Impact of Culture on International Business

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A cross-cultural comparison of international business negotiation styles in China and the UK
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Abstract
The current study has been conducted on a cross cultural comparison of the styles of negotiations of the international business that
have been adopted by the business sectors of China and UK. As countries in different geographical locations and culture, the
negotiation styles vary from one another thus the need to find the differences and the extent to which it impacts their respective
business environment.
The paper opens up with the overview to the topic giving a glimpse of the core content to be handled in the process. Further, it focuses
on the problem statement outlining the business concept to be examined as far as bargaining is concerned. In the first chapter, the
research questions, limitation of the study and other components are examined thus completing the introductory part of the paper.
The second chapter focuses on the methodology used in the finding answers to the research question. Within the section, the research
strategies and the target population are outlined to give the understanding of the study population and the authentication of the same.
The study was guided by objectives such as the establishment of the influence of culture on negotiation styles, the evaluation of the
different negotiation styles adopted by the firms in the UK and China, and the evaluation of the differences and similarities of the
negotiation styles of the UK and Chinese firms operating in the financial services sector. The study employed the use of a descriptive
research design in order to evaluate these issues in a comprehensive manner. The data was collected through secondary sources and
data analysis was carried out using Meta analysis. Besides, it highlights the methods used in gathering the information from the

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different cultures and the nature of business negotiation. The fourth chapter examines the data itself while making an analysis of the
findings. Lots of inform is dispelled in the area thus highlighting the negotiation structures and issues therein.
The fifth chapter carries out a conclusion and recommendation to the study while outlining the future scope of the study and its
importance to the global business scenario. The study reveals that culture influences negotiation styles in a significant manner and
concludes that the negotiation styles of the UK and Chinese firms operating in the financial services sector differ significantly due to
the differences in the cultures of the two countries.
Keywords: Negotiation, culture, tradition, research, methodology, data, business.

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Table of Contents
Chapter One: Introduction...............................................................................................................4
1.1 Overview of the Topic......................................................................................................4
1.2 Problem Statement............................................................................................................6
1.3 Aim and Objectives...........................................................................................................8
1.4 Research Questions...........................................................................................................8
1.5 Relevance of the Study.....................................................................................................9
1.6 Scope and Limitations of the Study..................................................................................9
1.7 Dissertation Structure and Contents..................................................................................9
Chapter Two: Research Methodology...........................................................................................10
2.1 Introduction.....................................................................................................................10
2.2 Research Philosophy.......................................................................................................10

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2.3 Research Approach.........................................................................................................12
2.4 Research Choices............................................................................................................15
2.5 Research Strategy............................................................................................................18
2.6 Target Population............................................................................................................19
2.7 Data Collection Procedures.............................................................................................20
2.8 Data Analysis..................................................................................................................21
2.9 Ethical considerations.....................................................................................................21
Chapter Three: Literature Review.................................................................................................23
3.1 Introduction.....................................................................................................................23
3.2 Theoretical Review.........................................................................................................23
3.2.1 Culture in International Business Context...............................................................23
2.2.2 Hofstede’s Cultural Dimensions Theory.................................................................25
3.2.3 Hall’s Cultural Dimensions.....................................................................................29
3.2.4 Business Negotiation Styles....................................................................................34

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3.2.5 Culture and Business Negotiations..........................................................................36
3.2.6 Financial Services Sectors in China and UK...........................................................37
Chapter Four: Data Analysis and Findings....................................................................................39
4.1 Introduction.....................................................................................................................39
4.2 Business Negotiating Styles of UK and China Financial Services Institutions?............40
4.3 Similarities and Differences in the Negotiation Process of Chinese and UK People.....44
4.4 Influence of Culture on Negotiation Styles.....................................................................46
Chapter Five：Conclusions and Recommendations.....................................................................48
5.1 Introduction.....................................................................................................................48
5.2 Conclusions of the Study................................................................................................50
5.3 Recommendations of the Study......................................................................................51
5.4 Objective linking:................................................................................................................52
5.4 Future scope of the study.....................................................................................................55
References......................................................................................................................................57

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Chapter One: Introduction
1.1 Overview of the Topic
According to Shi and Wang (2011), today, businesses continue to expand their operations to international locations as a result of the
modernisation of the business environment due to the continued spread of globalisation and technology. Martin and Nakayama (2013)
notes that this need to expand operations to international locations has resulted in the need for organisations to engage in negotiations
with foreign business partners, and this has therefore increased the importance of the cultural aspect of business negotiations in terms
of how it impacts the styles of negotiations. Soriano (2014) also points out that there is need for the management of multinational
companies to understand that there exist cultural differences between different countries, and thus have the necessary skills and
competence to interact and negotiate with such business partners. According to Martin and Nakayama (2013) some of the common
scenarios of negotiations include during mergers or acquisitions, during the search and selection of appropriate suppliers, sourcing of
funds for particular projects, as well as the negotiations for the terms under which a particular project should be implemented. This
ensures that the organisation is able to achieve the best terms and thus give them an advantage when it comes to the achievement of
their internationalisation goals. Soriano (2011) further adds that this is due to the fact that these cultural differences also lead to
different styles of negotiations and this can affect the multinational businesses if they do not learn the cultural practices of the host
countries as well as the negotiation styles in the new country.