Cross cultural negotiation is one of many specialized areas within wider field of cross cultural communications. By taking cross cultural negotiation training, negotiators and sales personnel give themselves an advantage over competitors. There is an argument that proposes that culture is inconsequential to cross cultural negotiation. It maintains that as long as a proposal is financially attractive it will succeed. However, this is a naïve way of approaching international business.
Let us look at a brief example of how cross cultural negotiation training can benefit international business person:
There are two negotiators dealing with same potential client in Middle East. Both have identical proposals and packages. One ignores importance of cross cultural negotiation training believing proposal will speak for itself. The other undertakes some cross cultural training. He/she learns about culture, values, beliefs, etiquette and approaches to business, meetings and negotiations. Nine times out of ten latter will succeed over rival. This is because 1) it is likely they would have endeared themselves more to host negotiation team and 2) they would be able to tailor their approach to negotiations in a way that maximises potential of a positive outcome.
Cross cultural negotiations is about more than just how foreigners close deals. It involves looking at all factors that can influence proceedings. By way of highlighting this, a few brief examples of topics covered in cross cultural negotiation training shall be offered.
Eye Contact : In US, UK and much of northern Europe, strong, direct eye contact conveys confidence and sincerity. In South America it is a sign of trustworthiness. However, in some cultures such as Japanese, prolonged eye contact is considered rude and is generally avoided.
Personal Space & Touch: In Europe and North America, business people will usually leave a certain amount of distance between themselves when interacting. Touching only takes place between friends. In South America or Middle East, business people are tactile and like to get up close. In Japan or China, it is not uncommon for people to leave a gap of four feet when conversing. Touching only takes place between close friends and family members.
Time: Western societies are very ‘clock conscious’. Time is money and punctuality is crucial. This is also case in countries such as Japan or China where being late would be taken as an insult. However, in South America, southern Europe and Middle East, being on time for a meeting does not carry same sense of urgency.
Meeting & Greeting: most international business people meet with a handshake. In some countries this is not appropriate between genders. Some may view a weak handshake as sign of weakness whereas others would perceive a firm handshake as aggressive. How should people be addressed? Is it by first name, surname or title? Is small talk part of proceedings or not?