Hidden challenges of cross border negotiation

negotiating across cultures

The need for consensus affect the negotiating strategy. Moreover, in a cross-border negotiation the people who decide can vary.

An interpretation of the information and knowledge lets you design a strategy to deal with the obstacles that you have anticipated. Of coursework, there is another, evenly treasonable aspect to cross-border negotiation that is the ways and means in which people from different regions come to an agreement and the processes that are involved in negotiations.

This is not a problem limited to less-developed countries. Those negotiations that might otherwise have failed because people ignored or underestimated powerful disparities in process will, in the end, yield a meaningful yes.

process of cross cultural negotiation

For example, one foreign would-be acquirer of a German company first approached the supervisory board and obtained agreement in principle to go forward.

Hurlock: Near the time of the collapse of the Soviet Union, California-based venture capital firm Sierra Ventures was negotiating with the director of the Institute for Protein Research in Russia, hoping to get the rights to an apparently revolutionary biotechnology process.

Outsiders need to understand these webs and factor them into their negotiating approach. Since consensus processes often go hand-in-hand with near-inexhaustible demands for information, you should be prepared to provide it.

Global negotiations

When a European firm unexpectedly made a tender offer for the entire U. Do contextual, nonverbal cues play a significant role in negotiations, or is there little reliance on contextual cues? Each time, however, the Japanese company resumed negotiations with a stronger consensus on the central role of the deal to its long-term global strategy. This inadvertently triggered the involvement of the Honduran Congress, labor unions, political parties, potential business competitors, indigenous people in the affected region, and domestic and international environmental groups. All these constituencies bring their own interests to the table, as well as varying abilities to block or foster negotiations. Who decides what? That process can look different in different cultures, and different processes may call for radically different negotiation strategies and tactics. The lists go on and on and can certainly help you avoid mistakes. With some bitterness, U. The only practical solution is consensus, which has become a cornerstone of the modern Chinese bureaucracy. Governance processes often drive these considerations, so taking a close look at the key players and how they work together can help you anticipate opportunities and obstacles as well as appropriately sequence your approach.

The lists go on and on and can certainly help you avoid mistakes.

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The Hidden Challenge of Cross Border Negotiations