Key words: Cultural difference, International business negotiation, Intercultural communication, strategies
1. Introduction
The trend that economy develops rapidly all over the world has made business global, which is expected to continue in the foreseeable future. As international business relations grow, so does the frequency of business negotiations among people from different countries and cultures, and that create considerable challenges for business representatives unfamiliar with the cultures of different groups. These persons often make the mistake of seeing foreign culture through their own habitual lenses. Doing so can lead to many missteps that can cost the company business. Therefore, in order to be successful in such a diverse and complex business environment, business people must be globally aware and have a frame of reference that goes beyond a country, or even a region, and encompasses the world.
As new markets open up for world trade and global competition intensifies, business of all sizes and in all sectors are expanding their operations overseas at unprecedented rates, which necessitate an increase in strategic alliances and hence intercultural negotiations. The international business negotiation is not only the communication and cooperation in the economic domain, but the communication of culture among various countries. Intercultural negotiation involves discussions of common and conflicting
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英文原文
原文网址
http://blog.sina.com.cn/s/blog_5aa80b440100dp9h.html
Impact of Cultural Differences on International Business Negotiation
1. Introduction
The trend that economy develops rapidly all over the world has made business global, which is expected to continue in the foreseeable future. As international business relations grow, so does the frequency of business negotiations among people from different countries and cultures, and that create considerable challenges for business representatives unfamiliar with the cultures of different groups. These persons often make the mistake of seeing foreign culture through their own habitual lenses. Doing so can lead to many missteps that can cost the company business. Therefore, in order to be successful in such a diverse and complex business environment, business people must be globally aware and have a frame of reference that goes beyond a country, or even a region, and encompasses the world.
As new markets open up for world trade and global competition intensifies, business of all sizes and in all sectors are expanding their operations overseas at unprecedented rates, which necessitate an increase in strategic alliances and hence intercultural negotiations. The international business negotiation is not only the communication and cooperation in the economic domain, but the communication of culture among various countries. Intercultural negotiation involves discussions of common and conflicting interests between persons of different cultural backgrounds trying to reach an agreement
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of mutual benefit. This paper explores how culture differences manifest themselves in business negotiation, identifies and compares cultural characteristics and patterns among countries and suggests ways in which cultural conflicts are effectively handled.
2. Literature review
2.1 Theories
As we all know, different countries have different cultures. “Culture is a historically created system of meaning and significance or, what comes to the same thing a system of beliefs and practices in terms of which a group of human beings understand, regulate and structure their individual and collective lives.” Culture is a diverse one that is looked as an important factor and reflects human freedom. Recognizing and understanding cultural differences provides individuals with a framework for interpreting the goals and behaviors of others. In other words, culture is “the shared ways in which groups of people understand and interpret the world.”
Culture and communication, though two different concepts, are directly linked. “Communication is the process of conveying ideas, information, feelings, and desires encoded in symbols”. They are so closely related that some anthropologists believe the terms are really synonymous, even as “Whenever people interact they communicate”. Communication rules would be different in the specific context. For different contexts, we have different kinds of communication. In business context, for instance, we must behave according to adequate rules in business field. Communication rules are various in different cultural backgrounds.
“Intercultural communication is communication between people whose culture perceptions and symbol systems are distinct enough to alter the communication event”. Today’s intercultural communications are more ample and more significant than in any other period of the world’s history. There is no country that can provide all the necessities by itself. “Foreign competition and the need to trade more effectively overseas have forced most
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corporations to become more culturally sensitive and globally minded.” As a result, effective intercultural communication in the business negotiation is urgently needed.
2.2 Current research
Nowadays, it’s of great necessity to understand the significance of intercultural communication. And the appreciation of intercultural communication can narrow the gap and misunderstanding occurring in different cultures from different countries. Here, we will look at some elements of culture that are generally believed to have a considerable impact on international business negotiations.
1) Values
Values are the standards by which a culture uates actions and their consequences, they affect perceptions and can have a strong emotional impact upon people. One’s proper actions in one culture can be seen as wrong in a moral sense in another culture. Values affect the willingness to take risks, the leadership style and the superior-subordinate relationships, etc. Every culture has defined priorities for every aspect of social life. Like in individualistic culture, people tend to put tasks before relationships and to value independence highly. And values towards time also reflected in everyday negotiation behavior.
2) Language and Communication
The way, in which people communicate, including using verbal and non-verbal language, directly affects international business negotiations. Nonverbal communication that doesn’t use words takes place all the time. Movements of certain body parts are vital form of human communication. Acknowledge of other foreign languages is another important contribution in the process of communication. In brief, people from diverse cultures vary in expressing their thoughts and opinions.
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