International Business Negotiation and Culture 1.1 The.doc

1. International Business Negotiation and Culture 1.1 The relationship between Business Negotiation and Culture Culture refers to the transmission through social relations with each other and thus be acceptable to all the behavioral characteristics and values. It includes knowledge, beliefs, art, morality, laws, customs and so on. The concept of culture and wide-ranging and heterogeneous, including all aspects of peoples lives, involving peoples spiritual and physical needs. And that human culture has emphasized three major characteristics: (1) Culture is not a personal characteristic, but the nature of an individuals community; (2) Culture is a personal adaptation and social interaction through cultural society from their acquisition; (3) each Culture is a complex set of distinctive features, related to all aspects of social life. In respect of international business negotiations, it is a means in different countries and regions, business parties, to meet their own needs, through information exchange and consultation towards the end, the needs of the various negotiating parties to be reconciled with each other, so close to each other to reach a consensus process. This paper would like to emphasize is not only a cultural or negotiations, but rather to discuss cultural differences, the impact of the negotiations. Culture not only affects cross-cultural negotiators negotiations, and the negotiating parties in the cultural inconsistencies also affect the negotiation process and the final result. In the cross-cultural negotiations, as the negotiations of the main part of two or more countries or regions. Language, beliefs, habits, values, codes of conduct, ethical standards of the psychological as well as the negotiation has a great difference. These aspects are important factors affect the negotiations. When the two sides to conduct cross-cultural negotiations, both sides regard the culture of their own placed the negotiating table. In this process. Culture, often a subtle way to influence peoples attitude towards the negotiation and negotiation behavior. This effect is like the stone drowning, gravel ripples to the entire pool surface ripples to the culture on the entire surface of the water being filled, and penetrate into every aspect of the negotiations. Therefore, the impact of culture on negotiation is obvious, and it is very important. 2. China Aokang GEOX company with the Italian Case 2.1 Case Background Zhejiang Province, China Aokang Group is the largest private enterprises in China is one of the well-known shoe manufacturers. GEOX is the number one Italian feats enterprises, one of the worlds footwear giant. In 2001, after Chinas accession to the WTO, GEOXs set his sights on the Chinese market, Chinas intention to establish an Asias largest production base. To this end, beginning in 2002, GEOX, Mr. President POLEGATO started market research in Asia, during which spent two years conducted a survey on the Chinese market, has inspected the eight famous Chinese shoe company, and ultimately targeting Chinas Aokang Group. In order to carry the companys commercial negotiations with the GEOX, Aokang Group through a comprehensive understanding of the Miss Hong Kong Translation GEOXs situation, while Aokang president of the company set up to the reception, led by Mr. Wang Zhentao team to develop detailed plans for the reception program. During the negotiations, both sides confirmed that the bank guarantee issue and to which countrys laws to resolve the issue of future disputes has had a major disagreement, which results in an impasse in negotiations, the final decision as to Hong Kong banks as collateral the bank to British law for the future settlement of disputes basis. February 14, 2003, the Western Valentines Day, China and Italy, GEOX Aokang finally reached a comprehensive cooperation agreement: Since 2003, GEOX companys products in China, marketing, networking and product sales by OConner fully responsible for GEOX company sold in Asia and Europe and the United States market of products and services designed by OConner is responsible for the same time, both sales network resource sharing. GEOX fabric network through the power of Aokang China, but also by GEOX Aokang a global network of Going Global. 2.2 From the analysis of the case Cultural Differences Since then the negotiations, we can analyze the differences between East and West have the following: 2.2.1 Language Differences A nation to use the language with the nation owned by a close link existed between the cultures. In international negotiations, different linguistic and cultural factors of the negotiations there was a clear relationship between the constraints. To China and the U.S. as an example: The United States is a typical low-context culture of the country. In this culture, most of the information is clear and specific language transmission. The United States praised the negotiators a clear, frank and direct means of communication, speech sought to clear, not ambiguous, he would bluntly want things. In addition, the Americans are right to argue a special liking for the language with the confrontational tone categorically. These are a pioneering spirit, a strong wish to win, the typical characteristic of descendants of European immigrants. China is a high context culture of the country, the Central African languages in high-context cultures exchange and indirect expression of Transfer and understand information is an important factor, such as the use posture, eye contact, appearance, tone, location, distance, environmental factors and other non-verbal communication. To understand the meaning of discourse, understand the implication between the lines is necessary. In addition, the Chinese seem moderate, do not like to argue, often use silence to this non-verbal behavior, views on a certain issue, or do not agree with certain provisions. Sometimes does not directly say NO. But instead of using silence as an expression of courtesy and respect. Chinese people are very patient at the negotiating table, there are the so-called Oriental patience. Chinese people believe in the polite way of making money, the ancient maxim, to realize the value of harmony as a prerequisite for negotiations to avoid friction, courtesy of subtle language, the pursuit of a permanent friendship and long-lasting. From the case we are also not difficult to see, Aokang the smooth progress of the company in order to negotiate across language barriers. A specialist who is familiar with his language translation young woman came to a better understanding of GEOX companys details. 