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Steps in Cross-Cultural Negotiation

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The steps negotiators can take to ease the tensions between cultures.

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According to Thomson Learning, Cross-cultural communications starts with planning or preparation from both negotiating parties. It is essential that they understand what they are going to undergo, the process, and most importantly, learn the differences in their culture that may affect the result of the negotiation. Questions and important concerns such as possibility of the success of a negotiation, what the company wants , learning about the other party, agenda and sending the proper team who are the right people to attend the negotiation, should be taken into consideration. Other matters that must be planned include identifying objectives and their possible options, setting limits on these single-point objectives, dividing issues and ...

Solution Summary

This solution outlines steps in cross-cultural negotiation process and cultural differences that affect the negotiating processes.

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Beginning Approach Advice: Negotiating with Foreign Suppliers

A company wants to buy $30 million in materials and services from suppliers in China, Japan, and South Korea. It was recommended that the company use an approach to business negotiations that provides a win-win for both parties. Management was also told they needed to know the background of the Asian negotiator and that they should use a middleman to help them.

The middleman stressed the importance of etiquette and social customs in addition to the win-win model.

- What should the U.S. company find out about each culture before it starts negotiating? What are the differences?
- How do these countries view contracts?
- How should the U.S. company begin the negotiations?
- What are the steps as they apply to these 3 countries?
- Discuss how the company would negotiate using the win-win model. What sort of strategies would it use?
- What trade agreements apply, and how do they affect the negotiations?

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