusal
CHINESE
great respect for the partner in negotiations
the cult of status and hierarchy
during the interviews it is
important to "maintain face"
which is associated with respect
and dignity
valid form of "Lord" and the title
Chinese negotiators often exert pressure on the partners
of discussions through meeting with the competition
immediately after the negotiations or showing of anger
FEATURES OF THE SYSTEM OF
VALUES DOMINANT IN EUROPEAN CULTURE
the most important is respect
for time and truthfulness
freedom of speech
enterprise
fast communication
avoidance of ambiguity, allusions
and speculations
meticulous preparation, everything is carefully
planned
lateness wakes negative
feelings in Germany, Austria
and Scandinavia, while in Italy
the time is the term "variable"
patience, tolerance (Greece,
Italy, Spain, Portugal)
attention to quality, a good
preparation for talks
(Scandinavia, Great Britain,
Switzerland, Germany, Austria)
avoidance of conflict - Swedes
don't fulfill their promises - Italians
honesty - English
talk about business during a meal - not tolerated
in Great Britain and Italy
jokes - in all European countries should avoid
topics about sex, work, bosses, politics, religion,
history, blondes
Knowledge the system of values, ideology and
worldview of partner with who we will be negotiate,
will avoid tensions, conflicts and injuries which may
occur during the talks.
THANK YOU FOR YOUR ATTENTION.
I HOPE THAT YOU ENJOYED MY
PRESENTATION AND GOOD LUCK
IN THE INTERNATIONAL
NEGOTIATIONS 