2.2.2 face view of the difference China, as one of the four ancient civilizations, often with their own proud history and culture, this sense of pride the Chinese people rich intense national feelings, the macro release of courage and strong patriotism, which for the nations progress and development has a positive role. However, due to a long history, culture, Manifest, it is often easy to produce a pride of the bias, to form a face, so that this heavy burden of their own, or even rest on its laurels, this face psychological and even penetrated into almost all the areas. British scientist Bill negotiations? Scott, in his books and writings on the negotiations had made a special analysis of this, he said: The Chinese have a very serious face, in the negotiations, if you want to force the Chinese to make concessions, then they should be careful Do not make him lose face in making the concession. Similarly, if we are from the original hard-line stance on the back, but also do not have their teeth in front of them, which is extremely important to us. the final transaction agreement must be each others colleagues considered to keep his face, or an agreement for his glory. As can be seen from the case, in the course of the negotiations, both sides confirmed that the bank guarantee issue and to which countrys laws to resolve the issue of future disputes has had a major disagreement, which results in deadlock. At this time both sides unwilling to make concessions to banks in Hong Kong as the final decision on bank guarantee to British law as the basis for the settlement of disputes in the future. This could be considered saved face for the company, or the glory of the company. 2.2.2 Value Differences Values refer to peoples evaluation criteria of objective things. It includes the concept of time, wealth, ideas, approach to life, risk attitudes. The same things and problems, different societies would come to a different or even opposite conclusions. Westerners, especially Americans, have a strong objectivity. They are in international business negotiations, stressed that the people and things separate, mainly interested in substantive issues. In contrast, in Eastern countries, the distinction between people and things, this view be regarded as unlikely. In addition, the concept of equality is an important difference in the performance values. In international business activities, most of Britain and other countries to pursue egalitarian values. Adhere to the principle of fair and reasonable that the two sides trading, regardless of which side should be profitable. In the introduction of the situation the way that Westerners greater use of specific ways, in particular, like to use the data to speak more often as the other ones peers, for quotes, request the terms and the division of profits is relatively objective. In their view, the fairness of the division of profits seem much more important than profits. The Oriental concept heavily influenced by the hierarchy. Performance in commercial activities in the sense of equality than the United States and other Westerners. China, the Chinese concept of enterprise managers often have the Western sense of the early period of some of the characteristics of a market economy. In business negotiations tend to adopt a one-win strategy. Related to economic interests, more consideration of ones own interests, and less attention to each others interests. Market economic system in developed countries it is quite mature, so the Western countries negotiators greater use of win-win strategy, basically able to consider the practical interests of both sides. In this case, GEOX companys products in China, marketing, networking and overall responsibility for product sales by OConner, GEOX company sold in Asia and Europe and the United States market of products and services designed by OConner is responsible for the same time, the two sides sales network resource sharing . GEOX fabric network through the power of Aokang China, but also by GEOX Aokang a global network of Going Global. Does this not reflect the Western countries win-win strategy. Differences in ethical and legal concepts 2.2.3 As can be seen from the case, in the regulation of human behavior and deal with disputes, China and the West are quite different. This difference is mainly manifested in the following two aspects: (1) Chinese culture and are accustomed to consider to avoid legal problems, but focus on the issue from the ethical and moral considerations; while most Westerners, by contrast, they are more a legal issue to consider. In Chinese, Ethics First concept has always occupied an important position in peoples thinking, in the event of disputes, first thought is how to win the support of public opinion around, advocating moral support from many, Unjust, which in the Chinese view that the has a very special meaning and significance. As a result, many of the law should be used to solve the problem, the Chinese are not accustomed to, but accustomed to through the organization, through the standardization of public opinion to play a moral role. Westerners are associated with this different, they are for the disposal of disputes, customary legal