Cultural differences in business negotiations

Negotiating among cultures involves cultural differences, which will affect the way of thinking in negotiations, the negotiation style, behavior and its process. Therefore, as Descartes says, it is useful to know something about other nations’ habits in order to judge our own in a healthier fashion, and not to imagine everything which differs from ours should be dismissed as ridiculous or illogical, as is frequently done by those who haven’t seen anything.

In my opinion, the most important differences between the French and Americans in this negotiation are the communication process, understanding of each other’s condition, and the core of their attention. Firstly, it can be seen clearly in the communication process of the case that the French businessman Saix insisted the use of French in the meeting even if French could speak English well, and he could speak highly in logic, quickly grasp the illogical things of the opponent. Also, he could felt slight change wittedly. Secondly, the American businessmen in the case was optimistic originally and believed that the plant in the case was losing money, the area was depressed, the government had lost interest and the working conditions were pretty rough by their standards, while the French businessmen thought American companies were in low security, as those companies came and went like the wind. Thirdly, the American attached great importance to economic benefits, but people in the French party valued or were sensitive to the power control which was seemingly superior to benefits in their eyes. For example, Saix said “The main difference would be that a U.S. company would own us or part of us”. Also, he sensed that Farrer was worried about losing his power. Lastly, as to behavior mode of plan making, Saix thought over the events, thought about the meeting he had organized and outlined what he felt to the areas of basic synergy, while AL Watson chose to visit the site (plant) for himself instead of thought like Saix.

These differences are caused by varied values and cultural conflicts. Human culture and values are diverse and complex. The geographical, ethnic and cultural differences will affect the thinking of those negotiations, the negotiation style, behavior and the entire negotiation process or its result. From the perspective of cultural conflicts, the negotiating parties are to cling to their own cultural circles. Globalization makes people of various cultural backgrounds squeeze into a small space, competing for the interests and rights. The value conflicts in the era of globalization, the interests and power directly lead to those differences. International business negotiation behavior is bound by the negotiations, the negotiators of values and beliefs.

Personally, I believe the negotiators in dealing with the cultural differences can be generally effective, as each side has a responsible person to recognize and accommodate cultural differences in mind, and put each other’s advantages and disadvantages of some principles on head. For instance, in the preparation stage of the negotiations: the two companies and the people in charge of their own were familiar with each other's needs, the advantages and disadvantages, the company culture and conditions. Both of them were good at thinking and sensitive enough. In spite of many differences, both sides carry out the principle of common ground while reserving differences, the negotiation has become a winner on both sides.

From this case, I have learnt that cultural difference is an objective existence, and the attitude of individuals or groups tend to determine the role of cultural differences. People in cross-cultural business negotiations, if able to overcome cultural barriers, to understand, to do as the Romans do, and to stand on other people's point of view considering issues, it will be able to promote mutual understanding and work together to create a satisfying economic and cultural environment. Specifically, we need to do a good job in the preparation of the pre-negotiation: to understand the situation of opponents. Furthermore, it’s important to overcome communication barriers. Last but not least, try to master business negotiation skills dealing with different countries and regions. In cross-cultural co-operation of the business process, there are differences in cultural backgrounds, cultural mindset, and customs and so on, a lot of people often overlook them, but usually it is the impact of cultural factors affecting the success or failure of business activity. Therefore, in order to achieve the goal of international business negotiations make the right remedy or skills for right culture and it will promote a success.