What is Cross Cultural Negotiation and How Does it Work in International Marketing?

Considering that the global economy is stabilizing and that the importance of globalization is becoming self-evident to most companies in the US, it’s only natural for the number of cross-cultural negotiations with foreign agencies to escalate. Whether your company is buying, selling or investing, we must admit it can’t avoid negotiating. On a global scale, people bargain in numerous different ways. As a manager, business owner or CEO, you have to learn how to deal with cross cultural negotiations in order to succeed.

A better understanding of cross-cultural negotiations

In a dialogue between two people the conversation is rarely about exactly the same subject. In order for the dialogue to have a productive end result, each of the speakers shapes ideas around the other person’s cognitive and cultural perceptions. During international negotiations, this endeavor translates into culturally foreseeing related issues that are likely to be appreciated by an individual of a specific culture.

As for the discussions, these are often impeded because the parties involved seem to be looking after different logic paths. In most contexts that are cross-cultural related, the possibility for talking past one another or misunderstanding things is greatly enhanced. Don’t enter international negotiations thinking that everyone thinks the same. That’s certainly not true especially since people of different cultures have specific ways of thinking, and they abide by a specific set of rules and principles.

Divergent negotiation styles

Singular cultural systems are able to generate divergent negotiation styles formed after the culture of each nation, history, geography, and political system. It’s impossible for all business people to think alike as there will always be different cultural images, assumptions, and prejudices. People can thrive in cross cultural negotiations only if they can find a way to understand each other. It is important to communicate with counterparts in order reach mutual ground and land a favorable deal.

When dealing with cross cultural negotiations, many of the tactics and strategies used conventionally may not work. This usually happens when one of the associates tries to use a cultural technique that is less known by the other parties involved.

Establishing a goal

Business negotiators who come from different cultural backgrounds may have a tendency to see the purpose of a business deal in a very different way. In the view of some people, the main purpose of a negotiation is to have a contract closed and signed. Others believe that signing a contract is not the best way of landing a great deal; they strongly deem that building a connection with their opponent is a lot more important. Even though a written contract makes things seem a lot more definite, this is not the best way of constructing a relationship.

In a recent study performed by the Global Negotiator, researchers found that out of 400 people who were interviewed, 74% of Spanish respondents said that the goal of their negotiation was to sign a contract. 33% of Indian business people said they had the same view, and that it is important to have papers signed in order to build a good business foundation.

Language matters the most

Language matters a lot in business negotiations of all kinds, especially cross-cultural negotiations. All the parties involved have to verify that they understand each other before starting the meeting. In some cases, a translator may be required just to ensure that communication is done right and that there are no misunderstandings. The Swedes for example, are known to have a tough attitude in negotiations. They’re extremely detailed and methodical, and they don’t feel comfortable in challenging positions.

In Sweden, bargaining is not seen as a valued endeavor. Usually, those who negotiate in an attempt of offering a high price just to lower it later on, are not seen as reliable individuals. Both the English and the Americans consider that the term “fair play” doesn’t have an equivalent and that it shouldn’t be used that often when trying to close business agreements. That’s because in a negotiation, it is assumed that all the parties involved walk in to a meeting without any hidden purposes.

In the business environment, and when we say business we refer to domains like marketing, advertising, venture capital, real estate and others, negotiating is an unavoidable endeavor. There’s no way of avoiding, so that’s why business people have to master the art of proper negotiation prior to entering meetings.

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