1. Discuss the stages in the negotiation process and how culturally based value systems influence these stages. Specifically,
A. Explain the role and relative importance of relationship building in different countries. The role of relationship building is very important because everyone depends on each other because resources are limited. Being from what I consider a third world country people have a tendency to cling to each other. On the other hand I am more of an individual with individualistic ideas. My values often conflict with my family and ethnic group. Relationship building is important but the trap appears when there is a dependency to expect much from the person in the group who has more resources. I notice an attitude among poor and lesser developed people in general that society and those with more resources owe them something. I believe it is a good principle to share but I don't support any oppressive psychology. We should make the best with what we have and strive to be greater. (Deresky, 167).
B. Discuss the various styles and tactics that can be involved in exchanging task-related information
The task related stage is a stage where each side would typically make a presentation and state their position. This is usually followed by a question and answer session with alternatives discussed. This process will be different in every country. Mexican negotiators can be suspicious and indirecting many times, revealing little information. On the other hand French negotiators like to argue and debate. Sometimes their conversations can have nothing to do with the current issue at hand (Deresky, 167).
C. Describe differences in culturally based styles of persuasion
Managers must understand that persuasive tactics will be different in every country. In South America for example, it is very much, and for negotiations to start with misleading or false information. The German people for example prefer a direct communication style of communicating. The Japanese on the other hand, prefer an indirect communication style (Deresky, 168).
D. Discuss the kinds of concession strategies a negotiator might anticipate in various countries.
Russia and China negotiators usually open up with extreme positions. They ask for way more than the expected to receive. The Swedish people on the other hand are usually prepared to start with what they will receive. Negotiators from the East are very different. They are more focus on the whole view at the very end rather than making incremental decisions. Reaching an agreement and signing a contract is another process that is very different across different cultures. Americans might take contracts very seriously but that is not the case with the Russians. The Japanese on the other hand can consider a contract an insult because their relationship and also businesses is based on social trust. (Deresky, 168).
2. Discuss the relative use of nonverbal behaviors, such as silent periods, interruptions, facial gazing, and touching by people from various cultural backgrounds. How does this behavior affect the negotiation process in a cross-cultural context?
Non-verbal behavior is actually a silent form of communication that includes the use of facial expressions, eye contact, body language, gestures, and postures. The right non-verbal behaviors make the communication process effective. On the other hand if we are going to communicate in different cultures and environments, it is important to have the understanding of the non-verbal communication. If we avoid this process, misunderstanding and miscommunication will occur. Some gesture and facial expressions are common in all the cultures like smiling, showing angry or sadness etc. Before communicating in cross culture, it is very important to have the good understanding for effectively communicating the message and in negotiation process. So we should be aware about the eye contact, head nodding, taking turns of conversation, use of silence, expressions, use of gestures, use of humors, smiling etc. about the cross culture. In China they will smile many times if they are in an embarrassing situation to save face. This is a very confusing act to most Americans. In some countries negotiators behave very rudely so that the other party will give in to their wishes.
3. Summarize what you would expect in negotiations with the Chinese.
The Chinese are among the best negotiators in the world anyone prepared to negotiate with them should be very suitable and prepared. Unlike Americans the Chinese put a much greater importance on respect, friendship, and saving face. They are much more focused on group goals rather than individual goals. If a person chooses to negotiate in China they will most likely experience two stages. the First is the technical stage and the second one is the commercial. During the technical stage the Chinese want to learn about all the details of the proposed product specifications and technology. During the commercial stage the Chinese want to learn about the production, marketing, and pricing of the product being introduced. Generally speaking to be a successful negotiator in China you need patience, respect, and experience dealing with the Chinese.
4. What are some of the differences in risk tolerance around the world? What is the role of risk propensity in the decision-making process?
One variable that greatly affect the decision-making process is the level of risk. The level of risk would be different from culture to culture. Research on different cultures have shown that people from Belgium, Germany, and Austria have a much more tolerance for risk than people from Japan or the Netherlands. American managers have the highest tolerance for risk than most other countries.
5. Compare and contrast the US versus Japanese approach to decision making.
Japanese decision-making is strongly rooted in culture. The foundation for business decisions is based on the principle of Wa. this term means peace and harmony. The principle of WA has a strong effect and influence on the work group which the Japanese consider the basic building block of work and management. The Americans on the other hand has a much more individualistic view of management. Americans only used a centralized system. in this system major decisions are made by upper-level managers in a top-down approach