means, rather than by conscience and moral role. In many Western individuals and companies to employ legal advisers and lawyers, in case of disputes by the lawyers come forward to deal with. It seems some of the Chinese people have to go through a complex network of relationships to resolve disputes, in the West, seemed to have not necessarily so. (2) Chinese people for thousands of years of feudal culture nurtured in the social hierarchy established under the concept of the egalitarian tendency in various fields of social life to play a special role. The official standard thinking and it looks great prominence, which led some to advocate officials and contempt for the system, violated the law, used to rely on an officers back to do transactions, and take for granted that the only way it can survive. Pay with emotion, American scholar, wrote in his book: We have seen many businesses in the United States told us: they have learned, in the middle of the Chinese people, only a verbal agreement, point a nod, or shake hands with, to decide the possibility of entry into force of the agreement or agreements. 2.3 seen in cases from the negotiation of cultural differences on negotiation, negotiation tactics, as well as the impact of negotiation strategies 2.3.1 cultural differences affect the way the negotiations And Western philosophical thought of different ways of thinking decision to the East-West differences. The human way of thinking can be divided into two kinds of lateral thinking and vertical thinking. Also known as lateral thinking, comprehensive thinking, thats all part of the Alliance of things together, and make it into a unified whole, emphasizing the universal link of things is not only see the trees see the forest. From Lao Tzus Xuan Tong, thought to Zhuangzis All Things Qi a theory, reflect the Chinese people to think laterally. Vertical thinking is also called analytical thinking, is to the whole things broken down into many parts, become ever more finely. From Bacons emphasis on the individual, re-thinking of mathematical logic, to the Cartesian methodology, are focused on local or elements. Although not as good as lateral thinking, as do both the trees, see the forest, but the vertical depth of thinking could be more understanding of the nature of things. Any one nations way of thinking is not just a vertical lateral thinking without thinking, it is not just a lateral thinking without thinking vertically. They are commonly adopted in the Western way of thinking, only because of traditional cultural differences, forming a re-integrated the East, the West re-analysis habits of mind. Differences between Chinese and Western ways of thinking reflected in the International Business Negotiation in the Middle East the West often take a different approach to negotiations: Chinese people tend to take a lateral negotiations, the issue of negotiation involves lateral spread, that is, the discussion of several topics at the same time, at the same time to make progress, and then at the same time to move forward, until all the issues agreed upon date; Westerners tend to take a vertical negotiations, that is clearly involved in the negotiation problems, one by one leaving the subject of the clause, this provision is not completely resolved, not to talk about second. 2.3.2 Background factors of the negotiations Chinese and Western cultural differences in the negotiations on a background of different manifestations of Jizhi in the negotiations start, the real consultations, contest and compromise to end the phases, and each part are subject to cultural influences, so the performance of Chinese and Western negotiators will be different. To China and the United States, for example, the negotiations start, the Chinese merchants first thing to do is praise greeting, meaning communication between a sense of belonging, totally disregarding the negotiation time schedule; and the United States businessman and work spent on irrelevant conversation or understanding competitors have much time, but not with job-related information exchange is far more quickly. Usually a simple friendship or courtesy for talking about family, weather, sports, politics, after five or six minutes it will go to the subject. The substance of the consultation phase in the negotiations, the Chinese negotiators continue to attach great importance to communication skills in interpersonal relationships, it is concerned about each others feelings and their own influence to each other. In the information transmission process, the Chinese people to use gaze and interrupted the frequency is lower than the U.S. businessman, but a longer silent period. In the feedback speed and content, the Chinese emphasis on hierarchical relationships, do not want the negative feedback of information, while the U.S. business will be very frank speaking out the truth, but am considering the way in the transcript, as well as unpalatable. In a newspaper trading, the price of Chinese businessmen virtual big head, while the U.S. business focus on efficiency, often associated with the initial bid closer to their actual asking price. Contest stage in the negotiations and consultations, the Chinese traders will not be directly on the controversial content to persuade, but rather more time and effort spent on pleasantries, as well as job-related exchange of information, even to persuade, for face-saving psychological, will choose implicitly or behind the scenes way. Americans are eager to convince the stage from the exchange of information access, and often emit a kind of easy emotion. Conclusion of the negotiations, the Chinese merchants often ended with a brief description of contract and held by the respective leaders to participate in a formal signing ceremony. The American businessman Zeyi rigorous, encompassing all aspects, as long as 100 signing a contract to end the logo, informality of American culture that the contr