Global challenges and contemporary solutions

Negotiation

Global Challenges

Negotiation: The differences between domestic and international negotiation

Negotiation: The differences between domestic and international negotiation

The most obvious difference between business negotiations that are conducted domestically vs. negotiations conducted internationally are the linguistic and cultural barriers that must be overcome. When two different parties literally speak different languages, much can be lost in translation. Subtleties of discourse, colloquial phrasing, connotative meanings of language, irony, and joking -- all of the aspects of conversational intimacy that can relax two negotiating parties can be lost in a literal translation. An obvious example of this is the word 'no.' In the low-context cultural environment of the United States where people tend to 'mean what they say,' 'no means no.' However, in Japan, the word 'no' is almost never used, and is considered to be fairly rude in a formal setting (Beer 2007).

Instead, in Japan the term 'maybe' is more often deployed, although culturally this is understood to mean 'no.' However, an American negotiating with a Japanese firm may take 'maybe' at face value, particularly when the word is conveyed through a translator. Even in the absence of imperfect translation, the use of body language and nonverbal communication can also convey unintentional emotion or information when individuals come from different cultures. For example, direct eye contact is expected in the West, but frowned upon in many Asian countries (Beer 2007).

In domestic negotiations, even though sexism and racism still exist, all parties are members of the same legal environment and context. But with negotiations abroad, a woman might find herself treated with less respect than her male colleagues. In France, a more highly-charged sexual atmosphere between men and women in the workplace may be expected. In some nations of the Middle East, women are not customarily part of business negotiations at all, and seeing a female in a leadership role can create cognitive dissonance for the other side (Women in business in Saudi Arabia, 2010, World Business Culture). Nations that are more homogeneous than the United States may have what Americans would consider inappropriate attitudes to members of different racial and ethnic minorities. A Russian person may not have encountered an African-American before; a Saudi may have only been exposed to Jewish people in pro-Palestinian literature.

Beyond the personal, different ethical standards also exist in different regions of the world. Bribery of government officials is considered the norm in some areas, such as the Middle East or India, to enable things to 'get done' to circumvent red tape (Kestenbaum 2010). Even the definition of what constitutes a 'win-win' situation for both participants can vary greatly, as in some nations losing face in terms of public perception, or not honoring family members who are part of the organization, can factor into organizational decision-making. In the United States, family considerations regarding an enterprise may take a back seat to profit-making, but in Japan, maintaining continuity of family leadership may be equally important (Beer 2007).